FAR 47.301—General.
Plain-English Summary
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.
Key Rules
Transportation factors matter
Transportation and traffic management considerations must be taken into account in both awarding and administering contracts. The Government should not focus only on unit price or acquisition cost if transportation choices affect overall value or delivery performance.
Best value includes delivery performance
Acquisitions must be made on a basis most advantageous to the Government, which includes ensuring supplies arrive in good order and condition and on time at the required place. Transportation planning is therefore part of achieving mission success, not a separate afterthought.
Consider reduced rates
The section specifically notes FAR 47.104, which may provide reduced transportation rates for Government shipments. Contracting personnel should evaluate whether those rates are available and applicable when planning the acquisition.
Requiring activity must assess transportation needs
The requiring activity must consider all transportation factors, including present and future requirements, positioning of supplies, and subsequent distribution to the extent known or ascertainable. This means the program office must look at the full logistics picture, not just the initial delivery point.
Provide transportation instructions to contracting
The requiring activity must give the contracting office information and instructions that reflect the transportation factors applicable to the acquisition. Those instructions help the contracting office build the right delivery terms, shipping requirements, and logistics provisions into the solicitation and contract.
Responsibilities
Requiring Activity
Evaluate all relevant transportation factors for the acquisition, including current and future needs, where supplies should be positioned, and how they will later be distributed if that can be determined. Provide the contracting office with clear information and instructions on the transportation considerations that apply.
Contracting Officer / Contracting Office
Use the transportation information and instructions provided by the requiring activity when structuring the acquisition and administering the contract. Ensure the contract supports delivery of supplies in good order and condition, on time, and at the required place, while considering whether reduced transportation rates may apply.
Agency / Government
Conduct acquisitions in a way that is most advantageous to the Government, taking transportation and traffic management into account as part of overall value and performance. Ensure logistics planning supports mission needs and efficient distribution.
Practical Implications
Transportation planning can change the total cost of an acquisition, so the cheapest item price may not be the best overall deal if shipping, handling, or distribution costs are high.
Program offices often have the best knowledge of where supplies will be used next, so failing to involve them early can lead to poor delivery terms or inefficient distribution planning.
A common pitfall is treating transportation as a post-award issue; this section makes clear it should be considered during acquisition planning and passed to the contracting office up front.
If reduced Government transportation rates are available, missing them can mean unnecessary cost and avoidable administrative work.
Poorly communicated transportation requirements can lead to late deliveries, damaged goods, or supplies arriving at the wrong location or in the wrong sequence for mission use.
Official Regulatory Text
(a) Transportation and traffic management factors are important in awarding and administering contracts to ensure that (1) acquisitions are made on the basis most advantageous to the Government and (2) supplies arrive in good order and condition and on time at the required place. (See 47.104 for possible reduced transportation rates for Government shipments.) (b) The requiring activity shall- (1) Consider all transportation factors including present and future requirements, positioning of supplies, and subsequent distribution to the extent known or ascertainable; and (2) Provide the contracting office with information and instructions reflecting transportation factors applicable to the particular acquisition.