52.247-45
F.o.b. Origin and/or F.o.b. Destination Evaluation
When both f.o.b. origin and f.o.b. destination offers are solicited, the government will evaluate and award based on the most advantageous shipping arrangement, considering only the basis submitted by each contractor.
Overview
- FAR 52.247-45 outlines how the government evaluates offers when solicitations request pricing on both f.o.b. (free on board) origin and f.o.b. destination terms. The provision ensures that the government can compare and select the most advantageous shipping arrangement, whether the contractor proposes to deliver goods at the origin point or at the final destination. Contractors may submit offers for either or both terms, but each offer will only be evaluated on the basis submitted.
Key Rules
- Solicitation Requirement
- When both f.o.b. origin and f.o.b. destination offers are solicited, this provision must be included in the solicitation.
- Offer Submission
- Contractors may submit offers on either or both f.o.b. origin and f.o.b. destination bases.
- Evaluation Basis
- The government will evaluate and award based on the option that is most advantageous to the government. Offers submitted for only one basis will be evaluated solely on that basis.
Responsibilities
- Contracting Officers: Must include this provision in applicable solicitations and evaluate offers according to the terms submitted.
- Contractors: Must clearly indicate whether their offer is f.o.b. origin, f.o.b. destination, or both, understanding that each will be evaluated as submitted.
- Agencies: Ensure compliance with solicitation and evaluation procedures.
Practical Implications
- This provision allows flexibility in shipping arrangements and ensures the government can select the most cost-effective or beneficial delivery method. Contractors should carefully consider which basis to offer, as partial offers will not be evaluated on the alternative basis. Common pitfalls include misunderstanding evaluation criteria or failing to specify the basis of the offer.