47.207-6 Rates and charges
Source: FAR 47.207-6 on acquisition.gov
FAR 47.207-6 ensures government transportation contracts use fair, transparent rates and require detailed, standardized pricing information in solicitations.
Overview
FAR 47.207-6 outlines the requirements for specifying rates and charges in solicitations and contracts for transportation and transportation-related services. It ensures that the government does not pay more than the contractor's standard or government-tendered rates and provides detailed instructions for structuring rate tables and pricing bases in solicitations. The section also mandates the inclusion of specific FAR clauses and provisions to address various pricing scenarios, such as multiple shipments, graduated weights, and additional services.
Key Rules
- Charges Not to Exceed Public or Government Rates
- Solicitations must state that contract charges cannot exceed those offered to the general public or otherwise tendered to the government.
- Required Clauses
- Contracting officers must include FAR clauses 52.247-17, 52.247-18, 52.247-19, and 52.247-20 as applicable.
- Tabulation of Services and Rates
- Solicitations must include a table listing each required service and its pricing basis, with space for offerors to insert their rates.
- Guidelines for Rate Tabulation
- Detailed instructions are provided for handling different pricing bases, such as hourly rates, graduated weights, multiple origins/destinations, and additional services.
Responsibilities
- Contracting Officers: Must ensure solicitations and contracts include required statements, tables, and clauses; structure rate tables according to the guidelines; and specify conditions for additional services.
- Contractors: Must provide rates in the format specified and ensure charges do not exceed those offered to the public or government.
- Agencies: Oversee compliance with solicitation and contract requirements for rates and charges.
Practical Implications
- This section ensures transparency and fairness in transportation pricing for government contracts, prevents overcharging, and standardizes how rates are solicited and evaluated. Contractors must pay close attention to the required formats and clauses to avoid compliance issues, and contracting officers must carefully structure solicitations to capture all necessary pricing information.
(a)
(1) The contracting officer shall include in the solicitation a statement that the charges in the contract shall not exceed the contractor’s charges for the same service that is-
(i) Available to the general public; or
(ii) Otherwise tendered to the Government.
(2) The contracting officer shall insert the clause at 52.247-17, Charges.
(b) The contracting officer shall include in the solicitation a tabulation listing each required service and the basis for the rate (price); e.g.,"unit of weight" or "per work-hour," leaving sufficient space for offerors to insert the rates offered for each service.
(c) The following guidelines apply to the composition of a tabulation of transportation or of transportation-related services and their rate (price) bases:
(1) Combination of pricing bases. If various types of services with different bases for assessing charges are required under the same contract, show each service separately and the applicable basis for that service.
(2) Hourly rate basis. If charges are based on an hourly rate, state the method for charging for fractions of an hour; e.g.-
(i) A period of 30 minutes or less is charged at one-half the hourly rate; and
(ii) The hourly rate applies to any portion of an hour that exceeds 30 minutes.
(3) Shipments of varying weights. If charges are based on weight and shipments will vary in weight, request rates on a graduated weight basis. Include a table of graduated weights for offerors to insert rates.
(4) Multiple origins and/or destinations. Specify whether rates are requested for each origin and/or each destination or for specific groups of origins and/or destinations.
(5) Multiple shipments from one origin. If multiple shipments will be tendered at one time to the contractor for delivery to two or more consignees at the same destination, request the rate applicable to the aggregate weight. If such shipments are for delivery to various destinations along the route between origin and last destination, request the rate applicable to the aggregate weight and a stopoff charge for each intermediate destination.
(i) The contracting officer shall insert the clause at 52.247-18, Multiple Shipments, when multiple shipments are tendered at one time to the contractor for transportation from one origin to two or more consignees at the same destination.
(ii) The contracting officer shall insert the clause at 52.247-19, Stopping in Transit for Partial Unloading, when multiple shipments are tendered at one time to the contractor for transportation from one origin to two or more consignees along the route between origin and last destination.
(6) Estimated quantities or weights. The contracting officer shall insert in solicitations the provision at 52.247-20, Estimated Quantities or Weights for Evaluation of Offers, when quantities or weights of shipments between each origin and destination are not known, stating estimated quantity or weight for each origin/destination pair.
(7) Additional services. If services in addition to those covered in the basic rate are anticipated; e.g., inside delivery, state the conditions under which payment will be made for those services.