47.303-8 F.a.s. vessel, port of shipment
Source: FAR 47.303-8 on acquisition.gov
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.
(a) Explanation of delivery term."F.a.s. vessel, port of shipment" means free of expense to the Government delivered alongside the ocean vessel and within reach of its loading tackle at the specified port of shipment.
(b) Contractor responsibilities. The contractor shall-
(1)
(i) Pack and mark the shipment to comply with contract specifications; or
(ii) In the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;
(2)
(i) Deliver the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at the point of delivery and on the date or within the period specified in the contract; and
(ii) Pay and bear all applicable charges, including transportation costs, wharfage, handling, and heavy lift charges, if necessary, up to this point;
(3) Provide a clean dock or ship’s receipt;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point specified in the contract; and
(5) At the Government’s request and expense, assist in obtaining the documents required for-
(i) Exportation; or
(ii) Importation at destination.
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-36, F.a.s. Vessel, Port of Shipment, when the delivery term is f.a.s. vessel, port of shipment.