Guaranteed Shipping Characteristics
Accurately providing guaranteed shipping characteristics is essential, as discrepancies can result in contract price reductions if actual transportation costs exceed those used for evaluation.
Overview
FAR 52.247-60, Guaranteed Shipping Characteristics, requires offerors to provide detailed shipping information for each part or component packed separately. This information is used by the Government to evaluate transportation costs as part of the overall offer evaluation process. If an offeror fails to provide sufficient shipping data, the Government will use the highest submitted costs or its own estimate for evaluation. If actual shipping costs exceed those used for evaluation due to inaccurate data, the contract price will be reduced accordingly. The clause also clarifies that these guaranteed characteristics are for evaluation and liability purposes only, not for setting actual shipping requirements.
Key Rules
- Offeror Submission of Shipping Data
- Offerors must complete a detailed shipping characteristics form for each separately packed item, including container type, configuration, size, weight, palletization, and transport details.
- Government Evaluation and Liability
- The Government uses this data to estimate transportation costs for offer evaluation. If actual shipping costs are higher due to inaccurate data, the contractor is liable for the difference, resulting in a contract price reduction.
Responsibilities
- Contracting Officers: Ensure the clause is included in applicable solicitations, evaluate offers based on submitted shipping data, and adjust contract price if actual shipping costs exceed evaluated costs.
- Contractors: Accurately complete and submit all required shipping characteristic information with their offers; accept liability for cost differences if actual shipping exceeds evaluated costs.
- Agencies: Oversee compliance, ensure proper evaluation, and enforce contract price adjustments as needed.
Practical Implications
This clause ensures fair and accurate evaluation of transportation costs in competitive procurements, incentivizing offerors to provide precise shipping data. Inaccurate or incomplete submissions can lead to unfavorable evaluation or post-award price reductions. Contractors should pay close attention to the details required and maintain accurate records to avoid financial penalties.