FAR 47.302—Place of delivery-f.o.b. point.
Plain-English Summary
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.
Key Rules
Use prescribed transportation policy
For supplies from CONUS, the contracting officer generally follows the transportation policies in FAR 47.304-1, -2, and -3, unless identifiable costs, the nature of the supplies, delivery requirements, or other factors justify a different approach. For supplies from outside CONUS, FAR 47.304-4 governs.
Default to prescribed delivery basis
The contracting officer should solicit offers and award contracts using the delivery terms prescribed in FAR 47.304. If a solicitation does not use that basis, the contract file must contain a justification.
Acceptance location does not control delivery term
The place where quality assurance or acceptance occurs does not automatically determine whether the contract is f.o.b. origin or destination. Delivery terms must be chosen independently of the inspection or acceptance site, except where acceptance at destination requires f.o.b. destination.
Acceptance at destination requires f.o.b. destination
If the Government will accept the supplies at destination, transportation must be f.o.b. destination. This is the one direct linkage the rule makes between acceptance location and delivery term.
Origin acceptance can pair with destination delivery
Acceptance at origin does not require f.o.b. origin. The Government may inspect and accept at origin while still using f.o.b. destination if that arrangement is advantageous and otherwise appropriate under the inspection rules.
Payment needs shipment evidence
When title is accepted at origin, the contractor may be paid if the invoice is supported by a signed commercial bill of lading showing carrier receipt for shipment to the contract destination, or by other appropriate evidence that the shipment was made to that destination for the contractor’s account.
Responsibilities
Contracting Officer
Select the delivery term using the transportation policies in FAR 47.304, document any deviation from the prescribed basis in the contract file, and ensure the solicitation and award reflect the proper f.o.b. point. The contracting officer must also align the delivery term with the acceptance arrangement and ensure payment documentation requirements are understood.
Government Quality Assurance/Inspection Personnel
Perform quality assurance actions and acceptance at the designated place, but recognize that their location does not by itself set the delivery term. They must coordinate with the contracting officer when acceptance at origin or destination affects contract administration.
Contractor
Provide supplies under the agreed delivery term, furnish shipment evidence when payment depends on acceptance at origin, and ensure invoices are supported by a signed commercial bill of lading or other acceptable proof of shipment to the specified destination.
Agency/Contract File Custodian
Maintain the contract file with the required justification when the solicitation does not use the delivery basis prescribed in FAR 47.304, consistent with FAR 4.801 documentation requirements.
Practical Implications
This section prevents contracting officers from choosing an f.o.b. point just because inspection or acceptance happens somewhere else; the transportation term must be selected on its own merits.
A common mistake is assuming acceptance at origin automatically means f.o.b. origin. FAR 47.302 says that is not required, and f.o.b. destination may still be appropriate.
If acceptance is at destination, the delivery term must be f.o.b. destination, so acquisition planning should align shipping, risk, and payment terms early.
When the Government accepts title at origin, payment can still proceed, but only if the invoice package includes proper shipment evidence; missing bills of lading can delay payment.
Any departure from the prescribed delivery basis needs a clear file justification, so contracting officers should document the rationale before solicitation rather than trying to explain it after award.
Official Regulatory Text
(a) The policies and procedures in 47.304-1 , -2, and -3 govern the transportation of supplies from sources in the Contiguous United States (CONUS), except when identifiable costs, nature of the supplies (security, safety, or value), delivery requirements (premium modes of transport, escorts, transit arrangements, and tentative conditions), or other advantages, limitations, or requirements dictate otherwise. The policies and procedures in 47.304-4 govern the transportation of supplies from sources outside CONUS. (b) Generally, the contracting officer shall solicit offers, and award contracts, with delivery terms on the basis prescribed in 47.304 . The contracting officer shall document the contract file (see 4.801 ) with justifications for solicitations that do not specify delivery on the basis prescribed in 47.304 . (c) (1) The place of performance of Government acquisition quality assurance actions and the place of acceptance shall not control the delivery term, except that if acceptance is at destination, transportation shall be f.o.b. destination (see 47.304-1 (f)). (2) The fact that transportation is f.o.b. destination does not alone necessitate changing the place of acceptance from origin to destination; and the fact that acceptance is at origin does not necessitate an f.o.b. origin delivery term. Providing for inspection and acceptance at origin (if appropriate under 46.402 ), in conjunction with an f.o.b. destination term, may be advantageous to both the Government and the contractor. Acceptance of title at origin by the Government permits payment of the contractor, provided the invoice is supported either by a copy of the signed commercial bill of lading (indicating the carrier’s receipt of the supplies covered by the invoice for transportation to the particular destination specified in the contract) or by other appropriate evidence of shipment to the particular destination for the contractor’s account.