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

FAR 47.303-5 F.o.b. origin, with differentials.

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 defines the delivery term 'f.o.b. origin, with differentials,' under which the contractor delivers goods free of expense to the Government at a specified origin point, and the contract price may include differentials for mode of transportation, vehicle type, or place of delivery. It matters because it tells contractors where their delivery responsibility ends and that price adjustments tied to those differentials may apply. It also directs contracting officers to insert the clause at 52.247-33 in certain solicitations and contracts.

Applies to: Contractors and contracting officers using the f.o.b. origin, with differentials delivery term

What it requires

  • Deliver the goods free of expense to the Government at the designated origin point, on board the indicated conveyance, at the carrier's wharf or freight station, to a U.S. Postal Service facility, or to a Government-designated point within the same city or commercial zone if stated in the solicitati
  • Follow the contractor responsibilities listed in 47.303-1(b)

Key terms: f.o.b. origin, with differentials · differentials · line-haul transportation service · commercial zone · 52.247-33

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, with differentials 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) Differentials for mode of transportation, type of vehicle, or place of delivery as indicated in contractor's offer may be added to the contract price.

(b) Contractor responsibilities. The contractor's responsibilities are the same as those listed in 47.303-1(b).

(c) Contract clause. Insert in solicitations and contracts the clause at 52.247-33, F.o.b. Origin, with Differentials, when it is likely that offerors may include in f.o.b. origin offers a contingency to compensate for unfavorable routing conditions by the Government at the time of shipment.

Sections it refers to

Sections that refer to it

← 47.303-4 F.o.b. origin, freight prepaid. · 47.303-6 F.o.b. destination. →

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 47.303-5 F.o.b. origin, with differentials · SpendQuery