FAR 47.304-5—Exceptions.
Plain-English Summary
FAR 47.304-5 explains when the Government may need to use shipping terms other than the standard f.o.b. origin or f.o.b. destination clauses. It identifies the kinds of unusual conditions or circumstances that can justify a different delivery term, including transportation disabilities at the origin or destination, the required mode of transportation, the availability of Government or commercial loading, unloading, or transshipment facilities, the characteristics of the supplies, trade customs for certain supplies, origins or destinations in Alaska and Hawaii, and program requirements. The section exists to make sure delivery terms match real-world transportation conditions and mission needs rather than forcing a standard term that could create cost, risk, or performance problems. In practice, this means contracting officers must think beyond the default f.o.b. choices whenever logistics are atypical and must coordinate with transportation specialists before issuing the solicitation. The rule helps prevent disputes over shipping responsibility, improper pricing assumptions, and avoidable delivery failures caused by using the wrong delivery term.
Key Rules
Use nonstandard terms when needed
Unusual conditions or circumstances may require delivery terms other than f.o.b. origin or f.o.b. destination. The FAR recognizes that standard f.o.b. terms do not fit every procurement and that the contract should reflect the actual transportation situation.
Transportation limitations matter
Transportation disabilities at either the origin or destination can justify a different term. If loading, unloading, access, or movement is constrained, the contracting officer should not assume a standard f.o.b. clause will work properly.
Mode and facilities affect terms
The required mode of transportation and the availability of Government or commercial loading, unloading, or transshipment facilities are relevant factors. These logistics conditions can change who should bear risk, cost, and responsibility for movement of the supplies.
Product and trade practices count
The characteristics of the supplies and trade customs related to certain supplies may require special delivery terms. Items that are fragile, hazardous, bulky, perishable, or governed by established commercial practices may need tailored transportation language.
Alaska and Hawaii are special cases
Origins or destinations in Alaska and Hawaii are specifically identified as circumstances that may warrant terms other than standard f.o.b. origin or destination. Their geographic and transportation realities can make ordinary delivery assumptions impractical.
Program requirements can drive the term
Mission or program requirements may justify a different delivery arrangement. The delivery term should support the program’s operational needs, not just the default procurement template.
Consult transportation officers first
Before issuing solicitations involving unusual f.o.b. circumstances, contracting officers must obtain assistance from transportation officers. This consultation is intended to ensure the solicitation uses the correct delivery term and avoids transportation-related errors.
Responsibilities
Contracting Officer
Identify when unusual transportation conditions or mission needs make standard f.o.b. origin or destination terms inappropriate. Before issuing the solicitation, obtain assistance from transportation officers and ensure the solicitation reflects the correct delivery arrangement.
Transportation Officer
Provide technical transportation advice on the proper delivery term, considering mode of transport, facilities, geographic issues, supply characteristics, and other logistics factors. Help the contracting officer avoid using an unsuitable f.o.b. term.
Agency/Program Office
Communicate program requirements and operational constraints that may affect delivery terms. Provide information about how the supplies will be used, where they must go, and any special handling or timing needs.
Contractor
Review the solicitation’s delivery terms carefully and price performance based on the actual transportation responsibilities assigned. Raise questions if the delivery term appears inconsistent with the shipment conditions or commercial practice.
Practical Implications
This section is a warning not to treat f.o.b. origin or destination as automatic defaults; logistics facts can change the right clause and the allocation of shipping risk and cost.
A common pitfall is issuing a solicitation with the wrong delivery term and then having to amend it later, which can delay procurement and distort pricing.
Contracting officers should pay close attention to remote locations, special handling requirements, and unusual modes of transport because these often trigger the need for tailored terms.
Failure to consult transportation officers can lead to disputes over freight responsibility, delivery performance, and whether the Government or contractor should bear certain transportation costs.
Contractors should not assume standard commercial shipping assumptions apply; they should verify who is responsible for loading, unloading, transshipment, and final delivery under the solicitation.
Official Regulatory Text
(a) Unusual conditions or circumstances may require the use of terms other than f.o.b. origin or f.o.b. destination. Such conditions or circumstances include, but are not limited to- (1) Transportation disabilities at origin or destination; (2) Mode of transportation required; (3) Availability of Government or commercial loading, unloading, or transshipment facilities; (4) Characteristics of the supplies; (5) Trade customs related to certain supplies; (6) Origins or destinations in Alaska and Hawaii; and (7) Program requirements. (b) Contracting officers shall obtain assistance from transportation officers before issuing solicitations when unusual conditions or circumstances exist that relate to f.o.b. terms.