What are the advantages and disadvantages of using a rate tender?

§ 102–117.55 What are the advantages and disadvantages of using a rate tender? (a) Using a rate tender is an advantage when you: (1) Have a shipment that must be made within too short a time frame to identify or solicit for a suitable contract; (2) Have shipments recurring between designated places, but do not expect sufficient volume to obtain favorable rates; or (3) Are not in a position to make a definite volume and shipment commitment under a FAR contract. (b) Using a rate tender may be a disadvantage when: (1) You have sufficient time to use the FAR and this would achieve better results; (2) You require transportation service for which no rate tender currently exists; or (3) A TSP may revoke or terminate the tender on short notice. [65 FR 60061, Oct. 6, 2000, as amended at 75 FR 51393, Aug. 20, 2010]