FAR 52.247-45—F.o.b. Origin and/or F.o.b. Destination Evaluation.
Plain-English Summary
FAR 52.247-45 is a solicitation provision used in transportation-related procurements when the Government is willing to consider offers submitted on either f.o.b. origin or f.o.b. destination terms. It tells offerors that both pricing bases are acceptable, explains that the Government will make award on whichever basis the Contracting Officer determines is most advantageous, and clarifies that an offer submitted on only one basis will still be considered but only evaluated on the terms actually offered. In practice, this provision is about preserving competition while allowing the Government to compare transportation-inclusive and transportation-excluded pricing approaches in a single solicitation. It matters because the f.o.b. point can materially change the apparent price, the allocation of transportation risk and cost, and the evaluation result. The provision also helps avoid ambiguity by making clear that the Government will not rewrite an offer from one f.o.b. basis to another for evaluation purposes. For contractors, it means they must price and propose carefully based on the exact delivery term they choose; for contracting officers, it means the evaluation method must be applied consistently with the offer’s stated f.o.b. basis.
Key Rules
Both FOB bases are allowed
The solicitation invites offers on both f.o.b. origin and f.o.b. destination terms. This means offerors may compete under either delivery structure, depending on how they want to price transportation and delivery responsibility.
Award on most advantageous basis
The Government will award on the basis the Contracting Officer determines is most advantageous to the Government. The provision gives the Government flexibility to compare offers and select the delivery term and price combination that best serves the Government’s interests.
Single-basis offers are acceptable
An offer submitted only on an f.o.b. origin basis or only on an f.o.b. destination basis is still acceptable. The Government does not reject an offer merely because it is not offered on both bases.
Evaluation limited to submitted basis
An offer will be evaluated only on the basis submitted. The Government may not convert an origin offer into a destination offer, or vice versa, for evaluation purposes, because the pricing and risk allocation are not interchangeable without a stated basis.
Solicitation use is prescribed
This provision is inserted when offers are solicited on the basis of both f.o.b. origin and f.o.b. destination, as directed by FAR 47.305-2(b). It is not a general-purpose clause for every procurement; it is tied to solicitations where both delivery terms are being considered.
Responsibilities
Contracting Officer
Include the provision when the solicitation will accept both f.o.b. origin and f.o.b. destination offers. Evaluate each offer only on the delivery basis actually submitted, compare offers consistently, and make award on the basis determined to be most advantageous to the Government.
Offeror/Contractor
Choose the f.o.b. term being offered and price the offer accordingly. Ensure the proposal clearly states whether it is f.o.b. origin or f.o.b. destination, because the Government will evaluate only the stated basis and will not adjust the offer to another delivery term.
Agency/Requirement Owner
Define the delivery and transportation needs clearly enough for the Contracting Officer to solicit on both bases when appropriate. Support the acquisition strategy by identifying whether comparing origin and destination pricing is useful and consistent with the requirement.
Practical Implications
Offerors must be precise about the delivery term they are quoting; an unclear or mixed offer can create evaluation problems or make the offer less competitive.
The apparent low price may not be the best value if transportation costs are shifted to the Government under one f.o.b. basis, so the Contracting Officer must compare offers carefully.
A contractor cannot assume the Government will normalize pricing between origin and destination terms; the evaluation is limited to the basis submitted.
This provision is especially important when shipping costs are significant, because the f.o.b. point can materially change total Government cost.
Common pitfalls include failing to state the f.o.b. basis clearly, assuming the Government will convert prices for comparison, or using the wrong solicitation provision when only one delivery basis should be accepted.
Official Regulatory Text
As prescribed in 47.305-2 (b) , insert the following provision in solicitations when offers are solicited on the basis of both f.o.b. origin and f.o.b. destination: F.o.b. Origin and/or F.o.b. Destination Evaluation (Apr 1984) Offers are invited on the basis of both f.o.b. origin and f.o.b. destination, and the Government will award on the basis the Contracting Officer determines to be most advantageous to the Government. An offer on the basis of f.o.b. origin only or f.o.b. destination only is acceptable, but will be evaluated only on the basis submitted. (End of clause)