SUBPART 241.2--ACQUIRING UTILITY SERVICES
241.201 Policy.
241.202 Procedures.
241.203 GSA assistance.
241.205 Separate contracts.
241.270 Preaward contract
review.
241.201 Policy.
(1) Except as provided
in FAR 41.201, DoD, as a matter of comity, will comply with the current
regulations, practices and decisions of independent regulatory bodies which are
subject to judicial appeal. This policy
does not extend to regulatory bodies whose decisions are not subject to appeal
nor does it extend to nonindependent regulatory bodies.
(2) Purchases of
utility services outside the United States may use—
(i) Formats and technical provisions consistent
with local practice; and
(ii) Dual language forms and contracts.
(3) Rates established
by an independent regulatory body are considered “prices set by law or
regulation” and do not require submission of cost or pricing data (see FAR Subpart
15.4).
241.202 Procedures.
(a)(i) Competitive proposals. When a new major utility service load
develops or a new military installation is established, the contracting officer
shall—
(A)
Determine whether more than one supplier can provide the required
utility services.
(1)
Competition may be possible where dual franchises exist or where no
franchise exists.
(2) Competition should also be considered when
an installation is served by one supplier and other potential suppliers exist
even though one supplier has entered into a General Services Administration
area-wide contract.
(B)
Where competition exists, solicit competitive proposals from all
potential suppliers.
(ii) Periodic
reviews for competition. Conduct
periodic review of ongoing contracts to determine the availability of
competition. If available, evaluate the
need to rewrite the contract considering—
(A)
The possible loss of rights vested in the Government under the existing
contract;
(B)
The age and quality of the contract; and
(C)
The number of contract modifications and the ease of administration with
the existing contract documents.
(iii) Connection
and service charges. The Government
may pay a connection charge when required to cover the cost of the necessary
connecting facilities. A connection
charge based on the estimated labor cost of installing and removing the
facility shall not include salvage cost.
A lump-sum connection charge shall be no more than the agreed cost of the
connecting facilities less net salvage.
The order of precedence for contractual treatment of connection and
service charges is—
(A)
No connection charge.
(B)
Termination liability. Use when
an obligation is necessary to secure the required services. The obligation must be not more than the
agreed connection charge, less any net salvage material costs. Use of a termination liability instead of a
connection charge requires the approval of the service power procurement
officer or designee.
(C)
Connection charge, refundable. Use
a refundable connection charge when the supplier refuses to provide the
facilities based on lack of capital or published rules which prohibit providing
up-front funding. The contract should
provide for refund of the connection charge within five years unless a longer
period or omission of the refund requirement is authorized by the service power
procurement officer or designee.
(D)
Connection and service charges, nonrefundable. The Government may pay certain nonrefundable, nonrecurring
charges including service initiation charges, a contribution in aid of
construction, membership fees, and charges required by the supplier's rules and
regulations to be paid by the customer.
If possible, consider sharing with other than Government users the use
of (and costs for) facilities when large nonrefundable charges are required.
(iv) Construction
and labor requirements.
(A)
Do not use the connection charge provisions for the installation of
Government-owned distribution lines and facilities. The acquisition of such facilities must be authorized by
legislation and accomplished in accordance with FAR Part 36. Also, do not use the connection charge
provisions for the installation of new facilities related to the supplier's
production and general “backbone” system unless authorized by legislation.
(B)
Construction labor standards ordinarily do not apply to construction
accomplished under the connection charge provisions of this part. However, if installation includes
construction of a public building or public work as defined in FAR 36.102,
construction labor standards may apply.
241.203 GSA assistance.
The General Services
Administration (GSA) has delegated to DoD the authority to enter into utility
service contracts (see FAR 41.103); therefore, contracting officers need not
seek assistance or approval from GSA.
241.205 Separate contracts.
(a)(i) Requests for
proposals shall state the anticipated service period in terms of months or
years. Where the period extends beyond
the current fiscal year, evaluate offers of incentives for a definite term
contract.
(ii) The solicitation may permit offerors the
choice of proposing on the basis of—
(A)
A definite term not to exceed the anticipated service period; or
(B)
An indefinite term contract.
(iii) Where the expected service period is less
than the current fiscal year, the solicitation shall be on the basis of an
indefinite term contract.
(iv) Contracts for utility services for leased
premises shall identify the lease document on the face of the contract.
(d) Use an indefinite
term utility service contract when it is considered to be in the Government's
best interest to—
(i) Have the right to terminate on a 30-day (or
longer) notice. A notice of up to one
year may be granted by an installation if needed to obtain a more favorable
rate, more advantageous conditions, or for other valid reasons; or
(ii) Grant the supplier the right to terminate
the contract when of benefit to the Government in the form of lower rates,
larger discounts or more favorable terms and conditions.
241.270 Preaward contract
review.
Departments/agencies shall
conduct their own preaward contract reviews.