FAR 52.247-35—F.o.b. Destination, Within Consignee’s Premises.
Plain-English Summary
FAR 52.247-35 sets the delivery term for contracts that require shipment f.o.b. destination, within the consignee’s premises. It explains what that term means in practice: the contractor must deliver the goods free of expense to the Government, laid down inside the consignee’s premises, and if the contract says so, even to specific rooms within a building. The clause also assigns the contractor the shipping and delivery responsibilities that go with that term, including packing and marking, preparing commercial bills of lading, delivering the shipment in good order to the named delivery point, bearing the risk of loss or damage until the consignee receives the shipment, providing a delivery schedule, selecting the mode of carrier, and paying all transportation charges to the destination. In practical terms, this clause shifts the logistics burden and transit risk to the contractor until actual delivery at the specified interior location, so both parties need to be precise about the delivery point, access conditions, and any special handling requirements. It matters because disputes often arise over whether delivery was complete, who paid transportation costs, and who bears responsibility for damage occurring before receipt at the consignee’s premises.
Key Rules
Destination delivery inside premises
The clause defines f.o.b. destination, within consignee’s premises, as delivery free of expense to the Government and laid down within the doors of the consignee’s premises. If the contract specifies it, delivery may extend to a particular room or interior location within the building.
Contractor handles packing and marking
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 instead.
Commercial bill of lading required
The contractor must prepare and distribute commercial bills of lading. This ensures the shipment is properly documented for transportation and delivery purposes.
Delivery at specified point
The contractor must deliver the shipment in good order and condition to the exact point of delivery stated in the contract. Delivery is not complete until the goods reach that designated location.
Risk stays with contractor until receipt
The contractor is responsible for any loss of or damage to the goods occurring before the consignee receives the shipment at the contract delivery point. Transit risk remains with the contractor until that receipt occurs.
Contractor arranges transport
The contractor must furnish a delivery schedule and designate the mode of delivering carrier. The contractor also must pay and bear all charges to the specified destination.
Responsibilities
Contracting Officer
Include this clause when the contract uses f.o.b. destination, within consignee’s premises, and clearly identify the delivery point, including any specific room or interior location if required. Ensure the solicitation and contract state any special packing, marking, or delivery requirements that affect performance.
Contractor
Pack and mark the shipment properly, prepare and distribute the commercial bill of lading, arrange the carrier and delivery schedule, transport the goods to the exact destination, pay all transportation charges, and remain responsible for loss or damage until the consignee receives the shipment at the specified point.
Consignee/Government Receiving Activity
Receive the shipment at the designated premises or interior location and document receipt when delivery is complete. Verify condition and quantity at receipt so any loss or damage before delivery can be identified and addressed.
Practical Implications
This clause makes the contractor responsible for transportation costs and transit risk all the way to the interior delivery point, so pricing and logistics planning must account for inside delivery, handling, and any access constraints.
The exact delivery location matters a great deal. If the contract says only the premises, delivery inside the building is required; if it names a room, the contractor must deliver there, not just to the loading dock or front entrance.
Disputes often arise when shipments are damaged before the consignee signs for them. Contractors should document condition at shipment, use appropriate packaging, and track carrier performance closely.
Because the contractor designates the carrier and mode of delivery, it should coordinate timing, access, unloading, and any special handling needs with the receiving activity to avoid failed deliveries or extra charges.
Contracting officers should make sure the solicitation is specific about the delivery point and any special requirements, since vague language can lead to arguments over whether the contractor completed delivery and who bears added costs.
Official Regulatory Text
As prescribed in 47.303-7 (c) , insert the following clause in solicitations and contracts when the delivery term is f.o.b. destination, within consignee’s premises: F.o.b. Destination, Within Consignee’s Premises (Apr 1984) (a) The term "f.o.b. destination, within consignee’s premises," as used in this clause, means free of expense to the Government delivered and laid down within the doors of the consignee’s premises, including delivery to specific rooms within a building if so specified. (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; (2) Prepare and distribute commercial bills of lading; (3) Deliver the shipment in good order and condition to the point of delivery specified in the contract; (4) Be responsible for any loss of and/or damage to the goods occurring before receipt of the shipment by the consignee at the delivery point specified in the contract; (5) Furnish a delivery schedule and designate the mode of delivering carrier; and (6) Pay and bear all charges to the specified point of delivery. (End of clause)