Overview
FAR Subpart 47.2 provides the procedures and guidelines for acquiring freight transportation and transportation-related services (such as storage, packing, and stevedoring) through sealed bids or negotiated contracts. It focuses on domestic rail, motor, and water carriers while excluding international ocean/air transport and shipments handled via simplified acquisition procedures or bills of lading.
Key Rules
- Applicability Limits: This subpart does not apply to contracts at or below the Simplified Acquisition Threshold (SAT), international air/ocean carriers (governed by Subparts 47.4 and 47.5), or freight acquired via bills of lading.
- Labor Standards: For transportation service contracts exceeding $2,500, Contracting Officers must obtain a wage determination under the Service Contract Labor Standards via SAM.gov.
- Rate Protections: Contract charges must not exceed the rates the contractor offers to the general public or those otherwise tendered to the Government.
- Volume Movement Reporting: Large-scale shipments must be reported to the appropriate agency (SDDC for DoD; GSA for civilian). A volume movement is defined as 500,000 lbs for DoD or 100,000 lbs for civilian agencies.
- Liability Standards: Unless otherwise specified, the contractor's liability for loss or damage is governed by 49 U.S.C. 11706 (the Carmack Amendment). Specific clauses (52.247-21 through 23) must be used to define liability for cargo, property damage, and personal injury.
- Weight Determination: The contract must explicitly state how weights are determined (e.g., agreed weight vs. net weight) to ensure accurate billing.
Responsibilities
- Contracting Officers (CO):
- Inform planning activities of lead-time requirements and labor standard compliance.
- Ensure offerors possess necessary operating authorities (permits/franchises) and financial stability.
- Clearly define the origin, destination, and description of freight in the solicitation.
- Select and insert the correct 52.247 series clauses based on the type of freight (e.g., General Freight vs. Household Goods).
- Transportation Office/Activity:
- Provide the CO with freight classification descriptions.
- Report planned and actual volume movements to GSA or SDDC.
- Contractors:
- Provide clean, sound, and appropriately sized equipment.
- Furnish "REPSHIP" (Report of Shipment) advance notices for sensitive, hazardous, or large-volume shipments.
- Maintain required insurance levels and obtain necessary state/federal operating permits.
- Government Program Office:
- Provide advance notification for shipments involving hazardous materials.
- Coordinate site inspections for prospective offerors when necessary.
Practical Implications
- Utilizing Existing Contracts: Agencies are encouraged to use existing GSA or DoD term contracts rather than awarding new ones, as these agencies have specialized expertise in transportation law and rate negotiation.
- Office Relocations: This subpart is the primary regulatory guide for Federal office moves. COs must decide whether to require state-specific operating authority for intrastate moves, which can impact the pool of available small business contractors.
- Cost Control: By requiring "REPSHIP" (Advance Notice of Shipment), the government avoids "demurrage" and vehicle detention charges, which are fees incurred when a carrier is forced to wait at a destination because the receiving facility was not prepared.
- Risk Allocation: Because transportation involves high risks of damage or loss, the specific liability clauses are critical. If a CO fails to specify liability for high-value cargo, the government may find itself limited to standard commercial recovery rates which might not cover the full value of the goods.