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B-196704 1 (1980-08-11)

handle is hein.gao/gaobabjvg0001 and id is 1 raw text is: GAO United States General Accounting Office Office of Washington, DC 20548 General Counsel In Reply Referto: B-196704 AU C. G. Caras General Counsel Maritime Administration U.S. Department of Commerce Washington, D.C. 20230 Dear Mr. Caras: Subject: .Applicability of Cargo Preference Act of 1954 to Subcontractors on Federal Contrac~s? By letter of November 1, 1979, you request that we concur in your opinion that 5 901(b) (1) of the Merchant Marine Act, 1936, as amended, 46 U.S.C. §. 1241(b)(1) (1976) (Cargo Prefer- ence Act), applies to shipments of equipment, materials and commodities by subcontractors and suppliers in the fulfillment, directly or through an intermediate tier, of the ultimate re- quirements of Federal Government procurement contracts for con- struction and supplies. The Cargo Preference Act states in pertinent part that: (1) Whenever the United States shall procure, contract for, or otherwise obtain for its own account . . any eQuipment, materials, or com- modities, within or without the United States . . . the appropriate agency or agencies shall take such steps as may be necessary and prac- ticable to assure that at least 50 per centum Is of the gross tonnage of such equipment, materials, or commodities . ., which may be transported on ocean vessels shall be transported on privately owned United States-flag commercial vessels * * *. [emphasis added] In your submission, you state your belief that the statute's language is general and not limited to the finally a'sembled product. You assert that any manufactured product procured, contracted for or otherwise obtained incorporates items supplied I9