FAR 52.247-46—Shipping Point(s) Used in Evaluation of F.o.b. Origin Offers.
Plain-English Summary
FAR 52.247-46 addresses how the Government evaluates offers for f.o.b. origin procurements when shipments may come from more than one shipping point or plant. It explains what happens if an offeror lists multiple shipping points but does not allocate quantities among them, what happens if the offeror fails to identify any shipping point or plant at all, and how transportation-cost changes are handled when the contractor later ships from a point different from the one used in the Government’s evaluation. The clause is used only in f.o.b. origin solicitations where the Government contemplates evaluating price based on different shipping locations, so it is a pricing and evaluation rule rather than a performance specification. In practice, it protects the Government from ambiguous offers, ensures a consistent basis for comparing prices, and shifts the risk of transportation-cost differences to the contractor when the contractor’s actual shipping point differs from the evaluated point. For contractors, it means shipping-point information must be complete and accurate before bid opening or the closing date for receipt of offers, because omissions can lead to an unfavorable evaluation basis and later cost consequences.
Key Rules
Multiple shipping points need quantities
If an offeror names more than one shipping point or plant but does not state the quantity to be shipped from each one before bid opening, the Government will evaluate the entire quantity as if it will ship from the location with the most favorable transportation cost to the Government. This prevents the offeror from leaving the Government to guess how the order will be split among locations.
No shipping point defaults to stated plant
If the offeror does not identify any shipping point or plant before bid opening or the closing date for receipt of offers, the Government will evaluate the offer based on the plant where the contract will be performed, if that plant is identified in the offer. This gives the Government a fallback evaluation basis when the offer is incomplete.
No plant means business address basis
If the offer does not identify a plant at which performance will occur, the Government will evaluate the offer using the contractor’s business address shown in the offer. This is the final default location for transportation-cost evaluation when the offeror provides no usable plant information.
Later shipping-point changes shift cost risk
If the contractor uses a shipping point other than the one used by the Government in evaluating the offer, any increase in transportation costs is borne by the contractor and any savings belong to the Government. The clause allocates the financial consequences of a different actual shipping point after award.
Applies only to f.o.b. origin evaluations
This clause is intended for f.o.b. origin solicitations where the Government is evaluating transportation costs from various shipping points. It is not a general shipping clause for all contracts; it is tied to the solicitation’s price evaluation method.
Responsibilities
Contracting Officer
Include the clause in f.o.b. origin solicitations when price evaluation will consider shipments from different shipping points. Use the clause’s default rules to evaluate offers consistently when offerors fail to identify shipping points or quantities, and apply the transportation-cost adjustment rule if the contractor ships from a different point than the one used in evaluation.
Offeror/Contractor
Identify shipping points or plants clearly and, when multiple locations are listed, state the quantity associated with each one before bid opening or the closing date for receipt of offers. Ensure the offer accurately reflects the intended performance location, because omissions or later changes can affect evaluation and transportation-cost responsibility.
Government Evaluator
Apply the solicitation’s evaluation basis exactly as stated, using the most favorable transportation-cost location when quantities are not allocated, or the plant/business address defaults when no shipping point is identified. Compare offers on a consistent basis and document the evaluation assumptions used.
Agency
Use this clause only when the procurement structure requires evaluation of f.o.b. origin offers from different shipping points. Ensure solicitation instructions and evaluation methodology are aligned so offerors understand how shipping-point information will affect price evaluation.
Practical Implications
Contractors should never assume the Government will infer how quantities are split among shipping points; if multiple locations are listed, the quantities must be stated clearly before the deadline.
An incomplete offer can be evaluated from a less favorable default location, which may make the offer appear more expensive than intended.
If the contractor later ships from a different point than the one used in evaluation, the contractor bears any extra transportation cost, so post-award logistics changes can have direct financial consequences.
Contracting officers should verify that the solicitation and evaluation plan match the clause, especially when transportation costs can materially affect award ranking.
This clause helps prevent disputes by creating a clear fallback hierarchy for evaluation, but it also means offerors must be precise about shipping locations and performance sites from the outset.
Official Regulatory Text
As prescribed in 47.305-3 (b)(4)(ii), insert the following provision in f.o.b. origin solicitations when price evaluation for shipments from various shipping points is contemplated: Shipping Point(s) Used in Evaluation of F.o.b. Origin Offers (Apr 1984) (a) If more than one shipping point or plant is designated by the offeror and the offeror fails to indicate the quantity per shipping point or plant before bid opening, the Government will evaluate the offer on the basis of delivery of the entire quantity from the point or plant where cost of transportation is most favorable to the Government. (b) If the offeror, before bid opening (or the closing date specified for receipt of offers) fails to indicate any shipping point or plant, the Government will evaluate the offer on the basis of delivery from the plant at which the contract will be performed, as indicated in the offer. If no plant is indicated in the offer, the offer will be evaluated on the basis of delivery from the Contractor’s business address indicated in the offer. (c) If the offeror uses a shipping point other than that which has been used by the Government as a basis for the evaluation of offers, any increase of transportation costs shall be borne by the Contractor and any savings shall revert to the Government. (End of clause)