47.305-5 Destination unknown
Source: FAR 47.305-5 on acquisition.gov
When destinations are unknown, solicitations must be f.o.b. origin and include specific provisions and justifications to ensure fair evaluation and control of transportation costs.
Overview
FAR 47.305-5 addresses procedures for solicitations and contracts when the destination for supplies is unknown at the time of solicitation. It provides specific guidance for contracting officers on how to structure solicitations, evaluate transportation costs, and include appropriate provisions and clauses depending on the level of destination certainty.
Key Rules
- F.O.B. Origin for Unknown Destinations
- When destinations are unknown, solicitations must be f.o.b. (free on board) origin only, and the contracting officer must justify this in the contract file.
- Tentative Destinations
- If general user locations can be established, tentative destinations and estimated quantities must be designated for transportation cost evaluation. The provision at 52.247-49 must be included in solicitations, and if shipping weights need control, the solicitation must require carload or truckload shipments (see 52.247-59).
- No Evaluation of Transportation Costs
- If neither exact nor tentative destinations can be established, the provision at 52.247-50 must be included, and the solicitation must state that transportation costs of subsequent shipments must be controlled (see 52.247-61).
Responsibilities
- Contracting Officers: Must determine the level of destination certainty, include required provisions/clauses, justify f.o.b. origin solicitations, and ensure proper evaluation of transportation costs.
- Contractors: Must comply with solicitation provisions regarding shipment terms and transportation cost controls.
- Agencies: Must oversee compliance with these requirements and maintain proper documentation.
Practical Implications
This section ensures fair and consistent evaluation of offers when destinations are unknown, prevents manipulation of transportation costs, and clarifies shipping responsibilities. Common pitfalls include failing to include required provisions or justifications, leading to protest risks or contract administration issues.
(a)
(1) When destinations are unknown, solicitations shall be f.o.b. origin only.
(2) The contracting officer shall include in the contract file justifications for such solicitations.
(b)
(1) When the exact destination of the supplies to be acquired is not known, but the general location of the users can be reasonably established, the acquiring activity shall designate tentative destinations for the purpose of computing transportation costs, showing estimated quantities for each tentative destination.
(2) The contracting officer shall insert in solicitations the provision at 52.247-49, Destination Unknown, when destinations are tentative and only for the purpose of evaluating offers.
(3) If it is necessary to control subsequent shipping weights, the solicitation shall state that subsequent shipments shall be made in carloads or truckloads (see the clause at 52.247-59, F.o.b. Origin-Carload and Truckload Shipments).
(c)
(1) When exact destinations are not known and it is impracticable to establish tentative or general delivery places for the purpose of evaluating transportation costs, the contracting officer shall insert in solicitations the provision at 52.247-50, No Evaluation of Transportation Costs.
(2) The solicitation shall also state that the transportation costs of subsequent shipments must be controlled (see, for example, the clause at 52.247-61, F.o.b. Origin-Minimum Size of Shipments).