Subpart 47.3
Transportation in Supply Contracts
FAR Subpart 47.3 ensures that transportation and delivery terms are clearly defined and properly evaluated in government supply contracts, directly impacting contract performance and cost.
Overview
FAR Subpart 47.3, "Transportation in Supply Contracts," establishes the policies and procedures for addressing transportation requirements in government supply contracts. It covers how delivery terms are determined, the use of standard delivery clauses (such as f.o.b. origin or destination), and the evaluation of transportation factors in solicitations and contract awards. The subpart guides contracting officers in specifying delivery points, incorporating appropriate clauses, and considering transportation costs and logistics when evaluating offers. It also outlines the responsibilities for determining the most advantageous delivery terms and ensuring that transportation requirements are clearly communicated to contractors.
Key Rules
- Scope and General Guidance
- Defines the applicability of transportation requirements in supply contracts and provides general principles for their inclusion.
- Place of Delivery and F.O.B. Point
- Details how to specify the place of delivery and the use of f.o.b. (free on board) terms, which determine when title and risk pass to the government.
- Standard Delivery Terms and Clauses
- Requires the use of standard contract clauses for delivery and transportation, ensuring consistency and clarity.
- Determination of Delivery Terms
- Outlines procedures for selecting the most advantageous delivery terms based on cost, efficiency, and government needs.
- Solicitation Provisions and Transportation Factors
- Mandates the inclusion of relevant solicitation provisions and the consideration of transportation costs in offer evaluation.
Responsibilities
- Contracting Officers: Must determine and specify delivery terms, include appropriate clauses, and evaluate transportation factors.
- Contractors: Must comply with specified delivery terms and provide required transportation information.
- Agencies: Oversee compliance and ensure transportation requirements are met efficiently and cost-effectively.
Practical Implications
- Ensures that transportation and delivery terms are clearly defined in supply contracts, reducing disputes and misunderstandings.
- Impacts how offers are evaluated, as transportation costs can affect total contract value.
- Common issues include miscommunication of delivery points, improper use of f.o.b. terms, and failure to consider transportation costs in evaluations.