47.303-1
F.o.b. origin
F.o.b. origin requires contractors to deliver goods to a specified point at the origin, bearing all costs and risks up to that point, and to comply with strict packing, loading, and documentation requirements.
Overview
FAR 47.303-1 defines the responsibilities and procedures for shipments designated as "F.o.b. origin" (Free on Board origin) in government contracts. Under this term, the contractor is responsible for delivering goods to a specified point (such as a carrier, wharf, or postal facility) at the origin location, free of expense to the Government up to that point. The section details contractor obligations for packing, marking, ordering carrier equipment, loading, liability for loss or damage, and documentation. It also mandates the use of the clause at 52.247-29 in contracts using this delivery term.
Key Rules
- Definition of F.o.b. Origin
- Contractor delivers goods to a specified point at origin (carrier, wharf, postal facility, or designated Government point) without cost to the Government up to that point.
- Contractor Responsibilities
- Contractor must pack, mark, and prepare shipments per contract or carrier requirements, order appropriate carrier equipment, deliver goods in good order, and load shipments as required.
- Contractor is liable for loss or damage before delivery to the carrier or due to improper packing, marking, or loading.
- Contractor must complete and distribute bills of lading or other transportation receipts with required information.
- Contract Clause Requirement
- Contracting officers must include clause 52.247-29 in solicitations and contracts specifying f.o.b. origin delivery.
Responsibilities
- Contracting Officers: Ensure the correct clause is included in contracts and solicitations.
- Contractors: Fulfill all delivery, packing, loading, documentation, and liability requirements up to the f.o.b. origin point.
- Agencies: Provide necessary instructions and oversight for documentation and delivery points.
Practical Implications
- This section clarifies where contractor responsibility ends and Government responsibility begins for transportation costs and risks.
- Proper compliance ensures smooth shipment, minimizes disputes over loss/damage, and supports accurate billing and delivery records.
- Common pitfalls include incomplete documentation, improper packing, or misunderstanding the delivery point, leading to liability or payment issues.