47.303-9 F.o.b. vessel, port of shipment
Source: FAR 47.303-9 on acquisition.gov
F.o.b. vessel, port of shipment requires contractors to deliver goods fully loaded on board an ocean vessel at the specified port, bearing all costs and risks until that point.
Overview
FAR 47.303-9 defines the responsibilities and requirements for contracts specifying delivery terms as "F.o.b. vessel, port of shipment." Under this term, the contractor must deliver goods free of expense to the Government, loaded, stowed, and trimmed on board an ocean vessel at the specified port. The regulation outlines detailed contractor obligations for packaging, marking, delivery, documentation, and liability for goods prior to loading. It also mandates the use of a specific contract clause (52.247-37) when this delivery term is used.
Key Rules
- Definition of F.o.b. Vessel, Port of Shipment
- Delivery is complete when goods are loaded, stowed, and trimmed on board the vessel at the specified port, with no expense to the Government.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract or carrier requirements, deliver goods on board in good order, pay all loading charges, provide clean shipping documents, and bear risk of loss until loading.
- Documentation and Assistance
- Contractors must provide a clean ship’s receipt or on-board bill of lading and assist with export/import documentation at the Government’s request and expense.
- Contract Clause Requirement
- The contracting officer must include clause 52.247-37 in contracts using this delivery term.
Responsibilities
- Contracting Officers: Must include the specified clause in applicable contracts.
- Contractors: Must ensure proper packaging, timely delivery, payment of loading charges, provision of required documents, and risk management up to loading.
- Agencies: Oversee compliance and may request assistance with export/import documentation.
Practical Implications
This section clarifies the point at which risk and cost transfer from contractor to Government for ocean shipments, ensuring clear allocation of responsibilities. Contractors must be diligent in packaging, documentation, and timing to avoid liability for loss or damage before loading. Failure to comply can result in disputes, delays, or additional costs.
(a) Explanation of delivery term."F.o.b. vessel, port shipment" means free of expense to the Government loaded, stowed, and trimmed on board the ocean vessel 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 on board the ocean vessel in good order and condition on the date or within the period fixed; and
(ii) Pay and bear all charges incurred in placing the shipment actually on board;
(3) Provide a clean ship’s receipt or on-board ocean bill of lading;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment on board the ocean vessel; 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 52.247-37, F.o.b. Vessel, Port of Shipment, when the delivery term is f.o.b. vessel, port of shipment.