52.247-35
F.o.b. Destination, Within Consignee’s Premises
Contractors must deliver goods at their own expense and risk directly inside the consignee’s premises, ensuring compliance with all packing, marking, and delivery requirements until receipt by the Government.
Overview
- FAR 52.247-35 defines the requirements for f.o.b. (free on board) destination, within consignee’s premises, meaning the contractor must deliver goods at no expense to the Government, directly inside the consignee’s premises, and potentially to specific rooms if specified. This clause ensures the Government receives shipments in the exact location required, with the contractor bearing all associated costs and risks until delivery is complete.
Key Rules
- Definition of F.o.b. Destination, Within Consignee’s Premises
- Delivery must be made free of expense to the Government, inside the consignee’s premises, and to specific rooms if required.
- Contractor Responsibilities
- Contractors must pack and mark shipments per contract or carrier requirements, prepare and distribute commercial bills of lading, deliver goods in good order, assume risk of loss or damage until delivery, provide a delivery schedule, designate the carrier, and pay all delivery charges.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance with delivery requirements.
- Contractors: Must comply with all delivery, packing, marking, risk, and cost obligations as specified in the clause.
- Agencies: Oversee contract performance and ensure deliveries meet the specified requirements.
Practical Implications
- This clause clarifies that contractors are responsible for all costs and risks until goods are delivered inside the consignee’s premises, not just at the loading dock. It impacts logistics planning, risk management, and cost estimation for contractors. Common issues include misunderstanding the delivery location or failing to account for all delivery-related expenses.