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Clauses · DFARS · Supply chain and sourcing

DFARS 252.247-7023 Transportation of Supplies by Sea

Does the regulation require it to flow down?

Yes

Supplies subcontracts of the types in (c)(2) — the famous 'flows down to everyone', now stratified by value

Form
substance, in a two-tier regime under (j): entire clause in subs > SAT ($350k); only (a)–(f) + (j) in subs ≤ SAT
Reaches
all tiers, including commercial products

Checked against acquisition.gov on 2026-08-04 · edition OCT 2024 (Basic, Alt I, Alt II) · base v0.9.3 Read the text ↗

What it makes you produce

2 items for your checklist, slowest first.

  1. Something somebody else has to issue you

    The same day if the issuer is one of your own suppliers, months if it is an assessor or an underwriter.

    • A copy of the carrier's rated on-board ocean bill of lading, within 30 days of the shipment

      Owed when a shipment covered by the clause has moved

      DFARS 252.247-7023(f)

  2. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A notice to the contracting officer and the Maritime Administration saying you intend to ship by sea, naming the contract and the order

      Owed when transportation of supplies by sea is anticipated — within 3 business days after award, or immediately before the departure date needed to meet the schedule, whichever comes first

      DFARS 252.247-7023(b)

When it is used

DoD supplies contracts (the types in (c)(2)), including FAR Part 12, except direct purchase of ocean transportation; no value threshold.

Read closely

(c) is the US-flag requirement itself, (d) and (e) the waiver route where no US-flag vessel is available at a fair and reasonable rate, asked ahead of the shipment rather than after it, and (i) covers sea transport that was not anticipated and turns out to be needed. With no ocean shipment the duty lies dormant, and (j) carries the clause down regardless — the whole clause above the simplified acquisition threshold, (a) through (f) plus (j) at or below it.

The 17 templates that name it, with the line
76CORPDOC 2A — FAR/DFARS Flowdown Provisions for Commercial Products/Services under a DoD Prime ContractLockheed Martinline 178143CORPDOC 3A — FAR/DFARS Flowdown Provisions for Fixed Price Non-Commercial Items under a DoD Prime ContractLockheed Martinline 467155CORPDOC 4A — FAR/DFARS Flowdown Provisions for Cost-Reimbursement/T&M Subcontracts under a DoD Prime ContractLockheed Martinline 502233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 78851Raytheon TC-001 — General Terms and Conditions of PurchaseRTXline 59360Raytheon TC-003 — Supplement 2: Government Contract Provisions from the DFARSRTXline 181166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2545166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2482168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2571255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1404243GD Mission Systems SCM-TMP-048 — T&M Purchase Orders for Non-Commercial Items in Support of a U.S. Government ContractGeneral Dynamicsline 2375240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2885106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 1953273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 1244107Honeywell — Supplemental Provisions Under Fixed Price U.S. Government Contracts for Commercial ItemsHoneywellline 106889AAR Government Services — C40 Purchase Order General Provisions, Non-Commercial Firm Fixed Price Items or ServicesAAR Corpline 3298178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1807

Source: acquisition.gov, DFARS 252.247-7023 and 247.574; 89 FR (2024-09-26) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.