52.247-67 Submission of Transportation Documents for Audit
Source: FAR 52.247-67 on acquisition.gov
Cost-reimbursement contractors must submit transportation documents for freight charges over $100 for audit and retain smaller bills on-site for possible review.
Overview
FAR 52.247-67 requires contractors working under cost-reimbursement contracts to submit transportation documents for prepayment audit when the U.S. Government will assume freight charges. Specifically, contractors must submit bills of lading for freight charges paid by themselves or their first-tier subcontractors if the charges exceed $100. Bills under $100 are not submitted but must be retained on-site and made available for audit. The clause specifies that only freight shipment bills are covered by this exception, not other transportation service invoices. The address for submission is provided by the Contracting Officer in the contract. This process ensures proper oversight and audit of transportation costs charged to the government, helping prevent overpayment or improper charges.
Key Rules
- Submission Requirement
- Contractors must submit transportation documents for prepayment audit when the government is responsible for freight charges paid under cost-reimbursement contracts or subcontracts.
- $100 Threshold
- Only bills of lading with freight charges exceeding $100 must be submitted; those $100 or less are retained on-site for possible audit.
- Submission Address
- Contractors must send documents to the address specified by the Contracting Officer.
- Scope Limitation
- The $100 exception applies only to freight shipment bills, not to other transportation service invoices.
Responsibilities
- Contracting Officers: Specify the submission address in the contract and ensure compliance.
- Contractors: Submit required transportation documents, retain smaller bills on-site, and make them available for audit.
- Agencies: Oversee the audit process and ensure proper documentation is received and reviewed.
Practical Implications
- This clause exists to ensure government oversight of transportation costs and prevent improper billing.
- Contractors must have systems to track, submit, and retain transportation documents according to the $100 threshold.
- Failure to comply can result in audit findings or payment delays. Common pitfalls include submitting incomplete documentation or failing to retain small-value bills on-site.
As prescribed in 47.103-2 , insert the following clause:
Submission of Transportation Documents for Audit (Feb 2006)
(a) The Contractor shall submit to the address identified below, for prepayment audit, transportation documents on which the United States will assume freight charges that were paid-
(1) By the Contractor under a cost-reimbursement contract; and
(2) By a first-tier subcontractor under a cost-reimbursement subcontract thereunder.
(b) Cost-reimbursement Contractors shall only submit for audit those bills of lading with freight shipment charges exceeding $100. Bills under $100 shall be retained on-site by the Contractor and made available for on-site audits. This exception only applies to freight shipment bills and is not intended to apply to bills and invoices for any other transportation services.
(c) Contractors shall submit the above referenced transportation documents to-
________________________________________________ ________________________________________________ ________________________________________________
[To be filled in by Contracting Officer]
(End of clause)