Guaranteed Shipping Characteristics
Accurately completing and submitting guaranteed shipping characteristics is essential to avoid contract price reductions due to underestimated transportation costs.
Overview
FAR 52.247-60, Guaranteed Shipping Characteristics, requires offerors to provide detailed shipping information for each part or component packed or packaged separately. This information is used by the Government to evaluate transportation costs as part of the overall offer evaluation. If an offeror fails to provide sufficient shipping data, the Government will use the highest submitted transportation costs or make its own estimate, which may disadvantage the offeror. If actual shipping costs exceed those used for evaluation due to inaccurate data, the contract price will be reduced by the difference. The clause also clarifies that these guaranteed shipping characteristics are for evaluation and liability purposes only, not for establishing actual shipping requirements, which are specified elsewhere in the solicitation.
Key Rules
- Submission of Shipping Data
- Offerors must complete a detailed shipping characteristics form for each separately packaged part or component, including container type, configuration, size, weight, palletization, and transport details.
- Evaluation of Transportation Costs
- The Government uses the submitted data to estimate transportation costs for evaluation. Insufficient data may result in the use of the highest transportation cost or a Government estimate.
- Price Adjustment for Inaccurate Data
- If actual shipping costs are higher than those used for evaluation due to inaccurate offeror data, the contract price will be reduced accordingly.
- Purpose of Data
- The guaranteed shipping characteristics are only for evaluation and liability, not for setting actual shipping requirements.
Responsibilities
- Contracting Officers: Must ensure the clause is included, evaluate offers using submitted shipping data, and adjust contract price if actual costs exceed evaluated costs.
- Contractors: Must accurately complete and submit the shipping characteristics form and understand liability for inaccurate data.
- Agencies: Oversee compliance and ensure fair evaluation of transportation costs.
Practical Implications
- This clause ensures fair and accurate evaluation of transportation costs in competitive offers.
- Incomplete or inaccurate shipping data can disadvantage offerors or result in post-award price reductions.
- Contractors should carefully gather and verify shipping details to avoid financial penalties and ensure compliance.