Quantity analysis, direct delivery, and reduction of crosshauling and backhauling
Contracting officers must proactively optimize transportation logistics by analyzing quantities, considering direct delivery, and minimizing inefficient shipping routes to reduce costs.
Overview
FAR 47.305-7 outlines requirements for government contracting professionals to optimize transportation and delivery logistics when acquiring supplies. The regulation emphasizes analyzing quantity purchases, considering direct delivery to end users, and minimizing inefficient transportation practices such as crosshauling and backhauling. The goal is to reduce overall transportation costs and improve supply chain efficiency without negatively impacting program schedules.
Key Rules
- Quantity Analysis
- Requiring activities must consider purchasing in carload or truckload quantities to leverage transportation efficiencies. If additional quantities can be shipped at lower unit costs or with minimal total cost increase, contracting officers must check for known future requirements to potentially consolidate orders.
- Direct Delivery
- When supplies are typically shipped to a central point for redistribution, contracting officers should evaluate if direct delivery from the contractor to the end user is feasible and cost-effective.
- Reduction of Crosshauling and Backhauling
- Contracting officers must select distribution and transshipment points that minimize the movement of goods in opposite directions or unnecessary returns through previously traversed areas.
Responsibilities
- Contracting Officers: Must coordinate with requiring activities to analyze quantities, assess direct delivery options, and select efficient distribution points.
- Contractors: Should be prepared to support direct delivery and provide information on shipment quantities and logistics.
- Agencies: Oversee compliance with transportation efficiency requirements and ensure program schedules are not adversely affected.
Practical Implications
This section exists to ensure government supply acquisitions are logistically efficient and cost-effective. It impacts daily contracting by requiring proactive planning and coordination between contracting officers and requiring activities. Common pitfalls include failing to consider future requirements, overlooking direct delivery opportunities, or selecting inefficient distribution routes.