FAR Part 47

Question 1

Part 47 – Transportation

Overview of FAR Part 47

Scope of Part47

Purpose: Prescribes policies and procedures for:

Answer 1

1. Applying transportation and traffic management considerations in the acquisition of supplies.
2. Acquiring transportation or transportation-related services by contract methods other than traditional transportation forms (e.g., bills of lading).

Question 2

Part 47 – Transportation

Overview of FAR Part 47

Scope of Part47

Acquisition Methods:

Answer 2

Transportation services can be obtained through acquisition subject to the FAR or under specific U.S. codes (49 U.S.C. 10721 or 49 U.S.C. 13712).

Question 3

Part 47 – Transportation

Overview of FAR Part 47

Key Considerations

Answer 3

Transportation and Traffic Management: Integral in the acquisition process for supplies.

Contract Methods:
o Traditional methods (bills of lading, transportation requests).
o Alternative methods under the FAR regulations.

Guidance: Provided for using bills of lading despite not being regulated by FAR (FAR 47.000(a)).

Question 4

Part 47 – Transportation

Overview of FAR Part 47

Definitions

Answer 4

Condensed from Statutory Definitions: Definitions in Part 47 are streamlined from statutory definitions.

Statutory Consistency: In cases of inconsistency, statutory requirements prevail over FAR language (FAR 47.000(b)).

Question 5

Part 47 – Transportation

General Policies (FAR 47.101)

Domestic and International Shipments

Answer 5

Domestic Shipments: Authorized on commercial bills of lading (CBL).

International/Noncontiguous Domestic Shipments: Government bills of lading (GBL) may be used when authorized (FAR 47.101(a)).

Question 6

Part 47 – Transportation

General Policies (FAR 47.101)

Contract Administration Office (CAO) Responsibilities

Answer 6

Efficiency and Economy: Ensure contractor instructions result in efficient and economical use of transportation services and equipment.

Assistance: Transportation personnel provide management expertise to CAO.

Regulations: Detailed responsibilities in Federal Management Regulation (41 CFR parts 102-117 and 102-118) and DoD 4500.9-R (Defense Transportation Regulation) (FAR 47.101(b)).

Question 7

Part 47 – Transportation

General Policies (FAR 47.101)

Transportation Advice and Assistance
Required for:

Answer 7

1. Solicitations and awards.
2. Contract administration, modification, and termination.
3. Government property transportation to/from contractors’ plants (FAR 47.101(c)).

Question 8

Part 47 – Transportation

Additional Policies and Regulations (FAR 47.101 - 47.105)

Preferred Transportation Methods

Answer 8

Commercial Carriers: Preferred method for transporting supplies.

Government-Owned Vehicles: Used if:
1. Available and not fully utilized.
2. Results in substantial economies.
3. Complies with statutes, policies, and regulations (FAR 47.101(d)).

Question 9

Part 47 – Transportation

Additional Policies and Regulations (FAR 47.101 - 47.105)

Equal Treatment and Compliance

Answer 9

No Preferential Treatment: No preferential treatment to any transportation mode or carrier (FAR 47.101(e)).

Small Business Contracts: Agencies shall place transportation-related purchases with small business concerns as prescribed in part 19 (FAR 47.101(f)).

Statutory Compliance: Fly America Act, Cargo Preference Act, and related statutes must be complied with (FAR 47.101(g)).

Question 10

Part 47 – Transportation

Additional Policies and Regulations (FAR 47.101 - 47.105)

Transportation Insurance and Documentation

Answer 10

Government Risk: Generally retains risk of loss or damage, does not buy insurance for property with commercial carriers (FAR 47.102(a)).

Special Circumstances: Insurance may be purchased if necessary and in the Government’s interest (FAR 47.102(b)).

Documentation: Regulations for documentation, payment, and audit in 41 CFR part 102-118; DoD guidance in DoD 4500.9-R (FAR 47.103).

Question 11

Part 47 - Transportation
Scope and Policies (FAR 47.200 - 47.202)

Scope of Subpart

Answer 11

Applies to: Acquisition by sealed bid or negotiated contracts for:
1. Freight transportation from rail, motor, domestic water carriers, and freight forwarders.
2. Transportation-related services like stevedoring, storage, packing, marking, and ocean freight forwarding (FAR 47.200(a)).

Exclusions: Not applicable to:
1. Domestic/international air carriers and international ocean carriers.
2. Freight transportation by bills of lading.
3. Household goods under 49 U.S.C. 10721 and 1 3712.
4. Contracts at or below the simplified acquisition threshold (FAR 47.200(b)).

Question 12

Part 47 - Transportation
Scope and Policies (FAR 47.200 - 47.202)

Definitions

Answer 12

General Freight: Supplies, goods, and transportable property not classified as household goods or office furniture.

Office Furniture: Furniture, equipment, fixtures, records, and other materials used in Government offices and similar establishments (FAR 47.201).

Presolicitation Planning
Lead-time Requirements: Inform activities about the need for obtaining wage determinations, inspection of locations, and inspection by agency personnel (FAR 47.202)..

Question 13

Part 47 - Transportation

Contract Types and Preparation (FAR 47.204 - 47.208)

Single-Movement Contracts

Answer 13

Awarded for unique transportation services not available under carrier tariffs or covered by DoD or GSA contracts (FAR 47.204).

Question 14

Part 47 - Transportation

Contract Types and Preparation (FAR 47.204 - 47.208)

Contracts and Basic Ordering Agreements (BOAs)

Answer 14

Execution: Agencies can contract for transportation services and execute BOAs unless agency
regulations state otherwise.

Economical and Efficient: Generally more efficient to use term contracts and BOAs executed by experienced agencies like DoD and GSA (FAR 47.205).

Question 15

Part 47 - Transportation

Contract Types and Preparation (FAR 47.204 - 47.208)

Solicitation and Contract Preparation

Answer 15

Fixed-Price Service Contracts: Prepare solicitations and contracts as prescribed for fixed-price service contracts, ensuring consistency with Subpart 47.2 requirements (FAR 47.206).

Question 16

Part 47 - Transportation

Best Value in Transportation Contracts (FAR 47.300 - 47.305)

Key Considerations for Best Value

Answer 16

Transportation Factors in Acquisitions: Ensure acquisitions are advantageous and supplies arrive in
good order and on time (FAR 47.301(a)).

Requiring Activity Responsibilities: Consider transportation factors, including future requirements and positioning of supplies (FAR 47.301(b)).

Contracting Officer Responsibilities: Obtain transportation factors for solicitations, awards, and contract administration; request transportation office participation for large or sensitive items (FAR 47.301-1).

Question 17

Part 47 - Transportation

Best Value in Transportation Contracts (FAR 47.300 - 47.305)

Evaluating Offers for Best Value

Answer 17

Solicitation Requirements: Include transportation data such as modes, loading capabilities, packaging,
and shipping weights (FAR 47.305-1).

Evaluation Based on Lowest Overall Cost: Solicit offers on both f.o.b. origin and f.o.b. destination to determine the most advantageous option for the Government (FAR 47.305-2).

Direct Delivery and Consolidation: Consider direct delivery from contractor to using activity and consolidation of small shipments to reduce costs (FAR 47.305-7, 47.305-8).

Question 18

Common Carrier

Answer 18

A person holding itself out to the general public to provide
transportation for compensation

Question 19

Contract Carrier

Answer 19

A person providing transportation for compensation under continuing agreement with one person or a limited number of persons

Question 20

Bill of lading

Answer 20

A transportation document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a contract of carriage

A government bil of lading (GBL) is an accountable transportation document, authorized and prepared by a government official.

A commercial bill of lading (CBL) si not an accountable transportation document.

Question 21

Free on board (F.O.B.)

Answer 21

Used in conjunction with a physical point to determine the responsibility and basis for payment of freight charges and, unless otherwise agreed, the point at which title for goods passes to the buyer or consignee

Question 22

Released value
Declared value

Answer 22

Assigned value of the cargo for reimbursement purposes, which may be more or less than the actual value of the cargo

The maximum amount that could be recovered by the agency in the event of loss or damage for the shipments of freight and household goods

Question 23

FAR Part 47 Transportation

Applicability

Answer 23

Applies to all government personnel concerned with the acquisition of sup-plies, acquisition of transportation and transportation-related services, transportation assistance and traffic management, administration of transportation contracts, transportation-related services, and other contracts that involve transportation, and the making and administration of contracts, under which payments are made from government

Question 24

GOVERNMENT RATE TENDER,

Answer 24

under 49 U.S.C. 10721 and 13712, means an offer by a common carrier to the United States at a rate below the regulated rate offered to the general

Question 25

RELEASED OR DECLARED

Answer 25

The assigned value of the cargo for reimbursement purposes, not necessarily the actual value of the cargo. Released value may be more or less than the actual value of the cargo.

The released value is the maximum amount that could be recovered by the agency in the event of loss or damage for the shipments of freight and household