FAR 52.247-2—Permits, Authorities, or Franchises.
Plain-English Summary
FAR 52.247-2, Permits, Authorities, or Franchises, addresses who is responsible for securing legal authority to transport materials under a federal contract. The clause requires the offeror to disclose whether it already holds authorization from the Federal Highway Administration (FHWA) or another cognizant regulatory body, and if so, to identify the issuing authority and authorization number. It also requires the contractor, if asked, to provide copies of that authorization before moving material under the contract. Beyond federal authorization, the clause places the burden on the offeror/contractor to obtain and keep current all permits, franchises, licenses, and other approvals required by state and local governments, at its own expense. In practice, this clause is meant to prevent transportation delays, legal violations, and cost disputes by making clear that the contractor—not the Government—must secure the regulatory permissions needed to perform hauling or movement of materials. It is especially important in contracts involving road transport, oversize or overweight loads, or operations crossing multiple jurisdictions.
Key Rules
Disclose existing authorization
The offeror must indicate whether it does or does not hold authorization from the FHWA or another cognizant regulatory body. If authorization exists, the offeror must identify the issuing body and the authorization number.
Provide authorization on request
If the Government requests it, the offeror must furnish copies of the authorization before moving material under any awarded contract. This allows the Government to verify that the contractor is legally authorized to perform the transportation work.
Obtain state and local approvals
The contractor must, at its own expense, obtain and maintain all permits, franchises, licenses, and other authorities required by state and local governments. The clause makes clear that these compliance costs are the contractor’s responsibility.
Maintain compliance throughout performance
The duty is not limited to initial award. The contractor must keep required authorizations current for the duration of performance, including renewals or replacements if permits expire or are modified.
Applies to material movement
The clause is tied to moving material under the contract, so it is most relevant where performance involves transportation activities that may be regulated by federal, state, or local authorities.
Responsibilities
Offeror
State whether it holds FHWA or other cognizant regulatory authorization, and if so, identify the issuing authority and authorization number in the offer.
Contractor
Before moving material, provide copies of the authorization if requested by the Government, and obtain and maintain all required state and local permits, franchises, licenses, and other authorities at its own expense.
Contracting Officer / Government
May request copies of the contractor’s authorization before movement begins and may rely on the clause to ensure the contractor bears responsibility for legal transport compliance.
State and Local Authorities
Issue permits, licenses, franchises, and other approvals needed for lawful transportation activities within their jurisdictions.
Practical Implications
Contractors should verify permit requirements early, because transportation approvals can take time and may affect schedule, routing, equipment selection, and cost.
A common pitfall is assuming federal authorization alone is enough; the clause separately requires compliance with state and local requirements, which can vary widely by route and load type.
If the Government asks for proof of authorization and the contractor cannot produce it promptly, performance may be delayed or the contractor may be found noncompliant.
Contractors should budget for permit fees, escort requirements, route restrictions, and renewal costs, since the clause places those expenses on the contractor.
Contracting officers should confirm that the solicitation and contract file reflect any needed transportation authority issues, especially for contracts involving heavy haul, oversize loads, or interstate movement.
Official Regulatory Text
As prescribed in 47.207-1 (a) , insert the following clause: Permits, Authorities, or Franchises (Jan 1997) (a) The offeror does □ , does not □ , hold authorization from the Federal Highway Administration (FHWA) or other cognizant regulatory body. If authorization is held, it is as follows: __________________________________________________ ( Name of regulatory body ) __________________________________________________ ( Authorization No. ) (b) The offeror shall furnish to the Government, if requested, copies of the authorization before moving the material under any contract awarded. In addition, the offeror shall, at the offeror’s expense, obtain and maintain any permits, franchises, licenses, and other authorities issued by State and local governments. (End of clause)