FAR 47.305-11—Options in shipment and delivery.
Plain-English Summary
FAR 47.305-11 addresses how a solicitation and resulting contract can reserve Government options for shipment and delivery changes. It explains that, even though the changes clauses in FAR subpart 43.2 may already permit certain adjustments, the contracting activity may want to state specific rights up front in the solicitation. The section covers three distinct options the Government may reserve: directing delivery of all or part of the contract quantity to destinations or consignees other than those originally identified; directing shipments in quantities that could trigger transportation rates different from those used to price the contract; and directing shipment by a different mode of transportation than the one specified in the solicitation and contract. In practice, this section is about preserving logistics flexibility while avoiding disputes over whether the contractor must absorb the operational or pricing consequences of changed delivery instructions. It matters because shipment and delivery terms can materially affect cost, carrier selection, transit time, and performance risk, so the solicitation should clearly tell offerors what flexibility the Government may exercise.
Key Rules
Reserve delivery redirection rights
The Government may expressly reserve the right to direct delivery of all or part of the contract quantity to destinations or consignees other than those listed in the solicitation and contract. This gives the Government flexibility to reroute shipments without renegotiating the basic contract terms each time.
Reserve quantity-based shipment changes
The Government may reserve the right to direct shipments in quantities that could require transportation rates different from those used in pricing the contract. This is important when shipment size affects freight class, rate breaks, minimum charges, or other transportation pricing factors.
Reserve alternate transport modes
The Government may reserve the right to direct shipment by a mode of transportation other than the one stated in the solicitation and contract. This allows the Government to change from one mode to another, such as truck to rail or air to surface, when operational needs require it.
Use specific solicitation language
Although subpart 43.2 changes clauses may already cover some shipment and delivery adjustments, this section recognizes that the solicitation may need to spell out these options specifically. Clear advance notice helps avoid later disagreement over whether the Government can exercise the option and who bears the cost impact.
Responsibilities
Contracting Officer
Decide whether shipment and delivery flexibility is needed, and if so, include clear solicitation and contract language reserving the Government’s rights. Ensure the stated options are consistent with the acquisition’s logistics needs, pricing structure, and applicable contract clauses.
Agency/Requirement Owner
Identify operational situations where deliveries may need to be redirected, quantities changed, or transportation modes altered. Provide the contracting officer with the delivery flexibility needed to support mission requirements.
Contractor
Review the solicitation for reserved shipment and delivery options, price the offer with those risks in mind, and be prepared to comply with authorized changes within the scope of the reserved rights. Adjust logistics planning, carrier arrangements, and pricing assumptions accordingly.
Transportation/Logistics Personnel
Support the contracting team by identifying how destination, quantity, and mode changes affect freight rates, transit times, handling requirements, and carrier availability. Help ensure the solicitation language matches actual transportation needs.
Practical Implications
This section is mainly about avoiding surprises in freight and delivery performance. If the Government may change destinations, quantities, or modes, that possibility should be visible to offerors before award so they can price realistically.
A common pitfall is assuming the standard changes clauses alone will cover every logistics adjustment. If the agency expects to redirect shipments or change transportation methods, the solicitation should expressly reserve those rights.
Quantity changes can have a major cost effect because transportation pricing often depends on shipment size. Contractors should watch for language that allows the Government to direct smaller or larger shipments than the pricing assumptions used in the offer.
Changing the mode of transportation can affect not just cost but also packaging, lead time, insurance, and carrier coordination. Contractors should confirm whether the contract or solicitation addresses who bears the added cost or schedule impact.
For contracting officers, the key practical step is to align the reserved options with the actual acquisition strategy. Overly vague language can create disputes, while overly broad rights may discourage competition or lead to inflated pricing.
Official Regulatory Text
Although the clauses prescribed in subpart 43.2 allow certain changes to be made in regard to shipment and delivery, it may be desirable to provide specifically for certain options in the solicitation. The Government may reserve the right to- (a) Direct deliveries of all or part of the contract quantity to destinations or to consignees other than those specified in the solicitation and in the contract; (b) Direct shipments in quantities that may require transportation rates different from those on which the contract price is based; and (c) Direct shipments by a mode of transportation other than that stipulated in the solicitation and in the contract.