FAR 47.207-6—Rates and charges.
Plain-English Summary
FAR 47.207-6 tells contracting officers how to structure solicitation pricing for transportation and transportation-related services so offers can be compared fairly and the Government can control charges. It covers the required statement limiting contract charges to the contractor’s public or otherwise tendered charges, the mandatory use of clause 52.247-17, and the need to include a tabulation listing each required service and its pricing basis. It also gives specific guidance for how to build that tabulation when services have different pricing bases, when rates are hourly, when shipments vary in weight, when there are multiple origins or destinations, when multiple shipments are tendered at one time, when estimated quantities or weights are needed for evaluation, and when additional services such as inside delivery may be charged separately. In practice, this section is about making transportation solicitations precise enough that offerors know exactly how to price each service and the Government can evaluate offers on a consistent basis. It helps prevent hidden charges, ambiguous rate structures, and disputes over how to apply rates to real-world shipment patterns.
Key Rules
Charges cannot exceed public rates
The solicitation must state that contract charges may not exceed the contractor’s charges for the same service when available to the general public or otherwise tendered to the Government. This protects the Government from paying more than the contractor’s standard comparable rate.
Insert Charges clause
The contracting officer must include clause 52.247-17, Charges. This clause implements the pricing limitation and should be used whenever this section applies.
Tabulate each required service
The solicitation must include a tabulation listing each required service and the basis for the rate, such as unit of weight or per work-hour, with space for offerors to enter proposed rates. This ensures every priced service is identified and priced in a comparable format.
Separate mixed pricing bases
If the contract requires different types of services with different pricing bases, each service must be shown separately with its applicable basis. This avoids mixing unrelated charges and makes evaluation and administration clearer.
Define hourly billing rules
If charges are based on an hourly rate, the solicitation must state how fractions of an hour will be charged. The example in the rule allows 30 minutes or less at one-half the hourly rate and any portion over 30 minutes at the full hourly rate.
Use graduated weights when needed
If pricing is based on weight and shipment weights will vary, the contracting officer should request rates on a graduated weight basis and include a table for offerors to enter rates. This allows pricing to reflect different weight bands rather than a single flat rate.
Specify origins and destinations
The solicitation must say whether rates are requested for each origin and destination or for defined groups of origins and destinations. Clear routing instructions are necessary so offerors price the correct lanes.
Address multiple shipments and stopoffs
When multiple shipments are tendered at one time from one origin to two or more consignees at the same destination, the rate should be based on the aggregate weight. When shipments go to multiple destinations along the route, the solicitation should request the aggregate-weight rate plus a stopoff charge for each intermediate destination, and the related clauses 52.247-18 or 52.247-19 must be inserted as applicable.
Use estimated quantities for evaluation
If shipment quantities or weights between origin and destination are not known, the contracting officer must insert provision 52.247-20 and state estimated quantities or weights for each origin/destination pair. This gives offerors a basis for pricing and supports evaluation.
State conditions for extra services
If services beyond the basic rate are anticipated, such as inside delivery, the solicitation must state the conditions under which payment will be made for those services. This prevents disputes over whether and when add-on charges are allowed.
Responsibilities
Contracting Officer
Draft the solicitation pricing structure, include the required statement limiting charges, insert clauses 52.247-17, 52.247-18, 52.247-19, and provision 52.247-20 when applicable, and prepare a clear tabulation of services and pricing bases. The contracting officer must also specify routing, shipment patterns, weight bands, hourly billing rules, estimated quantities, and any conditions for additional services.
Offeror/Contractor
Review the solicitation’s pricing structure and submit rates in the format requested, including separate rates for each service, lane, weight band, or additional service as applicable. The contractor must ensure proposed charges comply with the solicitation’s limitation that contract charges not exceed comparable public or otherwise tendered charges.
Agency/Requirement Owner
Provide accurate operational information needed to build the solicitation, including expected shipment patterns, origins and destinations, estimated quantities or weights, and anticipated extra services. The agency must help ensure the solicitation reflects actual transportation needs.
Practical Implications
This section is mainly about preventing pricing ambiguity. If the solicitation does not clearly identify the service, pricing basis, and routing assumptions, offers may be impossible to compare fairly and contract administration becomes difficult.
A common pitfall is failing to separate services with different rate bases. Mixing hourly, weight-based, and special-service charges in one line item can lead to misunderstandings and billing disputes.
Another frequent issue is not stating how partial hours are billed or how stopoffs and multiple shipments are priced. Those details matter because they can materially change the total cost of transportation services.
When shipment quantities are uncertain, estimated quantities or weights are essential for evaluation. Without them, offerors may price conservatively or inconsistently, making price evaluation unreliable.
Contracting officers should also watch for add-on charges that are not clearly authorized in the solicitation. If inside delivery or similar services may be needed, the payment conditions should be explicit up front to avoid later disputes.
Official Regulatory Text
(a) (1) The contracting officer shall include in the solicitation a statement that the charges in the contract shall not exceed the contractor’s charges for the same service that is- (i) Available to the general public; or (ii) Otherwise tendered to the Government. (2) The contracting officer shall insert the clause at 52.247-17 , Charges. (b) The contracting officer shall include in the solicitation a tabulation listing each required service and the basis for the rate (price); e.g., "unit of weight" or "per work-hour," leaving sufficient space for offerors to insert the rates offered for each service. (c) The following guidelines apply to the composition of a tabulation of transportation or of transportation-related services and their rate (price) bases: (1) Combination of pricing bases. If various types of services with different bases for assessing charges are required under the same contract, show each service separately and the applicable basis for that service. (2) Hourly rate basis. If charges are based on an hourly rate, state the method for charging for fractions of an hour; e.g. - (i) A period of 30 minutes or less is charged at one-half the hourly rate; and (ii) The hourly rate applies to any portion of an hour that exceeds 30 minutes. (3) Shipments of varying weights. If charges are based on weight and shipments will vary in weight, request rates on a graduated weight basis. Include a table of graduated weights for offerors to insert rates. (4) Multiple origins and/or destinations. Specify whether rates are requested for each origin and/or each destination or for specific groups of origins and/or destinations. (5) Multiple shipments from one origin. If multiple shipments will be tendered at one time to the contractor for delivery to two or more consignees at the same destination, request the rate applicable to the aggregate weight. If such shipments are for delivery to various destinations along the route between origin and last destination, request the rate applicable to the aggregate weight and a stopoff charge for each intermediate destination. (i) The contracting officer shall insert the clause at 52.247-18 , Multiple Shipments, when multiple shipments are tendered at one time to the contractor for transportation from one origin to two or more consignees at the same destination. (ii) The contracting officer shall insert the clause at 52.247-19 , Stopping in Transit for Partial Unloading, when multiple shipments are tendered at one time to the contractor for transportation from one origin to two or more consignees along the route between origin and last destination. (6) Estimated quantities or weights. The contracting officer shall insert in solicitations the provision at 52.247-20 , Estimated Quantities or Weights for Evaluation of Offers, when quantities or weights of shipments between each origin and destination are not known, stating estimated quantity or weight for each origin/destination pair. (7) Additional services. If services in addition to those covered in the basic rate are anticipated; e.g., inside delivery, state the conditions under which payment will be made for those services.