47.302 Place of delivery-f.o.b. point
Source: FAR 47.302 on acquisition.gov
Contracting officers must select and document appropriate f.o.b. delivery terms based on supply origin and contract requirements, ensuring compliance with FAR 47.304 and proper justification for any deviations.
Overview
FAR 47.302 outlines the requirements for determining the place of delivery and the appropriate f.o.b. (free on board) point in government supply contracts. It directs contracting officers to follow specific policies and procedures for transportation based on whether supplies originate within or outside the Contiguous United States (CONUS), referencing FAR 47.304 for detailed guidance. The section emphasizes that delivery terms should generally align with those prescribed in FAR 47.304, and any deviations must be justified and documented in the contract file. It clarifies that the place of government quality assurance or acceptance does not dictate the delivery term, except when acceptance is at destination, which requires f.o.b. destination terms. The regulation also explains that f.o.b. terms and acceptance locations are independent decisions, and provides guidance on documentation needed for payment when title passes at origin.
Key Rules
- Transportation Policies by Source Location
- Use FAR 47.304-1, -2, and -3 for supplies from CONUS; use 47.304-4 for supplies from outside CONUS, unless specific circumstances require otherwise.
- Solicitation and Award Delivery Terms
- Contracts should generally use delivery terms as prescribed in FAR 47.304, with any exceptions documented and justified.
- Relationship of Acceptance and Delivery Terms
- Acceptance location does not automatically determine f.o.b. terms, except that acceptance at destination requires f.o.b. destination.
- Documentation for Payment
- When title passes at origin, payment requires evidence of shipment, such as a signed bill of lading or other proof.
Responsibilities
- Contracting Officers: Must select appropriate f.o.b. terms, document any deviations, and ensure contract files are properly justified and maintained.
- Contractors: Must comply with specified delivery terms and provide required shipping documentation for payment.
- Agencies: Oversee compliance with delivery term policies and ensure proper documentation is maintained.
Practical Implications
- This section ensures that delivery terms are selected based on logistical, security, and cost considerations, not just administrative convenience.
- Proper documentation and justification are critical for audit and payment purposes.
- Misalignment between acceptance and delivery terms can lead to payment delays or compliance issues.
(a) The policies and procedures in 47.304-1, -2, and -3 govern the transportation of supplies from sources in the Contiguous United States (CONUS), except when identifiable costs, nature of the supplies (security, safety, or value), delivery requirements (premium modes of transport, escorts, transit arrangements, and tentative conditions), or other advantages, limitations, or requirements dictate otherwise. The policies and procedures in 47.304-4 govern the transportation of supplies from sources outside CONUS.
(b) Generally, the contracting officer shall solicit offers, and award contracts, with delivery terms on the basis prescribed in 47.304. The contracting officer shall document the contract file (see 4.801) with justifications for solicitations that do not specify delivery on the basis prescribed in 47.304.
(c)
(1) The place of performance of Government acquisition quality assurance actions and the place of acceptance shall not control the delivery term, except that if acceptance is at destination, transportation shall be f.o.b. destination (see 47.304-1(f)).
(2) The fact that transportation is f.o.b. destination does not alone necessitate changing the place of acceptance from origin to destination; and the fact that acceptance is at origin does not necessitate an f.o.b. origin delivery term. Providing for inspection and acceptance at origin (if appropriate under 46.402), in conjunction with an f.o.b. destination term, may be advantageous to both the Government and the contractor. Acceptance of title at origin by the Government permits payment of the contractor, provided the invoice is supported either by a copy of the signed commercial bill of lading (indicating the carrier’s receipt of the supplies covered by the invoice for transportation to the particular destination specified in the contract) or by other appropriate evidence of shipment to the particular destination for the contractor’s account.