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FAR and DFARS › FAR Part 47: Transportation › Subpart 47.1

FAR 47.104-2 Fixed-price contracts.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section explains how freight charges work under fixed-price contracts depending on whether delivery terms are f.o.b. destination or f.o.b. origin. It matters because it tells contractors when certain statutory shipping rates do not apply and when a contractor may be asked to prepay freight and get reimbursed.

Applies to: Contractors under fixed-price contracts with f.o.b. destination or f.o.b. origin delivery terms

What it requires

  • If required by the contracting officer, prepay freight charges to a specific destination
  • Use a commercial bill of lading when prepaying freight charges
  • Include the reimbursed direct and actual transportation cost as a separate item in the invoice

Key terms: f.o.b. destination · f.o.b. origin · commercial bill of lading · 49 U.S.C. 10721 and 13712 rates · 52.247-1, Commercial Bill of Lading Notations

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) F.o.b. destination. 49 U.S.C. 10721 and 13712 rates do not apply to shipments under fixed-price f.o.b. destination contracts (delivered price).

(b) F.o.b. origin. If it is advantageous to the Government, the contracting officer may occasionally require the contractor to prepay the freight charges to a specific destination. In such cases, the contractor shall use a commercial bill of lading and be reimbursed for the direct and actual transportation cost as a separate item in the invoice. The clause at 52.247-1, Commercial Bill of Lading Notations, will ensure that the Government in this type of arrangement obtains the benefit of 49 U.S.C. 10721 and 13712 rates.

Sections it refers to

  • 52.247-1 Commercial Bill of Lading Notations.

Sections that refer to it

← 47.104-1 Government rate tender procedures. · 47.104-3 Cost-reimbursement contracts. →

Rule changes for FAR Part 47

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 47.104-2 Fixed-price contracts · SpendQuery