52.247-55
F.o.b. Point for Delivery of Government-Furnished Property
FAR 52.247-55 defines where and how Government-furnished property is delivered to and returned by contractors, making clear the responsibilities for transportation, delivery points, and packaging.
Overview
FAR 52.247-55 establishes the requirements for determining the free on board (f.o.b.) point for delivery and return of Government-furnished property (GFP) in government contracts. The clause specifies where the Government will deliver GFP to contractors, depending on the contractor's location, and outlines the procedures for returning such property. It also addresses transportation modes, cost responsibilities, and packaging requirements to ensure proper handling and compliance with carrier rules.
Key Rules
- Delivery of GFP within the Contiguous U.S. or Canada
- The Government delivers GFP to a contractor-specified point; if by rail, to the contractor’s plant or nearest rail-served city.
- Delivery of GFP Outside the Contiguous U.S. or Canada
- The f.o.b. point is a contractor-specified location within the contiguous U.S.; if not specified, the Government selects the nearest suitable port city.
- Return of GFP
- Contractors must return GFP to the original delivery point unless otherwise directed, and follow specific instructions for rail shipment and packaging.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable contracts and provide direction for return of GFP as needed.
- Contractors: Specify delivery points, comply with return and packaging requirements, and follow instructions for transportation and handling of GFP.
- Agencies: Oversee compliance and manage transportation arrangements and costs for GFP delivery.
Practical Implications
- This clause clarifies logistics responsibilities for GFP, reducing disputes over delivery and return points.
- Contractors must be diligent in specifying delivery locations and adhering to packaging and transportation requirements to avoid penalties or delays.
- Common issues include failure to specify delivery points or improper packaging, which can result in additional costs or contract noncompliance.