Consolidation of small shipments and the use of stopoff privileges
Consolidating small shipments and using stopoff privileges can significantly reduce transportation costs and improve delivery efficiency in government contracts.
Overview
FAR 47.305-8 addresses the consolidation of small shipments and the use of stopoff privileges to optimize transportation efficiency and reduce costs in government contracting. The regulation encourages contracting officers to work with transportation offices and requiring activities to revise delivery schedules, allowing for the consolidation of small shipments into larger lots. This approach can lead to significant savings in transportation expenses. Additionally, when supplies are destined for multiple locations, the regulation requires the use of stopoff privileges—where carriers allow partial unloading at points along the delivery route—whenever feasible. This further streamlines delivery operations and maximizes cost-effectiveness.
Key Rules
- Consolidation of Small Shipments
- Contracting officers may revise delivery schedules to combine small shipments into larger lots after consulting with relevant offices, aiming to lower transportation costs.
- Use of Stopoff Privileges
- When delivering to multiple destinations, delivery schedules should be consolidated and stopoff privileges under carrier tariffs should be used for partial unloading at intermediate points, if feasible.
Responsibilities
- Contracting Officers: Consult with transportation and requiring offices to revise delivery schedules for consolidation and ensure use of stopoff privileges when possible.
- Contractors: Must comply with revised delivery schedules and facilitate consolidated shipments and stopoff arrangements as directed.
- Agencies: Oversee and support the coordination between contracting, transportation, and requiring offices to achieve cost-effective delivery solutions.
Practical Implications
- This regulation exists to reduce transportation costs and improve logistical efficiency in government shipments.
- It impacts daily contracting by requiring proactive coordination and flexibility in delivery planning.
- Common pitfalls include failing to consult all relevant parties or missing opportunities to consolidate shipments, leading to unnecessary expenses.