FAR 52.247-30—F.o.b. Origin, Contractor’s Facility.
Plain-English Summary
FAR 52.247-30 tells contractors and contracting personnel what "f.o.b. origin, contractor’s facility" means and how shipments must be prepared, tendered, documented, and handed to the carrier when the Government is buying under an origin-delivery term. It defines the delivery point, explains that the Government takes title and risk only after proper delivery to the carrier at the named contractor facility, and assigns the contractor responsibility for packing, marking, carrier equipment requests, loading, stowing, blocking, bracing, and completing transportation documents. The clause also addresses who bears loss or damage before carrier delivery or caused by improper packing or loading, and it requires the contractor to complete the Government bill of lading or, if none is provided, a commercial bill of lading or other transportation receipt. It further specifies what information must appear on the bill of lading, including freight-classification details, seal numbers, vehicle capacity, consignee information, routing, special instructions, and carrier signature/date. In practice, this clause is important because it allocates transportation responsibilities and risk, controls freight charges, and creates the paperwork needed for prompt delivery and proper reimbursement or audit of shipping costs.
Key Rules
Defines FOB origin delivery
The clause means delivery is free of expense to the Government when the shipment is placed on board the specified carrier at the contractor’s named facility. The contractor’s facility address must be the designated origin point for shipment.
Contractor must pack and mark
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not provide packing or marking instructions, the contractor must follow carrier requirements to protect the goods and obtain the lowest applicable transportation charge.
Carrier equipment must be ordered properly
When the Government requests a specific type of carrier equipment, the contractor must order it. If no equipment is specified, the contractor must order suitable equipment that is not larger than needed for the shipment.
Contractor must deliver and load correctly
The contractor must deliver the shipment to the carrier in good order and condition and, when the contractor loads the shipment, must load, stow, trim, block, and brace it as required by carrier rules and regulations.
Contractor bears pre-delivery and packing losses
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.
Bill of lading must be completed
The contractor must complete the Government bill of lading if one is provided. If not, the contractor must prepare a commercial bill of lading or other transportation receipt with the required shipment and routing information.
Bill of lading must include key data
The transportation document must identify the shipment under the correct freight classification or tariff, show seal numbers, car or truck lengths and capacities, consignee and delivery details, routing, special agency instructions, and the carrier agent’s signature and receipt date.
Copies must be distributed as directed
The contractor must distribute copies of the bill of lading or other transportation receipts according to the ordering agency’s instructions. This supports shipment tracking, payment, and recordkeeping.
Responsibilities
Contracting Officer / Ordering Agency
Specify the delivery term in the solicitation and contract, provide any required packing, marking, routing, or equipment instructions, supply a Government bill of lading when appropriate, and direct how transportation document copies must be distributed.
Contractor
Prepare, pack, mark, order equipment for, load, and tender the shipment in accordance with the clause; ensure the shipment reaches the carrier in good order; complete the required transportation documents; and follow agency instructions for document distribution.
Carrier
Receive the shipment, sign and date the bill of lading or receipt, and transport the goods under the applicable freight classification, tariff, or Government rate tender.
Government
When it supplies the bill of lading or specifies carrier equipment, routing, or special instructions, it must provide those directions clearly so the contractor can tender the shipment correctly and document it properly.
Practical Implications
This clause shifts a lot of shipping responsibility to the contractor, so contractors need strong shipping procedures and trained staff to avoid freight disputes and damage claims.
The biggest risk area is packaging and loading: if the contractor packs poorly or loads incorrectly, the contractor can be liable for damage even after the carrier takes possession.
Accurate bill of lading preparation matters because errors in freight classification, consignee data, routing, or seal numbers can delay delivery and create billing or audit problems.
Contractors should confirm whether the Government is providing the bill of lading, specifying carrier equipment, or requiring special annotations before shipment leaves the facility.
Contracting officers and ordering agencies should give clear shipping instructions up front; missing or inconsistent instructions often lead to avoidable delays, higher freight charges, or disputes over responsibility.
Official Regulatory Text
As prescribed in 47.303-2 (c) , insert the following clause in solicitations and contracts when the delivery term is f.o.b. origin, contractor’s facility: F.o.b. Origin, Contractor’s Facility (Feb 2006) (a) The term "f.o.b. origin, contractor’s facility," as used in this clause, means free of expense to the Government delivered on board the indicated type of conveyance of the carrier (or of the Government, if specified) at the designated facility, on the named street or highway, in the city, county, and State from which the shipment will be made. (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 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. (End of clause)