This series of FAR summaries is meant to take a meaningful approach to the Federal Acquisition Regulations to maintain an easy-to-understand approach to ensure that readers comprehend the process of doing business with the government and that the government exercises a fair and reasonable approach to doing business with the general public.
FAR 47.207-3 Description Of Shipment, Origin And Destination
At first this seems pretty simple.
The Contracting Officer needs to provide the shipping information in the solicitation (FAR 47.207-3(a)). They also must provide delivery information (FAR 47.207-3(b)). Description of freight must be included (FAR 47.207-3(c)).
However, how many times have you sat in the dining room or lounge of a steakhouse only to hear small companies and young lawyers who want to create an image discussing FOB Origin and FOB Destination as well as who is responsible for the payment and when?
I have and Maverick turns to Goose in a hurry.
That’s because this isn’t the right FAR Part which discusses that.
I did this on purpose because many people cite this particular portion when discussing shipping prices.
It all goes back to training. I was selected as one of 28 out of 300 applications to attend the VA Acquisition Academy where I was trained by retired federal executives and military brass.
The military developed federal contracting and senior executives in the federal government are recognized as some of the best to ever do it.
I know the difference between FOB Destination and FOB Origin. I know who’s responsible for paying and when.
While I was at the VA’s FSS program we used FOB Destination and it worked out beautifully. My boss there shared with me a story of when he was at Gibson’s Steakhouse and a small company got their shipping terms mixed up and didn’t really display an understanding of what the difference was. This was during a live negotiation in the dining room of a steakhouse at night time in which members of the company were bragging about going primetime. The negotiator messed up but his CEO bailed him out by not signing the deal. God gave them grace because neither executive knew what they were doing.
Don’t make the same mistake.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory message and free consultation.
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