52.247-35 F.o.b. Destination, Within Consignee’s Premises
Source: FAR 52.247-35 on acquisition.gov
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.
As prescribed in 47.303-7(c), insert the following clause in solicitations and contracts when the delivery term is f.o.b. destination, within consignee’s premises:
F.o.b. Destination, Within Consignee’s Premises (Apr 1984)
(a) The term "f.o.b. destination, within consignee’s premises," as used in this clause, means free of expense to the Government delivered and laid down within the doors of the consignee’s premises, including delivery to specific rooms within a building if so specified.
(b) The Contractor shall-
(1)
(i) Pack and mark the shipment to comply with contract specifications; or
(ii) In the absence of specifications, prepare the shipment in conformance with carrier requirements;
(2) Prepare and distribute commercial bills of lading;
(3) Deliver the shipment in good order and condition to the point of delivery specified in the contract;
(4) Be responsible for any loss of and/or damage to the goods occurring before receipt of the shipment by the consignee at the delivery point specified in the contract;
(5) Furnish a delivery schedule and designate the mode of delivering carrier; and
(6) Pay and bear all charges to the specified point of delivery.
(End of clause)