47.305-2
Solicitations f.o.b. origin and f.o.b. destination-lowest overall cost
Solicitations must specify acceptable delivery terms and include the required evaluation provision to ensure offers are assessed for the lowest overall cost to the Government.
Overview
FAR 47.305-2 addresses how solicitations should handle offers for goods delivered either f.o.b. (free on board) origin or f.o.b. destination, or both. The regulation requires that solicitations specify if offers may be submitted for either or both delivery terms and clarifies that the evaluation will be based on the lowest overall cost to the Government. When both delivery terms are solicited, the contracting officer must include the provision at 52.247-45, which outlines how offers will be evaluated for cost-effectiveness.
Key Rules
- Solicitation Delivery Terms
- Solicitations should state whether offers may be f.o.b. origin, f.o.b. destination, or both, and that evaluation will be based on lowest overall cost.
- Required Provision for Dual Terms
- If both f.o.b. origin and destination offers are solicited, the contracting officer must include FAR provision 52.247-45 in the solicitation.
Responsibilities
- Contracting Officers: Must specify acceptable delivery terms in solicitations and include the required evaluation provision when both terms are allowed.
- Contractors: Should submit offers according to the specified delivery terms and understand that evaluation will focus on overall cost to the Government.
- Agencies: Ensure solicitations and evaluations comply with these requirements.
Practical Implications
- This section ensures the Government receives the best value by considering total cost, not just price or delivery point. Contractors must be attentive to solicitation instructions and the evaluation basis. Omitting the required provision or misunderstanding delivery terms can lead to noncompliance or disqualification.