FAR 47.306-1—Transportation cost determinations.
Plain-English Summary
FAR 47.306-1 explains what information a contracting officer must provide when asking the transportation officer to help evaluate offers for transportation cost purposes. The section is narrowly focused on the data needed to make a sound transportation-cost determination, including a complete description of the commodity and packaging instructions, the planned award date, the date of initial shipment, the total quantity to be shipped with weight and cubic content when relevant, the delivery schedule, the contract period, and any possible use of transit privileges such as stopoffs for partial loading or unloading. Its purpose is to ensure the transportation officer has enough shipment-specific information to estimate transportation costs accurately and identify routing or logistics factors that could affect price. In practice, this section helps the government compare offers on a true cost basis, not just on the face price, by accounting for freight-related differences. It also reduces the risk of flawed evaluations caused by incomplete logistics data, especially where packaging, shipment timing, volume, or transit privileges can materially change transportation costs.
Key Rules
Provide all pertinent data
When requesting transportation officer assistance, the contracting officer must furnish all information relevant to the transportation-cost evaluation. The rule is not satisfied by partial data; the transportation officer needs enough detail to assess likely shipping costs accurately.
Describe the commodity fully
The contracting officer must include a complete description of the commodity being acquired, along with packaging instructions. This allows the transportation officer to determine how the item will move, how it must be handled, and whether packaging affects cost or mode selection.
Include shipment timing
The request must state the planned date of award and the date of initial shipment. These dates matter because transportation rates, availability, seasonal constraints, and routing options can vary depending on when the shipment begins.
State quantity and dimensions
The contracting officer must provide the total quantity to be shipped and, when appropriate, the weight and cubic content. These factors are essential for estimating freight charges and determining whether the shipment is best handled as a parcel, less-than-truckload, truckload, or other movement.
Provide delivery and contract schedule
The delivery schedule and contract period must be included because they affect shipment frequency, storage needs, and the overall transportation pattern. The transportation officer uses this information to evaluate whether costs will differ across the life of the contract.
Identify transit privileges
The request must note any possible use of transit privileges, including stopoffs for partial loading or unloading. These logistics options can reduce or increase transportation costs and must be considered in the evaluation.
Responsibilities
Contracting Officer
When seeking transportation officer assistance, gather and transmit all pertinent shipment and contract data listed in this section. The contracting officer must ensure the request is complete enough for a meaningful transportation-cost evaluation.
Transportation Officer
Use the information provided to evaluate transportation-related cost impacts of the offers. The transportation officer relies on the contracting officer’s data to estimate freight costs, identify routing or handling issues, and support the overall offer evaluation.
Practical Implications
Incomplete shipment data can lead to inaccurate transportation-cost estimates and distort the evaluation of offers.
Packaging instructions, shipment timing, and transit privileges can materially change freight costs, so they should never be treated as minor details.
Weight and cubic content are especially important for bulky or dense items because they can drive mode selection and rate calculations.
The contracting officer should coordinate early with the transportation officer so logistics assumptions are settled before award decisions are made.
A common pitfall is assuming the transportation officer can fill in missing facts; this section places the burden on the contracting officer to provide the needed information.
Official Regulatory Text
When requesting the transportation officer to assist in evaluating offers, the contracting officer shall give the transportation officer all pertinent data, including the following information: (a) A complete description of the commodity being acquired including packaging instructions. (b) Planned date of award. (c) Date of initial shipment. (d) Total quantity to be shipped (including weight and cubic content, when appropriate). (e) Delivery schedule. (f) Contract period. (g) Possible use of transit privileges, including stopoffs for partial loading or unloading, or both.