SpendQueryBeta

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

FAR 47.104-3 Cost-reimbursement 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 when reduced transportation rates under 49 U.S.C. 10721 and 13712 may be used in cost-reimbursement contracts, including shipments where the Government ultimately bears or reimburses the freight charges and relocation moves of contractor employees directed by the Government. It also requires contracting officers to include a statement in contracts directing contractors to use carriers offering acceptable service at reduced rates when available, and to give contractors the name and location of the designated transportation officer.

Applies to: Cost-reimbursement contracts involving shipments or relocation moves whose transportation costs are reimbursed by the Government

What it requires

  • Include in contracts a statement requiring the contractor to use carriers that offer acceptable service at reduced rates if available
  • Ensure that contractors receive the name and location of the transportation officer designated to furnish support and guidance when using Government rate tenders

Key terms: cost-reimbursement contracts · 49 U.S.C. 10721 and 13712 rates · commercial bills of lading · transportation officer · 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) 49 U.S.C. 10721 and 13712 rates may be applied to shipments other than those made by the Government if the total benefit accrues to the Government, i.e., the Government shall pay the charges or directly and completely reimburse the party that initially bears the freight charges. Therefore, 49 U.S.C. 10721 and 13712 rates may be used for shipments moving on commercial bills of lading in cost reimbursement contracts under which the transportation costs are direct and allowable costs under the cost principles of Part 31.

(b) 49 U.S.C. 10721 and 13712 rates may be applied to the movement of household goods and personal effects of contractor employees who are relocated for the convenience and at the direction of the Government and whose total transportation costs are reimbursed by the Government.

(c) The clause at 52.247-1, Commercial Bill of Lading Notations, will ensure that the Government receives the benefit of lower 49 U.S.C. 10721 and 13712 rates in cost-reimbursement contracts as described in paragraphs (a) and (b) of this section.

(d) Contracting officers shall—

(1) Include in contracts a statement requiring the contractor to use carriers that offer acceptable service at reduced rates if available; and

(2) Ensure that contractors receive the name and location of the transportation officer designated to furnish support and guidance when using Government rate tenders.

(e) The transportation office shall—

(1) Advise and assist contracting officers and contractors; and

(2) Make available to contractors the names of carriers that provide service under 49 U.S.C. 10721 and 13712 rates, cite applicable rate tenders, and advise contractors of the statement that must be shown on the carrier's commercial bill of lading (see the clause at 52.247-1, Commercial Bill of Lading Notations).

Sections it refers to

  • 52.247-1 Commercial Bill of Lading Notations.

Sections that refer to it

← 47.104-2 Fixed-price contracts. · 47.104-4 Contract clause. →

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 47.104-3 Cost-reimbursement contracts · SpendQuery