Permits, Authorities, or Franchises
Contractors must disclose, obtain, and maintain all necessary federal, state, and local transportation authorizations and provide documentation to the Government upon request.
Overview
FAR 52.247-2, "Permits, Authorities, or Franchises," requires offerors (typically transportation or logistics contractors) to disclose whether they hold relevant authorizations from the Federal Highway Administration (FHWA) or other regulatory bodies. If such authorizations exist, offerors must provide details and, upon request, furnish copies to the Government before transporting materials under the contract. Additionally, contractors are responsible for obtaining and maintaining all necessary state and local permits, franchises, and licenses at their own expense. This clause ensures that all transportation activities under government contracts are conducted in compliance with applicable federal, state, and local regulations, reducing legal and operational risks for both the contractor and the Government.
Key Rules
- Disclosure of Authorizations
- Offerors must indicate whether they hold FHWA or other regulatory authorizations and provide details if applicable.
- Provision of Documentation
- Contractors must supply copies of authorizations to the Government if requested, prior to moving materials.
- Obtainment and Maintenance of Permits
- Contractors are responsible for securing and maintaining all required state and local permits, franchises, and licenses at their own cost.
Responsibilities
- Contracting Officers: Must ensure the clause is included in applicable solicitations and verify receipt of required documentation if requested.
- Contractors: Must disclose regulatory authorizations, provide documentation upon request, and obtain/maintain all necessary permits and licenses.
- Agencies: Oversee compliance and may request documentation before contract performance begins.
Practical Implications
- This clause exists to ensure legal compliance in transportation contracts and to protect the Government from liability due to unauthorized operations.
- Contractors must be proactive in securing and maintaining all required authorizations and be prepared to provide proof to the Government.
- Common pitfalls include failure to obtain proper permits or not providing documentation when requested, which can delay contract performance or result in noncompliance.