52.247-16
Contractor Responsibility for Returning Undelivered Freight
Contractors must follow specific procedures and bear appropriate costs when returning undelivered freight, with liability depending on whether the failure to deliver was their fault.
Overview
FAR 52.247-16 outlines the contractor's responsibilities when freight cannot be delivered under transportation or transportation-related service contracts. The clause distinguishes between undelivered shipments due to the contractor's fault and those due to other reasons, specifying procedures and cost responsibilities for returning such freight.
Key Rules
- Undelivered Freight (No Contractor Fault)
- If a shipment cannot be delivered through no fault of the contractor, the contractor must contact the shipper for instructions. If the shipment is to be returned, the return charges must match the original outbound charges. The shipper must keep records of such goods, and any future claims involving these goods will be adjusted accordingly.
- Undelivered Freight (Contractor Fault)
- If the contractor is at fault for the undelivered shipment, the contractor must return the shipment to the origin at no cost to the Government. Any additional redelivery charges beyond the contract terms are the contractor’s responsibility, as governed by the Default clause.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and monitor compliance.
- Contractors: Follow procedures for undelivered freight, contact shippers, and bear costs as specified based on fault.
- Agencies: Oversee contractor compliance and maintain records for potential claims.
Practical Implications
This clause protects the Government from incurring unnecessary costs for undelivered freight and clarifies cost allocation based on fault. Contractors must have clear procedures for handling undelivered shipments and maintain communication with shippers to avoid disputes and potential claims.