47.304-4 Shipments originating outside CONUS
Source: FAR 47.304-4 on acquisition.gov
For overseas-originating shipments, contracting officers must select the most advantageous f.o.b. terms and consult transportation officers to ensure cost-effective and compliant delivery.
Overview
FAR 47.304-4 addresses the requirements for shipments of supplies originating outside the Continental United States (CONUS) that are destined for delivery within CONUS or elsewhere. The regulation mandates that, unless there are valid exceptions, such acquisitions must be made on either an f.o.b. origin or f.o.b. destination basis, depending on which is more advantageous to the Government. The contracting officer is required to consult with the transportation officer to determine the most suitable delivery point, taking into account factors such as the use of Government transportation, reduced shipping rates, licensing or customs requirements, and the availability of U.S. flag shipping services. This ensures that the Government secures the most cost-effective and compliant shipping arrangements for overseas-originating supplies.
Key Rules
- F.o.b. Terms Selection
- Shipments from outside CONUS must be acquired on an f.o.b. origin or f.o.b. destination basis, whichever benefits the Government most, unless exceptions apply.
- Transportation Officer Consultation
- Contracting officers must seek advice from the transportation officer to determine the optimal delivery location, considering Government transportation, rates, licensing, customs, and U.S. flag shipping availability.
Responsibilities
- Contracting Officers: Must select the most advantageous f.o.b. terms and consult with the transportation officer before specifying delivery points.
- Contractors: Must comply with the specified f.o.b. terms and delivery instructions.
- Agencies: Should ensure oversight of compliance with shipping and delivery requirements, including use of U.S. flag vessels when applicable.
Practical Implications
- This section ensures that overseas shipments are managed efficiently and in the Government's best interest.
- It impacts daily contracting by requiring careful consideration of shipping terms and coordination with transportation officers.
- Common pitfalls include failing to consult transportation officers or overlooking cost-saving shipping options and regulatory requirements.
(a) Unless there are valid reasons to the contrary (see 47.304-5), acquisition of supplies originating outside CONUS for ultimate delivery to destinations within CONUS or elsewhere, regardless of the quantity of the shipments, shall be on the basis of f.o.b. origin or f.o.b. destination, whichever is more advantageous to the Government.
(b) The contracting officer shall request the advice of the transportation officer to determine the most appropriate place of delivery to be specified in acquisition documents, giving full consideration to the possible use of Government transportation facilities, reduced rates available, special licensing or custom requirements, and availability of U.S. flag shipping services between the points involved (see subpart 47.5).