FAR 47.303-8—F.a.s. vessel, port of shipment.
Plain-English Summary
FAR 47.303-8 explains the delivery term "f.a.s. vessel, port of shipment" and how it works in federal contracts for ocean shipments. It defines the term as delivery free of expense to the Government when the goods are placed alongside the ocean vessel, within reach of the vessel’s loading tackle, at the specified port of shipment. The section then assigns the contractor’s duties for packing and marking, preparing the shipment for ocean transport, delivering the goods in good order by the required date or period, paying charges up to the delivery point, providing a clean dock or ship’s receipt, bearing the risk of loss or damage before delivery, and assisting with export or import documents when requested by the Government and at Government expense. It also tells the contracting officer to include the prescribed clause at 52.247-36 whenever this delivery term is used. In practice, this section matters because it fixes the exact point where the contractor’s responsibility ends and the Government’s responsibility begins, which affects pricing, logistics, risk allocation, documentation, and claims for damage or delay.
Key Rules
Meaning of F.A.S. delivery
"F.a.s. vessel, port of shipment" means the contractor must deliver the goods free of expense to the Government alongside the ocean vessel at the named port, within reach of the vessel’s loading tackle. The delivery point is specific and physical; simply getting the shipment to the port is not enough.
Proper packing and marking
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not give packing instructions, the contractor must prepare the shipment for ocean transport in a way that protects the goods and supports the lowest applicable transportation charge.
Delivery at the specified point and time
The contractor must deliver the shipment in good order and condition at the designated point of delivery and on the date or within the period stated in the contract. Late delivery or delivery to the wrong location does not satisfy the term.
Contractor pays charges to delivery point
The contractor bears all applicable charges up to the F.A.S. delivery point, including transportation, wharfage, handling, and heavy lift charges if needed. These costs remain the contractor’s responsibility until the shipment is alongside the vessel within reach of loading tackle.
Receipt and risk of loss
The contractor must provide a clean dock or ship’s receipt and remains responsible for any loss of or damage to the goods before delivery to the contract-specified point. Risk transfers only when the shipment is properly delivered under the F.A.S. term.
Document assistance on request
At the Government’s request and expense, the contractor must assist in obtaining documents needed for exportation or importation at destination. This is an ancillary duty and does not shift the underlying cost burden to the contractor when the Government requests the assistance.
Required contract clause
When the delivery term is f.a.s. vessel, port of shipment, the contracting officer must insert the clause at 52.247-36 in solicitations and contracts. This ensures the delivery term and related obligations are expressly incorporated into the contract.
Responsibilities
Contracting Officer
Use the f.a.s. vessel, port of shipment term only when appropriate for the acquisition and insert the required clause at 52.247-36 in the solicitation and contract. The contracting officer should ensure the delivery point, timing, and related shipping requirements are clearly stated so the contractor knows exactly where responsibility ends.
Contractor
Pack and mark the shipment properly, prepare it for ocean transport if no specifications exist, deliver the goods in good order alongside the vessel within the required time, pay all charges up to that point, provide a clean dock or ship’s receipt, bear loss or damage before delivery, and assist with export or import documents when requested by the Government and at Government expense.
Government
Accept delivery only when the shipment has been placed alongside the ocean vessel within reach of loading tackle at the specified port. If it requests help obtaining export or import documents, it must pay the expense associated with that assistance.
Practical Implications
This term places the contractor’s risk and cost burden all the way to the vessel-side delivery point, so contractors must plan for port handling, wharfage, and any special lifting needs in their pricing and logistics.
A common pitfall is confusing port arrival with contract delivery; under F.A.S., delivery is not complete until the shipment is alongside the vessel and within reach of loading tackle.
Contractors should pay close attention to packing and marking because inadequate preparation can increase damage risk, delay loading, or cause higher transportation charges.
The clean dock or ship’s receipt is important evidence of proper delivery; missing or unclear receipts can create disputes about whether the contractor met the delivery obligation.
If export or import documents are needed, contractors should coordinate early, but they should also confirm that Government-requested assistance is reimbursable at Government expense rather than absorbed as an unpriced contractor burden.
Official Regulatory Text
(a) Explanation of delivery term. "F.a.s. vessel, port of shipment" means free of expense to the Government delivered alongside the ocean vessel and within reach of its loading tackle at the specified port of shipment. (b) Contractor responsibilities. The contractor shall- (1) (i) Pack and mark the shipment to comply with contract specifications; or (ii) In the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge; (2) (i) Deliver the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at the point of delivery and on the date or within the period specified in the contract; and (ii) Pay and bear all applicable charges, including transportation costs, wharfage, handling, and heavy lift charges, if necessary, up to this point; (3) Provide a clean dock or ship’s receipt; (4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point specified in the contract; and (5) At the Government’s request and expense, assist in obtaining the documents required for- (i) Exportation; or (ii) Importation at destination. (c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-36 , F.a.s. Vessel, Port of Shipment, when the delivery term is f.a.s. vessel, port of shipment.