Capability to Perform a Contract for the Relocation of a Federal Office
Contractors relocating federal offices must have the proper operating authority and facilities for interstate or intrastate moves, and ensure compliance at least 14 days before performance begins.
Overview
FAR 52.247-3 establishes requirements to ensure that contractors performing federal office relocations possess the necessary legal authority and operational capability to conduct interstate or intrastate moves. The clause mandates that contractors (or their subcontracted carriers) hold appropriate and current operating authority from the Federal Motor Carrier Safety Administration for interstate moves, or from the relevant state or District of Columbia for intrastate moves. If no such authority is required, contractors must maintain facilities, equipment, and a business address within the jurisdiction or recognized Commercial Zone. The regulation also sets clear timelines for compliance prior to contract performance and outlines responsibilities when subcontractors are used. An Alternate I version allows for flexibility in intrastate moves if determined to be in the Government’s interest.
Key Rules
- Interstate Moves
- Contractors must have current operating authority from the Federal Motor Carrier Safety Administration.
- Intrastate Moves
- Contractors must have state or D.C. operating authority if required, or maintain facilities and a business address within the jurisdiction or Commercial Zone if not.
- Subcontracted Moves
- If using a subcontractor as carrier, the contractor must ensure the subcontractor meets all applicable requirements.
- Compliance Timing
- Contractors must comply at least 14 days before contract performance, or midway between award and performance if less than 28 days apart.
- Alternate I Clause
- For certain intrastate moves, the contracting officer may waive some requirements if in the Government’s interest.
Responsibilities
- Contracting Officers: Ensure the correct clause (and Alternate I if applicable) is included and verify contractor compliance.
- Contractors: Obtain and maintain required operating authority, facilities, and documentation; ensure subcontractors comply if used.
- Agencies: Oversee compliance and enforce requirements prior to move commencement.
Practical Implications
- This clause ensures only qualified and legally authorized carriers perform federal office relocations, reducing risk and liability for the government.
- Contractors must proactively secure all necessary licenses and maintain operational readiness, or risk disqualification or contract delays.
- Common pitfalls include failing to obtain timely authority, misunderstanding Commercial Zone requirements, or neglecting subcontractor compliance.