52.247-29
F.o.b. Origin
FAR 52.247-29 requires contractors to deliver goods to the carrier at the origin point, properly prepared and documented, with the Government assuming risk and expense only after that point.
Overview
FAR 52.247-29, F.o.b. Origin, defines the responsibilities of contractors when goods are shipped "free on board" (f.o.b.) origin. Under this clause, the Government takes title and assumes risk of loss once goods are delivered to the carrier at the specified origin point. The contractor is responsible for packing, marking, loading, and delivering the shipment to the carrier in good order, as well as preparing and distributing the required shipping documentation. Special provisions apply for shipments originating in Alaska or Hawaii, and for containerized shipments from Hawaii. The clause ensures that contractors understand their obligations for preparing shipments and transferring risk to the Government at the designated point of origin.
Key Rules
- Definition of F.o.b. Origin
- Contractor delivers goods to a specified point (carrier, wharf, postal facility, or Government-designated location) free of expense to the Government, at which point the Government assumes risk and title.
- Contractor Responsibilities
- Contractors must pack, mark, and prepare shipments per contract or carrier requirements, order appropriate carrier equipment, deliver goods in good condition, and complete and distribute bills of lading or other receipts.
- Risk of Loss
- Contractor is liable for loss or damage before delivery to the carrier, or due to improper packing, marking, or loading.
- Special Provisions for Alaska and Hawaii
- For shipments from Alaska or Hawaii, contractors must deliver to the port of loading or container yard at their expense, with some shipments treated as f.o.b. destination.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and that contractors comply with shipping requirements.
- Contractors: Must properly prepare, document, and deliver shipments to the carrier, and bear responsibility for loss or damage until that point.
- Agencies: Provide necessary shipping documentation and instructions, and oversee compliance with shipping terms.
Practical Implications
- This clause clarifies the point at which risk and expense transfer from contractor to Government, impacting liability and insurance considerations.
- Contractors must be diligent in preparing shipments and documentation to avoid liability for loss or damage.
- Failure to comply with packing, marking, or documentation requirements can result in claims or delays.