47.303-14
C.i.f. destination
C.i.f. destination requires contractors to deliver goods at no cost to the Government, including transportation and marine insurance, and to provide proof of insurance coverage.
Overview
FAR 47.303-14 defines the delivery term "C.i.f. (Cost, insurance, freight) destination" for government contracts involving ocean shipments. Under this term, the contractor is responsible for delivering goods free of expense to the Government, on board the ocean vessel at the specified destination, with all transportation and marine insurance costs prepaid. The contractor must also provide the Government with an insurance policy or certificate covering the required marine insurance. The contracting officer is required to include the clause at 52.247-42 in solicitations and contracts using this delivery term.
Key Rules
- Definition of C.i.f. Destination
- Contractor delivers goods to the specified destination, covering all transportation and marine insurance costs.
- Contractor Responsibilities
- In addition to standard responsibilities, the contractor must obtain and send the Government proof of marine insurance as specified in the contract.
- Contract Clause Requirement
- The clause at 52.247-42 must be included in contracts using the c.i.f. destination delivery term.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included in relevant contracts and verify insurance requirements are specified.
- Contractors: Must pay for transportation and marine insurance, and provide the Government with the required insurance documentation.
- Agencies: Oversee compliance with delivery and insurance requirements.
Practical Implications
- This section ensures the Government receives goods at the destination without incurring shipping or insurance costs.
- Contractors must coordinate marine insurance and documentation, which can be a common compliance pitfall.
- Proper clause inclusion and documentation are critical for contract performance and risk management.