52.247-62
Specific Quantities Unknown
FAR 52.247-62 ensures fair adjustment of transportation costs when actual shipment quantities to destinations differ from estimates, protecting both parties from unforeseen changes.
Overview
FAR 52.247-62, "Specific Quantities Unknown," is a clause used in solicitations and contracts when the total requirements and destinations for shipments are known, but the exact quantity to be shipped to each destination cannot be predetermined at the time of award. The clause provides a mechanism for estimating quantities for evaluation purposes and allows for adjustments in transportation costs if actual quantities shipped differ from estimates. This protects both the Government and contractors from unforeseen changes in shipping requirements and costs during contract performance.
Key Rules
- Use of Estimated Quantities
- The Government provides estimated quantities for each destination to evaluate "f.o.b. destination" offers, even though actual quantities may vary.
- Adjustment for Transportation Costs
- If the actual quantity shipped to any destination differs from the estimate and this affects transportation costs, an appropriate adjustment to the contract price will be made.
Responsibilities
- Contracting Officers: Must include this clause in applicable solicitations and contracts, provide estimated quantities, and ensure adjustments are made if actual shipping quantities differ.
- Contractors: Should base their offers on the estimated quantities and be prepared for possible adjustments in transportation costs if actual shipments vary.
- Agencies: Must oversee the application of this clause and ensure fair adjustments are made as required.
Practical Implications
- This clause exists to address the uncertainty in distribution requirements while ensuring fair pricing and risk allocation.
- Contractors should carefully review estimated quantities and understand the process for transportation cost adjustments.
- Common pitfalls include misunderstanding the non-binding nature of estimates and failing to document changes in shipping quantities and costs.