47.104-4
Contract clauses
Include clause 52.247-1 in cost-reimbursement and most fixed-price f.o.b. origin contracts to secure government transportation rates and ensure compliance.
Overview
FAR 47.104-4 outlines when to include the clause at 52.247-1, Commercial Bill of Lading Notations, in government contracts to ensure the application of special government transportation rates under 49 U.S.C. 10721 and 13712. This clause is mandatory for cost-reimbursement contracts and fixed-price f.o.b. origin contracts above the simplified acquisition threshold, and may be used at the contracting officer's discretion for contracts at or below the threshold if f.o.b. origin delivery is anticipated. The regulation ensures that government shipments benefit from statutory transportation rates, reducing costs and ensuring compliance with federal law.
Key Rules
- Mandatory Clause Inclusion
- Insert clause 52.247-1 in cost-reimbursement contracts and fixed-price f.o.b. origin contracts (except those at or below the simplified acquisition threshold).
- Discretionary Clause Inclusion
- Contracting officers may include the clause in contracts at or below the simplified acquisition threshold if f.o.b. origin delivery is expected.
Responsibilities
- Contracting Officers: Must include the specified clause in applicable contracts and consider its use for smaller contracts with f.o.b. origin terms.
- Contractors: Must comply with the requirements of clause 52.247-1 when it is included in their contract.
- Agencies: Ensure oversight of clause inclusion and compliance with statutory transportation rate requirements.
Practical Implications
- Ensures government contracts benefit from reduced transportation rates.
- Failure to include the clause where required can result in higher shipping costs or noncompliance.
- Contracting professionals must carefully assess contract type and delivery terms to determine clause applicability.