F.o.b. origin, freight prepaid
Contractors must deliver goods at the specified origin point and prepay all freight charges, providing proper documentation as required by the contract.
Overview
FAR 47.303-4 defines the delivery term "F.o.b. origin, freight prepaid" for government contracts. Under this term, the contractor is responsible for delivering goods free of expense to the Government at a specified origin point and prepaying all freight charges to the designated location. The regulation clarifies acceptable delivery points, such as the carrier's conveyance, wharf, freight station, U.S. Postal Service facility, or another Government-designated point within the same commercial zone. Contractors must prepare commercial bills of lading or other transportation receipts and ensure all freight charges are prepaid as specified in the contract. Contracting officers are required to include the clause at 52.247-32 in solicitations and contracts using this delivery term.
Key Rules
- Definition of F.o.b. Origin, Freight Prepaid
- Contractor delivers goods at the origin point and prepays transportation costs to the specified destination.
- Acceptable Delivery Points
- Delivery can be to a carrier's conveyance, wharf, freight station, USPS facility, or a Government-designated point within the commercial zone.
- Contractor Responsibilities
- Prepare commercial bills of lading or transportation receipts and prepay all freight charges as required.
- Required Contract Clause
- Clause 52.247-32 must be included in contracts with this delivery term.
Responsibilities
- Contracting Officers: Must include the correct clause and specify delivery points.
- Contractors: Must deliver goods as specified, prepay freight, and provide required documentation.
- Agencies: Ensure compliance with delivery and freight payment requirements.
Practical Implications
This section ensures the Government receives goods at the origin point without incurring initial freight costs, shifting the responsibility for freight payment and documentation to the contractor. Contractors must be diligent in understanding delivery points, preparing proper shipping documents, and prepaying freight to avoid compliance issues or payment delays.