FAR 52.247-47—Evaluation-F.o.b. Origin.
Plain-English Summary
FAR 52.247-47, Evaluation—F.O.B. Origin, tells offerors and contracting officers how the Government will evaluate transportation costs when supplies are offered F.O.B. origin and shipment will occur within the contiguous United States. It explains the Government’s normal assumption that land transportation by regulated common carrier will be used, how transportation costs are calculated for evaluation, and how those costs are added to the offered price to determine the Government’s overall evaluated cost. The clause also addresses the use of tentative versus firm destinations and makes clear that tentative destinations are for evaluation only, not a binding shipment point. In practice, this clause matters because it can materially change which offer is lowest evaluated, even when base prices differ, and it prevents offerors from gaming evaluations by assuming unusually favorable shipping methods or destinations. The clause is also flexible: if the acquisition involves other transportation modes such as air, pipeline, barge, or ocean tanker, the clause must be modified accordingly so the evaluation method matches the actual procurement need.
Key Rules
Use land carrier assumptions
For shipments within the contiguous United States, the Government normally evaluates transportation using land methods of transportation by regulated common carrier. Offerors should not assume special or nonstandard shipping methods unless the solicitation specifically modifies the clause.
Evaluate transportation separately
The Government calculates the transportation cost from the offeror’s shipping point to the destination and adds that cost to the offered price. The evaluation is based on the Government’s estimated transportation expense, not the contractor’s internal logistics preferences.
Use tentative or firm destinations
The evaluation uses the destination stated in the solicitation, whether tentative or firm, as applicable. If the destination is tentative, it is only an evaluation tool and does not lock the Government into shipping there later.
Government may choose other shipment methods
Even when tentative destinations are used for evaluation, the Government retains the right to use any other transportation method or destination at the time of shipment. The evaluation assumption does not restrict actual performance decisions.
Modify for non-land transport
If the acquisition should be evaluated using air, pipeline, barge, ocean tanker, or another non-land method, the clause must be tailored accordingly. The default text is not a one-size-fits-all rule for all commodities or delivery situations.
Responsibilities
Contracting Officer
Include the clause when evaluating F.O.B. origin offers under the prescription in FAR 47.305-3(f)(2). Ensure the transportation evaluation method matches the acquisition, modify the clause when non-land transportation is appropriate, and use the stated destination and transportation assumptions consistently in the evaluation.
Agency
Define the evaluation approach and destination assumptions that reflect the actual procurement requirement. When the acquisition involves special transportation modes or unusual shipping conditions, ensure the solicitation language is adjusted so offerors are evaluated on the correct basis.
Offeror/Contractor
Price the offer knowing that the Government will add evaluated transportation cost to the offered price. Provide accurate shipping point information and understand that tentative destinations are for evaluation only and do not guarantee the actual shipment destination or method.
Practical Implications
This clause can change award outcomes because the lowest base price may not be the lowest evaluated cost once transportation is added.
Offerors should pay close attention to the stated shipping point and destination assumptions; errors or optimistic assumptions can make an offer look cheaper than it really is.
Contracting officers should verify that the transportation method used in evaluation matches the commodity and logistics reality; using the default land-carrier assumption when another mode is appropriate can distort competition.
Tentative destinations are a common source of confusion: they help compare offers, but they do not bind the Government to ship there later.
If the solicitation involves non-contiguous destinations or unusual transport modes, the clause should be reviewed and modified carefully so the evaluation method is defensible and consistent with the procurement strategy.
Official Regulatory Text
As prescribed in 47.305-3 (f)(2) , insert the following provision. When it is appropriate to use methods other than land transportation in evaluating offers; e.g.,air, pipeline, barge, or ocean tanker, modify the provision accordingly. Evaluation-F.o.b. Origin (June 2003) (a) The Government normally uses land methods of transportation by regulated common carrier for shipment within the contiguous United States. (b) To evaluate offers, the Government will consider only these methods to establish the cost of transportation between offeror’s shipping point and destination (tentative or firm, whichever is applicable) in the contiguous United States. (c) This transportation cost will be added to the offer price to determine the Government’s overall cost. (d) When tentative destinations are indicated, the Government will use them only for evaluation purposes. The Government has the right to use any other means of transportation or any other destination at the time of shipment. (End of clause)