The short answer: under F.o.b. destination, the supplier pays to get the goods to your delivery point and carries the risk of loss or damage until they arrive there. If a shipment is damaged on the way, it is the supplier's problem to fix, not the agency's.
What the clause says
Most supply orders use FAR 52.247-34, F.o.b. Destination. FAR 47.303-6 gives the same explanation of the term. Together they say the supplier must:
- Pack and mark the shipment to meet the contract's specifications, or, if there are none, to meet carrier requirements.
- Deliver the shipment in good order and condition to the delivery point named in the contract.
- Be responsible for any loss or damage before the consignee receives the shipment at that point.
- Pay all charges to the specified delivery point.
The government is not liable for delivery, storage, demurrage, accessorial or other charges before actual delivery, unless its own act or order in its contractual capacity caused them. If the shipment comes by motor carrier, delivery is to the truck tailgate at the consignee's unloading platform. For heavy or bulky freight, the consignee unloads, with the driver's help if asked.
Some orders use a variation, F.o.b. destination within the consignee's premises, under FAR 52.247-35. That one means the goods are delivered inside the doors of the facility, including to specific rooms if the order says so.
Where risk of loss passes
For commercial products, the commercial terms clause, FAR 52.212-4, has a risk of loss paragraph (j). Unless the contract provides otherwise, risk stays with the contractor until the supplies are delivered to the government at the destination specified in the contract, when transportation is F.o.b. destination.
Risk of loss and title are different things. Under paragraph (n) of the same clause, title passes to the government upon acceptance, unless the contract says otherwise. Delivery to the dock is not the same as acceptance, and signing for a delivery does not by itself mean the agency has accepted the goods.
How it differs from F.o.b. origin
Under F.o.b. origin, the supplier's job ends sooner. FAR 47.303-1 describes delivery to the carrier at the shipping point, and the contractor is responsible for loss or damage before delivery to the carrier, or caused by improper packing, marking or loading. After that, the risk is the government's. Transportation charges are handled differently as well, and the order will say how. Check the delivery term in your order. It tells you which situation you are in.
If a shipment arrives damaged
What the receiving office does at the dock affects how fast the supplier can fix it.
- Look before you sign. Check the outside of every package for crushing, punctures, water damage and open seals while the driver is there.
- Note it on the delivery receipt. Write the exception on the carrier's receipt or the delivery record before signing, in plain words: "two cartons crushed," "pallet wet," "seal broken."
- Photograph it. Take photos of the damaged packaging, the shipping label, the order number and the item itself. Keep the packaging until the supplier says otherwise.
- Notify the supplier the same day. Send the order number, the line, the quantity affected, the photos and a copy of the receipt. If you are not the contracting officer, copy them.
- Leave the accept or reject call to the right person. Whether to accept, reject or hold the goods is a decision under the order's inspection and acceptance terms, and it belongs to the contracting officer or receiving official. Our guide to receiving and acceptance on a rejected shipment covers that step.
A damaged shipment is the supplier's cost and risk. The supplier should hear about it the day it happens and respond with a replacement plan within one business day.
How Lunula Supply handles it
We treat F.o.b. destination as ours to carry. We give the shipping warehouse packing and labeling instructions, track every shipment, and give receiving staff one contact to call. If something arrives damaged, we make a replacement plan within a day, and the receiving office does not bear the cost. For delivery details at federal docks, see drop-shipping to a federal agency, and for the whole post-award process, what to expect from a government supplier.
To see what we supply, visit our services, or contact us.
Frequently asked questions
Who pays for freight on an F.o.b. destination order?
The supplier. Under FAR 52.247-34 the contractor pays all charges to the specified delivery point, and the government is not liable for delivery, storage or similar charges before actual delivery, unless its own act or order caused them.
If I sign for a damaged delivery, can the supplier refuse to fix it?
Sign only after you note the damage on the delivery receipt. A signature on a clean receipt makes the damage harder to prove to the carrier. Even so, under F.o.b. destination the supplier is responsible for damage before receipt at the delivery point, so report it the same day with photos.
Is delivery the same as acceptance?
No. Risk of loss passes at delivery to the destination under F.o.b. destination. Acceptance is a separate step under the order's inspection terms, and under the commercial terms clause title passes to the government on acceptance. Your contracting officer decides whether to accept or reject.
General information, not legal advice. Clause references were checked against acquisition.gov (FAC 2026-01) on the publish date. Your order's terms control.