Unless there are valid reasons to the contrary, the procurement of supplies from sources within the United States for ultimate delivery to destinations within the United States shall be in accordance with the following policy: (a) When it is estimated that a contract will require no shipment to a single destination which will equal 20,000 pounds, delivery shall be on the basis of all transportation charges paid to destination; or (b) When it is estimated that a contract will require one or more shipments of 20,000 pounds or more to any single destination, delivery shall be on the basis of whichever of the following is more advantageous to the Government; (1) F.o.b. carrier's equipment, wharf, or freight station, at the Government's option, at a specified point at or near contractor's plant; or (2) All transportation charges paid to destination. Solicitations shall provide that bidders or offerors may make bids or proposals on the basis described in subparagraph (1) of this paragraph or this subparagraph, or both. Justification for the solicitation of bids or proposals for procurement of supplies other than as described in this section shall be recorded and the contract file documented accordingly (see § 1.308). [26 F.R. 9634, Oct. 12, 1961] § 1.1302-2 Shipments from the United States for Overseas Delivery. (a) Economies in transportation within the United States are often available when Government procurement is made on an f.o.b. origin basis due to lower freight rates available to the Government and not to the commercial shipper (see § 1.1309). In addition, Government procurement on a f.o.b. origin basis normally affords greater flexibility by permitting the selection of the port of export and ocean transportation providing the lowest overall Government cost to overseas destination. (b) Unless there are valid reasons to the contrary, purchases of supplies originating within the United States for ultimate delivery to destinations outside the United States shall be made on the basis of delivery f.o.b. carrier's equipment, wharf, or freight station, at the Government's option, at a specified city or shipping point at or near the contractor's plant (see § 1.1305-3). This policy applies to supplies to be shipped either directly to a port area for export or to a storage or holding area for subsequent forwarding to a port area for export. (c) Justification for the solicitation of bids or proposals for procurement of supplies on other than an f.o.b. origin basis shall be recorded and the contract file documented accordingly (see § 1.308). The following examples are situations considered to be valid justifications for procuring on other than f.o.b. origin basis when inspection and acceptance conditions are compatible (see Part 14 of this chapter) and economies to the Government can be realized: (1) Where it is estimated a contract will require no shipment to a single destination which will equal or exceed 10,000 pounds and the commodity does not require an export release in accordance with Chapter 202, Military Traffic Management Regulations (AR 55-355 C.S.; OPNAVINST 4600.8; AFM 75-2, as amended; and NAVNC 1175); (2) Where supplies are priced the same for delivery throughout the United States (nationally priced) or a specified region thereof (regionally priced) regardless of the point at which the Government accepts delivery; (3) Where bulk supplies, such as coal, require other than Government owned or operated port handling, storage, and loading facilities; and (4) Where commercial overland freight rates for forest products, such as lumber, are too low for the negotiation of special rates. [26 F.R. 9634, Oct. 12, 1961] Shipments originating outside the United States. Selection of place of delivery for shipments originating outside the United States shall be in accordance with procedures prescribed by the Department concerned. [25 F.R. 14109, Dec. 31, 1960] When additional quantities of the item being purchased can be transported at no increase in transportation cost or when purchase of carload or truckload quanities will result in lower unit transportation costs, the purchasing activity should find out from the requiring activity whether there is a known requirement for additional quantities. [25 F.R. 14109, Dec. 31, 1960] $ 1.1304 Commodity description. A complete description of the commodity being purchased, including packing and packaging instructions, is necessary not only to enable the supplier to bid or quote properly on the requirement, but also for determination of proper transportation charges. In no case shall the manufacturer's part number only be shown without the appropriate descriptive nomenclature. [25 F.R. 14109, Dec. 31, 1960] Solicitations for supplies to be purchased on any of the bases designated in §§ 1.1305-2 through 1.1305-5 shall include, in addition to the information set forth in the respective subparagraphs, so much of the following information as is pertinent to the particular procurement and shall require prospective suppliers to furnish the Government such of the following as may be appropriate. (a) Method of shipment, such as rail, water, air, or truck; (b) Minimum size of shipments, such as carloads, truckloads, less than carloads, less than truckloads; (where appropriate for evaluation or other prposes, a provision substantially as set forth in § 2.201(b) (12)); (c) Guaranteed maximum shipping weights (and dimensions if applicable); (If shipping weights (and dimensions if applicable) of items to be procured are not shown in the solicitation and may vary among prospective suppliers with a resultant variation in transportation costs and such costs are made a factor in bid evaluation, the schedule will provide for insertion by the supplier of the applicable guaranteed maximum shipping weights (and dimensions if applicable) in spaces provided after each item (or elsewhere in the schedule) and a provision substantially as set forth in §2.201 (b) (13) of this subchapter shall also be included.); (d) Packing, crating and other preparations; (e) Transit arrangements (§ 1.1308); and (f) Any other shipping information required for evaluation. [26 F.R. 5301, June 14, 1961] § 1.1305-2 F.o.b. origin or destination. Solicitations for supplies to be purchased either f.o.b. origin or f.o.b. destination in accordance with § 1.1302-1(b), shall include so much of the information contained in §§ 1.1305-3 and 1.1305-4 as is pertinent to the particular procurement and shall provide that bids or proposals may be submitted on either or both bases and that they will be evaluated on the basis of the lowest overall cost to the Government. [26 FR. 5301, June 14, 1961] § 1.1305-3 F.o.b. destination. Generally, solicitations for supplies to be purchased f.o.b. destination shall provide that supplies shall be delivered, all transportation charges paid by the contractor, to the specified destination. The solicitation shall inform prospective suppliers of any known shortage of transportation facilities at destination or other factors which may affect the supplier's transportation costs. When f.o.b. destination bids only are desired, the invitation for bids shall specify that bids submitted on a basis other than f.o.b. destination will be rejected as nonresponsive. [26 F.R. 5301, June 14, 1961] § 1.1305-4 F.o.b. origin. Generally, solicitations for supplies to be purchased f.o.b. origin shall provide for delivery, at the Government's option, f.o.b. carrier's equipment, wharf, or freight station at a city or shipping point to be specified by the bidder or offeror at or near the contractor's plant. This will enable the military traffic management offices, in issuing routing instructions, to select the mode of transportation which will provide the required service at the lowest overall cost. When destinations are known, or if unknown but tentative destinations are designated (see § 1.1305-5), the solicitation shall state that bids or proposals will be evaluated on the basis of the lowest overall cost to the Government, taking account of transportation costs to the Government from point of origin to the designated domestic or overseas destinations. Thus, when material is to be purchased f.o.b. origin in accordance with § 1.1302-2 for ultimate delivery to known destinations outside the United States, the solicitation shall state that bids or proposals shall be evaluated so as to take into account the cost to the Government of shipment from the point of origin to the overseas destinations (see § 1.1313). When f.o.b. origin bids only are desired, the invitations for bids will specify that bids submitted on a basis other than f.o.b. carrier's equipment, wharf, or freight stations at a specified city or shipping point at or near the contractor's plant, will be rejected as nonresponsive. [26 FR. 5301, June 14, 1961] § 1.1305-5 Destination unknown. When the exact destinations of the supplies being purchased are not known at the time bids or proposals are solicited, but the general location of the destination, such as East Coast, Middle West, or West Coast, is known, a definite place or places shall be designated as the point to which transportation costs will be computed—but only for the purpose of evaluating bids or proposals. The solicitation shall specify that bids or proposals should be submitted f.o.b. origin and that shipments will be made on Government bills of lading. The solicitation shall state: For the purpose of evaluating (bids) (proposals), and for no other purpose, the final destination for the supplies will be considered to be as follows: (Name destinations) Invitations for bids shall contain a statement that bids submitted on a basis other than f.o.b. origin will be rejected as nonresponsive. [26 F.R. 5301, June 14, 1961] § 1.1306 Consignment and marking in structions. Complete consignment and marking instructions, to the extent that they are known at the time the contract is awarded, shall be included in contracts to assist in insuring that supplies will be delivered to proper destinations without delay. "Military Standard Marking of Shipments (MIL-STD-129B)" shall be consulted for proper marking instructions. In those cases where complete consignment information is not initially known, additional instructions to the contractor shall be furnished as soon as such information becomes known. In contracts which provide for delivery f.o.b. origin and shipment on Government bills of lading, consignment instructions may be limited to the mail address of the consignee, provided the contract instructions state that "Shipments other than mail shall be consigned as indicated on the Government bill of lading furnished to the Contractor." It should be noted that receiving activities may have different consignment points for the various transportation media, or even for particular carriers within a medium depending on the weight, shape, size or nature of the shipment involved. [25 F.R. 14109, Dec. 31, 1960] § 1.1307 Scheduling of deliveries to permit consolidation of shipments. The accumulation of small shipments into carload or truckload lots will result in lower transportation costs. Also, the accumulation of small shipments into less than load shipments may result in lower transportation costs. Upon review of the purchase request, and in conjunction with the requiring or requisitioning activity, consideration shall be given to revising delivery schedules to provide for deliveries in larger quantities. In some cases, delivery schedules for supplies to be delivered to multiple destinations can be consolidated and the stopoff in transit privilege used for partial unloading at one or more points directly en route between the point of origin and the last destination. [25 F.R. 14109, Dec. 31, 1960] § 1.1308 Transit arrangements. Transit arrangements afford an opportunity to stop carload or truckload shipments at specific intermediate points en route to the final destination in order to store, process, or fabricate, or for other purposes as specified in carriers' applicable tariffs. A single through rate from origin to final destination, plus a transit or other related charge if applicable, is charged in lieu of a combination of rates to and from the transit point which would result in higher costs. Consideration should be given to possible benefits to the Government through the use of such transit arrangements. Traffic management personnel can furnish necessary information and analyses of situations where such transit arrangements may be beneficial. [25 F.R. 14109, Dec. 31, 1960] § 1.1309 Volume movements within the United States. (a) Volume movement means the aggregate of one or more freight shipments to move during the contract period, amounting to or exceeding 10 carloads, 10 truckloads, or 200,000 pounds from one point of origin for delivery to one destination point or area. (b) Contracting officers and contract administrators shall, after contract award and as soon as production schedules and planned destinations have been established, refer a copy of all contracts which will generate volume movements to the transportation office serving the purchasing activity. The transportation office shall review the contracts and report planned volume movement in accordance with the Military Traffic Management Regulation (AR 55-355, OPNAVINST 4600.8, AFM 75-2, and NAVMC 1175). (c) Reporting of volume movements will permit a determination of the reasonableness of applicable current rates, and when appropriate, negotiation of adjusted or modified rates, in accordance with the regulation referred to in paragraph (b) of this section. Government traffic frequently possesses more favorable transportation characteristics (greater volume, heavier loading, less likelihood of damage, etc.) than commercial traffic. These favorable characteristics provide the basis for special adjustments of rates for Government traffic under provisions of Section 22 of the Interstate Commerce Act (49 U.S.C. 22). [29 F.R. 2821, Feb. 29, 1964] § 1.1310 Crosshauling and backhauling. Crosshauling is the shipment of material of the same kind in reverse directions. Backhauling is the shipment of material from a geographical area to or through another geographical area from which the material previously had been shipped. Crosshauling and backhauling waste transportation funds, facilities and equipment. To reduce crosshauling and backhauling, purchase requests or authorizations should contain as complete and accurate transportation (including destination) data as possible. [25 F.R. 14110, Dec. 31, 1960] § 1.1311 Unusually large or heavy ship ments. Before purchasing unusually large, heavy, high, wide, or long items, the ap propriate transportation office shall be consulted in order that any transportability difficulties may be considered. Additional costs, such as the use of special equipment, excess blocking and bracing material, circuitous routing, etc., incident to these shipments shall also be considered, in conjunction with the freight rate, in determining total transportation costs. [25 F.R. 14110, Dec. 31, 1960] § 1.1312 Mode of transportation. Generally, the military traffic management office is the proper authority to specify the mode and routing of shipments. If urgency in delivery is a factor, the appropriate military traffic management office shall be so informed in order that routing authorities may select the appropriate means of transportation. [25 F.R. 14111, Dec. 31, 1960] § 1.1313 Transportation rates and re lated costs. To afford proper analysis and consideration of transportation factors, the contracting officer shall consider transportation rates and related costs in the evaluation of f.o.b. origin bids and proposals. The best available transportation rates and related costs in effect or to become effective prior to the expected date of initial shipment and on file or published at the date of the bid opening, shall be used in the evaluation. However, transportation rates and related costs filed or published after the bid opening, or the date proposals are due, shall not be used in the evaluation unless they cover traffic for which no applicable transportation rate or related cost was in existence on the bid opening or the date proposals were due. [26 F.R. 5302, June 14, 1961] § 1.1313-2 Sources of transportation rates and related costs. Contracting officers shall obtain transportation rates, costs, transit times and other required transportation factors and guidance from the transportation offices or agencies which have been designated as having the responsibility to furnish such data, as prescribed by Departmental procedures. Requests for such rates and costs shall include the bid opening or proposal due date, and The Joint MILSTAMP Regulation (AR 55-10, NAVEXOS P-2437, AFM 75-3, MCOP 4610.8, DSAR 4540.2) establishes uniform procedures and documents for the generation, documentation, communication and use of transportation information, thus providing the capability for control of shipments moving in the Department of Defense transportation system. The procedures established by the Joint MILSTAMP Regulation are mandatory upon all agencies shipping material, or arranging for the procurement and shipment of supplies by Government vendors and contractors, through the use of military controlled transport, commercial carriers under Government bills of lading, or through military transshipment facilities as defined in the Joint MILSTAMP Regulation. [29 F.R. 2821, Feb. 29, 1964] § 1.1314-2 Responsibilities. Procurement activities are responsible for assuring compliance with the requirements of Joint MILSTAMP Regulation by vendors and contractors for all applicable shipments which are under their direction or control. This includes strict compliance with the requirements relating to documentation, marking, advance notification of shipment dates, and terminal clearances. Contracting officers shall include appropriate provisions in solicitations for supplies to assure compliance with MILSTAMP requirements, provided, however, that the obligation of the contractor shall be held to a minimum and Government contract administration activities (including transportation offices) shall provide the remaining support to satisfy the full MILSTAMP requirements. [29 F.R. 2821, Feb. 29, 1964] 33-605-658 geneous unmarked cargoes such as grain, coal, cement and lumber; (b) "Dry cargo liners" are ships for the carriage of heterogeneous marked cargoes in parcel lots. However, any cargo can be carried in such ships, including part cargoes of bulk items such as those mentioned above, or, when carried in deep tanks, bulk liquids such as petroleum and vegetable oils; (c) "Tankers" are ships used for carriage of bulk liquid cargoes such as liquid petroleum products, vegetable oils and molasses; (d) "Government vessel" means a vessel owned by the United States Government and operated directly by the Government or for the Government by an agent or contractor, including privately owned United States-flag vessels under bareboat charter to the Government; (e) "Private United States vessels" means privately owned United Statesflag commercial vessels, including such vessels when under voyage or time charter to the United States Government, and including Government-owned vessels under bareboat charter to private operators; and (f) "United States-flag vessels" when used independently means both Government vessels and private United States vessels. (g) "Foreign-flag vessel" means any vessel of foreign registry and includes vessels owned by United States citizens but registered in a nation other than the United States. [25 F.R. 14110, Dec. 31, 1960, as amended at 29 F.R. 2821, Feb. 29, 1964] § 1.1402 General. It is the policy of the Department of Defense, in furtherance of the Cargo Preference Act (68 Stat. 832; 46 U.S.C. 1241(b)) and 10 U.S.C. 2631 to encourage and foster the American merchant marine. When transportation of supplies by ocean vessel is required: (a) Private United States vessels shall be employed for the transportation of at least 50 percent of the aggregate gross tonnage per annum of the following categories of supplies: (1) Supplies owned by the Government and in the possession of a Military Department, or of a contractor, or subcontractor of any tier, of a Military Department; (2) Supplies for the use of the United States which are contracted for and require subsequent delivery to a Military |