Disallowance of expenditures.

Federal Acquisition Regulations System 1 2023-10-01 2023-10-01 false Disallowance of expenditures. 47.403-3 Section 47.403-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACT MANAGEMENT TRANSPORTATION Air Transportation by U.S.-Flag Carriers 47.403–3 Disallowance of expenditures. (a) Agencies shall disallow expenditures for U.S. Government-financed commercial international air transportation on foreign-flag air carriers unless there is attached to the appropriate voucher a memorandum adequately explaining why service by U.S.-flag air carriers was not available, or why it was necessary to use foreign-flag air carriers. (b) When the travel is by indirect route or the traveler otherwise fails to use available U.S.-flag air carrier service, the amount to be disallowed against the traveler is based on the loss of revenues suffered by U.S.-flag air carriers as determined under the following formula, which is prescribed and more fully explained in 56 Comp. Gen. 209 (1977): EC03AP91.004 EC03AP91.005 (c) The justification requirement is satisfied by the contractor's use of a statement similar to the one contained in the clause at 52.247–63, Preference for U.S.-Flag Air Carriers. (See 47.405.) [48 FR 42424, Sept. 19, 1983, as amended at 62 FR 237, Jan. 2, 1997]