Clauses · FAR · Supply chain and sourcing
FAR 52.247-34 F.o.b. Destination
Does the regulation require it to flow down?
No
47.303-6(c) speaks only to solicitations and contracts, and the clause itself has no subcontract paragraph. Primes flow it down because the delivery term has to be back-to-back: if the prime owes the Government f.o.b. destination but buys from you f.o.b. origin, the prime eats the inbound freight and carries the in-transit risk on your goods. Passing the clause down moves both to you. That is also why it is one of the clauses most worth negotiating — unlike a statutory flow-down, nothing in the FAR requires it to be in your subcontract.
A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.
Checked against acquisition.gov on 2026-08-05 · edition JAN 1991 · base v0.9.3 Read the text ↗
What it makes you produce
One item for your checklist.
Something you write
Days to weeks, and nobody outside your company has to agree to it.
The commercial bills of lading you prepare and distribute for each shipment
FAR 52.247-34(b)(2)
When it is used
Prescribed at FAR 47.303-6(c): the contracting officer inserts the clause in solicitations and contracts when the f.o.b. destination delivery term is used. No dollar threshold, no contract-type restriction, no commercial carve-out in the prescription — it is a delivery TERM, so it applies whenever the document says delivery is f.o.b. destination, and it is inert when the document says f.o.b. origin. It only makes sense where something physically ships, so it is a supplies clause (or a service order that includes delivering supplies).
Read closely
the rest of (b) is priced rather than filed: (b)(6) puts the charges to the delivery point on you, (b)(4) puts loss or damage before the consignee receives the shipment on you, (b)(5) has you furnish the delivery schedule and pick the mode and carrier, and (b)(1) is packing and marking. There is no separate reimbursement line, so the freight sits in the unit price. Delivered has a precise meaning in this clause — wharf, warehouse unloading platform, receiving dock, or truck tailgate — and heavy or bulky freight is the consignee's to unload.
The 1 template that name it, with the line
Source: acquisition.gov, FAR 52.247-34 and FAR 47.303-6(c) (verified 2026-08-05); date designation cross-checked against the 48 CFR 52.247-34 source note
This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.