52.247-56
Transit Arrangements
When transit arrangements may benefit the government, offers are evaluated based on the lowest total transportation costs, including through transit rates from shipping point to destination.
Overview
FAR 52.247-56, "Transit Arrangements," is a solicitation provision used when the government may benefit from transit arrangements in transportation. The provision requires that, during the evaluation of offers, the government will consider the lowest appropriate common carrier transportation costs, including any through transit rates and charges from the offeror’s shipping point, via specified transit points, to the ultimate destination. This ensures that the government selects the most cost-effective shipping option, taking into account possible savings from transit arrangements.
Key Rules
- Evaluation of Offers
- Offers are evaluated based on the lowest appropriate common carrier transportation costs, including through transit rates and charges.
- Transit Points and Destinations
- Solicitations must specify the relevant transit points and destinations for accurate cost evaluation.
Responsibilities
- Contracting Officers: Must include this provision in solicitations when transit arrangements could benefit the government and ensure transit points/destinations are clearly identified.
- Contractors: Must provide transportation cost information, including through transit rates, as part of their offer.
- Agencies: Should ensure compliance with evaluation procedures and maintain documentation of cost comparisons.
Practical Implications
- This provision exists to ensure the government receives the best value in transportation costs by leveraging potential savings from transit arrangements.
- Contractors must be diligent in calculating and presenting accurate transportation costs, including any applicable transit rates.
- Common pitfalls include failing to account for all transit charges or misunderstanding the specified transit points and destinations.