Overview
This section mandates that contracting officers evaluate transportation costs and the physical adequacy of shipping and receiving facilities to determine the lowest overall cost to the Government. It establishes a formal process for collaboration between contracting officers and transportation officers to ensure logistics data is accurately integrated into the source selection process.
Key Rules
- Data Requirements: The contracting officer must provide the transportation officer with comprehensive data, including commodity descriptions, packaging instructions, shipment quantities (weight/cubic content), and delivery schedules.
- Rate Selection: Evaluation must be based on the lowest available freight rates and incidental charges that are published or on file by the date of bid opening.
- Rate Effective Dates: Rates used in evaluation must be in effect on or before the expected initial shipment date; rates surfacing after bid opening are generally excluded unless no prior rates existed.
- Facility Assessment: The evaluation must include the offeror's ability to consolidate shipments into carload or truckload lots and the consignee's ability to accommodate the proposed shipping schedule.
- Transit Privileges: Considerations must include potential "transit privileges," such as stopoffs for partial loading or unloading, to optimize costs.
Practical Implications
- Total Cost Evaluation: A lower bid price may be disqualified if high transportation costs or inadequate shipping facilities make the "landed cost" higher than competing offers.
- Logistical Feasibility: Contracting officers must ensure that the delivery schedule aligns with the physical constraints of the receiving facility to avoid demurrage charges or operational bottlenecks.