FAR and DFARS › FAR Part 47: Transportation › Subpart 47.3

FAR 47.302 Place of delivery—f.o.b. point.

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 the place of delivery (f.o.b. point) is determined for contracts. It generally requires contracting officers to use the delivery terms in 47.304, and it clarifies that the place of acceptance and quality assurance actions do not control the delivery term. Contractors should understand that delivery terms affect risk of loss, title, and payment, and that certain combinations like inspection at origin with f.o.b. destination can be beneficial.

Applies to: Contracts for supplies, especially those involving transportation from CONUS or outside CONUS.

What it requires

  • Contracting officer shall solicit offers and award contracts with delivery terms on the basis prescribed in 47.304.
  • Contracting officer shall document the contract file with justifications for solicitations that do not specify delivery on the basis prescribed in 47.304.

Key terms: f.o.b. point · CONUS · place of acceptance · place of performance · quality assurance actions

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

The text

(a) The policies and procedures in 47.304-1, -2, and -3 govern the transportation of supplies from sources in the Contiguous United States (CONUS), except when identifiable costs, nature of the supplies (security, safety, or value), delivery requirements (premium modes of transport, escorts, transit arrangements, and tentative conditions), or other advantages, limitations, or requirements dictate otherwise. The policies and procedures in 47.304-4 govern the transportation of supplies from sources outside CONUS.

(b) Generally, the contracting officer shall solicit offers, and award contracts, with delivery terms on the basis prescribed in 47.304. The contracting officer shall document the contract file (see 4.801) with justifications for solicitations that do not specify delivery on the basis prescribed in 47.304.

(c)(1) The place of performance of Government acquisition quality assurance actions and the place of acceptance shall not control the delivery term, except that if acceptance is at destination, transportation shall be f.o.b. destination (see 47.304-1(f)).

(2) The fact that transportation is f.o.b. destination does not alone necessitate changing the place of acceptance from origin to destination; and the fact that acceptance is at origin does not necessitate an f.o.b. origin delivery term. Providing for inspection and acceptance at origin (if appropriate under 46.402), in conjunction with an f.o.b. destination term, may be advantageous to both the Government and the contractor. Acceptance of title at origin by the Government permits payment of the contractor, provided the invoice is supported either by a copy of the signed commercial bill of lading (indicating the carrier's receipt of the supplies covered by the invoice for transportation to the particular destination specified in the contract) or by other appropriate evidence of shipment to the particular destination for the contractor's account.

Sections it refers to

  • 47.304-1 General.
  • 47.304-4 Shipments originating outside CONUS.
  • 47.304 Determination of delivery terms.
  • 4.801 General.
  • 46.402 Government contract quality assurance at source.

← 47.301-3 Using the Defense Transportation System (DTS). · 47.303 Standard delivery terms and contract clauses. →

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 47.302 Place of delivery—f.o.b. point · SpendQuery