FAR 52.247-55—F.o.b. Point for Delivery of Government-Furnished Property.
Plain-English Summary
FAR 52.247-55 tells the parties where the Government’s delivery obligation starts and ends when the Government furnishes property under a contract, and where the contractor must return that property when it is no longer needed or when the contract requires return. It covers three main situations: delivery of Government-furnished property within the contiguous United States or Canada, delivery to a contractor’s plant outside the contiguous United States or Canada, and return of Government-furnished equipment, supplies, and other property. The clause also addresses who chooses the transportation mode and carrier, who pays line-haul transportation costs, how the f.o.b. point is set when the contractor is outside the contiguous United States or Canada, and how returned property must be packed, loaded, blocked, and braced. In practice, this clause matters because it allocates transportation risk and cost, determines where title/risk-related delivery obligations are satisfied for shipment purposes, and prevents disputes over whether the Government or contractor must move, receive, or return property at a particular location. It is especially important for contracts involving furnished equipment, materials, or supplies that must be shipped to the contractor’s facility and later shipped back or otherwise disposed of under contract direction.
Key Rules
Delivery point for U.S./Canada
For Government-furnished property delivered for use within the contiguous United States or Canada, the Government delivers to the point the contractor names in its offer unless the solicitation says otherwise. If delivery is by rail, the f.o.b. point is the contractor’s private siding; if there is no rail service at the plant, the f.o.b. point is the railroad cars in the same or nearest city with rail service.
Government controls shipment
The Government may choose the transportation mode and the carrier for delivery of Government-furnished property. It also bears the cost of all line-haul transportation to the specified destination, so the contractor is not responsible for those transportation charges unless the contract says otherwise.
Offshore contractor plants
If the contractor’s plant is outside the contiguous United States or Canada, the f.o.b. point for Government delivery is a contractor-specified location in the contiguous United States. If the contractor does not name a point, the Government selects the nearest U.S. port city with regular commercial water transportation to the offshore port nearest the contractor’s plant.
Return to original point
Unless the Contracting Officer directs otherwise or the contract says otherwise, the contractor must return Government-furnished equipment, supplies, and other property to the point where the Government originally furnished it. This includes property not returned as acceptable end items.
CO may direct return logistics
Even if the Government originally delivered the property to the contractor’s plant, the Contracting Officer may require return delivery to railroad cars in the contractor’s city, or the nearest rail-served city if the contractor’s city has no rail service. The CO may also require the contractor to load, block, and brace the property for shipment.
Packaging must avoid penalties
Unless the contract says otherwise, returned property must be packed in containers that comply with common carrier published tariffs so the shipment is free of carrier penalty charges. This prevents avoidable freight surcharges and disputes over improper packaging.
Responsibilities
Contracting Officer
May specify different delivery or return terms in the solicitation or contract, and may direct the contractor to return Government property to a rail point rather than the original furnishing point. The Contracting Officer also controls any special instructions on loading, blocking, bracing, and other shipment requirements.
Government
Must deliver Government-furnished property to the contractor’s specified f.o.b. point when the clause applies, choose the transportation mode and carrier, and pay line-haul transportation costs to the destination. For offshore plants, the Government uses the contractor’s named U.S. point or, if none is named, selects the default port city.
Contractor
Must identify a delivery point in the offer when required, receive Government-furnished property at the designated f.o.b. point, and return Government-furnished property to the required point when directed or when the contract is silent. The contractor must also pack property properly and comply with any loading, blocking, and bracing instructions.
Carrier
Provides transportation under the Government-selected mode and carrier arrangement, and may assess penalty charges if the contractor fails to pack property in accordance with published tariff requirements.
Practical Implications
Contractors should name a clear delivery point in the offer, especially for offshore work, because failing to do so lets the Government choose the default port city and may create logistical delays or added handling.
The clause shifts line-haul transportation cost to the Government for delivery, but contractors can still incur avoidable costs if they do not prepare the property for carrier acceptance or if they ignore tariff-based packaging rules.
For returns, do not assume the Government will pick up property at the plant; the default is return to the original furnishing point unless the CO directs a different rail-based return location.
Contracting officers should be explicit in the contract if they want different delivery or return arrangements, because the clause’s default rules may not fit every program or overseas logistics situation.
A common pitfall is overlooking the requirement to load, block, and brace returned property when the CO directs rail shipment; failure to do so can cause damage, delays, and carrier charges that may become a contractor problem.
Official Regulatory Text
As prescribed in 47.305-12 (a)(2) , insert the following clause: F.o.b. Point for Delivery of Government-Furnished Property (June 2003) (a) Unless otherwise specified in this solicitation, the Government will deliver any Government-furnished property for use within the contiguous United States or Canada to a point specified by the Contractor in the offer. If the Government makes delivery by railroad, the f.o.b. point will be private siding, Contractor’s plant. If the Contractor’s plant is not served by rail, the f.o.b. point will be railroad cars in the same or nearest city having rail service. The Government may choose the mode of transportation and the carriers and will bear the cost of all line-haul transportation to the specified destination. (b) If the destination of the Government-furnished property is a Contractor’s plant located outside the contiguous United States or Canada, the f.o.b. point for Government delivery of Government-furnished property will be a Contractor-specified location in the contiguous United States. If the Contractor fails to name a point, the Government will select as the f.o.b. point the port city in the contiguous United States nearest to the Government-furnished property that has regular commercial water transportation services to the offshore port nearest the Contractor’s plant. (c) Unless otherwise directed by the Contracting Officer or provided in the contract, the Contractor shall return all Government-furnished equipment, supplies, and property, including all property not returned in the form of acceptable end items, to the point at which the Government property was originally furnished to the Contractor under the contract. Notwithstanding the fact that the Government may have furnished the property at the Contractor’s plant, the Contracting Officer may direct the Contractor to deliver the Government property being returned to, and load, block, and brace it in, railway cars in the city in which the Contractor’s plant is located, or, if the Contractor’s city is not served by rail service, in the nearest city having rail service. Unless otherwise specified in the contract, all property shall be packed in containers conforming with the rules of common carrier published tariffs so as to be free of penalty charges by the carrier designated for shipment by the Government. (End of clause)