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(Revised October 21, 2015 through PROCLTR 2015-12)



47.303-90 Standard delivery terms and contract clauses.

47.303-91 DLR Item Compliance.

47.305 Solicitation provisions, contract clauses, and transportation factors.

47.305-3 Free on board (f.o.b.) origin solicitations.

47.305-3(92) Solicitation provisions, contract clauses, and transportation factors.

47.305-6 Shipments to ports and air terminals.

47.305-7 Quantity analysis, direct delivery, and reduction of crosshauling and backhauling.

47.305-8-90 Vendor shipment module.

47.306 Transportation factors in the evaluation of offers.


(Revised September 19, 2016 through PROCLTR 2016-09)

47.303-90 Standard delivery terms and contract clauses.

(i) Wood products requiring export shipment.

Use provision 52.247-9054 in solicitations over the SAT that include FAR 52.247-51 for wood products which require export shipment.

47.303-91 DLR Item Compliance.

Transportation requirements supporting DLR items shall be included in any solicitation and contractual action as required by the specific Service requirements. Requirements including (but not limited to) packaging, packing, marking, shipment/delivery locations, F.O.B. requirements, shipment / delivery variations, payment for shipment, and any associated contract clauses shall be in accordance with the Service DLR specification. If appropriate, DLAD requirements may also be specified as applicable to DLR items.

47.305 Solicitation provisions, contract clauses, and transportation factors.

47.305-3 F.o.b. origin solicitations.

(b)(4)(ii) DEVIATION. DLA Energy is authorized to use provisions 5452.247-9F12 and 5452.247-9F13 in lieu of FAR provision 52.247-46 when purchasing crude oil for the strategic petroleum reserve (SPR) program.

(91) Solicitation provision for port handling and ocean costs in bid evaluation. Port handling and ocean charges available at time of issuance of solicitation shall be published in solicitations for the acquisition of supplies for overseas shipment. The provision set forth at 52.247-9001, advising that these charges are tentative and not necessarily those that will be used in the evaluation, shall also be included in the solicitation, just below any charges published. This provision will preclude the need for extension of opening dates or cancellation of solicitations and will still permit award to that offeror who is, in fact, low at time of bid opening as a result of any change in charges after issuance of the solicitation.

(93) The contracting officer may use provision 52.247-9027 in solicitations for indefinite delivery contracts when separate prices are solicited for different quantity increments. F.o.b. origin offers will be evaluated based on the estimated shipping weight and cube if 52.247-9027 (c)(1)(i)(d) is checked. Weighted values reflect the Government’s estimate of relative frequency of future orders within each quantity increment.

47.305-3-97 First Destination Transportation (FDT) Program – Shipments Originating From Outside the Contiguous United States (OCONUS).

Insert clause 52.247-9058 in solicitations and awards for supplies when the item description in the solicitation states that the FDT Program applies (see 11.201(c)(S-90)(2)).

47.305-3-98 F.o.b. Origin, Government-Arranged Transportation

Use 52.247-9059 in solicitations and awards that contain First Destination Transportation (FDT) requirements. This clause defines the contractor’s responsibilities and requirements for Government-arranged transportation as specificed within the FDT Program.

47.305-7(b)(90) Quantity analysis, direct delivery, and reduction of crosshauling and ackhauling.

15.304(c)(S-92) contains a requirement to include a transportation evaluation factor in integrated logistics management arrangements where proposals are likely to include contractor arranged transportation outside the continental United States.

47.305-8-90 Vendor shipment module.

(a) General Information.

(1) The Defense Logistics Agency’s (DLA’s) vendor shipment module (VSM), formerly known as the distribution planning and management system, is a distribution and transportation system that enhances DLA’s ability to plan and manage distribution. It is an information technology (IT) system that provides in-transit visibility (ITV), current shipping addresses, and may reduce transportation costs. For shipments of materiel that DLA buys from suppliers, VSM provides ITV to consignees, consolidation and containerization points (CCPs), air and water ports, and various Government supply and transportation information systems.

(2) VSM has the capability to organically arrange vendor shipments with Government managed carriers under integrated IT functionality. Use of VSM by vendors reduces frustrated freight at the CCPs, and air and water ports; and minimizes delays in vendors obtaining shipping instructions. VSM automatically prepares shipping labels in accordance with military standard (MIL-STD) 129P, Bills of Lading, Packing Lists and other shipping documentation that the supplier can download and print.

(b) Policy.

(1) VSM is of primary benefit in the following situations:

(i) DLA administered contracts where the ultimate destination is a location outside of the United States, e.g., OCONUS Customer Direct (CD) or Defense depots located overseas. For these shipments, the vendors can obtain shipping instructions and shipping labels through VSM without having to contact the DLA transportation office.

(ii) CONUS CD shipments: Although the vendor may not need shipping instructions, the vendor can obtain the required shipping labels via VSM.

(iii) Long term contracts which include CD support: Because of the benefits of VSM for CD shipments, especially OCONUS, contract specialists can consider either requiring or encouring VSM use by the vendor.

(iv) For f.o.b. origin contracts administered by DLA, VSM will make the transportation arrangements using Government rates and carriers. In these circumstances do not use clauses which require the vendors to pre pay and add transportation charges (e.g., FAR 52.247-65). Do not populate the “Transportation Allowed” field in the “Financial Data” Tray at the header level with code “T.” Otherwise, invoices for transportation changes will be paid by DFAS.

(v) For contracts administered by DCMA, vendors must still contact the DCMA transportation office in lieu of using VSM. On a case-by-case basis, there may be circumstances where DCMA will permit use of VSM on DCMA administered contracts. Obtain agreement from DCMA prior to award when allowing a vendor to use VSM on a DCMA administered contract. Although the VSM shipping label is not mandated for DLA direct shipments, a shipping label is still required. Vendors now have the option of using VSM to generate the military shipping label.

(c) Prescription for clause 52.247-9011 Vendor Shipment Module (VSM).

(1) The purpose of the clause is to encourage use of VSM by vendors as described in paragraphs (a) and (b) of this section; the clause does not make VSM mandatory except when FDT is specified in the solicitation or award. VSM shall be used for all FDT solicitations and awards. The clause shall be inserted in solicitations and contracts as a normal practice, unless the contracting officer knows in advance that VSM is not suitable for a particular acquisition.

(2) In addition, the clause should not be used in the following circumstances:

(i) DCMA administered (except as authorized on a case-by-case basis);

(ii) Pharmaceuticals;

(iii) Medical – Customer pick-up only;

(iv) Arms, ammunition & explosives (AA&E);

(v) Controlled substances and syringes;

(vi) Tailored vendor relationships (TVR);

(vii) Contracts for service, except shipments of Government furnished equipment (GFE)/ Government furnished material (GFM); and

(viii) First Destination Transportation (FDT) program buys.

(3) Transportation office notification/requirement. Contracts that are administered under the above-mentioned exceptions at (c)(2)(i) thru (viii) may contain the statement: “Contact the transportation office at the administration office specified in block 7.”

(i) For non-FDT DLA administered contracts, vendors must contact the supply chain transportation office helpdesk at (800) 456-5507.

(ii) For non-FDT contracts administered by DCMA, vendors must contact the DCMA transportation office listed on the award document in lieu of using VSM.

(iii) For all FDT contracts, vendors must register in VSM for transportation information.

47.305-10-90 Packing, marking, and consignment instructions – solicitation provisions and contract clauses.

(d) Shipping instructions - export.

(1) Except for acquisitions conducted under the First Destination Transportation (FDT) Program (see 47.303-90(d)(2)), use 52.247-9036 in shipments to overseas customers including shipments direct to APO/FPO addresses, shipments to Alaska, Hawaii, and Puerto Rico, and shipments routed through the Container Consolidation Points (CCPs) at San Joaquin, California (W62N2A) and New Cumberland, Pennsylvania (W25N14).

(2) For acquisitions conducted under the First Destination Transportation (FDT) Program, as prescribed at 47.305-3(97), use 52.247-9058 instead of 52.247-9036.

(e) Trans-shipment of material through DLA containerization and consolidation points. Use 52.247-9037 when supplies are to be shipped via surface freight, CCP appears in the shipping address, or any time the requisition or TCN begins with “A,” “C,” or “W” for Army, “N,” “Q,” or “R” for Navy, "E" or "F" for Air Force and the customer is outside the continental United States (OCONUS which is outside the 48 contiguous states). The clause shall be used in all long term contracts supporting OCONUS customers. Use FAR 52.247-52 (Sec F) with this clause.

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