FAR 47.303-7—F.o.b. destination, within consignee’s premises.
Plain-English Summary
FAR 47.303-7 explains the delivery term "f.o.b. destination, within consignee’s premises" and tells contracting personnel how to use it in solicitations and contracts. It defines the term as delivery free of expense to the Government, with the contractor responsible for delivering and laying the goods down within the doors of the consignee’s premises, and even to specific rooms if the contract says so. The section also incorporates the contractor duties from FAR 47.303-6(b), so the contractor must perform the same destination-delivery obligations that apply under that related provision. Finally, it directs the contracting officer to include the prescribed clause at FAR 52.247-35 whenever this delivery term is used. In practice, this section matters because it shifts the delivery burden beyond curbside or dock delivery and can affect pricing, logistics planning, access coordination, and risk allocation for both parties.
Key Rules
Delivery is inside the premises
This FOB term requires delivery free of expense to the Government and laid down within the doors of the consignee’s premises. It is more demanding than ordinary destination delivery because the contractor must get the items inside the building, not merely to the site or loading area.
Specific rooms may be required
If the contract so specifies, delivery can extend beyond the building entrance to designated rooms within the building. The exact delivery point should be clearly stated in the contract to avoid disputes over how far the contractor must move the goods.
Contractor duties mirror 47.303-6(b)
The contractor’s responsibilities under this section are the same as those listed in FAR 47.303-6(b). That means the contractor must perform the destination-delivery obligations associated with that related FOB term, in addition to the inside-premises delivery requirement stated here.
Mandatory clause insertion
When the delivery term is f.o.b. destination, within consignee’s premises, the contracting officer must insert FAR 52.247-35 in the solicitation and contract. This clause is the required contractual vehicle for implementing the term.
Responsibilities
Contracting Officer
Use the correct delivery term in the solicitation and contract, and insert FAR 52.247-35 whenever the contract calls for f.o.b. destination, within consignee’s premises. The contracting officer should also make sure the delivery point is described clearly enough to support performance and administration.
Contractor
Deliver the supplies free of expense to the Government and place them within the doors of the consignee’s premises, or in specific rooms if the contract requires it. The contractor must also meet the related responsibilities incorporated from FAR 47.303-6(b).
Consignee / Receiving Activity
Provide the destination location and receive the delivery at the premises, including any specified internal delivery point. The consignee should be prepared to coordinate access, receiving hours, and any building-specific restrictions that affect delivery.
Agency / Program Office
Define operational needs for inside delivery when preparing the requirement and ensure the delivery term matches the actual receiving environment. The agency should identify any room-level delivery needs early so they can be reflected in the solicitation.
Practical Implications
This term can materially increase contractor cost because it requires labor and handling beyond simple dock or curb delivery, so pricing should reflect the added effort.
Ambiguity about the exact delivery point is a common source of disputes; contracts should state whether delivery ends at the entrance, a loading area, or a specific room.
Building access issues such as security screening, elevators, narrow hallways, or restricted hours can affect performance and should be coordinated in advance.
Because the clause is mandatory, omitting FAR 52.247-35 can create a contract administration problem and weaken enforcement of the delivery obligation.
Contractors should verify whether the consignee’s premises can physically accommodate the required delivery path and whether special equipment or personnel will be needed.
Official Regulatory Text
(a) Explanation of delivery term. "F.o.b. destination, within consignee’s premises" means free of expense to the Government delivered and laid down within the doors of the consignee’s premises, including delivery to specific rooms within a building if so specified. (b) Contractor responsibilities. The contractor’s responsibilities are the same as those listed in 47.303-6 (b). (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-35 , F.o.b. Destination, within Consignee’s Premises, when the delivery term is f.o.b. destination, within consignee’s premises.