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![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
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