Overview
FAR 47.101 establishes the foundational policies for transportation management in federal contracting, emphasizing the use of commercial carriers, cost-efficiency, and adherence to statutory requirements such as the Fly America Act and Cargo Preference Act. It mandates that contracting officers integrate transportation expertise into the acquisition lifecycle to ensure the most economical use of government and commercial resources.
Key Rules
- Documentation Standards: Commercial Bills of Lading (CBLs) are the default for domestic shipments, while Government Bills of Lading (GBLs) are reserved for international or noncontiguous domestic shipments.
- Carrier Preference: The government maintains a preference for commercial carriers; government-owned or leased vehicles may only be used if they are available, result in substantial economies, and comply with specific agency policies.
- Mandatory Coordination: Contracting officers must obtain traffic management advice for solicitations, awards, contract administration, and the transportation of government property.
- Non-Discrimination: Agencies are prohibited from giving preferential treatment to any specific mode of transportation or specific carrier during the award or administration process.
- Statutory Compliance: All transportation activities must comply with the Fly America Act (U.S.-flag air carriers), the Cargo Preference Act (U.S.-flag vessels), and Small Business requirements under FAR Part 19.
- Efficiency Mandate: The Contract Administration Office (CAO) is responsible for ensuring that transportation instructions result in the most efficient and economical use of services and equipment.
Practical Implications
- Operational Requirements: Contractors must strictly follow shipping instructions provided by the CAO, especially regarding f.o.b. origin shipments, to ensure they use the correct shipping documents and authorized carriers.
- Compliance Risk: Failure to adhere to "U.S. Flag" requirements (Fly America and Cargo Preference Acts) can lead to non-reimbursable transportation costs for the contractor and potential contractual non-compliance.