47.303
Standard delivery terms and contract clauses
FAR 47.303 requires the use of standardized delivery terms and clauses to clearly define transportation responsibilities and risks in government supply contracts.
Overview
FAR 47.303 outlines the standard delivery terms and associated contract clauses used in government supply contracts. It references specific clauses (47.303-1 through 47.303-17) that define various delivery arrangements, such as F.O.B. (Free On Board) origin, destination, and other international shipping terms. The section also notes that special attention should be paid to 47.300 regarding the applicability of these terms to cost-reimbursement contracts. These standard terms clarify the responsibilities for transportation costs, risk of loss, and delivery points, ensuring both parties understand their obligations in the shipping process.
Key Rules
- Standard Delivery Terms
- Contracting officers must use the appropriate standard delivery term from 47.303-1 through 47.303-17 based on the contract’s requirements.
- Applicability to Cost-Reimbursement Contracts
- Reference 47.300 to determine if and how these terms apply to cost-reimbursement contracts.
Responsibilities
- Contracting Officers: Select and incorporate the correct delivery term clause into each contract; ensure terms align with contract type and requirements.
- Contractors: Understand and comply with the delivery obligations specified in the contract clause.
- Agencies: Oversee proper application of delivery terms and ensure compliance with FAR requirements.
Practical Implications
- This section standardizes delivery terms, reducing ambiguity and disputes over shipping responsibilities.
- Contractors must be familiar with the specific delivery term used in their contract to avoid misunderstandings about risk, cost, and delivery obligations.
- Misapplication of delivery terms can lead to compliance issues, increased costs, or disputes over loss or damage during transit.