47.303-3 F.o.b. origin, freight allowed
Source: FAR 47.303-3 on acquisition.gov
"F.o.b. origin, freight allowed" requires contractors to deliver goods at their own expense to a specified origin point, with the Government receiving a freight allowance deduction from the contract price.
Overview
FAR 47.303-3 defines the delivery term "F.o.b. origin, freight allowed" for government contracts. This term means that the contractor delivers goods free of expense to the Government at a specified origin point, such as a carrier's conveyance, wharf, freight station, U.S. Postal Service facility, or another designated point within the same city or commercial zone. The contractor is responsible for arranging delivery to these points, after which the Government assumes responsibility for the goods. Additionally, the contract price is reduced by a freight allowance based on published tariff rates or Government rate tenders between the specified points. Contractor responsibilities mirror those in FAR 47.303-1(b), and the contracting officer must include clause 52.247-31 in applicable contracts.
(a) Explanation of delivery term."F.o.b. origin, freight allowed" means-
(1) Free of expense to the Government delivered-
(i) On board the indicated type or conveyance of the carrier (or of the Government, if specified) at a designated point in the city, county, and State from which the shipments will be made and from which line-haul transportation service (as distinguished from switching, local drayage, or other terminal service) will begin;
(ii) To, and placed on, the carrier’s wharf (at shipside, within reach of the ship’s loading tackle, when the shipping point is within a port area having water transportation service) or the carrier’s freight station;
(iii) To a U.S. Postal Service facility; or
(iv) If stated in the solicitation, to any Government-designated point located within the same city or commercial zone as the f.o.b. origin point specified in the contract (the Federal Motor Carrier Safety Administration prescribes commercial zones at Subpart B of 49 CFR part 372); and
(2) An allowance for freight, based on applicable published tariff rates (or Government rate tenders) between the points specified in the contract, is deducted from the contract price.
(b) Contractor responsibilities. The contractor’s responsibilities are the same as those listed in 47.303-1(b).
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-31, F.o.b. Origin, Freight Allowed, when the delivery term is f.o.b. origin, freight allowed.