Overview
This section contains a comprehensive suite of clauses and provisions governing transportation and relocation services, establishing the standard terms for how goods are shipped, weighed, and handled. It defines the specific duties, liability limits, and documentation requirements for contractors providing freight services or moving federal office property.
Key Rules
- Liability and Insurance: Contractors assume responsibility for personal injury and property damage resulting from their operations and must maintain adequate public liability, property damage, and Workers’ Compensation insurance (52.247-21, 52.247-22).
- Operating Authority: For relocation services, contractors must possess valid interstate authority from the Federal Motor Carrier Safety Administration (FMCSA) or appropriate state/local permits for intrastate moves (52.247-3).
- Weight Verification: Precise methods for determining "Net Weight" are established, requiring certified weighmasters to calculate weights by deducting the tare weight of a vehicle (including fuel and equipment) from the gross loaded weight (52.247-10, 52.247-11).
- F.o.b. Origin Standards: Under "F.o.b. Origin" terms, the contractor is responsible for packing, marking, and loading shipments in a manner that ensures the lowest applicable transportation charge and remains liable for damages until the carrier takes delivery (52.247-29).
- Pricing Protections: Contractors are prohibited from charging the government rates higher than the lowest rates offered to the general public for similar services (52.247-17).
Practical Implications
- Administrative Rigor: Contractors must maintain meticulous records, such as certified weight tickets and annotated bills of lading, as these documents are mandatory attachments for invoice approval and reimbursement.
- Risk Management: Because the contractor is "saved harmless" to the government for transit-related injuries, companies must ensure their insurance coverage specifically aligns with the indemnity requirements of FAR 52.247-21.
- Site Readiness: For relocation and shipping contracts, the "Familiarization with Conditions" clause places the burden of cost estimation risk on the contractor, making pre-bid site inspections and facility visits critical for accurate pricing.