Clauses · FAR · Supply chain and sourcing
FAR 52.247-67 Submission of Transportation Documents for Audit
Does the regulation require it to flow down?
No
No paragraph directs the Contractor to insert the clause in subcontracts, so there is no flow-down mandate. The pull is indirect but real: the prime owes the Government the documents covering first-tier cost-reimbursement freight, and the only way to get them is to pass the clause down. Note that the corpus gates it correctly — Lockheed CORPDOC 4A (2025) and the Lockheed/Valleytech order (2021) both annotate it 'Applies if this is a cost reimbursement contract and transportation will be reimbursed as a direct charge to the Contract', and L3Harris LGL-50-F1 (Feb 2026) gates it the same way. Those annotations are the reason this clause should read as inapplicable on most small-business subcontracts rather than as an obligation.
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 FEB 2006 · base v0.9.3 Read the text ↗
What it makes you produce
One item for your checklist.
Something somebody else has to issue you
The same day if the issuer is one of your own suppliers, months if it is an assessor or an underwriter.
- FAR 52.247-67(a)
The carrier's freight bills and bills of lading, sent for prepayment audit to the address the buyer wrote into the clause
Owed when the subcontract is cost-reimbursement and freight is reimbursed as a direct charge; (b) holds the submission to freight shipment bills over $100 and leaves the rest on site for an on-site audit
When it is used
Prescribed at FAR 47.103-2, and the prescription is unusually narrow — insert the clause 'when a cost-reimbursement contract is contemplated and the contract or a first-tier cost-reimbursement subcontract thereunder will authorize reimbursement of transportation as a direct charge to the contract or subcontract.' Two conditions, both required: cost-reimbursement pricing AND transportation billed as a direct charge. There is no dollar threshold on the contract; the only number is the $100 de minimis inside paragraph (b), which decides which bills of lading get submitted. On a firm-fixed-price subcontract the clause is inert — your freight is inside your price, not a reimbursable direct charge, so there is nothing to audit before payment.
Read closely
(b)'s $100 line covers freight shipment bills only and does not extend to bills and invoices for any other transportation service. (c) is the blank the buyer fills in with the address. On a firm-fixed-price order nothing here is owed, and the prime templates that carry this clause gate it that way in their own words.
The 2 templates that name it, with the line
Source: acquisition.gov, FAR 52.247-67, FAR 47.103-2 and FAR 12.207 (verified 2026-08-05)
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.