F.o.b. origin, freight allowed
"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.