47.303-6
F.o.b. destination
F.o.b. destination requires contractors to deliver goods at their own expense and risk to a specified government location, with the government assuming responsibility only after actual delivery.
Overview
FAR 47.303-6 defines the requirements and responsibilities associated with the delivery term "F.o.b. destination" in government contracts. This term means that the contractor is responsible for delivering goods, at their own expense, to a specified government location, ensuring the shipment arrives in good order and condition. The government is not liable for any delivery-related charges before actual delivery, unless caused by its own actions. The section also outlines specific contractor duties, including packaging, marking, preparing bills of lading, and bearing all delivery costs. Contracting officers are required to include the clause at 52.247-34 in solicitations and contracts using this delivery term.
Key Rules
- Definition of F.o.b. Destination
- Contractor delivers goods free of expense to the government at a specified location, and is responsible for all costs and risks until delivery is complete.
- Delivery Procedures
- Specifies how and where goods must be delivered, including special provisions for rail, motor carrier, and heavy/bulky freight.
- Contractor Responsibilities
- Contractor must pack, mark, prepare bills of lading, deliver in good condition, provide delivery schedules, and pay all delivery charges.
- Contract Clause Requirement
- Contracting officers must include FAR 52.247-34 in contracts specifying F.o.b. destination.
Responsibilities
- Contracting Officers: Must include the correct clause and ensure delivery terms are clear.
- Contractors: Must comply with all delivery, packaging, and documentation requirements, and bear all costs and risks until delivery.
- Agencies: Oversee compliance and resolve any government-caused delivery issues.
Practical Implications
- Ensures the government receives goods at no additional delivery cost or risk.
- Contractors must plan logistics carefully to avoid unexpected expenses or liability.
- Common issues include misunderstanding delivery points, failing to provide proper documentation, or not accounting for special freight requirements.