FAR 47.104-5—Citation of Government rate tenders.
Plain-English Summary
FAR 47.104-5 is a narrow but important shipping instruction that applies when transportation is moved under Government rate tender authority, specifically the rates authorized by 49 U.S.C. 10721 and 13712. The section tells transportation offices or contractors, as appropriate, to identify the applicable Government rate tender by endorsement on the bill of lading. In practice, this means the shipping document must clearly show which Government tender governs the movement so the carrier can apply the correct negotiated or tendered rate. The rule exists to prevent billing errors, support proper carrier payment, and create a clear audit trail showing that the shipment was moved under the intended Government rate arrangement. It is a documentation requirement, not a pricing rule by itself, but it is essential to making the rate tender enforceable and administratively usable.
Key Rules
Use tender authority when applicable
This requirement applies only when transportation is moved under the Government rate tender authorities in 49 U.S.C. 10721 and 13712. If those rates do not apply, this section does not control the shipment documentation.
Identify the applicable tender
The transportation office or contractor must identify the specific Government rate tender that governs the shipment. The identification must be clear enough to show which tender rate the carrier is expected to apply.
Endorse the bill of lading
The applicable Government rate tender must be shown by endorsement on the bill of lading. The bill of lading is the key shipping document, so the endorsement serves as the formal notice and record of the tender used.
Assign responsibility as appropriate
The rule does not assign the task to only one party in every case. Depending on who prepares or controls the shipping documents, either the transportation office or the contractor must make the endorsement.
Responsibilities
Transportation Office
When it is handling the shipment documentation, it must identify the applicable Government rate tender and endorse the bill of lading accordingly.
Contractor
When the contractor is responsible for preparing or managing the shipment documentation, it must identify the applicable Government rate tender and ensure the bill of lading is properly endorsed.
Carrier
The carrier relies on the endorsed bill of lading to determine which Government rate tender applies and to bill the shipment under the correct rate arrangement.
Practical Implications
This is a documentation control point: if the tender is not identified on the bill of lading, the shipment may be billed at the wrong rate or require later correction.
The most common pitfall is assuming the carrier will know which Government tender applies without a clear endorsement; the rule requires the tender to be stated on the bill of lading.
Contractors and transportation offices should verify that the tender citation matches the shipment and the applicable authority before release, because errors can create payment disputes and audit issues.
Clear endorsement helps protect the Government’s pricing advantage under the tender and reduces the risk of carrier claims or delayed invoice processing.
Official Regulatory Text
When 49 U.S.C. 10721 and 13712 rates apply, transportation offices or contractors, as appropriate, shall identify the applicable Government rate tender by endorsement on bills of lading.