FAR 47.3—Subpart 47.3

Scope of subpart.

FAR 47.300 explains the scope of Subpart 47.3, which deals with transportation and traffic management considerations in the acquisition of supplies. In practical terms, it tells contracting personnel when the subpart’s policies and procedures apply, what kinds of contract terms are covered, and how to use the subpart when the contract type is not fixed-price. The section makes clear that the subpart’s terms and conditions are directly applicable to fixed-price contracts, while for other contract types—especially cost-reimbursement contracts where the contractor normally handles transportation and transportation costs are allowable—the contracting officer should use the subpart as guidance rather than as automatic mandatory language. It also identifies two specific uses of that guidance: shaping contract coverage of transportation and giving instructions to the contractor so the Government’s total transportation cost is minimized. The practical significance is that transportation planning is not just a logistics issue; it is a contract drafting and administration issue that can materially affect total acquisition cost, delivery performance, and allocation of responsibility between the Government and the contractor.

General.

FAR 47.301 explains why transportation and traffic management considerations matter in federal contracting and who must address them. It covers the role of transportation factors in both award and contract administration, the Government’s need to obtain supplies on the most advantageous basis, and the requirement that supplies arrive in good order, condition, and on time at the required destination. It also points readers to possible reduced transportation rates for Government shipments under FAR 47.104. In practice, this section places an affirmative duty on the requiring activity to think beyond the immediate purchase price and consider present and future transportation needs, where supplies should be positioned, and how they will later be distributed. The requiring activity must then pass transportation-related information and instructions to the contracting office so the solicitation and contract can reflect those factors. This section is important because transportation decisions can materially affect total cost, delivery performance, and mission readiness.

Place of delivery-f.o.b. point.

FAR 47.302 explains how the Government should choose and document the delivery term, or f.o.b. point, for supplies and how that choice relates to transportation policy, place of acceptance, and quality assurance. It tells contracting officers when to use the transportation policies in FAR 47.304-1 through 47.304-4 for shipments from CONUS and from outside CONUS, and it requires the contract file to justify any solicitation that does not use the prescribed delivery basis. The section also makes clear that the place where Government quality assurance or acceptance occurs does not by itself determine whether the contract should be f.o.b. origin or f.o.b. destination. In practice, this means the delivery term must be selected based on transportation policy and the actual needs of the acquisition, not simply on where inspection or acceptance will happen. The section further clarifies that acceptance at destination requires f.o.b. destination, while acceptance at origin can still be paired with f.o.b. destination when that arrangement is appropriate. It also addresses payment support when title is accepted at origin, including the need for a signed commercial bill of lading or other evidence of shipment to the specified destination.

Standard delivery terms and contract clauses.

FAR 47.303 is the gateway provision for the FAR’s standard delivery terms. It tells contracting officers and contractors where to find the prescribed delivery terms in FAR 47.303-1 through 47.303-16 and reminds users to check FAR 47.300 for whether those terms apply to cost-reimbursement contracts. In practice, this section matters because delivery terms determine when, where, and under what conditions supplies are considered delivered, which affects risk of loss, transportation responsibilities, inspection timing, and whether the Government or contractor bears certain shipping costs and liabilities. It is a reference-and-application section rather than a detailed clause prescription, but it is important because it directs users to the specific standard terms that should be selected and incorporated into contracts when delivery obligations are being defined. For contracting officers, it is a reminder to choose the correct delivery term and clause based on the acquisition method, shipment mode, and contract type. For contractors, it signals that delivery obligations are not generic; they are controlled by the specific standard term included in the contract and by any limitations in FAR 47.300.

Determination of delivery terms.

Solicitation provisions, contract clauses, and transportation factors.

FAR 47.305 addresses how transportation considerations are built into the acquisition process through solicitation provisions, contract clauses, and scheduling decisions that affect freight movement. It requires the contracting officer to coordinate transportation factors with the transportation office during planning, solicitation, and award, and it directs activities to schedule deliveries, when feasible, to reduce transportation costs and carrier energy consumption. In practice, this section is about making sure transportation is not treated as an afterthought: it should be considered early enough to influence the solicitation, contract terms, delivery schedules, and logistics planning. The section also points readers to related FAR guidance on specific transportation-saving opportunities, including FAR 47.305-7 and 47.305-8. For contractors and contracting officers, the practical significance is that delivery terms, shipment timing, and transportation arrangements may affect price, performance, and compliance, and those factors should be coordinated with the agency’s transportation specialists rather than handled in isolation.

Transportation factors in the evaluation of offers.

FAR 47.306 tells contracting officers to factor transportation-related considerations into source selection when those considerations can affect the Government’s actual cost or performance. The section covers transportation and transportation-related costs, including freight, delivery, handling, and other logistics costs that may be incurred after award, as well as the offerors’ shipping and receiving facilities. In practice, this means the Government should not evaluate offers only on the quoted price or technical merits of the product or service itself; it must also look at how the offeror’s location, distribution network, loading/unloading capability, and receiving/shipping infrastructure may affect total delivered cost and the ability to meet delivery requirements. The purpose is to support best-value decisions by capturing the full cost of getting supplies where they need to go and by reducing the risk of delays, damage, or avoidable transportation expense. This section is especially important in procurements for supplies, bulk items, or any requirement where delivery logistics materially affect price, schedule, or performance.