47.104-5
Citation of Government rate tenders
Always endorse bills of lading with the applicable Government rate tender when using special Government transportation rates under 49 U.S.C. 10721 or 13712.
Overview
FAR 47.104-5 requires that when transportation services are procured under the special Government rates authorized by 49 U.S.C. 10721 and 13712, the applicable Government rate tender must be clearly cited on the bill of lading. This obligation applies to both transportation offices and contractors, depending on who is responsible for preparing the shipping documentation. The purpose is to ensure that the correct, often reduced, Government rates are applied and properly documented for audit and payment purposes.
Key Rules
- Citation Requirement
- The specific Government rate tender must be identified by endorsement on the bill of lading whenever 49 U.S.C. 10721 and 13712 rates are used.
- Responsibility
- Either the transportation office or the contractor, as appropriate, must ensure this citation is made.
Responsibilities
- Contracting Officers: Ensure contractors are aware of and comply with the requirement to cite Government rate tenders.
- Contractors: Properly endorse bills of lading with the applicable Government rate tender when shipping under these rates.
- Agencies: Oversee compliance and maintain documentation for audit purposes.
Practical Implications
- This regulation ensures that the Government receives the benefit of special transportation rates and that these rates are properly documented for payment and audit. Failure to cite the correct rate tender can result in payment issues, audit findings, or loss of preferential rates. Contractors and transportation offices must be diligent in completing shipping documentation accurately.