As prescribed in 547.305(b), insert the following clause:
Diversion of Shipment Under F.O.B. Destination Contracts (Mar 2000)
(a) Notwithstanding paragraph (c) of the clause in this contract titled 52.212-4, Contract Terms and Conditions-Commercial Items, the Government has the unilateral right to make changes at any time within the general scope of this contract in either the:
(b) If any such change causes an increase or decrease in the cost of this contract, the Contracting Officer shall make an equitable adjustment in the contract price, the delivery schedule, or both. The Contractor must assert its right to an adjustment under this clause within 30 days from the date of receipt of a delivery order.
(c) The Government shall make no adjustment when supplies are identically priced for delivery regionally or nationally and the place of delivery is changed within the area to which the identical price applies. In all other cases, adjustments for changes in transportation costs under this clause shall be determined as follows:
(1) If the contractor ships by contract or common carrier, price adjustments shall be determined by comparing the cost of shipments to the new destination(s), as evidenced by copy of paid freight bills supplied by the Contractor with the invoice, to one of the following:
(i) The cost of shipments to the standard contract destination, as evidenced by copy of appropriate paid freight bills supplied by the Contractor.
(ii) If no shipments have been made to the standard contract destination, the cost as evidenced by the applicable rates of a common or contract carrier. If carrier rates are not publicly filed with a regulatory body (e.g., interstate shipments moving by rail piggyback service), the Contractor shall provide a copy of the contract, letter agreement, or other written communication from the carrier(s) quoting the rates/charges that would have applied for shipments to the standard contract destination.
(2) If (i) shipments to the new destination are made by the Contractor’s owned or leased trucks or (ii) shipments to the original destination were or would have been made by the Contractor’s owned or leased trucks, the Government shall determine the adjustment by substituting a rate equal to 70 percent of the lowest applicable rate published in common carrier rates as of the date of shipment for the Contractor’s actual rate or contemplated transportation costs.
(d) If the copies of paid freight bills for a diverted shipment do not show, or make readily available, each of the following items, the Contractor shall supply a written statement showing the item(s):
(1) Full name of each carrier in the routing.
(2) Number of containers.
(3) Gross shipping weight.
(4) Actual date of shipping.
(5) Freight description for the supplies as indicated in the “National Motor Freight Classification” or the “Uniform Freight Classification” (Rail).
(End of clause)
