FAR 52.247-1—Commercial Bill of Lading Notations.
Plain-English Summary
FAR 52.247-1, Commercial Bill of Lading Notations, tells contractors exactly what must be written on commercial shipping papers when the Government authorizes shipment on a commercial bill of lading and transportation costs will be reimbursed as direct allowable costs under a cost-reimbursement arrangement. The clause covers when the clause applies, the two required notation formats, how the notation changes depending on whether the Government is shown as the consignor or consignee, and the need to identify the specific agency and, in one case, the cost-reimbursement contract number and contract administration office. Its purpose is to make the shipment clearly traceable to the Government, support reimbursement of actual transportation charges paid to the carrier, and reduce disputes over whether the costs are properly assignable to the contract. In practice, it is a pre-shipment documentation requirement: the contractor must ensure the bill of lading or other commercial shipping document contains the correct language before the shipment moves. This clause matters because a missing or incorrect notation can delay payment, complicate audit support, and create avoidable questions about allowability and allocability of freight charges.
Key Rules
Applies only when authorized
The clause applies when the Contracting Officer authorizes shipment on a commercial bill of lading and the contractor will be reimbursed for transportation costs as direct allowable costs. If those conditions are not present, this notation requirement does not govern the shipment.
Notation required before shipment
The contractor must ensure the commercial shipping documents are annotated before the shipment is made. This is a proactive compliance step, not something that can be fixed later without risk.
Use the correct consignor/consignee language
If the Government is shown as the consignor or consignee, the shipping document must state that transportation is for the named agency and that the actual total transportation charges paid by the consignor or consignee are assignable to, and reimbursable by, the Government.
Use alternate language when Government is not listed
If the Government is not shown as the consignor or consignee, the document must still identify the named agency and state that the actual total transportation charges paid by the consignor or consignee will be reimbursed by the Government under the identified cost-reimbursement contract number.
Include contract administration contact
When the Government is not listed as consignor or consignee, the notation must also include a contact reference for the contract administration office named in the contract so the shipment can be verified if needed.
Use exact, case-specific details
The blanks in the clause must be filled in with the specific agency name, contract number, and contract administration office information applicable to the shipment. Generic or incomplete references can undermine the clause’s purpose and create reimbursement problems.
Responsibilities
Contracting Officer
Authorize use of a commercial bill of lading when appropriate and ensure the contract includes the clause when required by the prescription. The Contracting Officer also provides the agency name, contract number, and contract administration office information needed for the notation.
Contractor
Before shipment, ensure the commercial shipping documents contain the correct clause language and all required identifying information. The contractor must make sure the notation matches whether the Government is or is not shown as consignor/consignee and must preserve documentation supporting reimbursement.
Consignor or Consignee
When the contractor or another party is shown as consignor or consignee, that party must use the required notation on the shipping papers and pay the carrier charges in a way that supports later reimbursement by the Government.
Contract Administration Office
Provide the contact information referenced in the notation and serve as a point of confirmation if the carrier, shipper, or contractor needs to verify the shipment’s Government relationship.
Agency
Be identified by name in the notation so the shipment is tied to the correct Government customer and the transportation charges can be assigned to the proper agency or contract.
Practical Implications
This clause is mainly a documentation control for freight reimbursement, so the biggest day-to-day issue is making sure the shipping paperwork is correct before the truck leaves or the shipment is tendered.
A common pitfall is using the wrong notation format for the shipment’s consignee/consignor status; the required language changes depending on whether the Government is named on the bill of lading.
Another frequent problem is leaving blanks incomplete, especially the agency name, contract number, or contract administration office contact, which can delay invoice review or audit support.
Contractors should coordinate logistics, contracts, and accounts payable so the shipping document language matches the contract terms and the actual freight payment path.
For contracting officers and administrators, the practical value is reducing disputes over whether transportation costs are properly assignable and reimbursable under the contract, especially during payment review or post-award audit.
Official Regulatory Text
As prescribed in 47.104-4 , insert the following clause: Commercial Bill of Lading Notations (Feb 2006) When the Contracting Officer authorizes supplies to be shipped on a commercial bill of lading and the Contractor will be reimbursed these transportation costs as direct allowable costs, the Contractor shall ensure before shipment is made that the commercial shipping documents are annotated with either of the following notations, as appropriate: (a) If the Government is shown as the consignor or the consignee, the annotation shall be: Transportation is for the ______ [ name the specific agency ] and the actual total transportation charges paid to the carrier(s) by the consignor or consignee are assignable to, and shall be reimbursed by, the Government. (b) If the Government is not shown as the consignor or the consignee, the annotation shall be: Transportation is for the ______ [ name the specific agency ] and the actual total transportation charges paid to the carrier(s) by the consignor or consignee shall be reimbursed by the Government, pursuant to cost-reimbursement contract No. ________________ . This may be confirmed by contacting __________________ [ Name and address of the contract administration office listed in the contract ] . (End of clause)