F.a.s. Vessel, Port of Shipment
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.