B-233323, Dec 6, 1988, Office of General Counsel

B-233323: Dec 6, 1988

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This is FAR case No. 88-47. Shipment is made using a government bill of lading. There is no FAR clause covering the use of contractor-prepared commercial bills of lading. The proposed rule would add such a contract clause at FAR section 52.242-13 and also would add FAR subsection 42.1403-3 to state when the clause is to be used. We have no objection to the proposed changes.

B-233323, Dec 6, 1988, Office of General Counsel

PROCUREMENT - Payment/Discharge - Shipment - Federal procurement regulations/laws - Amendments - Payment procedures DIGEST: General Accounting Office has no objection to Federal Acquisition Regulation (FAR) case no. 88-47, a proposal to add FAR subsection 42.1403- 3 and a clause at FAR section 52.242-13 concerning the use of contractor- prepaid commercial bills of lading.

Margaret A. Willis

FAR Secretariat

General Service Administration

This responds to your letter of October 12, 1988, requesting our comments on a proposal to add a new subsection and a new contract clause to the Federal Acquisition Regulation (FAR) concerning contractor-prepared commercial bills of lading. This is FAR case No. 88-47.

As a general rule, when a contractor delivers supplies to the government on f.o.b. origin terms, shipment is made using a government bill of lading. Subsection 42.1403-2 of the FAR provides, an exception that permits a contracting officer to authorize a contractor to ship on a prepaid commercial bill of lading and obtain reimbursement of the shipping cost from the government. At present, however, there is no FAR clause covering the use of contractor-prepared commercial bills of lading. The proposed rule would add such a contract clause at FAR section 52.242-13 and also would add FAR subsection 42.1403-3 to state when the clause is to be used.

We have no objection to the proposed changes.