52.247-31
F.o.b. Origin, Freight Allowed
Contractors must deliver goods to the specified origin point at no expense to the Government, properly prepare shipments, and handle all required documentation and liability until delivery to the carrier.
Overview
FAR 52.247-31, F.o.b. Origin, Freight Allowed, defines the responsibilities and procedures for contractors when goods are shipped f.o.b. (free on board) origin, with freight charges allowed (deducted from the contract price). This clause ensures that the Government receives goods at a specified origin point without incurring shipping expenses, while the contractor manages packing, marking, loading, and documentation. It also outlines specific requirements for shipments from Alaska and Hawaii, and details the contractor’s liability for loss or damage before delivery to the carrier or due to improper preparation.
Key Rules
- Definition of F.o.b. Origin, Freight Allowed
- Goods are delivered free of expense to the Government at a specified origin point, and a freight allowance is deducted from the contract price based on published tariffs or Government rate tenders.
- Contractor Shipping Responsibilities
- Contractors must pack, mark, load, and deliver goods to the carrier, order appropriate carrier equipment, and ensure proper documentation (bill of lading).
- Liability for Loss or Damage
- Contractors are responsible for loss or damage before delivery to the carrier or due to improper packing, marking, or loading.
- Special Provisions for Alaska and Hawaii
- Contractors in Alaska or Hawaii must deliver goods to specified ports or container yards at their own expense for shipments outside those states.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all shipping, documentation, and liability requirements as specified in the clause.
- Agencies: Provide necessary instructions for bills of lading and oversee compliance with shipping procedures.
Practical Implications
- This clause clarifies shipping cost responsibilities and ensures proper handling and documentation of Government shipments. Contractors must be diligent in preparing shipments and maintaining records to avoid liability and payment issues. Common pitfalls include improper packing, incomplete documentation, and misunderstanding the point of delivery or freight allowance calculations.