Evaluation of Export Offers
FAR 52.247-51 requires export offers to be evaluated on the lowest total delivered cost to the overseas port, factoring in all transportation and handling charges, with strict requirements for port designation and pricing basis.
Overview
FAR 52.247-51, Evaluation of Export Offers, establishes the procedures and criteria for evaluating export offers in government contracts involving overseas shipments. The provision ensures that the government selects offers based on the lowest total delivered (laid down) cost to the overseas port of discharge, considering all relevant transportation, port handling, and ocean shipping charges. It requires offerors to specify their delivery points and price bases, and allows for the nomination of additional ports if they are compatible with government requirements. The clause also provides for several alternates to address different shipping scenarios, such as DoD water terminals or offers solicited on an f.o.b. origin or destination-only basis.
Key Rules
- Evaluation Criteria
- Offers are evaluated based on the lowest laid down cost to the government at the overseas port, including inland transportation, port handling, and ocean shipping charges.
- Port Handling and Ocean Charges
- Charges are based on tariffs or rates effective at the time of bid opening and may be sourced from regulatory authorities or the SDDC for DoD terminals.
- F.o.b. Origin and Destination
- The provision distinguishes between f.o.b. origin (with government bill of lading) and f.o.b. port of loading, with specific evaluation and offeror designation requirements for each.
- Port Designation
- Offerors must designate at least one eligible port of loading; failure to do so may render an offer nonresponsive.
- Alternate Provisions
- Alternates modify the base provision for DoD terminals, f.o.b. origin only, or f.o.b. destination only solicitations.
Responsibilities
- Contracting Officers: Must evaluate offers using the prescribed cost components and ensure compliance with port and pricing requirements.
- Contractors/Offerors: Must specify delivery points, nominate additional ports if desired, indicate price basis, and ensure all required information is provided to avoid nonresponsiveness.
- Agencies: Oversee evaluation process, maintain current rate information, and determine port eligibility based on transportation needs and vessel availability.
Practical Implications
- This provision ensures fair and transparent evaluation of export offers by standardizing cost components and port eligibility.
- Contractors must be diligent in completing all required fields and understanding the cost evaluation process to remain competitive and compliant.
- Common pitfalls include failing to designate a port, misunderstanding price basis requirements, or nominating incompatible ports, which can lead to disqualification.