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Boof

Should Services have a Freight on Board (FOB) value

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This might seem a strange question but should our purchase orders, delivery orders and contracts for services contain a Freight on Board (FOB) designation on the documents?  The issue came up because of our contract writing system defaulting to "destination"  on services.  They were trying to match up the contract system and the finance systems and wanted to know all the correct standard delivery terms.  I gave them FAR 47.303 to list all the possible combinations.  Someone suggested creating a new one - "Service Contract Only - No FOB terms" .  This is not a FAR definition.  Would we have to have a FAR deviation to add it to our writing system?  Should we have a FOB for services?  What does other agency contract writing systems put in the FOB block when it is services? 

By the way, we use Momentum Acquisitions as the writing system.  

 

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59 minutes ago, Boof said:

This might seem a strange question but should our purchase orders, delivery orders and contracts for services contain a Freight on Board (FOB) designation on the documents?

No.

FAR Part 47, which specifies the use of f.o.b. terms, does not apply to contracts or contract line items for services other than transportation-related services. See FAR 47.002.

And f.o.b. stands for "free on board," not "freight on board". See FAR 2.101. See also Black's Law Dictionary 10th ed.

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