Guides · 3 min read
FOB origin vs. FOB destination: who pays to ship it?
Updated October 30, 2026
FOB stands for free on board. On a government order it answers two questions: who pays to move the goods, and where they become the government's responsibility.
FOB origin
You make the goods ready at your shipping point, and the government arranges and pays for transportation from there. Responsibility passes when the carrier takes the shipment. You still pay to pack and mark it correctly.
FOB destination
You deliver to the place named in the order and pay the shipping. The goods remain your responsibility until they arrive, so damage or loss in transit is your problem. Build freight into your price.
How it changes your bid
- FOB destination: get a freight quote to the delivery address and add it to your cost.
- FOB origin: freight is usually not yours, but packaging and marking still are.
- Heavy or bulky items: the difference between the two can decide whether a bid makes money.
ZukoBid reads the FOB term from each DLA RFQ and reminds you whether to add freight when it works out your price.
Sources
General information, not legal advice. Rules and thresholds change; the solicitation and the official rule are the authority.
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