FAR 52.247-51—Evaluation of Export Offers.
Plain-English Summary
FAR 52.247-51, Evaluation of Export Offers, tells the Government how to compare competing offers when supplies will be exported overseas and shipped through U.S. ports. It covers how to evaluate port handling charges and ocean freight, how to evaluate offers under FOB origin with Government bill of lading transportation, how to evaluate FOB port of loading with inspection and acceptance at origin, how offerors must identify their delivery basis and port(s) of loading, how the Government may consider offeror-nominated additional ports, how Great Lakes ports are treated during the navigable season, and how all evaluations must be based on U.S.-flag vessel availability. The clause also distinguishes between standard CONUS export ports and DoD water terminals through Alternate I, which changes how port and ocean charges are presented for evaluation. In practice, this provision is designed to make sure the Government awards to the lowest evaluated cost to the overseas port of discharge, not just the lowest item price, while accounting for realistic transportation routes, delivery schedules, and cargo-handling constraints. For contractors, it means the shipping basis, nominated ports, and responsiveness of the offer can materially affect award. For contracting officers, it requires a careful, transportation-based evaluation using the correct port charges, routing assumptions, and solicitation-specific delivery conditions.
Key Rules
Evaluate total landed cost
The Government does not compare price alone; it evaluates the lowest laid down cost to the overseas port of discharge. That evaluation includes the item price plus inland transportation, port handling, and ocean shipping costs, using the shipping method and ports that fit the required delivery date and known transportation conditions.
Use current tariff charges
For non-DoD water terminals, port handling and ocean charges are taken from tariffs on file with the relevant regulatory authorities as of bid opening or the offer closing date, and only if those charges will be effective for the expected initial shipment date. This prevents evaluation from relying on outdated or inapplicable freight rates.
FOB origin offers include inland transport
When the offer is FOB origin and transportation is under a Government bill of lading, the evaluation must add inland transportation from the U.S. point of origin to the port of loading, port handling at that port, and ocean shipping to the overseas discharge port. The Government may designate routing and may load from ports other than those used for evaluation if needed.
FOB port of loading requires a designated port
For offers based on FOB port of loading with inspection and acceptance at origin, the offeror must designate at least one listed port of loading unless the offer applies only to FOB origin delivery under GBL. Failure to identify a required port of delivery can make the offer nonresponsive.
Government evaluates among listed ports
The Government evaluates shipment through the listed ports of loading and uses the port that produces the lowest cost to the Government. If the offeror nominates additional ports, the Government may consider them only if they are compatible with the cargo, vessel availability, and required overseas delivery date.
Great Lakes ports are seasonal
United States Great Lakes ports may be considered only for items scheduled for delivery during the ice-free or navigable period proclaimed by the St. Lawrence Seaway authorities, generally April 15 through November 30. Outside that period, those ports are not eligible for evaluation.
U.S.-flag vessel availability controls
All port and routing determinations must be based on the availability of ocean service by U.S.-flag vessels only. This means the evaluation cannot assume foreign-flag shipping if the solicitation or clause requires U.S.-flag service.
Alternate I changes DoD terminal treatment
When CONUS export ports are DoD water terminals, Alternate I replaces paragraph (a) so that port handling and ocean charges are stated directly in the provision for offeror information. This changes the way the solicitation presents the evaluation data, but not the underlying goal of evaluating lowest landed cost.
Responsibilities
Contracting Officer
Insert the clause when prescribed, identify the applicable ports and charges, and evaluate offers using the correct landed-cost method. The contracting officer must also determine whether nominated ports are compatible with delivery requirements, apply the Great Lakes seasonal rule, and ensure the evaluation is based on U.S.-flag vessel availability.
Offeror/Contractor
Choose and clearly state the pricing basis, designate required ports of loading when applicable, and may nominate additional ports if they believe those ports are more favorable to the Government. The offeror must ensure the offer is complete and responsive to the solicitation’s delivery and shipping requirements.
Transportation/Evaluation Personnel
Provide or verify port handling, ocean freight, inland transportation, and routing data used in the evaluation. They must help confirm that the selected ports and shipping methods are compatible with required delivery dates and cargo-handling constraints.
Agency/Activity Requiring Shipment
Define the overseas delivery needs, required delivery dates, and any cargo or handling constraints that drive the evaluation. The requiring activity’s requirements shape which ports and methods are acceptable for award.
Practical Implications
This clause can change the apparent low offer because the Government compares total delivered cost, not just the unit price. A lower-priced offer may lose if its transportation path is more expensive.
Offerors must pay close attention to the pricing basis and port designation instructions. Missing a required port designation, or selecting an incompatible shipping basis, can make an offer nonresponsive or less competitive.
Contracting officers need current freight and port charge data at the right time. Using stale tariffs, the wrong port list, or an unrealistic routing assumption can distort the evaluation and create award protests.
Nominated ports are not automatically accepted. The Government can reject a nominated port if it cannot support the required delivery schedule, cargo type, vessel availability, or handling capability.
Great Lakes routing is limited by the navigation season. If the shipment date falls outside the ice-free period, those ports should not be used in the evaluation, even if they might otherwise appear economical.
Official Regulatory Text
As prescribed in 47.305-6 (e) , insert the following provision: Evaluation of Export Offers (Jan 2001) (a) Port handling and ocean charges-other than DoD water terminals. Port handling and ocean charges in tariffs on file with the Bureau of Domestic Regulation, Federal Maritime Commission, or other appropriate regulatory authorities as of the date of bid opening (or the closing date specified for receipt of offers) and which will be effective for the date of the expected initial shipment will be used in the evaluation of offers. (b) F.o.b. origin, transportation under Government bill of lading. (1) Offers shall be evaluated and awards made on the basis of the lowest laid down cost to the Government at the overseas port of discharge, via methods and ports compatible with required delivery dates and conditions affecting transportation known at the time of evaluation. Included in this evaluation, in addition to the f.o.b. origin price of the item, shall be the inland transportation costs from the point of origin in the United States to the port of loading, port handling charges at the port of loading, and ocean shipping costs from the United States port of loading (see paragraph (d) of this clause) to the overseas port of discharge. The Government may designate the mode of routing of shipment and may load from other than those ports specified for evaluation purposes. (2) Offers shall be evaluated on the basis of shipment through one of the ports set forth in paragraph (d) of this clause to the overseas port of discharge. Evaluation shall be made on the basis of shipment through the port that will result in the lowest cost to the Government. (3) Ports of loading shall be considered as destinations within the meaning of the term "f.o.b. destination" as that term is used in the F.o.b. Origin clause of this contract. (c) F.o.b. port of loading with inspection and acceptance at origin. (1) Offers shall be evaluated on the basis of the lowest laid down cost to the Government at the overseas port of discharge via methods compatible with required delivery dates and conditions affecting transportation known at the time of evaluation. Included in this evaluation, in addition to the price to the United States port of loading (see paragraph (c)(2) of this clause), shall be the port handling charges at the port of loading and the ocean shipping cost from the port of loading (see paragraph (d) of this clause) to the overseas port of dis-charge. (2) Unless offers are applicable only to f.o.b. origin delivery under Government bills of lading (see paragraph (b) of this provision), offerors shall designate below at least one of the ports of loading listed in paragraph (d) of this clause as their place of delivery. Failure to designate at least one of the ports as the point to which delivery will be made by the Contractor may render the offer nonresponsive. Place of Delivery: ________________________________ [ Offerors insert at least one of the ports listed in paragraph (d) of this clause. ] (d) Ports of loading for evaluation of offers. Terminals to be used by the Government in evaluating offers are as follows: (For the information of the offerors, ocean and port handling charges are set forth if the terminal named is a DoD water terminal.) Ports/Terminals of Loading Combined Ocean and Port Handing Charges to (Indicate Country) Unit of Measure: i.e.,Metric Ton, Measurement Ton, Cubic Foot, Etc. _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ (e) Ports of loading nominated by offeror. The ports of loading named in paragraph (d) of this clause are considered by the Government to be appropriate for this solicitation due to their compatibility with methods and facilities required to handle the cargo and types of vessels and to meet the required overseas delivery dates. Notwithstanding the foregoing, offerors may nominate additional ports of loading that the offeror considers to be more favorable to the Government. The Government may disregard such nominated ports if, after considering the quantity and nature of the supplies concerned, the requisite cargo handling capability, the available sailings on U.S.-flag vessels, and other pertinent transportation factors, it determines that use of the nominated ports is not compatible with the required overseas delivery date. United States Great Lakes ports of loading may be considered in the evaluation of offers only for those items scheduled in this provision for delivery during the ice-free or navigable period as proclaimed by the authorities of the St. Lawrence Seaway (normal period is between April 15 and November 30 annually). All ports named, including those nominated by offerors and determined to be eligible as provided in this provision, shall be considered in evaluating all offers received in order to establish the lowest laid down cost to the Government at the overseas port of discharge. All determinations shall be based on availability of ocean services by U.S.-flag vessels only. Additional U.S. port(s) of loading nominated by offeror, if any: ________________________________________________ (f) Price basis. Offeror shall indicate whether prices are based on- □ Paragraph (b), f.o.b. origin, transportation by GBL to port listed in paragraph (d); □ Paragraph (c), f.o.b. destination ( i.e., a port listed in paragraph (d)); □ Paragraph (e), f.o.b. origin, transportation by GBL to port nominated in paragraph (e); and/or □ Paragraph (e), f.o.b. destination ( i.e., a port nominated in paragraph (e)). (End of provision) Alternate I (Feb 2006) . When the CONUS ports of export are DoD water terminals, delete paragraph (a) from the basic provision and substitute for it the following paragraph (a): (a) Port handling and ocean charges-DoD water terminals. The port handling and ocean charges are set forth in paragraph (d) of this provision for the information of offerors and are current as of the time of issuance of the solicitation. For evaluation of offers, the Government will use the port handling and ocean charges made available by the Directorate of International Traffic, Military Surface Deployment and Distribution Command (SDDC) rate information letters, on file as of the date of bid opening (or the closing date specified for receipt of offers) and which will be effective for the date of the expected initial shipment. Alternate II (Apr 1984) . When offers are solicited on an f.o.b. origin only basis, delete paragraphs (c) and (f) from the basic provision, but do not redesignate the ensuing paragraphs. Add the following basic paragraph (g) to the provision: (g) Paragraphs (c) and (f) have been deleted but ensuing paragraphs have not been redesignated. Alternate III (Apr 1984) . When offers are solicited on an f.o.b. destination only basis, delete paragraph (b) from the basic provision but do not redesignate the ensuing paragraphs. Delete paragraph (c)(2) and paragraph (f) from the provision and substitute the following paragraph (c)(2) and paragraph (f). Add paragraph (g) below. (c)(2) Offerors shall designate below at least one of the ports of loading listed in paragraph (d) below as their place of delivery. Failure to designate at least one of the ports as the point to which delivery will be made by the Contractor may render the offer nonresponsive. Place of Delivery: ________________________________ [ Offerors insert at least one of the ports listed in paragraph (d)- below .] (f) Price basis . Offerors shall indicate whether prices are based on- □ Paragraph (c), f.o.b. destination ( i.e., a port listed in paragraph (d)); or □ Paragraph (e), f.o.b. destination ( i.e., a port nominated in paragraph (e)). (g) Paragraph (b) has been deleted, but ensuing paragraphs have not been redesignated.