52.247-34
F.o.b. Destination
FAR 52.247-34 requires contractors to deliver goods to the Government's specified location at their own expense and risk, ensuring the Government incurs no delivery-related costs or liabilities before receipt.
Overview
FAR 52.247-34, F.o.b. Destination, defines the requirements for delivery of supplies to the Government at a specified destination, with all costs and risks borne by the contractor until delivery is complete. This clause ensures that the Government receives goods free of expense at the designated location, and the contractor is responsible for all transportation, handling, and associated charges up to that point. The clause also outlines specific responsibilities for packing, marking, documentation, and liability for loss or damage prior to delivery.
Key Rules
- Definition of F.o.b. Destination
- The contractor must deliver supplies free of expense to the Government at the specified delivery point, which could be a plant, warehouse, dock, or other location.
- Delivery Requirements
- The contractor is responsible for all delivery, storage, demurrage, and accessorial charges before actual delivery, unless caused by Government action.
- Specific delivery procedures are outlined for rail and motor carriers, including special provisions for heavy or bulky freight.
- Contractor Responsibilities
- The contractor must pack and mark shipments per contract or carrier requirements, prepare bills of lading, deliver goods in good condition, provide delivery schedules, and pay all delivery charges.
- The contractor is liable for loss or damage until the consignee receives the shipment.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Must handle all aspects of delivery, including costs, risk, documentation, and compliance with packing and marking requirements.
- Agencies: Oversee contract performance and address any issues related to delivery or charges caused by Government actions.
Practical Implications
- This clause shifts all delivery risk and cost to the contractor, simplifying Government receipt of goods.
- Contractors must carefully manage logistics, documentation, and risk of loss up to delivery.
- Common issues include misunderstanding delivery points, improper documentation, or disputes over loss/damage responsibility.