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

FAR 47.303-1 F.o.b. origin.

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 what the delivery term 'f.o.b. origin' means: the Government takes on the expense of transporting goods once they are delivered to a carrier at a specified origin point, such as on board a carrier's conveyance, at a wharf or freight station, at a U.S. Postal Service facility, or another designated point. It also lists the contractor's responsibilities for packing, marking, loading, documenting, and distributing bills of lading. It matters because it defines where the contractor's delivery obligation ends and what the contractor must do to fulfill it.

Applies to: Contractors shipping goods under contracts using the f.o.b. origin delivery term

What it requires

  • Pack and mark the shipment to comply with contract specifications, or in the absence of specifications, prepare it in conformance with carrier requirements to protect the goods and ensure the lowest applicable transportation charge
  • Order specified carrier equipment when requested by the Government, or if not specified, order appropriate carrier equipment not in excess of capacity to accommodate the shipment
  • Deliver the shipment in good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckload shipments when loaded by the contractor as required by carrier rules and regulations
  • Be responsible for loss or damage occurring before delivery to the carrier, resulting from improper packing and marking, or resulting from improper loading, stowing, trimming, blocking, and/or bracing if loaded by the contractor

Key terms: f.o.b. origin · line-haul transportation service · carrier's wharf · commercial zone · Government bill of lading

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

The text

(a) Explanation of delivery term. F.o.b. origin means free of expense to the Government delivered—

(1) On board the indicated type of conveyance of the carrier (or of the Government, if specified) at a designated point in the city, county, and State from which the shipment will be made and from which line-haul transportation service (as distinguished from switching, local drayage, or other terminal service) will begin;

(2) To, and placed on, the carrier's wharf (at shipside, within reach of the ship's loading tackle, when the shipping point is within a port area having water transportation service) or the carrier's freight station;

(3) To a U.S. Postal Service facility; or

(4) If stated in the solicitation, to any Government-designated point located within the same city or commercial zone as the f.o.b. origin point specified in the contract (the Federal Motor Carrier Safety Administration prescribes commercial zones at Subpart B of 49 CFR part 372).

(b) Contractor responsibilities. The contractor shall—

(1)(i) Pack and mark the shipment to comply with contract specifications; or

(ii) In the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the goods and to ensure assessment of the lowest applicable transportation charge;

(2)(i) Order specified carrier equipment when requested by the Government; or

(ii) If not specified, order appropriate carrier equipment not in excess of capacity to accommodate shipment;

(3) Deliver the shipment in good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckload shipment (when loaded by the contractor) on or in the carrier's conveyance as required by carrier rules and regulations;

(4) Be responsible for any loss of and/or damage to the goods—

(i) Occurring before delivery to the carrier;

(ii) Resulting from improper packing and marking; or

(iii) Resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor on or in the carrier's conveyance;

(5) Complete the Government bill of lading supplied by the ordering agency or, when a Government bill of lading is not supplied, prepare a commercial bill of lading or other transportation receipt. The bill of lading shall show—

(i) A description of the shipment in terms of the governing freight classification or tariff (or Government rate tender) under which lowest freight rates are applicable;

(ii) The seals affixed to the conveyance with their serial numbers or other identification;

(iii) Lengths and capacities of cars or trucks ordered and furnished;

(iv) Other pertinent information required to effect prompt delivery to the consignee, including name, delivery address, postal address and ZIP code of consignee, routing, etc.;

(v) Special instructions or annotations requested by the ordering agency for commercial bills of lading; e.g., “This shipment is the property of, and the freight charges paid to the carrier(s) will be reimbursed by, the Government”; and

(vi) The signature of the carrier's agent and the date the shipment is received by the carrier; and

(6) Distribute the copies of the bill of lading, or other transportation receipts, as directed by the ordering agency.

(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-29, F.o.b. Origin, when the delivery term is f.o.b. origin.

Sections it refers to

Sections that refer to it

  • 47.303 Standard delivery terms and contract clauses.
  • 47.303-2 F.o.b. origin, contractor's facility.
  • 47.303-3 F.o.b. origin, freight allowed.
  • 47.303-4 F.o.b. origin, freight prepaid.
  • 47.303-5 F.o.b. origin, with differentials.
  • 52.247-29 F.o.b. Origin.

← 47.303 Standard delivery terms and contract clauses. · 47.303-2 F.o.b. origin, contractor's facility. →

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 47.303-1 F.o.b. origin · SpendQuery