47.101 Policies
Source: FAR 47.101 on acquisition.gov
FAR 47.101 mandates efficient, impartial, and compliant transportation of government property, prioritizing commercial carriers and adherence to statutory requirements.
Overview
FAR 47.101 outlines the policies governing the transportation of government property, focusing on the use of commercial and government transportation resources, efficient management, and compliance with statutory requirements. It establishes the preferred use of commercial carriers, sets conditions for using government-owned or leased vehicles, and mandates impartiality in selecting transportation modes and carriers. The section also emphasizes the importance of involving transportation management expertise, supporting small businesses, and adhering to specific statutes like the Fly America Act and Cargo Preference Act. Contracting officers and contract administration offices are given clear responsibilities for ensuring efficient, economical, and compliant transportation of government supplies, both domestically and internationally.
Key Rules
- Use of Bills of Lading
- Domestic shipments should use commercial bills of lading; government bills of lading are reserved for international or special cases.
- Efficient Transportation Management
- CAOs must ensure instructions to contractors promote efficient and economical transportation, with support from transportation personnel.
- Traffic Management Advice
- Contracting officers must seek transportation expertise for solicitations, awards, contract modifications, and property movement.
- Preferred Transportation Methods
- Commercial carriers are preferred; government vehicles may be used only under specific conditions (availability, economy, compliance).
- Impartiality in Carrier Selection
- Agencies must not favor any transportation mode or carrier, except as specifically permitted.
- Small Business Participation
- Agencies must place transportation-related contracts with small businesses as required by FAR Part 19.
- Statutory Compliance
- Agencies must comply with the Fly America Act, Cargo Preference Act, and related statutes for air and ocean transport.
- Shipping Documentation
- Contractors must use appropriate shipping documents as directed when the government pays transportation costs.
Responsibilities
- Contracting Officers: Authorize appropriate bills of lading, seek transportation advice, ensure compliance with statutes, and avoid preferential treatment in carrier selection.
- Contractors: Use prescribed shipping documents, comply with CAO/agency instructions, and support efficient transportation.
- Agencies/CAOs: Oversee efficient transportation, support small business participation, and ensure statutory compliance.
Practical Implications
- This section ensures government shipments are managed efficiently, economically, and lawfully, reducing costs and legal risks.
- Contractors must be prepared to follow specific shipping instructions and documentation requirements.
- Common pitfalls include unauthorized use of government vehicles, failure to comply with statutory requirements, and preferential treatment of carriers.
(a) For domestic shipments, the contracting officer shall authorize shipments on commercial bills of lading (CBL’s). Government bills of lading (GBL’s) may be used for international or noncontiguous domestic trade shipments or when otherwise authorized.
(b) The contract administration office (CAO) shall ensure that instructions to contractors result in the most efficient and economical use of transportation services and equipment. Transportation personnel will assist and provide transportation management expertise to the CAO. Specific responsibilities and details on transportation management are located in the Federal Management Regulation at 41 CFR parts 102-117 and 102-118. (For the Department of Defense, DoD 4500.9-R, Defense Transportation Regulation.)
(c) The contracting officer shall obtain traffic management advice and assistance (see 47.105) in the consideration of transportation factors required for-
(1) Solicitations and awards;
(2) Contract administration, modification, and termination; and
(3) Transportation of property by the Government to and from contractors’ plants.
(d)
(1) The preferred method of transporting supplies for the Government is by commercial carriers. However, Government-owned, leased, or chartered vehicles, aircraft, and vessels may be used if-
(i) They are available and not fully utilized;
(ii) Their use will result in substantial economies; and
(iii) Their use is in accordance with all applicable statutes, agency policies and regulations.
(2) If the three circumstances listed in paragraph (d)(1) of this section apply, Government vehicles may be used for purposes such as-
(i) Local transportation of supplies between Government installations;
(ii) Pickup and delivery services that commercial carriers do not perform in connection with line-haul transportation;
(iii) Transportation of supplies to meet emergencies; and
(iv) Accomplishment of program objectives that cannot be attained by using commercial carriers.
(e) Agencies shall not accord preferential treatment to any mode of transportation or to any particular carrier either in awarding or administering contracts for the acquisition of supplies or in awarding contracts for the acquisition of transportation. (See subparts 47.2 and 47.3 for situations in which the contracting officer is permitted to use specific modes of transportation.)
(f) Agencies shall place with small business concerns purchases and contracts for transportation and transportation-related services as prescribed in part 19.
(g) Agencies shall comply with the requirements for Government-financed air transportation (commonly referred to as the Fly America Act), the Cargo Preference Act, and related statutes as prescribed in subparts 47.4, Air Transportation by U.S.-Flag Carriers, and 47.5, Ocean Transportation by U.S.-Flag Vessels.
(h) When a contract specifies delivery of supplies f.o.b. origin with transportation costs to be paid by the Government, the contractor shall make shipments on bills of lading, or on other shipping documents prescribed by Military Surface Deployment and Distribution Command (SDDC) in the case of seavan containers, either at the direction of or furnished by the CAO or the appropriate agency transportation office.