FAR 52.247-62—Specific Quantities Unknown.
Plain-English Summary
FAR 52.247-62, Specific Quantities Unknown, is a transportation-pricing clause used when the Government knows the total requirements and the destinations for shipments, but cannot determine in advance how much will go to each destination. The clause is tied to the evaluation of f.o.b. destination offers and requires the Government to state estimated quantities by destination so offers can be compared on a common basis. It also establishes that if actual shipment quantities to each destination differ from the estimates and that difference changes transportation costs, the contract price or transportation charges must be adjusted appropriately. In practice, this clause helps prevent unfair pricing distortions when shipment patterns are uncertain, while protecting both parties from being locked into transportation costs that no longer reflect actual delivery quantities. It is especially important in contracts where delivery locations are known but the distribution of quantities among those locations may shift during performance.
Key Rules
Use when quantities by destination are unknown
This clause applies when the Government knows the total requirement and the destinations, but cannot predetermine the exact quantity that will ship to each destination. It is intended for solicitations and contracts where destination-specific shipment quantities are uncertain at award.
State estimated destination quantities
For evaluation of f.o.b. destination offers, the Government must estimate the quantity expected to ship to each listed destination. Those estimates are used to compare offers and should be included in the solicitation or contract schedule.
Evaluate offers on estimated shipments
The estimated quantities by destination are part of the basis for evaluating transportation costs in f.o.b. destination pricing. This ensures offerors are competing on the same assumed shipment pattern rather than on unknown future allocations.
Adjust for actual shipment variation
If the actual quantity shipped to a destination differs from the estimate and the difference changes transportation costs, an appropriate adjustment must be made. The clause does not fix transportation charges rigidly when the underlying shipment pattern changes materially.
Protect both parties from cost distortion
The clause is designed to protect both the Government and the contractor during performance. It prevents either side from bearing an unfair transportation-cost burden caused by shipment quantities that differ from the estimates used at award.
Responsibilities
Contracting Officer
Include the clause in solicitations and contracts when the conditions for its use are met. Provide estimated quantities by destination for evaluation purposes and ensure the contract administration process allows appropriate transportation-cost adjustments if actual shipments vary from the estimates.
Government/Agency
Develop reasonable destination-by-destination quantity estimates based on the best available information. Monitor actual shipment patterns during performance and support any required transportation-cost adjustment when the variance affects cost.
Contractor
Price the offer using the Government’s estimated destination quantities and perform shipments under the contract as directed. Track actual shipment quantities and request or support an adjustment when the variance changes transportation costs.
Practical Implications
This clause matters most in f.o.b. destination contracts where freight cost depends on how much goes to each destination, not just the total quantity.
A common pitfall is using unrealistic destination estimates, which can distort competition and create disputes later over transportation-cost adjustments.
Contractors should preserve shipment and freight records so they can show how a change in destination quantities affected costs.
Contracting officers should make sure the solicitation clearly identifies the estimated quantities by destination; vague estimates can undermine the evaluation basis.
When actual shipments differ from estimates, the key issue is not just the quantity change itself, but whether that change actually altered transportation costs.
Official Regulatory Text
As prescribed in 47.305-16 (d)(2) , insert the following clause in solicitations and contracts when total requirements and destinations to which shipments will be made are known, but the specific quantity to be shipped to each destination cannot be predetermined. This clause protects the interests of both the Government and the contractor during the course of the performance of the contract., insert the following clause in solicitations and contracts when total requirements and destinations to which shipments will be made are known, but the specific quantity to be shipped to each destination cannot be predetermined. This clause protects the interests of both the Government and the contractor during the course of the performance of the contract. Specific Quantities Unknown (Apr 1984) (a) For the purpose of evaluating "f.o.b. destination" offers, the Government estimates that the quantity specified will be shipped to the destinations indicated: Estimated Quantity Destination(s) _______________ _______________ _______________ _______________ (b) If the quantity shipped to each destination varies from the quantity estimated, and if the variation results in a change in the transportation costs, appropriate adjustment shall be- made. (End of clause)