F.a.s. vessel, port of shipment
Contractors must deliver goods alongside the specified vessel at the port, bearing all costs and risks up to that point, and comply with all packing, marking, and documentation requirements.
Overview
FAR 47.303-8 defines the responsibilities and requirements for contracts using the "f.a.s. vessel, port of shipment" (Free Alongside Ship) delivery term. Under this term, the contractor must deliver goods alongside the designated ocean vessel at the specified port, free of expense to the Government up to that point. The contractor is responsible for packing, marking, and preparing the shipment according to contract or carrier requirements, delivering the goods in good order, and covering all costs up to delivery alongside the vessel. The contractor must also provide a clean dock or ship’s receipt, bear the risk of loss or damage until delivery, and assist with export/import documentation at the Government’s request and expense. Contracting officers are required to include the clause at 52.247-36 in applicable solicitations and contracts.
Key Rules
- Definition of F.a.s. Vessel, Port of Shipment
- Delivery is complete when goods are placed alongside the vessel at the specified port, within reach of the vessel’s loading equipment, and at no cost to the Government up to that point.
- Contractor Responsibilities
- Contractors must pack, mark, and prepare shipments per contract or carrier requirements, deliver goods in good condition, pay all charges up to delivery, provide required receipts, and assist with documentation as needed.
- Risk of Loss
- The contractor is responsible for any loss or damage to goods until they are delivered alongside the vessel.
- Contract Clause Requirement
- The clause at 52.247-36 must be included in contracts using this delivery term.
Responsibilities
- Contracting Officers: Must ensure the correct clause is included in contracts and verify contractor compliance with delivery requirements.
- Contractors: Must fulfill all delivery, packing, marking, cost, and documentation obligations up to the point of delivery alongside the vessel.
- Agencies: Oversee compliance and ensure proper documentation and risk transfer.
Practical Implications
- This section clarifies the point at which risk and cost transfer from contractor to Government, reducing disputes over delivery obligations and liability. Contractors must be diligent in preparing shipments and managing logistics to avoid delays, extra costs, or claims for loss or damage before delivery.