Annotation and distribution of shipping and billing documents
Clearly defined responsibilities and proper documentation of shipping and billing documents are essential for compliance and maximizing government cost savings in transportation contracts.
Overview
FAR 47.207-9 outlines the requirements for annotating and distributing shipping and billing documents in government contracts involving transportation. It mandates that the contracting officer clearly define the responsibilities of the contractor, agency, and consignee regarding these documents. The section also highlights the importance of cross-referencing bills of lading during mass freight movements to ensure the government receives volume rate benefits. Additionally, it requires the inclusion of the clause at 52.247-28, Contractor’s Invoices, in drayage or other term contracts. This ensures proper documentation, compliance with federal transportation payment and audit regulations, and maximizes cost savings for the government.
Key Rules
- Responsibility Assignment
- Contracting officers must specify in detail who is responsible for annotating and distributing shipping and billing documents (contractor, agency, consignee).
- Cross-Referencing Bills of Lading
- For mass freight movements, bills of lading must be cross-referenced to secure volume rate benefits for the government.
- Required Clause for Drayage/Term Contracts
- The clause at 52.247-28, Contractor’s Invoices, must be included in drayage or other term contracts.
Responsibilities
- Contracting Officers: Clearly define roles for document annotation/distribution, ensure cross-referencing for mass shipments, and include required clauses.
- Contractors: Follow specified procedures for document handling and cross-referencing as outlined in the contract.
- Agencies: Oversee compliance and ensure proper documentation is maintained and distributed.
Practical Implications
- This section ensures clarity in shipping/billing documentation, reduces disputes, and helps the government obtain cost savings through volume rates. Failure to properly annotate or distribute documents can lead to payment delays, audit issues, or lost savings. Contractors must pay close attention to contract instructions and required clauses to remain compliant.