FAR 47.305-5—Destination unknown.
Plain-English Summary
FAR 47.305-5 explains how contracting officers handle transportation-cost evaluation when the final destination of supplies is not yet known. It covers three distinct situations: when destinations are completely unknown, when the exact destination is unknown but the general user location can be estimated, and when neither exact nor tentative destinations can be established for evaluating transportation costs. The section tells the contracting officer when solicitations must be limited to f.o.b. origin, when to use tentative destinations and the Destination Unknown provision at 52.247-49, and when to use the No Evaluation of Transportation Costs provision at 52.247-50. It also addresses when the solicitation must control later shipping methods or shipment sizes, such as carload, truckload, or minimum-size shipments, to manage transportation costs after award. In practice, this section is about making sure offers are evaluated fairly and consistently even though the Government does not yet know where the supplies will ultimately go, while also protecting the Government from unexpected freight-cost increases later in performance.
Key Rules
Unknown destinations require f.o.b. origin
If destinations are unknown, solicitations must be issued on an f.o.b. origin basis only. This means the Government does not try to evaluate delivery to a destination that cannot yet be identified.
Justify f.o.b. origin use
When the solicitation is limited to f.o.b. origin because destinations are unknown, the contracting officer must place the justification in the contract file. This creates a record showing why destination-based evaluation was not possible.
Use tentative destinations when possible
If the exact destination is unknown but the general user location can be reasonably established, the acquiring activity must assign tentative destinations and estimated quantities for each one. These tentative points are used only to compute transportation costs for evaluation.
Insert Destination Unknown provision
When tentative destinations are used only for evaluation, the contracting officer must include the provision at 52.247-49, Destination Unknown. This alerts offerors that the destination information is provisional and used solely for price evaluation.
Control shipment size when needed
If later shipping weights or shipment sizes must be controlled, the solicitation must say that shipments will be made in carloads or truckloads, as appropriate. The clause at 52.247-59 may be used to manage f.o.b. origin carload and truckload shipments.
No transportation-cost evaluation when impracticable
If exact destinations are unknown and it is impracticable to establish tentative or general delivery points for evaluating transportation costs, the contracting officer must use the provision at 52.247-50, No Evaluation of Transportation Costs. In that case, transportation costs are not part of the evaluation method.
Control later shipments even without evaluation
When transportation costs cannot be evaluated up front, the solicitation must still address how later shipments will be controlled. For example, it may require minimum-size shipments under clauses such as 52.247-61 to prevent inefficient freight practices.
Responsibilities
Contracting Officer
Determine which destination scenario applies, choose the correct solicitation basis, insert the required FAR provisions or clauses, and document the file when solicitations are limited to f.o.b. origin because destinations are unknown.
Acquiring Activity
When the exact destination is unknown but the general user location can be reasonably identified, designate tentative destinations and estimated quantities for each tentative destination so transportation costs can be computed for evaluation.
Contractor/Offeror
Review the solicitation’s destination and shipping terms, understand whether transportation costs are being evaluated or excluded, and price offers accordingly based on the stated f.o.b. basis and shipment-control requirements.
Agency/Program User
Provide enough information about the likely location of users or delivery needs to allow the acquiring activity to establish tentative or general destinations when possible, or confirm that such information is not available.
Practical Implications
This section affects how freight costs are built into evaluated price, so it can change which offer appears lowest even when base prices are similar.
A common pitfall is failing to document why f.o.b. origin was used when destinations were unknown; that omission can create file deficiencies and evaluation challenges.
Another risk is using tentative destinations without clearly stating that they are for evaluation only, which can confuse offerors and lead to disputes over shipping assumptions.
Contracting officers should also watch for later shipment inefficiencies: if the solicitation does not control shipment size or method, the Government may face higher transportation costs after award.
Contractors should pay close attention to whether transportation costs are evaluated, ignored, or controlled by shipment-size requirements, because that affects pricing strategy and logistics planning.
Official Regulatory Text
(a) (1) When destinations are unknown, solicitations shall be f.o.b. origin only. (2) The contracting officer shall include in the contract file justifications for such solicitations. (b) (1) When the exact destination of the supplies to be acquired is not known, but the general location of the users can be reasonably established, the acquiring activity shall designate tentative destinations for the purpose of computing transportation costs, showing estimated quantities for each tentative destination. (2) The contracting officer shall insert in solicitations the provision at 52.247-49 , Destination Unknown, when destinations are tentative and only for the purpose of evaluating offers. (3) If it is necessary to control subsequent shipping weights, the solicitation shall state that subsequent shipments shall be made in carloads or truckloads (see the clause at 52.247-59 , F.o.b. Origin-Carload and Truckload Shipments). (c) (1) When exact destinations are not known and it is impracticable to establish tentative or general delivery places for the purpose of evaluating transportation costs, the contracting officer shall insert in solicitations the provision at 52.247-50 , No Evaluation of Transportation Costs. (2) The solicitation shall also state that the transportation costs of subsequent shipments must be controlled (see, for example, the clause at 52.247-61 , F.o.b. Origin-Minimum Size of Shipments).