FAR 8.708—Shipping.
Plain-English Summary
FAR 8.708 explains how shipping works for orders placed under the Federal Supply Schedules, with special attention to when delivery is considered complete, how transportation is normally arranged, what happens when Government bills of lading are used, when an ordering office’s failure to provide shipping instructions can excuse late delivery, and how transportation costs for small shipments are handled for AbilityOne participating nonprofit agencies. In practice, this section sets the baseline rule that delivery occurs when the shipment is handed to and accepted by the initial carrier, not when it arrives at the destination. It also confirms that Government bills of lading are the normal method of shipment, while allowing ordering offices to use other methods for small orders. The section protects contractors and nonprofit agencies from delivery-delay consequences when the Government does not timely provide shipping documents or transportation direction, and it ensures nonprofit agencies can recover small-shipment transportation costs through invoicing. For contracting officers, ordering offices, and suppliers, this section matters because it affects delivery timing, risk allocation, invoice preparation, and whether a late shipment is excusable.
Key Rules
Delivery occurs at carrier handoff
A shipment is considered delivered when it is placed aboard the initial carrier’s vehicle. The delivery date is the date the shipment is released to and accepted by that carrier, which is important for measuring compliance with delivery schedules.
Government bills of lading are standard
Shipments are normally made under Government bills of lading. This means the Government generally controls the transportation document and shipping arrangement unless a different method is chosen for a small order.
Small orders may use other methods
For small orders, ordering offices may specify a different shipment method instead of a Government bill of lading. The ordering office must clearly identify the transportation method when it departs from the normal rule.
Late shipping instructions can excuse delay
If the ordering office does not furnish the bills of lading or does not designate a transportation method, the resulting delay in delivery may be excusable. This protects the supplier when the Government’s own failure prevents timely shipment.
AbilityOne small-shipment costs are reimbursable
AbilityOne participating nonprofit agencies must list transportation costs for small shipments that they pay as a separate invoice item. The ordering office must reimburse those transportation costs.
Responsibilities
Ordering Office
Provide Government bills of lading promptly when shipments are to move under them, or otherwise designate the transportation method for small orders. Reimburse AbilityOne participating nonprofit agencies for transportation costs on small shipments that the nonprofit agency paid and invoiced.
Contractor / Supplier
Ship in accordance with the transportation method provided by the ordering office and recognize that delivery is complete when the shipment is accepted by the initial carrier. Document shipment release and carrier acceptance to support delivery-date calculations and any excusable-delay claim.
AbilityOne Participating Nonprofit Agency
Include transportation costs for small shipments that the nonprofit agency paid as a separate item on the invoice. Submit the invoice so the ordering office can reimburse those costs.
Government / Initial Carrier
Accept the shipment when it is released for transportation; that acceptance establishes the delivery date for purposes of FAR 8.708. The Government side must ensure shipping documents and transportation instructions are issued in time to avoid unnecessary delay.
Practical Implications
Delivery performance is measured at shipment handoff, not final receipt, so contractors should keep proof of carrier acceptance and the date the shipment left their control.
Ordering offices should not assume a shipment is late simply because it arrived late if the Government failed to provide bills of lading or shipping instructions on time; that delay may be excusable.
For small orders, the transportation method can differ from the normal Government bill of lading process, so the ordering office should state the method clearly to avoid disputes.
AbilityOne nonprofit agencies need to separate out transportation costs for small shipments on invoices; if they bundle those costs into product pricing, reimbursement problems can arise.
A common pitfall is poor documentation: missing bills of lading, unclear shipment instructions, or lack of proof of carrier acceptance can make it hard to determine whether delivery was timely or excused.
Official Regulatory Text
(a) Delivery is accomplished when a shipment is placed aboard the vehicle of the initial carrier. The time of delivery is the date shipment is released to and accepted by the initial carrier. (b) Shipment is normally under Government bills of lading. However, for small orders, ordering offices may specify other shipment methods. (c) When shipments are under Government bills of lading, the bills of lading may accompany orders or be otherwise furnished promptly. Failure of an ordering office to furnish bills of lading or to designate a method of transportation may result in an excusable delay in delivery. (d) AbilityOne participating nonprofit agencies shall include transportation costs for small shipments paid by the nonprofit agencies as an item on the invoice. The ordering office shall reimburse the nonprofit agencies for these costs.