Overview
FAR 47.300 establishes the framework for integrating transportation and traffic management policies into the acquisition of supplies, focusing primarily on fixed-price contracts. It also serves as a guiding standard for other contract types, such as cost-reimbursement contracts, to ensure transportation costs are effectively managed.
Key Rules
- Primary Applicability: The policies and procedures in this subpart are directly applicable to all fixed-price contracts involving the acquisition of supplies.
- Guidance for Other Contract Types: For non-fixed-price contracts (e.g., cost-reimbursement), where transportation is typically the contractor's responsibility, this subpart acts as a guide for the Contracting Officer.
- Cost Minimization: When applied to cost-reimbursement or other contract types, the Contracting Officer must use these guidelines to provide instructions that minimize the ultimate transportation costs to the Government.
- Contract Coverage: The subpart directs how transportation terms and conditions should be structured within a contract to ensure adequate coverage of logistics requirements.
Practical Implications
- Fixed-Price Compliance: Contractors bidding on fixed-price supply contracts must strictly adhere to the specific transportation terms (such as F.O.B. points) defined in this subpart, as they are mandatory.
- Cost-Reimbursement Oversight: While cost-reimbursement contractors have more autonomy in making transportation arrangements, they should expect the Government to use these FAR standards as a benchmark for determining if transportation costs are reasonable and minimized.