FAR 52.247-61—F.o.b. Origin-Minimum Size of Shipments.
Plain-English Summary
FAR 52.247-61 addresses how a contractor must ship supplies when the contract is FOB Origin and the shipment size may qualify for volume transportation rates. It covers when shipments must be made in carload or truckload lots, how to determine the applicable minimum weight for those lots, what happens when a scheduled quantity is smaller than the minimum weight, when the contracting officer may authorize or direct a different method in writing, and the contractor’s liability for increased transportation costs if it fails to follow the clause. It also includes an important exception for outsized supplies or items that cannot physically be loaded at the highest minimum weight bracket. In practice, the clause is designed to help the Government obtain the lowest available freight charges by requiring shipment consolidation where feasible and by tying the contractor’s performance to published carrier tariffs or tenders in effect on the shipment date. For contractors, this means transportation planning is part of contract compliance, not just logistics; for contracting officers, it provides a basis to enforce economical shipping and recover excess costs when the contractor causes avoidable freight expense.
Key Rules
Ship in volume lots
When the quantity to any one destination for a delivery period is enough to make a carload or truckload shipment, the contractor must ship in that lot size. This requirement applies unless the contracting officer permits or directs otherwise in writing.
Use lowest freight rate weight
The agreed carload or truckload weight is the highest applicable minimum weight that produces the lowest freight rate or per-car charge under the carrier tariffs or tenders in effect on the shipment date. The clause ties the shipment decision to the rate structure available at the time of shipment, not to a later or estimated rate.
Consolidate smaller scheduled quantities
If the total scheduled quantity to a destination is less than the highest carload or truckload minimum weight, the contractor still must ship that scheduled quantity in one shipment. The clause is aimed at avoiding unnecessary split shipments and extra transportation charges.
Contractor pays excess costs
If the contractor fails to comply with the shipment-size requirements and the Government incurs higher transportation costs as a result, the contractor is liable for those increased costs. This creates a direct financial consequence for inefficient or noncompliant shipping decisions.
Exception for outsized items
The contractor is not liable for increased costs if the supplies are outsized or otherwise cannot be loaded at the highest minimum weight bracket. This exception recognizes physical or handling limitations that make the volume-rate requirement impracticable.
Written CO authorization controls
Any departure from the required shipment method must be permitted or directed in writing by the contracting officer. Oral approvals or informal logistics arrangements do not satisfy the clause.
Responsibilities
Contractor
Plan and execute shipments so that deliveries to each destination are made in carload or truckload lots whenever the contract quantity and delivery schedule support that size. Determine the applicable minimum weight and tariff-based rate at the time of shipment, consolidate scheduled quantities into one shipment when required, and avoid actions that increase Government freight costs. If a deviation is necessary, obtain written direction or permission from the contracting officer.
Contracting Officer
Decide whether to permit or direct a different shipment method in writing when appropriate, and enforce the clause when the contractor’s shipping choices increase Government transportation costs. The contracting officer should also evaluate whether the outsized-item exception applies before asserting liability.
Government
Track transportation charges and compare them to the costs that would have applied had the contractor complied with the clause. When noncompliance causes increased costs, the Government may seek recovery consistent with the contract terms and applicable procedures.
Practical Implications
This clause makes freight planning a contract performance issue, so contractors should coordinate production, packaging, and shipping early to avoid avoidable split loads or underfilled shipments.
The key compliance question is not just whether the shipment moved, but whether it moved in the most economical qualifying lot size based on the carrier tariff or tender in effect on the shipment date.
A common pitfall is assuming that a smaller shipment is acceptable because it meets the delivery schedule; under this clause, the contractor may still have to ship the quantity in one load or face excess-cost liability.
Another frequent issue is failing to get written contracting officer approval before deviating from the required shipment method; informal logistics discussions do not protect the contractor.
Contractors shipping bulky, irregular, or oversized items should document why the highest minimum weight bracket cannot be used, because the outsized-item exception depends on physical impracticability, not convenience.
Official Regulatory Text
As prescribed in 47.305-16 (c) , insert the following clause in solicitations and contracts when volume rates may apply: F.o.b. Origin-Minimum Size of Shipments (Apr 1984) The Contractor agrees that shipment will be made in carload and truckload lots when the quantity to be delivered to any one destination in any delivery period pursuant to the contract schedule of deliveries is sufficient to constitute a carload or truckload shipment, except as may otherwise be permitted or directed in writing by the Contracting Officer. The agreed weight of a carload or truckload will be the highest applicable minimum weight which will result in the lowest freight rate (or per car charge) on file or published in common carrier tariffs or tenders as of date of shipment. In the event the total weight of any scheduled quantity to a destination is less than the highest carload/truckload minimum weight, the Contractor agrees to ship such scheduled quantity in one shipment. The Contractor shall be liable to the Government for any increased costs to the Government resulting from failure to comply with the above requirements. This liability shall not attach if supplies are outsized or of such nature that they cannot be loaded at the highest minimum weight bracket. (End of clause)