52.247-36 F.a.s. Vessel, Port of Shipment
Source: FAR 52.247-36 on acquisition.gov
Contractors must deliver goods alongside the vessel at the specified port, bearing all costs and risks up to that point, and provide required documentation and receipts as specified in the contract.
Overview
FAR 52.247-36, "F.a.s. Vessel, Port of Shipment," defines the contractor’s obligations when the delivery term is "free alongside ship" (f.a.s.) at a specified port. Under this clause, the contractor must deliver goods alongside the ocean vessel at the designated port, free of expense to the Government up to that point. The contractor is responsible for packing, marking, and preparing the shipment according to contract or carrier requirements, delivering the goods in good order, and covering all costs up to the delivery point. The contractor must also provide a clean dock or ship’s receipt, bear the risk of loss or damage until delivery, and assist with export/import documentation at the Government’s request and expense.
Key Rules
- Definition of F.a.s. Vessel, Port of Shipment
- Delivery is complete when goods are placed alongside the vessel at the specified port, within reach of loading tackle, with no expense to the Government up to that point.
- Contractor Responsibilities
- Pack, mark, and prepare shipments per contract or carrier requirements.
- Deliver goods in good order, on time, and pay all charges up to the delivery point.
- Provide a clean dock or ship’s receipt.
- Bear risk of loss or damage until delivery.
- Assist with export/import documentation if requested by the Government.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and verify contractor compliance.
- Contractors: Fulfill all delivery, packing, risk, and documentation obligations as specified.
- Agencies: Request export/import documentation assistance as needed and confirm delivery conditions are met.
Practical Implications
This clause clarifies the point at which risk and cost transfer from contractor to Government for ocean shipments. Contractors must manage logistics up to the vessel, ensure proper documentation, and bear all costs and risks until delivery. Failure to comply can result in disputes, delays, or financial liability for loss or damage prior to delivery.
As prescribed in 47.303-8(c), insert the following clause in solicitations and contracts when the delivery term is f.a.s. vessel, port of shipment:
F.a.s. Vessel, Port of Shipment (Apr 1984)
(a) The term "f.a.s. vessel, port of shipment," as used in this clause, means free of expense to the Government delivered alongside the ocean vessel and within reach of its loading tackle at the specified port of shipment.
(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 for ocean transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;
(2)
(i) Deliver the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at the point of delivery and on the date or within the period specified in the contract; and
(ii) Pay and bear all applicable charges, including transportation costs, wharfage, handling, and heavy lift charges, if necessary, up to this point;
(3) Provide a clean dock or ship’s receipt;
(4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point specified in the contract; and
(5) At the Government’s request and expense, assist obtaining the documents required for-
(i) Exportation; or
(ii) Importation at destination.
(End of clause)