52.247-1
Commercial Bill of Lading Notations
Contractors must annotate commercial bills of lading with specific language to ensure proper reimbursement of transportation costs under government contracts.
Overview
FAR 52.247-1, Commercial Bill of Lading Notations, requires contractors to properly annotate commercial shipping documents when shipping supplies under a government contract and seeking reimbursement for transportation costs. This clause applies when the Contracting Officer authorizes the use of a commercial bill of lading and the contractor will be reimbursed for transportation as a direct allowable cost. The required notations differ depending on whether the Government is listed as the consignor or consignee. The purpose is to ensure transparency and proper assignment of transportation charges to the Government, facilitating accurate reimbursement and audit trails.
Key Rules
- Annotation Requirement
- Contractors must annotate commercial bills of lading with specific language before shipment, depending on the consignor/consignee status.
- Government as Consignor/Consignee
- If the Government is listed, the annotation must state that charges are assignable to and reimbursable by the Government.
- Government Not as Consignor/Consignee
- If the Government is not listed, the annotation must reference the specific contract and provide contact information for the contract administration office.
Responsibilities
- Contracting Officers: Authorize use of commercial bills of lading and ensure clause inclusion.
- Contractors: Ensure correct notations are made on shipping documents before shipment.
- Agencies: Oversee compliance and provide contract administration contact information.
Practical Implications
- Ensures proper documentation for transportation cost reimbursement.
- Reduces risk of payment disputes or audit issues.
- Common pitfalls include missing or incorrect notations, leading to reimbursement delays or denials.