47.304-2
Shipments within CONUS
Solicitations for shipments within CONUS must allow both f.o.b. origin and destination offers, with selection based on lowest total cost, and any deviation must be justified in writing.
Overview
FAR 47.304-2 addresses the requirements for shipments within the Continental United States (CONUS). It mandates that solicitations must allow offers to be submitted on the basis of either or both f.o.b. (free on board) origin and f.o.b. destination, with evaluation based on the lowest overall cost to the Government. If this policy is not followed, the contracting officer must document the contract file with the reasons for deviation. This ensures transparency and cost-effectiveness in government shipping arrangements within CONUS.
Key Rules
- Solicitation Requirements
- Solicitations must permit offers for both f.o.b. origin and f.o.b. destination, or either, and must evaluate offers based on the lowest total cost to the Government.
- Deviation Documentation
- If the standard policy is not followed, the contract file must include a documented justification for the exception.
Responsibilities
- Contracting Officers: Must structure solicitations to allow both f.o.b. origin and destination offers, evaluate based on lowest cost, and document any deviations.
- Contractors: Should be prepared to submit offers on either or both f.o.b. terms and understand how their offers will be evaluated.
- Agencies: Must ensure compliance and maintain proper documentation for any deviations from the policy.
Practical Implications
- This section ensures the Government receives the most cost-effective shipping arrangements within CONUS.
- Contractors benefit from flexibility in how they propose shipments.
- Failure to document deviations can result in compliance issues during audits or reviews.