F.o.b. destination solicitations
Contracting officers must clearly specify and enforce F.o.b. destination requirements in solicitations, including proper clauses and offer instructions, to ensure compliant and responsive bids.
Overview
FAR 47.305-4 provides guidance for contracting officers on preparing solicitations that specify F.o.b. (Free on Board) destination delivery terms. It directs officers to reference FAR 47.303 for the appropriate clauses, mandates clear instructions when only F.o.b. destination offers are acceptable, and requires the inclusion of a specific clause (52.247-48) when inspection and acceptance occur at origin, even though delivery is F.o.b. destination. This ensures clarity in solicitation requirements and proper handling of shipping responsibilities and documentation.
Key Rules
- Reference to FAR 47.303
- Contracting officers must consult FAR 47.303 to select the correct F.o.b. destination clauses for solicitations.
- Exclusive F.o.b. Destination Offers
- Solicitations must state that only F.o.b. destination offers are acceptable and that any other basis will be rejected as nonresponsive if this is required.
- Inspection and Acceptance at Origin
- If inspection and acceptance are at origin but delivery is F.o.b. destination, the clause at 52.247-48 must be included in the solicitation and contract.
Responsibilities
- Contracting Officers: Ensure proper clauses are referenced and included, and clearly state offer requirements in solicitations.
- Contractors: Submit offers on an F.o.b. destination basis when required and comply with documentation requirements if inspection/acceptance is at origin.
- Agencies: Oversee compliance with solicitation and contract clause requirements.
Practical Implications
- This section ensures that delivery terms are clear and enforceable, reducing disputes over shipping responsibilities.
- Contractors must pay close attention to solicitation instructions to avoid nonresponsive offers.
- Proper clause inclusion is critical for compliance and smooth contract administration.