FAR and DFARS › FAR Part 47: Transportation › Subpart 47.3
FAR 47.303-4 F.o.b. origin, freight prepaid.
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 the delivery term 'f.o.b. origin, freight prepaid.' It means the contractor delivers goods free of expense to the Government at the origin point, and the contractor pays the freight charges upfront, though the Government ultimately bears the cost. The contracting officer must include the clause at 52.247-32 in solicitations and contracts when this term is used.
Applies to: Contracts using the f.o.b. origin, freight prepaid delivery term
What it requires
- Prepare commercial bills of lading or other transportation receipts
- Prepay all freight charges to the extent specified in the contract
Key terms: f.o.b. origin, freight prepaid · line-haul transportation service · commercial bills of lading · freight charges · 52.247-32
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, freight prepaid means—
(1) Free of expense to the Government delivered—
(i) 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 shipments will be made and from which line-haul transportation service (as distinguished from switching, local drayage, or other terminal service) will begin;
(ii) 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;
(iii) To a U.S. Postal Service facility; or
(iv) 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); and
(2) The cost of transportation, ultimately the Government's obligation, is prepaid by the contractor to the point specified in the contract.
(b) Contractor responsibilities. The contractor's responsibilities are the same as those listed in 47.303-1(b), except that the contractor shall prepare commercial bills of lading or other transportation receipts and shall prepay all freight charges to the extent specified in the contract.
(c) Contract clause. The contracting officer shall insert in solicitations and contracts the clause at 52.247-32, F.o.b. Origin, Freight Prepaid, when the delivery term is f.o.b. origin, freight prepaid.
Sections that refer to it
- 52.247-32 F.o.b. Origin, Freight Prepaid.
← 47.303-3 F.o.b. origin, freight allowed. · 47.303-5 F.o.b. origin, with differentials. →
Rule changes for FAR Part 47
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 9, 27, and 47 ↗ · proposed 2026-09-18 · comments due 2026-10-19
- Federal Acquisition Regulation: Training To Prevent Human Trafficking for Certain Air Carriers; Correction ↗ · final rule 2024-12-30 · effective 2025-01-03
- Federal Acquisition Regulation: Training To Prevent Human Trafficking for Certain Air Carriers ↗ · final rule 2024-12-16 · effective 2025-01-03
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.