52.247-3 Capability to Perform a Contract for the Relocation of a Federal Office
Source: FAR 52.247-3 on acquisition.gov
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.
As prescribed in 47.207-1(b), insert the following clause in solicitations and contracts for transportation or for transportation-related services when a Federal office is relocated, to ensure that offerors are capable to perform interstate or intrastate moving contracts involving the relocation of Federal offices:
Capability to Perform a Contract for the Relocation of a Federal Office (Feb 2006)
(a) If the move specified in this contract is to be performed by the Contractor as a carrier within the borders of more than one State, including the District of Columbia, (i.e., an interstate move), the Contractor shall have obtained and hold appropriate and current operating authority from the Federal Motor Carrier Safety Administration.
(b)
(1) If the move specified in this contract is to be performed by the Contractor as a carrier wholly within the borders of one State or the District of Columbia (i.e., an intrastate move), the Contractor shall, when required by the State, or the District of Columbia, in which the move is to take place, have obtained and hold appropriate and current operating authority from that jurisdiction in the form of a certificate, permit, or equivalent license to operate.
(2) If no authority to operate is required by the State or the District of Columbia, the Contractor as carrier shall maintain facilities, equipment, and a business address within the jurisdiction in which the move is to take place. However, if the move is to originate and/or terminate within an area of one State, or the District of Columbia, that comprises a part of a recognized Commercial Zone (see Subpart B of 49 CFR part 372) the boundaries of which encompass portions of more than one State or the District of Columbia, it shall be sufficient if the Contractor as carrier maintains facilities, equipment, and a business address within the Commercial Zone and holds appropriate operating authority, if required, from the jurisdiction within which the Contractor maintains the facilities, equipment, and business address.
(c) If the move specified in this contract will not be performed by the Contractor as carrier, it must be performed for the Contractor by a carrier operating under a subcontract with the Contractor. In this case, the Contractor shall not be subject to the requirements of paragraphs (a) and (b) of this clause, but shall be responsible for requiring and ensuring that the subcontractor carrier complies with those requirements in every respect.
(d) The Contractor shall be in compliance with the applicable requirements of this clause at least 14 days before the date on which performance of the contract shall commence under the terms specified; except that, if the period from the date of award of the contract to the date that performance shall commence is less than 28 days, the Contractor shall comply with the applicable requirements of this clause midway between the time of award and the time of commencement of performance.
(End of clause)
Alternate I (Apr 1984). If a Federal office move is intrastate and the contracting officer determines that it is in the Government’s interest not to apply the requirements for holding or obtaining State authority to operate within the State, and to maintain a facility within the State or Commercial zone, delete paragraph (b) of the basic clause and redesignate the remaining paragraphs"(b) and (c)." In the 6 th line of the new paragraph (b), delete the words "paragraphs(a) and (b) above" and replace them with "paragraph (a) of this clause."