FAR Part 41 Flashcards by Todd Schak

Part 41

Acquisition of Utility Services

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41.1 General

Scope

Prescribes the policies, procedures, and contract format for the acquisition of utility services.

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Applicability

Does not apply to:

Utility sold by another
Federal agency

Cable television &telecommunications

Natural or manufactured gas

Utility service in foreign countries

Rights in real property

Third part financed shared-savings projects

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Statutory a n d Delegated Authority

General Services Administration (GSA)

Prescribe policies and methods government acquisition of supply of utility services for Federal agencies.

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Policy

Agencies obtain required utility services from sources of supply which are most advantageous to the Government.

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Procedures

Prior to executing a contract, the contracting officer shall comply with FAR parts 6 and 7 and 41.201 (d) &(e).

Conduct market research for maximum competition and
conduct market survey to determine availability of competitive sources.

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Procedures

“Entire Utility Service” term

Provision of the utility service capacity

Energy

Water

Quality assurance

System reliability

System operation and maintenance

Sewage Metering

Transportation Billing

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Procedures

“Entire Utility Service” term

Provision of the utility service capacity

Energy

Water

Quality assurance

System reliability

System operation and maintenance

Sewage

Metering

Transportation

Billing

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GSA Areawide Contracts

GSA enters into areawide contracts for use by Federal Agencies to provide a pre-established contractual vehicle for ordering utility services

Full search engine at GSA.gov

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Separate Contracts

In the absence of an areawide contract or interagency
agreement, agencies shall acquire utility services by separate contract.

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Monthly Review

Review utility service invoices

Purpose:
ensure the
accuracy of utility services invoices

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Annual Review

Review utility accounts with annual values >SAT

Accounts <SAT when advantageous to the Government

Purpose: ensure the utility supplier is
suppling at most economical rate & continuous market research

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Provisions and Clauses

Terms and conditions under which utility suppliers furnish service may vary from area to area

“Substantially the same” - permits contracting officer to prepare and use variations of the prescribed provision and clause in accordance with agency procedures.

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Summary

Provides guidance for the acquisition of utility services by federal agencies

Policies and procedures for acquiring utility services ni a manner that is efficient, economical, and promotes competition

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General

This part prescribes policies, procedures, and contract format for the acquisition of utility services.

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Areawide contract means

a contract entered into between the General Services Administration
(GSA) and a utility service supplier to cover utility service needs of federal agencies within the franchise territory of the supplier.

Authorization means

the document executed by the ordering agency and the utility supplier to order service under an areawide contract.

Connection charge means

all nonrecurring costs, whether refundable or nonrefundable, to be paid by the government to the utility supplier for the required connecting facilities, which are installed, owned, operated, and maintained by the utility supplier.

Delegated agency means

an agency that has received a written delegation of authority from GSA to contract for utility services for periods not exceeding 10 years.

Federal Power and Water Marketing Agency means

a government entity that produces, manages, transports, controls, and sells electrical and water supply service to customers.

Franchise territory means a geographical area that a utility supplier has a right to serve based upon a franchise, a certificate of public convenience and necessity, or other legal means.

Intervention means

action by GSA or a delegated agency to formally participate in a utility regulatory proceeding on behalf of all federal executive agencies.

Multiple service locations means

the various locations or delivery points in the utility supplier’s service area to which it provides service under a single contract.

Rates may include

rate schedules, riders, rules, terms and conditions of service, and other tariff and service charges, eg, facilities use charges.

Separate contract means

a utility services contract (other than a GSA areawide contract, an Authorization under an areawide contract, or aninteragency agreement), to cover the acquisition of utility services.

Termination liability means

a contingent government obligation to pay a utility supplier the unamortized portion of a connection charge and any other applicable nonrefundable service charge as defined in the contract in the event the government terminates the contract before the cost of connection facilities has been recovered by the utility supplier.

Utility service means

a service such as furnishing electricity, natural or manufactured gas, water, sewerage, thermal energy, chilled water, steam, hot water, or high-temperature hot water.

41.102 APPLICABILITY This part applies

to the acquisition of utility services for the government, including connection charges and termination liabilities.

By statutory authority, the General Services Administration (GSA) is authorized by 40 U.S.C. 501 to prescribe policies and methods governing the acquisition and supply

of utility services for federal agencies. GSA, the Department of Defense (DOD), and the Department of Energy (DOE) possess statutory authorizations from various statutes to contract for utility services.

GSA has delegated its authority to enter into utility service contracts for periods not exceeding 10 years to DOD and DOE, and for connection charges only to the Department of Veteran Affairs. Other agencies

requiring utility service contracts for periods over one year, but not exceeding 10 years, may request a delegation of authority from GSA. In keeping with its statutory authority, GSA will, as necessary, conduct reviews ofensure compliance with the terms of the delegation and applicable laws and regulations.delegated agencies' acquisitions of utility services to

Requests for delegations of contracting authority from GSA shall include a certification from the acquiring agency's Senior Procurement Executive that the agency has

1. an established acquisition program; 2. personnel technically qualified to deal with specialized utilities problems; and 3. the ability to accomplish its own pre-award contract review.

Agencies are required to obtain utility services from sources of supply which are the most advantageous to the government in terms of economy, efficiency, reliability, or service. For acquisitions above

the simplified acquisition threshold, agencies are required to acquire utility services by a bilateral written contract, with required clauses (see 41.501), regardless of whether rates or terms and conditions of service are fixed or adjusted by a regulatory body. Prior to acquiring electric utility services on a competitive basis, the contracting officer must determine that the competition is not inconsistent with state law governing the provision of electric utility services.

GSA enters into areawide contracts to provide preestablished contractual vehicles for federal agencies to

order utility services. Agencies may order utility service at rates approved and/or established by a regulatory body or agencies may negotiate other rates and terms and conditions of service with the supplier.

An agency requirement for utility services within an area covered by an areawide contract must be acquired under that areawide contract unless

* service is available from more than one supplier in which case a competitive acquisition is required; and the head of contracting activity (HCA) or designee determines that use of the areawide contract is not advantageous to the government.

GSA assistance is available to agency acquisitions via a separate contract. Agency contracting officers are required to document the contract file with the:

1. The number of available suppliers. 2. Any special equipment, service reliability, or facility requirements and related costs. 3. The utility supplier's rates, connection charges, and termination liability. 4. Total estimated contract value (including costs in paragraphs (b)(2) and (3) of this subsection). 5. Any technical or special contract terms required. 6. Any unusual characteristics of services required. 7. The utility's wheeling or transportation policy for utility service.

Agencies must use

interagency agreements (e.g., consolidated purchase, joint use, or cross-service agreements) when acquiring utility services or facilities from other government agencies. These agreements must comply with the policies and procedures of The Economy Act (see 17.502-2).