FAR 47.303-2—F.o.b. origin, contractor’s facility.
Plain-English Summary
FAR 47.303-2 explains the meaning and contract administration consequences of the delivery term “f.o.b. origin, contractor’s facility.” It covers three main topics: the definition of the term, the contractor’s responsibilities by cross-reference to FAR 47.303-1(b), and the required contract clause to be inserted in solicitations and contracts. In practice, this section tells the parties that the Government takes delivery at the contractor’s named facility, on board the carrier or Government conveyance specified, and that the contractor must perform the origin-side shipping duties associated with that delivery term. The rule matters because the delivery term determines where title/risk-related shipping responsibilities begin and who must arrange, load, and document shipment. It also ensures the solicitation and contract include the proper clause so the parties have a clear, enforceable statement of their obligations. For contracting officers, this section is a drafting and administration checkpoint; for contractors, it is a reminder that “f.o.b. origin” does not mean the Government picks up the goods at the contractor’s expense-free convenience, but rather that the contractor must deliver them properly to the carrier or Government conveyance at the designated facility.
Key Rules
Meaning of FOB origin
“F.o.b. origin, contractor’s facility” means the contractor must deliver the goods free of expense to the Government on board the carrier’s conveyance, or the Government’s conveyance if that is specified, at the designated facility. The delivery point is the named street or highway location in the stated city, county, and State from which shipment will be made.
Delivery occurs at contractor facility
The delivery term fixes the shipment origin at the contractor’s facility, not at a destination point. The contractor’s obligation is satisfied when the goods are properly placed on board the indicated conveyance at that facility, consistent with the contract’s shipping instructions.
Contractor duties follow 47.303-1(b)
The contractor’s responsibilities under this section are the same as those listed in FAR 47.303-1(b). This cross-reference means the contractor must perform the origin-side shipping responsibilities associated with FOB origin, rather than relying on the Government to assume those duties.
Mandatory clause insertion
When the delivery term is f.o.b. origin, contractor’s facility, the contracting officer must insert FAR clause 52.247-30, F.o.b. Origin, Contractor’s Facility, in the solicitation and contract. This clause makes the delivery term and related obligations explicit and enforceable.
Responsibilities
Contracting Officer
Use the correct delivery term when FOB origin, contractor’s facility is intended, and insert FAR 52.247-30 in both the solicitation and the contract. Ensure the contract clearly identifies the designated facility and shipping point so the delivery obligation is unambiguous.
Contractor
Deliver the supplies free of expense to the Government on board the specified carrier or Government conveyance at the designated facility, and perform the origin-side responsibilities incorporated by reference from FAR 47.303-1(b). Follow the contract’s shipping instructions and ensure the shipment is properly tendered from the named location.
Government/Receiving Activity
Accept delivery at the point defined by the FOB origin term and coordinate any Government conveyance if the contract specifies one. Verify that the shipment is tendered at the correct facility and that the contract clause and shipping terms are being applied consistently.
Practical Implications
This term shifts the delivery point to the contractor’s facility, so the exact address matters; vague or incomplete facility descriptions can create disputes over whether delivery was properly made.
Contractors should confirm who provides the carrier, who loads the shipment, and what documents are required, because FOB origin places the shipping handoff at the contractor’s site.
Contracting officers should not omit FAR 52.247-30 when using this delivery term; failing to include the clause can create ambiguity and weaken enforcement of shipping obligations.
A common pitfall is confusing FOB origin with destination delivery terms; under this section, the Government does not receive delivery at its location, and the contractor’s origin-side obligations remain central.
Because the section cross-references FAR 47.303-1(b), users should review that provision to understand the full set of contractor responsibilities rather than relying only on the short definition here.
Official Regulatory Text
(a) Explanation of delivery term. "F.o.b. origin, contractor’s facility" means free of expense to the Government delivered on board the indicated type of conveyance of the carrier (or of the Government if specified) at the designated facility, on the named street or highway, in the city, county, and State from which the shipment will be made. (b) Contractor responsibilities. The contractor’s responsibilities are the same as those listed in 47.303-1 (b). (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-30 , F.o.b. Origin, Contractor’s Facility, when the delivery term is f.o.b. origin, contractor’s facility.