[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30665]


[Federal Register: December 28, 1994]


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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 6, 8, 15, 41, and 52

[FAC 90-23; FAR Case 91-13; Item IV]
RIN 9000-AE48


Federal Acquisition Regulation; Acquisition of Utility Services

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule revising 
the FAR coverage dealing with utility services. This rule will replace 
the existing coverage concerning acquisition of utility services and 
will provide more comprehensive coverage applicable to all executive 
agencies. The current FAR coverage, in large measure, did not apply to 
the Department of Defense, and it also exempted agency regulatory 
requirements in the utility area that predated the establishment of the 
FAR. This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb at (202) 501-4547 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-
4755. Please cite FAC 90-23, FAR case 91-13.

SUPPLEMENTARY INFORMATION:

A. Background

    In response to the need to provide more comprehensive utility 
coverage in the FAR, a major rewrite of the existing FAR coverage was 
undertaken. The principal changes are as follows:
    (1) FAR Part 41 applies to all Executive agencies and will enable 
agencies to delete most utilities provisions from their agency FAR 
supplements. The current FAR Subpart 8.3 permitted agencies' procedures 
predating the FAR to continue to be used. In addition, Subpart 8.3 
previously exempted DOD from much of the FAR coverage.
    (2) Substantial additional guidance for contracting officers in 
acquiring and administering utility service contracts are included.
    (3) Additional definitions applicable to utility service contracts 
are established.
    (4) Coverage is established delineating the existing statutory and 
delegated authority for utility service contracting.
    (5) FAR clauses to be used on a ``substantially the same as'' basis 
are established.
    (6) Substantive coverage providing for handling rate changes by the 
agencies is established. This coverage enables agencies to handle such 
matters without automatically referring them to GSA for action.
    (7) Coverage is added providing generally for the use of standard 
forms for acquisition of utility services.
    (8) ``Standard'' specification formats have been established for 
use in acquiring utility services. Such formats will not be included in 
the FAR but will be available for agency use.
    (9) ``Standard'' annual utility service review formats have been 
established for use in acquiring utility services. Such formats will 
not be included in the FAR but will be available for agency use.

B. Regulatory Flexibility Act

    The changes may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., because a number of public 
utilities, especially rural electrical cooperatives, are small 
businesses. A Final Regulatory Flexibility Analysis (FRFA) has been 
prepared and will be provided to the Chief Counsel for Advocacy for the 
Small Business Administration. A copy of the FRFA may be obtained from 
the FAR Secretariat. Comments from small entities concerning the 
affected FAR subpart will also be considered in accordance with 5 
U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C 
601, et seq. (FAC 90-23, FAR case 91-13) in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) applies because the 
final rule contains information collection requirements. A request for 
approval of a new information collection requirement concerning OMB 
Control Numbers 9000-0122 through 9000-0126, Acquisition of Utility 
Services, was submitted to the Office of Management and Budget under 44 
U.S.C. 3501, et seq. The information collection was approved through 
March 31, 1995. Public comments concerning this request were invited 
through a Federal Register notice published on January 9, 1992.

D. Public Comments

    On May 24, 1991, a proposed rule was published in the Federal 
Register (56 FR 23982). In response to the notice of proposed 
rulemaking, 263 public comments were received. The comments of all 
respondents were considered in developing this final rule. As a result, 
the following changes have been made:
    (1) Changes have been made to the definitions of connection charge 
and franchise service territory and the definition of shared savings 
project has been deleted.
    (2) The policies governing delegation of authority to contract for 
utility services have been revised.
    (3) Changes have been made to the coverage dealing with a utility's 
refusal to enter into a contract.
    (4) Changes have been made to the coverage providing for monthly 
and annual reviews of the utility invoices and or services.
    (5) A number of the prescriptions for the solicitation provision 
and contract clauses have been modified.
    (6) Numerous changes have been made to the contract clauses to 
address specific comments and to provide more flexibility for the 
contracting officer to tailor specific aspects to reflect the practices 
in that area.
    (7) Other miscellaneous changes have been made.

List of Subjects in 48 CFR Parts 6, 8, 15, 41, and 52

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR parts 6, 8, 15, 41, and 52 are amended as set 
forth below:
    1. The authority citation for 48 CFR parts 6, 8, 15, 41, and 52 
continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 6--COMPETITION REQUIREMENTS

    2. Section 6.302-1 is amended by revising paragraph (b)(3) to read 
as follows:


6.302-1  Only one responsible source and no other supplies or services 
will satisfy agency requirements.

* * * * *
    (b) * * *
    (3) When acquiring utility services (see 41.101), circumstances may 
dictate that only one supplier can furnish the service (see 41.202); or 
when the contemplated contract is for construction of a part of a 
utility system and the utility company itself is the only source 
available to work on the system.
* * * * *

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    3. Section 8.002 is amended by revising paragraph (b) to read as 
follows:


8.002  Use of other Government supply sources.

* * * * *
    (b) Public utility services (see part 41 of this title).
* * * * *

Subpart 8.3  [Removed and Reserved]

    4. Subpart 8.3, consisting of sections 8.300 through 8.309, is 
removed and reserved.

PART 15--CONTRACTING BY NEGOTIATION


15.812-2  [Amended]

    5. Section 15.812-2 is amended in paragraph (a)(3) by removing the 
words ``subpart 8.3'' and inserting ``part 41'' in its place.

PART 41--ACQUISITION OF UTILITY SERVICES

    6. Part 41, consisting of sections 41.100 through 41.702, is added 
to read as follows:

Sec.

Subpart 41.1--General

41.100  Scope of part.
41.101  Definitions.
41.102  Applicability.
41.103 Statutory and delegated authority.

Subpart 41.2--Acquiring Utility Services

41.201  Policy.
41.202  Procedures.
41.203  GSA assistance.
41.204  GSA areawide contracts.
41.205  Separate contracts.
41.206  Interagency agreements.

Subpart 41.3--Requests for Assistance

41.301  Requirements.

Subpart 41.4--Administration

41.401  Monthly and annual review.
41.402  Rate changes and regulatory intervention.

Subpart 41.5--Solicitation Provision and Contract Clauses

41.501  Solicitation provision and contract clauses.

Subpart 41.6--Forms

41.601  Utility services forms.

Subpart 41.7--Formats

41.701  Formats for utility service specifications.
41.702  Formats for annual utility service review.

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

Subpart 41.1--General


41.100  Scope of part.

    This part prescribes policies, procedures, and contract format for 
the acquisition of utility services. (See 41.102(b) for services that 
are excluded from this part.)


41.101  Definitions.

    As used in this part,
    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. Each areawide contract includes an 
``Authorization'' form for requesting service, connection, 
disconnection, or change in service.
    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 (see Termination 
liability).
    Delegated agency means an agency that has received a written 
delegation of authority from GSA to contract for utility services for 
periods not exceeding ten years (see 41.103(b)).
    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, e.g., 
facilities use charges.
    Separate contract means a utility services contract (other than a 
GSA areawide contract, an Authorization under an areawide contract, or 
an interagency 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 (see ``Connection charge'').
    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. The application 
of part 41 to other services (e.g., rubbish removal, snow removal) may 
be appropriate when the acquisition is not subject to the Service 
Contract Act of 1965 (see 37.107).


41.102  Applicability.

    (a) Except as provided in paragraph (b) of this section, this part 
applies to the acquisition of utility services for the Government, 
including connection charges and termination liabilities.
    (b) This part does not apply to--
    (1) Utility services produced, distributed, or sold by another 
Federal agency. In those cases, agencies shall use interagency 
agreements (see 41.206);
    (2) Utility services obtained by purchase, exchange, or otherwise 
by a Federal power or water marketing agency incident to that agency's 
marketing or distribution program;
    (3) Cable television (CATV) and telecommunications services;
    (4) Acquisition of natural or manufactured gas when purchased as a 
commodity;
    (5) Acquisition of utilities services in foreign countries;
    (6) Acquisition of rights in real property, acquisition of public 
utility facilities, and on-site equipment needed for the facility's own 
distribution system, or construction/maintenance of Government-owned 
facilities; or
    (7) Third party financed shared-savings projects authorized by 42 
U.S.C. 8287. However, agencies may utilize part 41 for any energy 
savings or purchased utility service directly resulting from 
implementation of a third party financed shared-savings project under 
42 U.S.C. 8287 for periods not to exceed 25 years.


41.103  Statutory and delegated authority.

    (a) Statutory authority. (1) The General Services Administration 
(GSA) is authorized by section 201 of the Federal Property and 
Administrative Services Act of 1949, as amended (40 U.S.C. 481), to 
prescribe policies and methods governing the acquisition and supply of 
utility services for Federal agencies. This authority includes related 
functions such as managing public utility services and representing 
Federal agencies in proceedings before Federal and state regulatory 
bodies. GSA is authorized by section 201 of the Act to contract for 
utility services for periods not exceeding ten years.
    (2) The Department of Defense (DOD) is authorized by 10 U.S.C. 
2301, 2304, and 40 U.S.C. 474(3) to acquire utility services for 
military facilities.
    (3) The Department of Energy (DOE) is authorized by the Department 
of Energy Organization Act (42 U.S.C. 2751, et seq.) to acquire utility 
services. DOE is authorized by the Atomic Energy Act of 1954, as 
amended (42 U.S.C. 2204), to enter into new contracts or modify 
existing contracts for electric services for periods not exceeding 25 
years for uranium enrichment installations.
    (b) Delegated authority. GSA has delegated its authority to enter 
into utility service contracts for periods not exceeding ten years to 
DOD and DOE, and for connection charges only to the Department of 
Veteran Affairs. Contracting pursuant to this delegated authority shall 
be consistent with the requirements of this part. Other agencies 
requiring utility service contracts for periods over one year, but not 
exceeding ten years, may request a delegation of authority from GSA at 
the address specified in 41.301(a). In keeping with its statutory 
authority, GSA will, as necessary, conduct reviews of delegated 
agencies' acquisitions of utility services to ensure compliance with 
the terms of the delegation and applicable laws and regulations.
    (c) 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.

Subpart 41.2--Acquiring Utility Services


41.201  Policy.

    (a) Subject to paragraph (d) of this section, it is the policy of 
the Federal Government that agencies obtain required utility services 
from sources of supply which are most advantageous to the Government in 
terms of economy, efficiency, reliability, or service.
    (b) Except for acquisitions below the small purchase limitation 
(see 13.000), agencies shall acquire utility services by a bilateral 
written contract, which must include the clauses required by 41.501, 
regardless of whether rates or terms and conditions of service are 
fixed or adjusted by a regulatory body. Agencies may not use the 
utility supplier's forms and clauses to avoid the inclusion of 
provisions and clauses required by 41.501 or by statute. (See 41.202(c) 
for procedures to be used when the supplier refuses to execute a 
written contract.)
    (c) Specific operating and management details, such as procedures 
for internal agency contract assistance and review, delegations of 
authority, and approval thresholds, may be prescribed by an individual 
agency subject to compliance with applicable statutes and regulations.
    (d)(1) Section 8093 of the Department of Defense Appropriations Act 
of 1988, Pub. L. 100-202, provides that none of the funds appropriated 
by that Act or any other Act with respect to any fiscal year by any 
department, agency, or instrumentality of the United States, may be 
used for the purchase of electricity by the Government in any manner 
that is inconsistent with state law governing the providing of electric 
utility service, including state utility commission rulings and 
electric utility franchises or service territories established pursuant 
to state statute, state regulation, or state-approved territorial 
agreements.
    (2) The Act does not preclude--
    (i) The head of a Federal agency from entering into a contract 
pursuant to 42 U.S.C. 8287 (which pertains to the subject of shared 
energy savings including cogeneration);
    (ii) The Secretary of a military department from entering into a 
contract pursuant to 10 U.S.C. 2394 (which pertains to contracts for 
energy or fuel for military installations including the provision and 
operation of energy production facilities); or
    (iii) The Secretary of a military department from purchasing 
electricity from any provider when the utility or utilities having 
applicable state-approved franchise or other service authorizations are 
found by the Secretary to be unwilling or unable to meet unusual 
standards for service reliability that are necessary for purposes of 
national defense.
    (3) Additionally, the head of a Federal agency may--
    (i) Consistent with applicable state law, enter into contracts for 
the purchase or transfer of electricity to the agency by a non-utility, 
including a qualifying facility under the Public Utility Regulatory 
Policies Act of 1978;
    (ii) Enter into an interagency agreement, pursuant to 41.206 and 
17.5, with a Federal power marketing agency or the Tennessee Valley 
Authority for the transfer of electric power to the agency; and
    (iii) Enter into a contract with an electric utility under the 
authority or tariffs of the Federal Energy Regulatory Commission.
    (e) Prior to acquiring electric utility services on a competitive 
basis, the contracting officer shall determine, with the advice of 
legal counsel, by a market survey or any other appropriate means, e.g. 
consultation with the state agency responsible for regulating public 
utilities, that such competition would not be inconsistent with state 
law governing the provision of electric utility service, including 
state utility commission rulings and electric utility franchises or 
service territories established pursuant to state statute, state 
regulation, or state-approved territorial agreements. Proposals from 
alternative electric suppliers must provide a representation that 
service can be provided in a manner not inconsistent with section 8093 
of Public Law 100-202 (see 41.201(d)). The representation must be 
supported with appropriate legal and factual rationale.


41.202  Procedures.

    (a) Prior to executing a utility service contract, the contracting 
officer shall comply with parts 6 and 7 and 41.201 (d) and (e). In 
accordance with parts 6 and 7, agencies shall conduct market surveys 
and perform acquisition planning in order to promote and provide for 
full and open competition provided that the contracting officer 
determines that any resultant contract would not be inconsistent with 
applicable state law governing the provision of electric utility 
services. If competition for an entire utility service is not 
available, the market survey may be used to determine the availability 
of competitive sources for certain portions of the requirement. The 
scope of the term ``entire utility service'' includes the provision of 
the utility service capacity, energy, water, sewage, transportation, 
standby or back-up service, transmission and/or distribution service, 
quality assurance, system reliability, system operation and 
maintenance, metering, and billing.
    (b) In performing a market survey (see 7.101), the contracting 
officer shall consider, in addition to alternative competitive sources, 
use of the following:
    (1) GSA areawide contracts (see 41.204);
    (2) Separate contracts (see 41.205); and
    (3) Interagency agreements (see 41.206).
    (c) When a utility supplier refuses to execute a tendered contract 
as outlined in 41.201(b), the agency shall obtain a written definite 
and final refusal signed by a corporate officer or other responsible 
official of the supplier (or if unobtainable, document any unwritten 
refusal), and transmit this document, along with statements of the 
reasons for the refusal and the record of negotiations, to GSA at the 
address specified at 41.301(a). Unless urgent and compelling 
circumstances exist, the contracting officer shall notify GSA prior to 
acquiring utility services without executing a tendered contract. After 
such notification, the agency may proceed with the acquisition and pay 
for the utility service under the provisions of 31 U.S.C. 1501(a)(8)--
    (1) By issuing a purchase order in accordance with subpart 13.5; or
    (2) By ordering the necessary utility service and paying for it 
upon the presentation of an invoice, provided that a determination is 
approved by the head of the contracting activity that a written 
contract cannot be obtained and that the issuance of a purchase order 
is not feasible.
    (d) When obtaining service without a bilateral written contract, 
the contracting officer shall establish a utility history file on each 
acquisition of utility service provided by a contractor. This utility 
history file shall contain, in addition to applicable documents in 
4.803, the following information:
    (1) The unsigned, tendered contract and any related letter of 
transmittal.
    (2) The reasons stated by the utility supplier for not executing 
the tendered contract, the record of negotiations, and a written 
definite and final refusal by a corporate officer or other responsible 
official of the supplier (or if unobtainable, documentation of 
unwritten refusal).
    (3) Services to be furnished and the estimated annual cost.
    (4) Historical record of any applicable connection charges.
    (5) Historical record of any applicable ongoing capital credits.
    (6) A copy of the applicable rate schedule.
    (e) If the Government obtains utility service pursuant to paragraph 
(c) of this section, the contracting officer shall, on an annual basis 
beginning from the date of final refusal, take action to execute a 
bilateral written contract. The contracting officer shall document the 
utility history file with the efforts made and the agency shall notify 
GSA, in writing, if the utility continues to refuse to execute a 
bilateral contract.


41.203  GSA assistance.

    (a) GSA will, upon request, provide technical and acquisition 
assistance, or will delegate its contracting authority for the 
furnishing of the services described in this part for any Federal 
agency, mixed-ownership Government corporation, the District of 
Columbia, the Senate, the House of Representatives, or the Architect of 
the Capitol and any activity under the Architect's direction.
    (b) Agencies seeking assistance shall provide, upon request by GSA, 
the information listed in 41.301.


41.204  GSA areawide contracts.

    (a) Purpose. GSA enters into areawide contracts (see 41.101) for 
use by Federal agencies. Areawide contracts provide a pre-established 
contractual vehicle for ordering utility services under the conditions 
in paragraph (c)(1) of this section.
    (b) Features. (1) Areawide contracts generally provide for ordering 
utility service at rates approved and/or established by a regulatory 
body and published in a tariff or rate schedule. However, agencies are 
permitted to negotiate other rates and terms and conditions of service 
with the supplier (see paragraph (c) of this section). Rates other than 
those published may require the approval of the regulatory body.
    (2) Areawide contracts are negotiated with utility service 
suppliers for the provision of service within the supplier's franchise 
territory or service area.
    (3) Due to the regulated nature of the utility industry, as well as 
statutory restrictions associated with the procurement of electricity 
(see 41.201(d)), competition is typically not available within the 
entire geographical area covered by an areawide contract, although it 
may be available at specific locations within the utility's service 
area. When competing suppliers are available, the provisions of 
paragraph (c)(1) of this section apply.
    (c) Procedures for obtaining service. (1) Any Federal agency having 
a requirement for utility services within an area covered by an 
areawide contract shall acquire services under that areawide contract 
unless--
    (i) Service is available from more than one supplier; or
    (ii) The head of the contracting activity or designee otherwise 
determines that use of the areawide contract is not advantageous to the 
Government. If service is available from more than one supplier, 
service shall be acquired using competitive acquisition procedures (see 
41.202(a)). The determination required by paragraph (c)(1)(ii) of this 
section shall be documented in the contract file with an information 
copy furnished to GSA at the address in 41.301(a).
    (2) Each areawide contract includes an authorization form for 
ordering service, connection, disconnection, or change in service. Upon 
execution of an authorization by the contracting officer and utility 
supplier, the utility supplier is required to furnish services, without 
further negotiation, at the current, applicable published or 
unpublished rates, unless other rates, and/or terms and conditions are 
separately negotiated by the Federal agency with the supplier.
    (3) The contracting officer shall execute the Authorization, and 
attach it to a Standard Form (SF) 26, Award/Contract, along with any 
modifications such as connection charges, special facilities, or 
service arrangements. The contracting officer shall also attach any 
specific fiscal, operational, and administrative requirements of the 
agency, applicable rate schedules, technical information and detailed 
maps or drawings of delivery points, details on Government ownership, 
maintenance, or repair of facilities, and other information deemed 
necessary to fully define the service conditions in the Authorization/
contract.
    (d) List of areawide contracts. A list of current GSA areawide 
contracts is available from the GSA office specified at 41.301(a). The 
list identifies the types of services and the geographic area served. A 
copy of the contract may also be obtained from this office.
    (e) Notification. Agencies shall provide GSA at the address 
specified at 41.301(a) a copy of each SF 26 and executed Authorization 
issued under an areawide contract within 30 days after execution.


41.205  Separate contracts.

    (a) In the absence of an areawide contract or interagency agreement 
(see 41.206), agencies shall acquire utility services by separate 
contract subject to this part, and subject to agency contracting 
authority.
    (b) If an agency enters into a separate contract, the contracting 
officer shall document the contract file with the following 
information:
    (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 
subparagraphs (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.
    (c) If requesting GSA assistance with a separate contract, the 
requesting agency shall furnish the technical and acquisition data 
specified in 41.205(b), 41.301, and such other data as GSA may deem 
necessary.
    (d) A contract exceeding a 1-year period, but not exceeding ten 
years (except pursuant to 41.103), may be justified, and is usually 
required, where any of the following circumstances exist:
    (1) The Government will obtain lower rates, larger discounts, or 
more favorable terms and conditions of service;
    (2) A proposed connection charge, termination liability, or any 
other facilities charge to be paid by the Federal Government will be 
reduced or eliminated; or
    (3) The utility service supplier refuses to render the desired 
service except under a contract exceeding a 1-year period.


41.206  Interagency agreements.

    Agencies shall use interagency agreements (e.g., consolidated 
purchase, joint use, or cross-service agreements) when acquiring 
utility service or facilities from other Government agencies and shall 
comply with the policies and procedures at subpart 17.5, Interagency 
Acquisitions under the Economy Act.

Subpart 41.3--Requests for Assistance


41.301  Requirements.

    (a) Requests for delegations of GSA contracting authority, 
assistance with a proposed contract as provided in 41.203, and the 
submission of other information required by this part, shall be sent or 
submitted to the General Services Administration (GSA) region in which 
service is required. The names and locations of GSA regional offices 
are available from the Public Utilities Division (PPU), Public 
Buildings Service, Washington, DC 20405.
    (b) Requests for contracting assistance for utility services shall 
be sent not later than 120 days prior to the date new services are 
required to commence an existing contract will expire. Requests for 
assistance shall contain the following information:
    (1) A technical description or specification of the type, quantity, 
and quality of service required, and a delivery schedule.
    (2) A copy of any service proposal or proposed contract.
    (3) Copies of all current published or unpublished rates of the 
utility supplier.
    (4) Identification of any unusual factors affecting the 
acquisition.
    (5) Identification of all available sources or methods of supply, 
an analysis of the cost effectiveness of each, and a statement of the 
ability of each source to provide the required services, including the 
location and a description of each available supplier's facilities at 
the nearest point of service, and the cost of providing or obtaining 
necessary backup and other ancillary services.
    (c) For new utility service requirements, the agency shall furnish 
the information in paragraph (a) of this section and the following as 
applicable:
    (1) The date initial service is required.
    (2) For the first 12 months of full service, estimated maximum 
demand, monthly consumption, other pertinent information (e.g., demand 
side management, load or energy management, peak shaving, on site 
generation, load shaping), and annual cost of the service.
    (3) Known or estimated time schedule for growth to ultimate 
requirements.
    (4) Estimated ultimate maximum demand and ultimate monthly 
consumption.
    (5) A simple schematic diagram or line drawing showing the meter 
locations, the location of the new utility facilities to be constructed 
on Federal property by the Federal agency, and any required new 
connection facilities on either side of the delivery point to be 
constructed by the utility supplier to provide the new services.
    (6) Accounting and appropriation data to cover the required utility 
services and any connection charges required to be paid by the agency 
receiving such utility services.
    (7) The following data concerning proposed facilities and related 
charges or costs:
    (i) Proposed refundable or nonrefundable connection charge, 
termination liability, or other facilities charge to be paid by the 
agency, together with a description of the supplier's proposed 
facilities and estimated construction costs, and its rationale for the 
charge (e.g., tariff provisions or policies).
    (ii) A copy of the acquiring agency's estimate to make its own 
connection to the supplier's facilities through use of its own 
resources or by separate contract. When feasible, the acquiring agency 
shall provide its estimates to construct and operate its own utility 
facilities in lieu of participating in a cost-sharing construction 
program with the proposed utility supplier.
    (d) For existing utility service, the agency shall furnish GSA the 
information in paragraph (b) of this section and the following, as 
applicable:
    (1) A copy of the most recent 12-months' service invoices.
    (2) A tabulation, by month, for the most recent 12 months, showing 
the actual utility demands, consumption, connection charges, fuel 
adjustment charges, and the average monthly cost per unit of 
consumption.
    (3) An estimate, by month, for the next 12 months, showing the 
estimated maximum demands, monthly consumption, other pertinent 
information (e.g., demand side management, load or energy management, 
peak shaving, on site generation, load shaping), and annual cost of the 
service.
    (4) Accounting and appropriation data to cover the costs for the 
continuation of utility services.
    (5) A statement noting whether the transformer, or other system 
components, on either side of the delivery point are owned by the 
Federal agency or the utility supplier, and if the metering is on the 
primary or secondary side of the transformer.

Subpart 41.4--Administration


41.401  Monthly and annual review.

    Agencies shall review utility service invoices on a monthly basis 
and all utility accounts, with annual values exceeding the small 
purchase threshold, on an annual basis. Annual reviews of accounts with 
annual values beneath the small purchase dollar threshold shall be 
conducted when deemed advantageous to the Government. The purpose of 
the monthly review is to ensure the accuracy of utility service 
invoices. The purpose of the annual review is to ensure that the 
utility supplier is furnishing the services to each facility under the 
utility's most economical, applicable rate and to examine competitive 
markets for more advantageous service offerings. The annual review 
shall be based upon the facility's usage, conditions and 
characteristics of service at each individual delivery point for the 
most recent 12 months. If a more advantageous rate is appropriate, the 
Federal agency shall request the supplier to make such rate change 
immediately.


41.402  Rate changes and regulatory intervention.

    (a) When a change is proposed to rates or terms and conditions of 
service to the Government, the agency shall promptly determine whether 
the proposed change is reasonable, justified, and not discriminatory.
    (b) If a change is proposed to rates or terms and conditions of 
service that may be of interest to other Federal agencies, and 
intervention before a regulatory body is considered justified, the 
matter shall be referred to GSA. The agency may request from GSA a 
delegation of authority for the agency to intervene on behalf of the 
consumer interests of the Federal executive agencies (see 41.301).
    (c) Pursuant to 52.241-7, Change in Rates or Terms and Conditions 
of Service for Regulated Services, if a regulatory body approves a rate 
change, any rate change shall be made a part of the contract by 
unilateral contract modification or otherwise documented in accordance 
with agency procedures. The approved applicable rate shall be effective 
on the date determined by the regulatory body and resulting rates and 
charges shall be paid promptly to avoid late payment provisions. Copies 
of the modification containing the approved rate change shall be sent 
to the agency's paying office or office responsible for verifying 
billed amounts (see 41.401).
    (d) If the utility supplier is not regulated and the rates, terms, 
and conditions of service are subject to negotiation pursuant to the 
clause at 52.241-8, Change in Rates or Terms and Conditions of Service 
for Unregulated Services, any rate change shall be made a part of the 
contract by contract modification, with copies sent to the agency's 
paying office or office responsible for verifying billed amounts.

Subpart 41.5--Solicitation Provision and Contract Clauses


41.501  Solicitation provision and contract clauses.

    (a) Because the terms and conditions under which utility suppliers 
furnish service may vary from area to area, the differences may 
influence the terms and conditions appropriate to a particular 
utility's contracting situation. To accommodate requirements that are 
peculiar to the contracting situation, this section prescribes 
provisions and clauses on a ``substantially the same as'' basis (see 
52.101) which permits the contracting officer to prepare and utilize 
variations of the prescribed provision and clauses in accordance with 
agency procedures.
    (b) The contracting officer shall insert in solicitations for 
utility services a provision substantially the same as the provision at 
52.241-1, Electric Service Territory Compliance Representation, when 
proposals from alternative electric suppliers are sought.
    (c) The contracting officer shall insert in solicitations and 
contracts for utility services clauses substantially the same as the 
clauses at--
    (1) 52.241-2, Order of Precedence--Utilities;
    (2) 52.241-3, Scope and Duration of Contract;
    (3) 52.241-4, Change in Class of Service;
    (4) 52.241-5, Contractor's Facilities; and
    (5) 52.241-6, Service Provisions.
    (d) The contracting officer shall insert clauses substantially the 
same as the clauses listed below in solicitations and contracts under 
the prescribed conditions--
    (1) 52.241-7, Change in Rates or Terms and Conditions of Service 
for Regulated Services, when the utility services are subject to a 
regulatory body. (Except for GSA areawide contracts, the contracting 
officer shall insert in the blank space provided in the clause the name 
of the contracting officer. For GSA areawide contracts, the contracting 
officer shall insert the following: ``GSA and each areawide customer 
with annual billings that exceed $250,000.'')
    (2) 52.241-8, Change in Rates or Terms and Conditions of Service 
for Unregulated Services, when the utility services are not subject to 
a regulatory body.
    (3) 52.241-9, Connection Charge, when a refundable connection 
charge is required to be paid by the Government to compensate the 
contractor for furnishing additional facilities necessary to supply 
service. (Use Alternate I to the clause if a nonrefundable charge is to 
be paid. When conditions require the incorporation of a nonrecurring, 
nonrefundable service charge or a termination liability, see paragraphs 
(f) and (i) of this section.)
    (4) 52.241-10, Termination Liability, when payment is to be made to 
the contractor upon termination of service in conjunction with or in 
lieu of a connection charge upon completion of the facilities.
    (5) 52.241-11, Multiple Service Locations (as defined in 41.101), 
when providing for possible alternative service locations, except under 
areawide contracts, is required.
    (6) 52.241-12, Nonrefundable, Nonrecurring Service Charge, when the 
Government is required to pay a nonrefundable, nonrecurring membership 
fee, a charge for initiation of service, or a contribution for the cost 
of facilities construction. The Government may provide for inclusion of 
such agreed amount or fee as a part of the connection charge, a part of 
the initial payment for services, or as periodic payments to fulfill 
the Government's obligation.
    (7) 52.241-13, Capital Credits, when the Federal Government is a 
member of a cooperative and is entitled to capital credits, consistent 
with the bylaws and governing documents of the cooperative.
    (e) Depending on the conditions that are appropriate for each 
acquisition, the contracting officer shall also insert in solicitations 
and contracts for utility services the provisions and clauses 
prescribed elsewhere in the FAR.

Subpart 41.6--Forms


41.601  Utility services forms.

    (a) If acquiring utility services under other than an areawide 
contract, a purchase order, or an interagency agreement, the Standard 
Form (SF) 33, Solicitation, Offer and Award; SF 26, Award/Contract; or 
SF 1447, Solicitation/Contract, shall be used.
    (b) The contracting officer shall incorporate the applicable rate 
schedule in each contract, purchase order or modification.

Subpart 41.7--Formats


41.701  Formats for utility service specifications.

    (a) The following specification formats for use in acquiring 
utility services are available from the address specified at 41.301(a) 
and may be used and modified at the agency's discretion:
    (1) Electric service.
    (2) Water service.
    (3) Steam service.
    (4) Sewage service.
    (5) Natural gas service.
    (b) Contracting officers may modify the specification format 
referenced in paragraph (a) of this section and attach technical items, 
details on Government ownership of facilities and maintenance or repair 
obligations, maps or drawings of delivery points, and other information 
deemed necessary to fully define the service conditions.
    (c) The specifications and attachments (see paragraph (b) of this 
section) shall be inserted in Section C of the utility service 
solicitation and contract.


41.702  Formats for annual utility service review.

    (a) Formats for use in conducting annual reviews of the following 
utility services are available from the address specified at 41.301(a) 
and may be used at the agency's discretion:
    (1) Electric service.
    (2) Gas service.
    (3) Water and sewage service.
    (b) Contracting officers may modify the annual utility service 
review format as necessary to fully cover the service used.

PART 52 SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.208-3  [Removed and Reserved]

    6. Section 52.208-3 is removed and reserved.
    7. Sections 52.241 through 52.241-13 are added to read as follows:


52.241  Utility services provisions and clauses.


52.241-1  Electric service territory compliance representation.

    As prescribed in 41.501(b), insert a provision substantially the 
same as the following:

Public Law 100-202, Electric Service Territory Compliance 
Representation (Feb. 1995)

    (a) The Offeror represents as part of its offer that the 
Offeror's sale of electricity in accordance with the terms and 
conditions of this solicitation is [ ] is not [ ] consistent with 
Public Law 100-202, section 8093.
    (b) The Offeror's supporting rationale is as follows:
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
(End of provision)


52.241-2  Order of precedence-utilities.

    As prescribed in 41.501(c)(1), insert a clause substantially the 
same as the following:

Order of Precedence-Utilities (Feb. 1995)

    In the event of any inconsistency between the terms of this 
contract (including the specifications) and any rate schedule, 
rider, or exhibit incorporated in this contract by reference or 
otherwise, or any of the Contractor's rules and regulations, the 
terms of this contract shall control.
(End of clause)


52.241-3  Scope and duration of contract.

    As prescribed in 41.501(c)(2), insert a clause substantially the 
same as the following:

Scope And Duration of Contract (Feb. 1995)

    (a) For the period
, [insert period of service] the Contractor agrees to furnish and the 
Government agrees to purchase------------------------------------------
[insert type of service] utility service in accordance with the 
applicable tariff(s), rules, and regulations as approved by the 
applicable governing regulatory body and as set forth in the 
contract.
    (b) It is expressly understood that neither the Contractor nor 
the Government is under any obligation to continue any service under 
the terms and conditions of this contract beyond the expiration 
date.
    (c) The Contractor shall provide the Government with one 
complete set of rates, terms, and conditions of service which are in 
effect as of the date of this contract and any subsequently approved 
rates.
    (d) The Contractor shall be paid at the applicable rate(s) under 
the tariff and the Government shall be liable for the minimum 
monthly charge, if any, specified in this contract commencing with 
the period in which service is initially furnished and continuing 
for the term of this contract. Any minimum monthly charge specified 
in this contract shall be equitably prorated for the periods in 
which commencement and termination of this contract become 
effective.
(End of clause)


52.241-4  Change in class of service.

    As prescribed in 41.501(c)(3), insert a clause substantially the 
same as the following:

Change in Class of Service (Feb. 1995)

    (a) In the event of a change in the class of service, such 
service shall be provided at the Contractor's lowest available rate 
schedule applicable to the class of service furnished.
    (b) Where the Contractor does not have on file with the 
regulatory body approved rate schedules applicable to services 
provided, no clause in this contract shall preclude the parties from 
negotiating a rate schedule applicable to the class of service 
furnished.
(End of clause)


52.241-5  Contractor's facilities.

    As prescribed in 41.501(c)(4), insert a clause substantially the 
same as the following:

Contractor's Facilities (Feb. 1995)

    (a) The Contractor, at its expense, unless otherwise provided 
for in this contract, shall furnish, install, operate, and maintain 
all facilities required to furnish service hereunder, and measure 
such service at the point of delivery specified in the Service 
Specifications. Title to all such facilities shall remain with the 
Contractor and the Contractor shall be responsible for loss or 
damage to such facilities, except that the Government shall be 
responsible to the extent that loss or damage has been caused by the 
Government's negligent acts or omissions.
    (b) Notwithstanding any terms expressed in this clause, the 
Contractor shall obtain approval from the Contracting Officer prior 
to any equipment installation, construction, or removal. The 
Government hereby grants to the Contractor, free of any rental or 
similar charge, but subject to the limitations specified in this 
contract, a revocable permit or license to enter the service 
location for any proper purpose under this contract. This permit or 
license includes use of the site or sites agreed upon by the parties 
hereto for the installation, operation, maintenance, and repair of 
the facilities of the Contractor required to be located upon 
Government premises. All applicable taxes and other charges in 
connection therewith, together with all liability of the Contractor 
in construction, operation, maintenance and repair of such 
facilities, shall be the obligation of the Contractor.
    (c) Authorized representatives of the Contractor will be allowed 
access to the facilities on Government premises at reasonable times 
to perform the obligations of the Contractor regarding such 
facilities. It is expressly understood that the Government may limit 
or restrict the right of access herein granted in any manner 
considered necessary (e.g., national security, public safety).
    (d) Unless otherwise specified in this contract, the Contractor 
shall, at its expense, remove such facilities and restore Government 
premises to their original condition as near as practicable within a 
reasonable time after the Government terminates this contract. In 
the event such termination of this contract is due to the fault of 
the Contractor, such facilities may be retained in place at the 
option of the Government for a reasonable time while the Government 
attempts to obtain service elsewhere comparable to that provided for 
hereunder.
(End of clause)


Sec. 52.241-6  Service provisions.

    As prescribed in 41.501(c)(5), insert a clause substantially the 
same as the following:

Service Provisions (Feb 1995)

    (a) Measurement of service. (1) All service furnished by the 
Contractor shall be measured by suitable metering equipment of 
standard manufacture, to be furnished, installed, maintained, 
repaired, calibrated, and read by the Contractor at its expense. 
When more than a single meter is installed at a service location, 
the readings thereof may be billed conjunctively, if appropriate. In 
the event any meter fails to register (or registers incorrectly) the 
service furnished, the parties shall agree upon the length of time 
of meter malfunction and the quantity of service delivered during 
such period of time. An appropriate adjustment shall be made to the 
next invoice for the purpose of correcting such errors. However, any 
meter which registers not more than ____ percent slow or fast shall 
be deemed correct.
    (2) The Contractor shall read all meters at periodic intervals 
of approximately 30 days or in accordance with the policy of the 
cognizant regulatory body or applicable bylaws. All billings based 
on meter readings of less than ____ days shall be prorated 
accordingly.
    (b) Meter test. (1) The Contractor, at its expense, shall 
periodically inspect and test Contractor-installed meters at 
intervals not exceeding ____ year(s). The Government has the right 
to have representation during the inspection and test.
    (2) At the written request of the Contracting Officer, the 
Contractor shall make additional tests of any or all such meters in 
the presence of Government representatives. The cost of such 
additional tests shall be borne by the Government if the percentage 
of errors is found to be not more than percent slow or fast.
    (3) No meter shall be placed in service or allowed to remain in 
service which has an error in registration in excess of ____ percent 
under normal operating conditions.
    (c) Change in volume or character. Reasonable notice shall be 
given by the Contracting Officer to the Contractor regarding any 
material changes anticipated in the volume or characteristics of the 
utility service required at each location.
    (d) Continuity of service and consumption. The Contractor shall 
use reasonable diligence to provide a regular and uninterrupted 
supply of service at each service location, but shall not be liable 
for damages, breach of contract or otherwise, to the Government for 
failure, suspension, diminution, or other variations of service 
occasioned by or in consequence of any cause beyond the control of 
the Contractor, including but not limited to acts of God or of the 
public enemy, fires, floods, earthquakes, or other catastrophe, 
strikes, or failure or breakdown of transmission or other 
facilities. If any such failure, suspension, diminution, or other 
variation of service shall aggregate more than ____ hour(s) during 
any billing period hereunder, an equitable adjustment shall be made 
in the monthly billing specified in this contract (including the 
minimum monthly charge).
(End of clause)


52.241-7  Change in rates or terms and conditions of service for 
regulated services.

    As prescribed in 41.501(d)(1), insert a clause substantially the 
same as the following:

Change In Rates or Terms and Conditions of Service for Regulated 
Services (Feb 1995)

    (a) This clause applies to the extent services furnished under 
this contract are subject to regulation by a regulatory body. The 
Contractor agrees to give *____________________ written notice of 
(1) the filing of an application for change in rates or terms and 
conditions of service concurrently with the filing of the 
application and (2) any changes pending with the regulatory body as 
of the date of contract award. Such notice shall fully describe the 
proposed change. If, during the term of this contract, the 
regulatory body having jurisdiction approves any changes, the 
Contractor shall forward to the Contracting Officer a copy of such 
changes within 15 days after the effective date thereof. The 
Contractor agrees to continue furnishing service under this contract 
in accordance with the amended tariff, and the Government agrees to 
pay for such service at the higher or lower rates as of the date 
when such rates are made effective.
    (b) The Contractor agrees that throughout the life of this 
contract the applicable published and unpublished rate schedule(s) 
shall not be in excess of the lowest cost published and unpublished 
rate schedule(s) available to any other customers of the same class 
under similar conditions of use and service.
    (c) In the event that the regulatory body promulgates any 
regulation concerning matters other than rates which affects this 
contract, the Contractor shall immediately provide a copy to the 
Contracting Officer. The Government shall not be bound to accept any 
new regulation inconsistent with Federal laws or regulations.
    (d) Any changes to rates or terms and conditions of service 
shall be made a part of this contract by the issuance of a contract 
modification unless otherwise specified in the contract. The 
effective date of the change shall be the effective date by the 
regulatory body. Any factors not governed by the regulatory body 
will have an effective date as agreed to by the parties.
(End of clause)
    *Note: Insert language prescribed in 41.501(d)(1)


52.241-8  Change in rates or terms and conditions of service for 
unregulated services.

    As prescribed in 41.501(d)(2), insert a clause substantially the 
same as the following:

Change in Rates or Terms and Conditions of Service For Unregulated 
Services (Feb 1995)

    (a) This clause applies to the extent that services furnished 
hereunder are not subject to regulation by a regulatory body.
    (b) After ____________________ [insert date], either party may 
request a change in rates or terms and conditions of service, unless 
otherwise provided in this contract. Both parties agree to enter in 
negotiations concerning such changes upon receipt of a written 
request detailing the proposed changes and specifying the reasons 
for the proposed changes.
    (c) The effective date of any change shall be as agreed to by 
the parties. The Contractor agrees that throughout the life of this 
contract the rates so negotiated will not be in excess of published 
and unpublished rates charged to any other customer of the same 
class under similar terms and conditions of use and service.
    (d) The failure of the parties to agree upon any change after a 
reasonable period of time shall be a dispute under the Disputes 
clause of this contract.
    (e) Any changes to rates, terms, or conditions as a result of 
such negotiations shall be made a part of this contract by the 
issuance of a contract modification.
(End of clause)


52.241-9  Connection charge.

    As prescribed in 41.501(d)(3), insert a clause substantially the 
same as the following:

Connection Charge (Feb. 1995)

    (a) Charge. In consideration of the Contractor furnishing and 
installing at its expense the new connection facilities described 
herein, the Government shall pay the Contractor a connection charge. 
The payment shall be in the form of progress payments, advance 
payments or as a lump sum, as agreed to by the parties and as 
permitted by applicable law. The total amount payable shall be 
either the estimated cost of $______ less the agreed to salvage 
value of $______, or the actual cost less the salvage value, 
whichever is less. As a condition precedent to final payment, the 
Contractor shall execute a release of any claims against the 
Government arising under or by the virtue of such installation.
    (b) Ownership, operation, maintenance and repair of new 
facilities to be provided. The facilities to be supplied by the 
Contractor under this clause, notwithstanding the payment by the 
Government of a connection charge, shall be and remain the property 
of the Contractor and shall, at all times during the life of this 
contract or any renewals thereof, be operated, maintained, and 
repaired by the Contractor at its expense. All taxes and other 
charges in connection therewith, together with all liability arising 
out of the construction, operations, maintenance, or repair of such 
facilities, shall be the obligation of the Contractor.
    (c) Credits. (1) The Contractor agrees to allow the Government, 
on each monthly bill for service furnished under this contract to 
the service location, a credit of ________ percent of the amount of 
each such bill as rendered until the accumulation of credits shall 
equal the amount of such connection charge, provided that the 
Contractor may at any time allow a credit up to 100 percent of the 
amount of each such bill.
    (2) In the event the Contractor, before any termination of this 
contract but after completion of the facilities provided for in this 
clause, serves any customer other than the Government (regardless of 
whether the Government is being served simultaneously, 
intermittently, or not at all) by means of these facilities, the 
Contractor shall promptly notify the Government in writing. Unless 
otherwise agreed by the parties in writing at that time, the 
Contractor shall promptly accelerate the credits provided for under 
subparagraph (c)(1) of this clause, up to 100 percent of each 
monthly bill until there is refunded the amount that reflects the 
Government's connection costs for that portion of the facilities 
used in serving others.
    (3) In the event the Contractor terminates this contract, or 
defaults in performance, prior to full credit of any connection 
charge paid by the Government, the Contractor shall pay to the 
Government an amount equal to the uncredited balance of the 
connection charge as of the date of the termination or default.
    (d) Termination before completion of facilities. The Government 
reserves the right to terminate this contract at any time before 
completion of the facilities with respect to which the Government is 
to pay a connection charge. In the event the Government exercises 
this right, the Contractor shall be paid the cost of any work 
accomplished, including direct and indirect costs reasonably 
allocable to the completed work prior to the time of termination by 
the Government, plus the cost of removal, less the salvage value.
    (e) Termination after completion of facilities. In the event the 
Government terminates this contract after completion of the 
facilities with respect to which the Government has paid a 
connection charge, but before the crediting in full by the 
Contractor of any connection charge in accordance with the terms of 
this contract, the Contractor shall have the following options:
    (1) To retain in place for ________ months after the notice of 
termination by the Government such facilities on condition that--
    (i) If, during such ________ month period, the Contractor serves 
any other customer by means of such facilities, the Contractor, 
shall, in lieu of allowing credits, pay the Government during such 
period installments in like amount, manner, and extent as the credit 
provided for under paragraph (c) of this clause before such 
termination; and
    (ii) Immediately after such ________ month period the Contractor 
shall promptly pay in full to the Government the uncredited balance 
of the connection charge.
    (2) To remove such facilities at the Contractor's own expense 
within ________ months after the effective date of the termination 
by the Government. If the Contractor elects to remove such 
facilities, the Government shall then have the option of purchasing 
such facilities at the agreed salvage value set forth herein; and 
provided further, that the Contractor shall, at the direction of the 
Government, leave in place such facilities located on Government 
property which the Government elects to purchase at the agreed 
salvage value.
(End of clause)
    Alternate I (Nov 1994). If the Contracting Officer determines 
that a nonrefundable charge is to be paid and no credits are due the 
Government, delete paragraphs (c) and (e), renumber paragraph (d) as 
(c) and add the following as paragraph (d):
    (d) Termination after completion of facilities. In the event the 
Government terminates this contract after completion of the 
facilities with respect to which the Government is to pay a 
connection charge, the Contractor shall have the following options:
    (1) To retain in place for ________ months after the notice of 
termination by the Government. If the Contractor and the Government 
have not agreed on terms for retention in place beyond ________ 
months, then the Contractor must remove the facilities pursuant to 
the terms of subparagraph (d)(2) of this clause.
    (2) To remove such facilities at the Contractor's own expense 
within ________ months after the effective date of the termination 
by the Government. If the Contractor elects to remove such 
facilities, the Government shall then have the option of purchasing 
such facilities at the agreed salvage value set forth herein; and 
provided further, that the Contractor shall, at the direction of the 
Government, leave in place such facilities located on Government 
property which the Government elects to purchase at the agreed 
salvage value.


52.241-10  Termination liability.

    As prescribed in 41.501(d)(4), insert a clause substantially the 
same as the following:

Termination Liability (Feb 1995)

    (a) If the Government discontinues utility service under this 
contract before completion of the facilities cost recovery period 
specified in paragraph (b) of this clause, in consideration of the 
Contractor furnishing and installing at its expense, the new 
facility described herein, the Government shall pay termination 
charges, calculated as set forth in this clause.
    (b) Facility cost recovery period. The period of time, not 
exceeding the term of this contract, during which the net cost of 
the new facility, shall be recovered by the Contractor is--
    ________ months. [Insert negotiated duration.]
    (c) Net facility cost. The cost of the new facility, less the 
agreed upon salvage value of such facility, is--
    $________. [Insert appropriate dollar amount.]
    (d) Monthly facility cost recovery rate. The monthly facility 
cost recovery rate which the Government shall pay the Contractor 
whether or not service is received is--
    $________. [Divide the net facility cost in paragraph (c) of 
this clause by the facility's cost recovery period in paragraph (b) 
of this clause and insert the resultant figure.]
    (e) Termination charges. Termination charges = $[Multiply the 
remaining months of the facility's cost recovery period specified in 
paragraph (b) of this clause by the monthly facility cost recovery 
rate in paragraph (d) of this clause and insert the resultant 
figure.]
    (f) If the Contractor has recovered its capital costs at the 
time of termination there will be no termination liability charge.
(End of clause)


52.241-11  Multiple service locations.

    As prescribed in 41.501(d)(5), insert a clause substantially the 
same as the following:

Multiple Service Locations (Feb 1995)

    (a) At any time by written order, the Contracting Officer may 
designate any location within the service area of the Contractor at 
which utility service shall commence or be discontinued. Any changes 
to the service specifications shall be made a part of the contract 
by the issuance of a contract modification to include the name and 
location of the service, specifying any different rate, the point of 
delivery, different service specifications, and any other terms and 
conditions.
    (b) The applicable monthly charge specified in this contract 
shall be equitably prorated from the period in which commencement or 
discontinuance of service at any service location designated under 
the Service Specifications shall become effective.
(End of clause)


52.241-12  Nonrefundable, nonrecurring service charge.

    As prescribed in 41.501(d)(6), insert a clause substantially the 
same as the following:

Nonrefundable, Nonrecurring Service Charge (Feb 1995)

    As provided herein, the Government will pay a nonrefundable, 
nonrecurring charge when the rules and regulations of a Contractor 
require that a customer pay (1) a charge for the initiation of 
service, (2) a contribution in aid of construction, or (3) a 
nonrefundable membership fee. This charge may be in addition to or 
in lieu of a connection charge. Therefore, there is hereby added to 
the Contractor's schedule a nonrefundable, nonrecurring charge for 
________ in the amount of $________ dollars payable [specify dates 
or schedules].
(End of clause)


52.241-13  Capital credits.

    As prescribed in 41.501(d)(7), insert a clause substantially the 
same as the following:

Capital Credits (Feb 1995)

    (a) The Government is a member of the ________ [insert 
cooperative name], and as any other member, is entitled to capital 
credits consistent with the bylaws of the cooperative, which states 
the obligation of the Contractor to pay capital credits and which 
specifies the method and time of payment.
    (b) The Contractor shall furnish to the Contracting Officer, or 
the designated representative of the Contracting Officer, in 
writing, on an ________ basis [insert period of time] a list of 
accrued credits by contract number, year, and delivery point.
    (c) Payment of capital credits will be made by check, payable to 
the ________ [insert agency name], and forwarded to the Contracting 
Officer at ________ [insert agency address], unless otherwise 
directed in writing by the Contracting Officer. Checks shall cite 
the current or last contract number and indicate whether the check 
is partial or final payment for all capital credits accrued.
(End of clause)

[FR Doc. 94-30665 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P