47.304
Determination of delivery terms
FAR 47.304 requires contracting officers to carefully determine and document delivery terms based on shipment origin and destination to ensure clear transportation responsibilities and compliance.
Overview
FAR 47.304 outlines the procedures and considerations for determining appropriate delivery terms in government supply contracts. This section provides guidance on how contracting officers should establish delivery terms based on the origin and destination of shipments, including within the continental United States (CONUS), from CONUS to overseas, and from locations outside CONUS. It also addresses exceptions to standard procedures. The regulation ensures that delivery terms are clearly defined to facilitate proper transportation arrangements, cost responsibility, and risk allocation between the government and contractors.
Key Rules
- General Determination of Delivery Terms
- Contracting officers must assess and specify delivery terms that align with the contract's requirements and the nature of the shipment.
- Shipments within CONUS
- Special considerations apply for shipments that originate and are delivered within the continental United States.
- Shipments from CONUS for Overseas Delivery
- Additional requirements are set for shipments leaving CONUS for overseas destinations, including export and transportation logistics.
- Shipments Originating Outside CONUS
- Contracts involving shipments from outside CONUS must address unique logistical and regulatory challenges.
- Exceptions
- The regulation allows for exceptions to standard delivery terms when justified by contract circumstances or agency needs.
Responsibilities
- Contracting Officers: Must determine and document appropriate delivery terms based on shipment origin and destination, and ensure compliance with applicable regulations.
- Contractors: Must comply with specified delivery terms and coordinate transportation as required by the contract.
- Agencies: Oversee adherence to delivery term requirements and approve exceptions when necessary.
Practical Implications
- This section exists to ensure clarity and consistency in delivery terms, reducing disputes and logistical issues.
- It impacts daily contracting by requiring careful consideration of transportation logistics and cost allocation.
- Common pitfalls include failing to specify delivery terms clearly or misunderstanding responsibilities for transportation and risk.