FAR 52.247-67—Submission of Transportation Documents for Audit.
Plain-English Summary
FAR 52.247-67, Submission of Transportation Documents for Audit, tells contractors how to handle transportation paperwork when the Government will pay freight charges under a cost-reimbursement arrangement. It covers which transportation documents must be submitted for prepayment audit, specifically bills of lading and related freight shipment documents for costs paid by the prime contractor and by a first-tier subcontractor under a cost-reimbursement subcontract. It also establishes a dollar threshold: freight shipment bills over $100 must be sent for audit, while bills under $100 are retained by the contractor and made available for on-site audit. The clause further limits the small-bill exception to freight shipment bills only, not other transportation services or invoices. Finally, it requires the contracting officer to identify the submission address in the clause, which makes the administrative process clear and supports timely review before payment. In practice, this clause is about controlling transportation cost payments, preserving auditability, and ensuring the Government only reimburses freight charges that are properly documented and reviewed.
Key Rules
Submit auditable transport documents
The contractor must send transportation documents for prepayment audit when the United States will assume freight charges that were paid by the contractor under a cost-reimbursement contract or by a first-tier subcontractor under a cost-reimbursement subcontract. The clause is aimed at freight charges the Government will ultimately bear, not all transportation-related paperwork.
Apply the $100 freight threshold
Cost-reimbursement contractors only submit bills of lading with freight shipment charges exceeding $100. Bills under $100 are not sent in for prepayment audit; instead, they are kept on-site and must be available for on-site audit.
Keep small freight bills on-site
Bills under $100 must be retained by the contractor at the place of performance or other accessible site and produced if auditors request them. This creates a lighter administrative burden for low-dollar freight items while preserving audit access.
Threshold applies only to freight shipment bills
The under-$100 exception is limited to freight shipment bills and does not extend to bills or invoices for other transportation services. Other transportation charges remain subject to the applicable audit and submission requirements.
Use the contracting officer’s address
The contractor must submit the required transportation documents to the address filled in by the contracting officer. If the address is not properly completed, the contractor should seek clarification before sending documents to avoid misrouting or delay.
Responsibilities
Contracting Officer
Identify the correct submission address in the clause and ensure the contract clearly directs where transportation documents must be sent for prepayment audit.
Contractor
Submit transportation documents for freight charges the Government will assume, including qualifying bills of lading over $100, and retain sub-$100 freight bills on-site for audit access.
First-tier Subcontractor
Provide transportation documents to the prime contractor as needed when freight charges are paid under a cost-reimbursement subcontract, so the prime can meet submission and audit requirements.
Auditors / Government Audit Personnel
Review submitted transportation documents before payment and conduct on-site audits of retained low-dollar freight bills when necessary.
Practical Implications
Contractors need a process to separate freight shipment bills over and under $100 so they do not over-submit or fail to retain required records.
The clause can reduce paperwork for small freight charges, but only if the contractor correctly limits the exception to freight shipment bills and not other transportation invoices.
Because the Government pays these costs under cost-reimbursement arrangements, missing or misrouted documents can delay reimbursement and create audit findings.
Prime contractors should make sure first-tier subcontractors provide complete transportation records early enough to support timely submission and audit.
Contracting officers should verify the submission address is filled in accurately; an incomplete or wrong address can cause avoidable payment delays and compliance issues.
Official Regulatory Text
As prescribed in 47.103-2 , insert the following clause: Submission of Transportation Documents for Audit (Feb 2006) (a) The Contractor shall submit to the address identified below, for prepayment audit, transportation documents on which the United States will assume freight charges that were paid- (1) By the Contractor under a cost-reimbursement contract; and (2) By a first-tier subcontractor under a cost-reimbursement subcontract thereunder. (b) Cost-reimbursement Contractors shall only submit for audit those bills of lading with freight shipment charges exceeding $100. Bills under $100 shall be retained on-site by the Contractor and made available for on-site audits. This exception only applies to freight shipment bills and is not intended to apply to bills and invoices for any other transportation services. (c) Contractors shall submit the above referenced transportation documents to- ________________________________________________ ________________________________________________ ________________________________________________ [ To be filled in by Contracting Officer ] (End of clause)