FAR 52.247-36—F.a.s. Vessel, Port of Shipment.
Plain-English Summary
FAR 52.247-36 sets the rules for a delivery term of f.a.s. vessel, port of shipment, which means the contractor must deliver the goods free of expense to the Government alongside the ocean vessel at the named port and within reach of the vessel’s loading tackle. This clause addresses the meaning of the delivery term, packing and marking requirements, preparation for ocean transport, the exact delivery point and timing, responsibility for transportation-related charges up to that point, issuance of a clean dock or ship’s receipt, risk of loss or damage before delivery, and the contractor’s duty to assist with export or import documents when requested by the Government. In practice, it allocates responsibility for getting the shipment to the vessel-side delivery point, while leaving the Government responsible for costs and actions after that point unless the contract says otherwise. It is important because it determines when title/risk-related delivery obligations are satisfied, who pays pre-delivery charges, and what evidence of delivery is required. For contractors, it is a logistics and risk-allocation clause; for contracting officers, it is a way to clearly define the shipment point and avoid disputes over freight, handling, and delivery completion.
Key Rules
Meaning of F.A.S. Delivery
The clause defines "f.a.s. vessel, port of shipment" as delivery free of expense to the Government alongside the ocean vessel and within reach of its loading tackle at the specified port. Delivery is not complete until the shipment reaches that exact point.
Packing and Marking
The contractor must pack and mark the shipment to meet contract specifications. If the contract does not provide specifications, the contractor must prepare the shipment for ocean transport in line with carrier requirements so the goods are protected and the lowest applicable transportation charge is obtained.
Delivery Point and Timing
The contractor must deliver the shipment in good order and condition alongside the ocean vessel at the specified point and on the date or within the period stated in the contract. Late or incomplete delivery can mean noncompliance with the clause.
Pre-Delivery Costs
The contractor bears all applicable charges up to the delivery point, including transportation, wharfage, handling, and heavy lift charges if needed. These costs remain the contractor’s responsibility until the shipment is delivered alongside the vessel.
Proof of Delivery
The contractor must provide a clean dock or ship’s receipt. This receipt serves as evidence that the shipment was delivered in proper condition at the required point.
Risk of Loss Before Delivery
The contractor is responsible for any loss of or damage to the goods occurring before delivery to the contract-specified point. The risk shifts only after proper delivery under the clause.
Government Assistance Documents
At the Government’s request and expense, the contractor must assist in obtaining documents needed for exportation or importation at destination. The contractor’s role is supportive, but the Government pays for that assistance.
Responsibilities
Contractor
Pack and mark the shipment properly; prepare the goods for ocean transportation if no specifications exist; deliver the shipment in good order and condition alongside the ocean vessel at the named port and within the required time; pay all charges up to that point; provide a clean dock or ship’s receipt; bear the risk of loss or damage before delivery; and assist with export or import documents when requested by the Government, at Government expense.
Contracting Officer
Use this clause when the delivery term is f.a.s. vessel, port of shipment; ensure the solicitation and contract identify the correct port of shipment and delivery timing; and coordinate any Government-requested document assistance and associated expense handling.
Government
Accept delivery at the specified vessel-side point once the contractor has complied; request document assistance only when needed; and pay the expense of any such assistance requested under the clause.
Practical Implications
This clause makes the contractor responsible for getting the shipment to the vessel-side delivery point, so logistics planning, port coordination, and carrier requirements matter a great deal.
A common pitfall is assuming delivery is complete when goods reach the port; under this clause, delivery is not complete until the shipment is alongside the ocean vessel within reach of loading tackle.
Contractors should document condition carefully and obtain the required clean dock or ship’s receipt, because that receipt is key evidence that delivery obligations were met.
Pre-delivery charges can add up quickly, especially wharfage, handling, and heavy lift costs, so contractors should price and manage those costs up front.
If export or import paperwork is needed, the contractor may have to help, but only at the Government’s request and expense, so the parties should be clear about who is obtaining what documents and who pays for the support.
Official Regulatory Text
As prescribed in 47.303-8 (c) , insert the following clause in solicitations and contracts when the delivery term is f.a.s. vessel, port of shipment: F.a.s. Vessel, Port of Shipment (Apr 1984) (a) The term "f.a.s. vessel, port of shipment," as used in this clause, means free of expense to the Government delivered alongside the ocean vessel and within reach of its loading tackle at the specified port of shipment. (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 for ocean transportation in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge; (2) (i) Deliver the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at the point of delivery and on the date or within the period specified in the contract; and (ii) Pay and bear all applicable charges, including transportation costs, wharfage, handling, and heavy lift charges, if necessary, up to this point; (3) Provide a clean dock or ship’s receipt; (4) Be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment to the point specified in the contract; and (5) At the Government’s request and expense, assist obtaining the documents required for- (i) Exportation; or (ii) Importation at destination. (End of clause)