52.247-55 F.o.b. Point for Delivery of Government-Furnished Property
Source: FAR 52.247-55 on acquisition.gov
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.
As prescribed in 47.305-12(a)(2), insert the following clause:
F.o.b. Point for Delivery of Government-Furnished Property (June 2003)
(a) Unless otherwise specified in this solicitation, the Government will deliver any Government-furnished property for use within the contiguous United States or Canada to a point specified by the Contractor in the offer. If the Government makes delivery by railroad, the f.o.b. point will be private siding, Contractor’s plant. If the Contractor’s plant is not served by rail, the f.o.b. point will be railroad cars in the same or nearest city having rail service. The Government may choose the mode of transportation and the carriers and will bear the cost of all line-haul transportation to the specified destination.
(b) If the destination of the Government-furnished property is a Contractor’s plant located outside the contiguous United States or Canada, the f.o.b. point for Government delivery of Government-furnished property will be a Contractor-specified location in the contiguous United States. If the Contractor fails to name a point, the Government will select as the f.o.b. point the port city in the contiguous United States nearest to the Government-furnished property that has regular commercial water transportation services to the offshore port nearest the Contractor’s plant.
(c) Unless otherwise directed by the Contracting Officer or provided in the contract, the Contractor shall return all Government-furnished equipment, supplies, and property, including all property not returned in the form of acceptable end items, to the point at which the Government property was originally furnished to the Contractor under the contract. Notwithstanding the fact that the Government may have furnished the property at the Contractor’s plant, the Contracting Officer may direct the Contractor to deliver the Government property being returned to, and load, block, and brace it in, railway cars in the city in which the Contractor’s plant is located, or, if the Contractor’s city is not served by rail service, in the nearest city having rail service. Unless otherwise specified in the contract, all property shall be packed in containers conforming with the rules of common carrier published tariffs so as to be free of penalty charges by the carrier designated for shipment by the Government.
(End of clause)