Subpart 13-Transportation

1.1300 Scope of Subpart. This Subpart prescribes policies and procedures for the application of proper transportation and traffic management considerations in the procurement of property.

1.1301 General. Proper consideration of transportation factors in awarding and administering contracts is important in order to ensure that procurements are made on the basis most advantageous to the Government, and that supplies arrive at the right place at the right time and in good condition. To this end, requiring offices should consider the mode of transportation in preparing procurement requests and should include any relevant information and instructions that will enable the procurement office to give full consideration to transportation matters. Contracting officers shall obtain advice and assistance on the transportation matters as needed for solicitations and awards and the administration, modification, and termination of contracts, including the movement of Government property to, from, and between plants of contractors and subcontractors. Such advice and assistance, including freight rates, transportation costs, time in transit, port capabilities, etc., will be obtained from the installation transportation officer, unless other provision has been made in a delegation of contract administration services functions.

1.1302 Place of Delivery. The term "United States" as used in this paragraph does not include Alaska or Hawaii.

1.1302-1 Shipments within the United States. 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 with respect to place of delivery:

(i) when it is estimated that all shipments under a contract will weigh less than 20,000 pounds each (less than 5,000 pounds each if air movement is contemplated) delivery shall be on the basis of f.o.b. destination (see 1.1305-3); and

(ii) when it is estimated that a contract will require one or more shipments of 20,000 pounds or more (5,000 pounds or more if air movement is contemplated) to any single destination, delivery shall be on the basis of f.o.b. origin or f.o.b. destination (1.1305-2), whichever is more advantageous to the Government. Solicitations shall provide that bids or proposals may be submitted on the basis of either or both f.o.b. origin and f.o.b. destination and that they will be evaluated on the basis of the lowest overall cost to the Government.

Where sufficient reasons exist and the policy stated in (i) and (ii) above is not followed, the contract file shall be documented in accordance with 1.308 to include such reasons.

1.1302-2 Shipments from the United States for Overseas Delivery.

(a) When Government procurement involves shipments from the United States overseas, delivery f.o.b. origin may afford not only the economies of lower freight rates available to the Government within the United States (see 1.1309), but also flexibility for selection of the port of export and the ocean transportation providing the lowest overall cost to the Government.

(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 f.o.b. origin (see 1.1305-4). This policy applies to supplies and equipment to be

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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. Justification for the solicitation of bids or proposals on other than an f.o.b. origin basis shall be recorded and the contract file documented accordingly, as required by 1.308.

(c) Export cargo involves considerations of operational and cost factors from point of origin within the United States to overseas port destination. The lowest cost of shipment can be determined only by evaluating and comparing the various prospective landed costs (including inland, terminal, and ocean costs). NASA has certain export licensing privileges for the moving of commodities to foreign destinations. Advice should be obtained from the transportation officer in order to make full use of these privileges.

1.1302-3 Shipments Originating Outside the United States. Procurement of supplies originating outside the United States for ultimate delivery to destinations within the United States, regardless of the quantity of the shipments, shall be on the basis of f.o.b. origin (1.1305-4) or f.o.b. destination (1.1305-3), whichever is more advantageous to the Government. The contracting officer will request the advice of the transportation officer in determining the most appropriate place of delivery to be specified in procurement documents, giving full consideration to the possible use of Government transportation facilities, reduced rates available, special licensing or custom requirements, and availability of American-flag shipping services between the points involved (see Part 1, Subpart 14).

1.1303 Quantity Analysis. When additional quantities of the item being procured can be transported at no increase in transportation cost, and there would be no impairment to the program schedule, the procurement office should ascertain from the requiring office whether there is a known requirement for additional quantities.

1.1304 Commodity Description. A complete description of the commodity being procured, including packing and packaging instructions, shall be included in the solicitation not only to enable the supplier to bid or quote properly on the requirement but also for determination of proper transportation harges. In no case shall the manufacturer's part number be shown without the appropriate descriptive nomenclature. Dangerous and hazardous items will be clearly identified as such in the description.

1.1305 Delivery Terms.

1.1305-1 General. Solicitations for supplies shall include as 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:

(i) proposed method of shipment, such as rail, truck, air, or water (see 1.1311);

(ii) minimum size of shipments, such as carloads, truckloads, less-thancarloads, less-than-truckloads, and, where appropriate for evaluation or other purposes, a provision substantially as set forth in 2.202-3(b)(ii);

(iii) guaranteed maximum shipping weights, and dimensions if applicable (if shipping weights and dimensions of items to be procured are not shown in the solicitation and could vary among prospective suppliers with a resultant variation in transportation costs, which costs are to be a fac

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tor in evaluating f.o.b. origin bids, the schedule will provide for insertion by the suppliers of the applicable guaranteed maximum shipping weights (and dimensions, if applicable) in spaces provided after each item, or elselwhere in the Schedule, and a provision substantially as set forth in 2.202-3(b)(iii) shall be included);

(iv) packing, crating, marking, and other preparations;

(v) where transit privileges may apply, the information required by 1.1308;

(vi) special shipping documentation requirements, safety and security requirements; and

(vii) any other shipping information required for evaluation.

1.1305-2 F.O.B. Origin or Destination. Solicitations for supplies which provide that bids or proposals may be submitted on the basis of either f.o.b. origin or f.o.b. destination, or both, shall include as much of the information contained in 1.1305-4 and 1.1305-3 as is pertinent to the particular procurement and shall state that they will be evaluated on the basis of the lowest overall cost to the Government.

1.1305-3 F.O.B. Destination.

(a) Generally, solicitations for supplies to be procured f.o.b. destination shall provide that supplies and equipment shall be delivered, all transportation costs paid by the contractor, to the specific 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 only f.o.b. distination bids 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.

(b) In contracts which provide for delivery f.o.b. destination, the contractor's responsibilities shall include:

(i) preparation and distribution of commercial bill of lading;

(ii) delivering shipment in good order to the point of delivery specified in the contract;

(iii)responsibility for any loss or damage, or both, to the supplies prior to their receipt by the consignee at the named point of delivery;

(iv) furnishing a delivery schedule and designating mode of transportation; and

(v) paying and bearing all charges to the point of delivery specified in the contract.

1.1305-4 F.O.B. Origin.

(a) Generally, solicitations for supplies to be procured f.o.b. origin shall provide for delivery f.o.b. carrier's equipment, wharf, or freight station at NASA's option, at a shipping point to be specified by the bidder or offeror at or near the contractor's or subcontractor's plant. When destinations are known, or unknown, but tentative destinations are designated (see 1.1305-5), solicitations shall state that bids or proposals will be evaluated on the basis of the lowest overall cost to the Government, taking into account transportation costs to NASA from point of origin to the designated domestic or overseas destinations. Other requirements applicable to f.o.b. origin procurements, where transit privileges may apply, are set forth in 1.1308. Contracting officers should ascertain from the appropriate transportation officer the applicable transportation rates and port handling charges required for use in evaluating bids or proposals (see 1.1312). When only f.o.b. origin bids are desired, the invitations for

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bids shall specify that bids submitted on a basis other than f.o.b. carrier's equipment, wharf, or freight stations at a specified shipping point at or near the contractor's or subcontractor's plant will be rejected as nonresponsive.

(b) In contracts which provide for delivery f.o.b. origin it shall be the responsibility of the contractor to:

(1) pack and mark to comply with contract specifications; or, in the absence of such specifications, prepare shipment in conformance with carrier requirements to protect the personal property and assure assessment of the lowest applicable transportation charge.

(2) order specified carrier equipment when requested by the Government; otherwise, order appropriate carrier equipment not in excess of capacity to accommodate shipment.

(3) deliver shipments in good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckload (when loaded by the contractor) shipments on or in carrier's conveyance as required by carrier rules and regulations.

(4) be responsible for any loss or damage, or both, to the personal property occurring prior to delivery of shipment to carrier; and also for any loss or damage resulting from improper packing and marking, and, when loaded by contractor, resulting from improper loading, stowing, trimming, blocking, and/or bracing of shipment on or in carrier's conveyance.

(5) complete Government bill of lading supplied by the ordering agency; or, when Government bill of lading is not supplied, prepare commercial bill of lading or other transportation receipt. The bill of lading shall show thereon:

(i) description of shipment in terms of the governing freight classification or tariff under which lowest freight rates are applicable;

(ii) the seals affixed to the conveyance, including number thereof, or other identification;

(iii) length and capacity of cars or trucks ordered and furnished;

(iv) other pertinent information required to effect prompt delivery to the consignee, including name, delivery and postal address of consignee, routing, etc.;

(v) special instructions or annotations requested by the ordering agency for commercial bills of lading; for example, "To be converted to a Government bill of lading," or "This shipment is the property of, and the freight charges paid to the carrier(s) will be reimbursed by, the Government," and

(vi) signature of carrier's agent and date shipment is received.

(6) distribute the several parts of the bills of lading, or other transportation receipts, as directed by the ordering agency.

1.1305-5 Destination Unknown. When the exact destinations of the supplies being procured 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 computedbut only for the purpose of evaluating bids or proposals. The solicitations 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:

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