47.305-16 Shipping characteristics
Source: FAR 47.305-16 on acquisition.gov
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.
(a) Required shipping weights. The contracting officer shall insert in solicitations and contracts the clause at 52.247-59, F.o.b. Origin-Carload and Truckload Shipments, when it is contemplated that they may result in f.o.b. origin contracts with shipments in carloads or truckloads. This will facilitate realistic freight cost evaluations of offers and ensure that contractors produce economical shipments of agreed size.
(b) Guaranteed shipping characteristics.
(1) The contracting officer shall insert in solicitations and contracts, excluding those at or below the simplified acquisition threshold, the clause at 52.247-60, Guaranteed Shipping Characteristics, when shipping and other characteristics are required to evaluate offers as to transportation costs. When all of the shipping characteristics listed in paragraph (a) of the clause at 52.247-60 are not required to evaluate offers as to transportation costs, the contracting officer shall delete the characteristics not required from the clause.
(2) The award document shall show the shipping characteristics used in the evaluation.
(c) Minimum size of shipments. When volume rates may apply, the contracting officer shall insert in solicitations and contracts the clause at 52.247-61, F.o.b. Origin-Minimum Size of Shipments.
(d) Specific quantities unknown.
(1) When total requirements and destinations to which shipments will be made are known, but the specific quantity to be shipped to each destination cannot be predetermined, solicitations shall state that offers are to be submitted on the basis of delivery "f.o.b. origin" and/or "f.o.b. destination" and that offers will be evaluated on both bases.
(2) The contracting officer shall insert in solicitations and contracts the clause at 52.247-62, Specific Quantities Unknown, when total requirements and destinations to which shipments will be made are known, but the specific quantity to be shipped to each destination cannot be predetermined. This clause protects the interests of both the Government and the contractor during the course of the performance of the contract.