52.247-30
F.o.b. Origin, Contractor’s Facility
Contractors must ensure proper preparation, documentation, and delivery of goods to the carrier at their facility, as risk and responsibility transfer to the Government only after this point.
Overview
FAR 52.247-30, "F.o.b. Origin, Contractor’s Facility," establishes the requirements for contractors when the delivery term is f.o.b. (free on board) origin at the contractor’s facility. Under this clause, the contractor is responsible for preparing, packing, marking, and delivering goods to the carrier at their facility, free of expense to the Government, and ensuring the shipment is properly documented and protected until it is handed over to the carrier. The clause details specific obligations regarding carrier equipment, liability for loss or damage, and the preparation and distribution of bills of lading or transportation receipts.
Key Rules
- Definition of F.o.b. Origin, Contractor’s Facility
- Delivery is made at the contractor’s facility, with the Government assuming responsibility once the goods are loaded onto the carrier’s conveyance.
- Packing and Marking
- Contractors must pack and mark shipments per contract specifications or, if absent, per carrier requirements to ensure protection and lowest transportation charges.
- Carrier Equipment
- Contractors must order specified carrier equipment or, if not specified, appropriate equipment for the shipment.
- Delivery and Loading
- Contractors must deliver goods in good order, load and secure them according to carrier rules, and are liable for loss or damage before delivery to the carrier or due to improper handling.
- Documentation
- Contractors must complete and distribute bills of lading or transportation receipts with all required information, including shipment description, seals, equipment details, consignee information, and special instructions.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all packing, marking, loading, documentation, and liability requirements as specified in the clause.
- Agencies: Provide necessary instructions for bills of lading and oversee compliance with delivery and documentation requirements.
Practical Implications
- This clause clarifies the point at which risk transfers from contractor to Government and outlines detailed contractor responsibilities for shipment preparation and documentation. Failure to comply can result in liability for loss or damage and delays in payment or acceptance. Common issues include improper packing, incomplete documentation, and misunderstanding of liability boundaries.