FAR 52.247-29—F.o.b. Origin.
Plain-English Summary
FAR 52.247-29, F.o.b. Origin, sets the shipping and delivery rules when the contract uses an origin-based transportation term. It explains what “f.o.b. origin” means, where delivery to the carrier occurs, and when delivery may instead be made to a carrier’s wharf, freight station, Postal Service facility, or a Government-designated point in the same city or commercial zone. The clause also assigns the contractor responsibility for packing, marking, ordering carrier equipment, loading and securing shipments, and preparing the bill of lading or other transportation receipt. It further allocates risk of loss or damage before carrier acceptance and for improper packing or loading, and it tells parties how to distribute shipping documents. Finally, it addresses special performance locations and exceptions for Alaska and Hawaii, including a limited shift toward destination-style responsibility for certain shipments and container service requirements in Hawaii. In practice, this clause matters because it determines who bears transportation-related costs and risk, how shipping paperwork must be completed, and where the contractor’s delivery obligation ends.
Key Rules
Origin delivery point
Under this clause, f.o.b. origin means the Government receives the supplies free of expense at the carrier’s point of origin, not at the destination. Delivery is complete when the shipment is placed on the indicated conveyance, carrier wharf, freight station, Postal Service facility, or, if the solicitation says so, a Government-designated point in the same city or commercial zone.
Contractor packs and marks
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not provide packing instructions, the contractor must use carrier-acceptable methods that protect the goods and support the lowest applicable transportation charge.
Carrier equipment and loading
The contractor must order the carrier equipment requested by the Government, or if none is specified, order suitable equipment that is not larger than needed. The contractor must also deliver the shipment in good order and condition and, when it loads the shipment, must load, stow, trim, block, and brace it according to carrier rules.
Risk stays with contractor until carrier receipt
The contractor is responsible for loss or damage occurring before delivery to the carrier, for damage caused by improper packing or marking, and for damage caused by improper loading, stowing, trimming, blocking, or bracing when the contractor performs the loading. This makes carrier acceptance a key risk-transfer point.
Bill of lading requirements
The contractor must complete the Government bill of lading if one is provided, or prepare a commercial bill of lading or other transportation receipt if not. The document must include the freight classification or tariff basis for the lowest rate, seal numbers, car or truck lengths and capacities, consignee and routing information, special instructions, and the carrier agent’s signature and receipt date.
Document distribution
The contractor must distribute copies of the bill of lading or other transportation receipts as directed by the ordering agency. This ensures the Government can track shipment, verify charges, and support receipt and payment actions.
Shipment location and special geographic rules
The contractor’s shipping responsibilities are performed at the plant where final inspection and acceptance occur, unless carrier facilities are unavailable there, in which case performance shifts to the nearest city with carrier facilities. Special rules apply for Alaska and Hawaii shipments, including delivery to the port of loading at contractor expense, and for Hawaii container-service contracts, which require delivery to the container yard in the same or nearest city with seavan container service.
Responsibilities
Contracting Officer / Ordering Agency
State the applicable f.o.b. origin point and any Government-designated delivery point in the solicitation or contract. Provide any Government bill of lading, specify special shipping instructions, direct distribution of transportation documents, and identify any required carrier equipment or routing information.
Contractor
Pack, mark, and prepare the shipment; order appropriate carrier equipment; deliver the goods to the carrier or other specified origin point; load and secure the shipment when responsible for loading; complete or prepare the bill of lading or transportation receipt; and bear responsibility for pre-carrier loss or damage and damage caused by improper packing or loading.
Carrier
Receive the shipment, sign and date the bill of lading or receipt, and provide transportation services from the origin point under the applicable freight classification, tariff, or Government rate tender.
Government / Ordering Agency
Specify shipping instructions, furnish a Government bill of lading when used, identify consignee and routing details, and direct how shipping documents are to be distributed and retained for transportation and payment administration.
Practical Implications
This clause shifts the transportation handoff to the origin point, so contractors should treat carrier receipt as the key moment when risk begins to move away from them.
Packing and loading errors can create contractor liability even after the shipment leaves the plant, so compliance with carrier rules and contract specifications is critical.
The bill of lading is not just paperwork; mistakes in freight classification, routing, seal numbers, or consignee data can delay delivery and increase freight costs.
If the contract does not clearly identify the origin point, carrier equipment needs, or special delivery instructions, disputes can arise over who was responsible for extra handling or transportation charges.
Alaska and Hawaii shipments require special attention because the clause changes the normal origin rule in limited ways and may impose additional delivery obligations at contractor expense.
Official Regulatory Text
As prescribed in 47.303-1 (c) , insert the following clause: F.o.b. Origin (Feb 2006) (a) The term "f.o.b. origin," as used in this clause, means free of expense to the Government delivered- (1) On board the indicated type of conveyance of the carrier (or of the Government, if specified) at a designated point in the city, county, and State from which the shipment will be made and from which line-haul transportation service (as distinguished from switching, local drayage, or other terminal service) will begin; (2) To, and placed on, the carrier’s wharf (at shipside, within reach of the ship’s loading tackle, when the shipping point is within a port area having water transportation service) or the carrier’s freight station; (3) To a U.S. Postal Service facility; or (4) If stated in the solicitation, to any Government designated point located within the same city or commercial zone as the f.o.b. origin point specified in the contract (the Federal Motor Carrier Safety Administration prescribes commercial zones at Subpart B of 49 CFR part 372 ). (b) The Contractor shall- (1) (i) Pack and mark the shipment to comply with contract specifications; or (ii) In the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge; (2) (i) Order specified carrier equipment when requested by the Government; or (ii) If not specified, order appropriate carrier equipment not in excess of capacity to accommodate shipment; (3) Deliver the shipment in good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckload shipment (when loaded by the Contractor) on or in the carrier’s conveyance as required by carrier rules and regulations; (4) Be responsible for any loss of and/or damage to the goods- (i) Occurring before delivery to the carrier; (ii) Resulting from improper packing and marking; or (iii) Resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the Contractor on or in the carrier’s conveyance; (5) Complete the Government bill of lading supplied by the ordering agency or, when a Government bill of lading is not supplied, prepare a commercial bill of lading or other transportation receipt. The bill of lading shall show- (i) A description of the shipment in terms of the governing freight classification or tariff (or Government rate tender) under which lowest freight rates are applicable; (ii) The seals affixed to the conveyance with their serial numbers or other identification; (iii) Lengths and capacities of cars or trucks ordered and furnished; (iv) Other pertinent information required to effect prompt delivery to the consignee, including name, delivery address, postal address and ZIP code of consignee, routing, etc.; (v) Special instructions or annotations requested by the ordering agency for commercial bills of lading; e.g., "This shipment is the property of, and the freight charges paid to the carrier(s) will be reimbursed by, the Government"; and (vi) The signature of the carrier’s agent and the date the shipment is received by the carrier; and (6) Distribute the copies of the bill of lading, or other transportation receipts, as directed by the ordering agency. (c) These Contractor responsibilities are specified for performance at the plant or plants at which the supplies are to be finally inspected and accepted, unless the facilities for shipment by carrier’s equipment are not available at the Contractor’s plant, in which case the responsibilities shall be performed f.o.b. the point or points in the same or nearest city where the specified carrier’s facilities are available; subject, however, to the following qualifications: (1) If the Contractor’s shipping plant is located in the State of Alaska or Hawaii, the Contractor shall deliver the supplies listed for shipment outside Alaska or Hawaii to the port of loading in Alaska or Hawaii, respectively, as specified in the contract, at Contractor’s expense, and to that extent the contract shall be "f.o.b. destination." (2) Notwithstanding paragraph (c)(1) of this clause, if the Contractor’s shipping plant is located in the State of Hawaii, and the contract requires delivery to be made by container service, the Contractor shall deliver the supplies, at the Contractor’s expense, to the container yard in the same or nearest city where seavan container service is available. (End of clause)