DFARS Part 247: Transportation

In plain English

DFARS Part 247 covers transportation requirements for DoD contracts, including policies for using U.S.-flag vessels, stevedoring services, and preparation of personal property for shipment or storage. It matters to contractors because it dictates how to handle shipping, what clauses to include, and how to evaluate transportation costs in solicitations and contracts.

Key rules

• DoD contractors must transport supplies exclusively on U.S.-flag vessels, unless a waiver is granted because a U.S.-flag vessel is not available at a fair and reasonable rate or is otherwise not available. (247.572)
• For contracts that include a significant requirement for transportation of items outside the contiguous United States, include an evaluation factor or subfactor that favors suppliers, third-party logistics providers, and integrated logistics managers that commit to using carriers participating in readiness programs like the Civil Reserve Air Fleet and Voluntary Intermodal Sealift Agreement. (247.301-71)
• Use the clause at 252.247-7003, Pass-Through of Motor Carrier Fuel Surcharge Adjustment to the Cost Bearer, in solicitations and contracts for carriage where a motor carrier, broker, or freight forwarder will provide or arrange truck transportation services that provide for a fuel-related adjustment. (247.207)
• For stevedoring contracts, require offers to include tonnage or commodity rates for the bulk of cargo, labor-hour rates for services not covered by commodity rates or for hardship conditions, and rates for equipment rental. (247.270-3)
• For contracts for preparation of personal property for shipment or storage or intra-area movement, normally use requirements contracts, award on a calendar year basis, provide for option years, and award or exercise options before November 1 each year if possible. (247.271-1)
• Use the clause at 252.247-7023, Transportation of Supplies by Sea, in solicitations and contracts, including those for commercial products and commercial services, except for direct purchase of ocean transportation services. (247.574)
• The transportation office of the shipping activity prepares DD Form 1384, Transportation Control and Movement Document, to accompany all shipments made through a military air or water port. (247.370)

Who does what

In practice

• When bidding on DoD contracts that involve ocean transportation, you must plan to use U.S.-flag vessels unless you obtain a waiver, which can affect your costs and logistics.
• For contracts with significant transportation outside the contiguous U.S., highlight your commitment to using carriers in readiness programs like the Civil Reserve Air Fleet or Voluntary Intermodal Sealift Agreement to gain an evaluation advantage.
• If your contract involves stevedoring, ensure your proposal includes the required rate information: commodity rates, labor-hour rates, and equipment rental rates.
• For personal property shipment or storage contracts, be aware that contracts are typically awarded on a calendar year basis with option years, and awards are made before November 1 if possible.

Common pitfalls

• Assuming you can use foreign-flag vessels without a waiver; the regulation requires exclusive use of U.S.-flag vessels unless a waiver is granted.
• Overlooking the requirement to include the clause at 252.247-7003 for motor carrier fuel surcharge adjustments in applicable contracts.
• Failing to include required rate information in stevedoring offers, which could make your proposal nonresponsive.
• Not considering the evaluation factor for readiness program participation in contracts with significant transportation outside the contiguous U.S., which could put you at a competitive disadvantage.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.