52.247-16 Contractor Responsibility for Returning Undelivered Freight
Source: FAR 52.247-16 on acquisition.gov
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.
As prescribed in 47.207-5(f), insert the following clause in solicitations and contracts for transportation or for transportation-related services when the contractor is responsible for returning undelivered freight:
Contractor Responsibility for Returning Undelivered Freight (Apr 1984)
(a) When, through no fault of the Contractor, a shipment cannot be delivered, the Contractor shall contact the shipper for disposition instructions. If the shipment is ordered returned to the origin point, the charges assessed for the return trip shall be the same as the charges assessed for the outbound trip. The shipper shall maintain a record of the goods that, through no fault of the Contractor, could not be delivered and are returned to the shipper. If, at a future date, the returned goods are determined to be related to a claim against the Contractor, the claim will be adjusted accordingly.
(b) When, through the fault of the Contractor, a shipment cannot be delivered, the Contractor shall return the shipment to the origin point at no charge to the Government. Any charges incurred for redelivery, which are in excess of the charges that would have been incurred under this contract, shall be for the Contractor’s account in accordance with the Default clause of the contract.
(End of clause)