47.305-16
Shipping characteristics
FAR 47.305-16 mandates the inclusion of specific shipping clauses in contracts to ensure accurate freight cost evaluation and protect both government and contractor interests when shipping details are variable.
Overview
FAR 47.305-16 outlines requirements for including specific shipping-related clauses in solicitations and contracts when shipments are expected to be made in carloads or truckloads, or when shipping characteristics are necessary for evaluating transportation costs. The regulation ensures that freight costs are realistically evaluated, shipments are economical, and both government and contractor interests are protected when shipment quantities or characteristics are uncertain.
Key Rules
- Required Shipping Weights (52.247-59)
- Insert this clause when f.o.b. origin contracts with carload or truckload shipments are anticipated, to enable accurate freight cost evaluation and promote economical shipment sizes.
- Guaranteed Shipping Characteristics (52.247-60)
- For contracts above the simplified acquisition threshold, include this clause when shipping characteristics are needed for transportation cost evaluation. Remove any characteristics from the clause that are not required for evaluation. The award document must reflect the characteristics used.
- Minimum Size of Shipments (52.247-61)
- Use this clause when volume rates may apply, to specify minimum shipment sizes.
- Specific Quantities Unknown (52.247-62)
- When total requirements and destinations are known but specific quantities per destination are not, solicitations must require offers on both f.o.b. origin and destination bases, and include this clause to protect both parties.
Responsibilities
- Contracting Officers: Must include the appropriate clauses in solicitations and contracts, tailor clauses as needed, and ensure award documents reflect evaluated shipping characteristics.
- Contractors: Must comply with the shipping requirements and characteristics specified in the contract clauses.
- Agencies: Ensure oversight of clause inclusion and compliance with shipping evaluation procedures.
Practical Implications
- This section ensures fair and realistic evaluation of transportation costs and protects both parties when shipment details are uncertain. Contractors must pay close attention to shipping clauses and provide accurate shipping data. Common pitfalls include failing to include required clauses or not tailoring them to the contract’s needs, which can lead to disputes or improper cost evaluations.