No Evaluation of Transportation Costs
When exact delivery destinations are unknown, transportation costs are excluded from contract award evaluations under this provision.
Overview
FAR 52.247-50, "No Evaluation of Transportation Costs," is a solicitation provision used when the exact delivery destinations for supplies are unknown and it is impractical to establish tentative or general delivery locations for evaluating transportation costs. When included, this provision informs offerors that transportation costs will not be considered as part of the evaluation for contract award. This approach is intended to ensure a fair and consistent evaluation process when destination information is unavailable or too uncertain to allow for meaningful cost comparisons.
Key Rules
- No Evaluation of Transportation Costs
- Transportation costs for delivering supplies will not be factored into the award decision when this provision is included in the solicitation.
- Applicability Trigger
- The provision is used only when exact destinations are unknown and it is impractical to establish tentative or general delivery places for evaluation purposes.
Responsibilities
- Contracting Officers: Must include this provision in solicitations under the specified conditions and ensure offerors are aware that transportation costs are excluded from evaluation.
- Contractors: Should understand that their proposed transportation costs will not affect their chances of award under solicitations containing this provision.
- Agencies: Must ensure compliance with the prescription in FAR 47.305-5(c)(1) and maintain transparency in the evaluation process.
Practical Implications
- This clause exists to prevent unfair or inconsistent evaluation of offers when delivery destinations are uncertain.
- Contractors should focus on other aspects of their proposals, as transportation costs will not influence award decisions in these cases.
- Common pitfalls include misunderstanding when transportation costs are or are not considered, so careful review of solicitation provisions is essential.