FAR 47.207-9—Annotation and distribution of shipping and billing documents.
Plain-English Summary
FAR 47.207-9 addresses how shipping and billing paperwork must be annotated and distributed when transportation services are involved. It covers three main topics: the contracting officer’s duty to spell out responsibilities for annotating and distributing shipping and billing documents, the special handling needed for mass movements of freight so bills of lading are cross-referenced and the Government can capture applicable volume rates, and the requirement to include the clause at 52.247-28, Contractor’s Invoices, in drayage or other term contracts. The section exists to prevent payment errors, preserve audit trails, and make sure transportation charges are properly documented and allocated. In practice, it tells the contracting officer to be explicit up front about who prepares, marks, sends, and retains transportation documents, and to structure the contract so the Government can verify charges and benefit from lower rates where available. It also ties these procedures to the transportation payment and audit framework in 41 CFR part 102-118.
Key Rules
State document duties clearly
The contracting officer must spell out in detail who is responsible for annotating and distributing shipping and billing documents. This includes the contractor, the contracting agency, and, when appropriate, the consignee.
Follow transportation audit rules
The annotation and distribution process should align with 41 CFR part 102-118, Transportation Payment and Audit. The purpose is to support proper payment, review, and audit of transportation charges.
Cross-reference mass movements
When freight is moved in large quantities and made available to the contractor at one time, the contracting officer should require bills of lading to be cross-referenced. This helps ensure the Government receives any applicable volume-rate savings.
Insert the contractor invoice clause
For drayage or other term contracts, the contracting officer must include the clause at 52.247-28, Contractor’s Invoices. This clause governs invoicing requirements for those contract types.
Responsibilities
Contracting Officer
Define in detail the responsibilities for annotating and distributing shipping and billing documents; ensure the contract addresses the roles of the contractor, agency, and consignee as applicable; require cross-referencing of bills of lading for mass freight movements; and insert clause 52.247-28 in drayage or other term contracts.
Contractor
Annotate and distribute shipping and billing documents as assigned in the contract; prepare invoices and related transportation paperwork in accordance with the required clause and the contract’s document-handling instructions; support cross-referencing when freight is moved in mass shipments.
Contracting Agency
Carry out its assigned responsibilities for receiving, routing, reviewing, or retaining shipping and billing documents; coordinate with the contracting officer and contractor to ensure transportation charges are properly documented and auditable.
Consignee
When the contract makes it appropriate, annotate, receive, or distribute shipping and billing documents as assigned; provide information needed to support delivery confirmation, billing accuracy, and auditability.
Practical Implications
This section is mainly about avoiding payment and audit problems by making document-handling responsibilities explicit before shipments occur.
If the contract does not clearly assign who annotates and distributes bills of lading and invoices, transportation charges can be delayed, disputed, or paid incorrectly.
Mass freight movements can create missed savings if bills of lading are not cross-referenced to show the shipments belong together and qualify for volume rates.
Drayage and term contracts need the contractor-invoice clause; omitting it can leave invoicing procedures unclear and create administration problems.
Contracting officers should coordinate early with transportation, finance, and receiving personnel so the paperwork flow matches the actual movement and payment process.
Official Regulatory Text
(a) The contracting officer shall state in detail the responsibilities of the contractor, the contracting agency, and, if appropriate, the consignee for the annotation and distribution of shipping and billing documents. See 41 CFR part 102 -118, Transportation Payment and Audit. (b) In instances of mass movements of freight made available to the contractor at one time, it is particularly important that the contracting officer specifies that bills of lading be cross-referenced so that the Government benefits from applicable volume rates. (c) The contracting officer shall insert the clause at 52.247-28 , Contractor’s Invoices, in drayage or other term contracts.