FAR 47.103—Transportation Payment and Audit Regulation.

General.

FAR 47.103-1 explains the government’s basic rules for handling transportation documentation and transportation payment/audit activities. It points readers to the controlling transportation payment and audit regulations in 41 CFR part 102-118, and for Department of Defense shipments to DoD 4500.9-R, Defense Transportation Regulation, Part II. It also requires every agency to maintain a prepayment audit program under 31 U.S.C. 3726, which means transportation charges must be reviewed before payment in accordance with the governmentwide audit framework. In addition, the section describes how certain original transportation documents—such as paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents—must be forwarded to GSA for postpayment audit, including documents for first-tier subcontractors under cost-reimbursement contracts. Finally, it requires prompt forwarding of original documents when requested by GSA and specifies the contents of the transmittal statement that must accompany each shipment of transportation documents. In practice, this section is about making sure transportation charges are properly documented, audited, and traceable so the government can prevent overpayments, support recovery actions, and maintain a complete audit trail.

Contract clause.

FAR 47.103-2 tells contracting officers when they must include the clause at 52.247-67, Submission of Transportation Documents for Audit, in a solicitation or contract. The section applies only when a cost-reimbursement contract is contemplated and the contract, or a first-tier cost-reimbursement subcontract under it, will authorize reimbursement of transportation as a direct charge. In practice, this means the Government is protecting its ability to review transportation-related billing support and audit those charges before paying them as allowable direct costs. The rule is narrow but important: it ties the clause to both the contract type and the way transportation costs will be charged, so the clause is not inserted in every procurement. For contractors and subcontractors, the practical effect is that transportation documents must be retained and made available in a form that supports audit and reimbursement review. For contracting officers, the section is a mandatory clause-selection instruction that helps ensure proper oversight of transportation costs in cost-reimbursement arrangements.