FAR 36.514—Availability and use of utility services.
Plain-English Summary
FAR 36.514 tells contracting officers when to include the clause at 52.236-14, Availability and Use of Utility Services, in construction-related solicitations and contracts. It applies only when the Government is contemplating a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract, the work will be performed on a Government site, and the contracting officer determines both that the existing utility systems can meet the needs of the Government and the contractor and that providing those utilities is in the Government’s interest. The section also requires the contracting officer to identify in the contract which utilities are available. In practice, this rule is about deciding whether the contractor may rely on Government-provided utilities at the site, rather than arranging all utility support independently. It matters because utility availability can affect pricing, site logistics, performance planning, safety, and responsibility for interruptions or limitations in service. The section helps avoid disputes by making the utility arrangement explicit in the contract documents.
Key Rules
Applies to fixed-price site work
The clause is used only for fixed-price construction contracts and fixed-price dismantling, demolition, or removal of improvements contracts. It is not a general utility clause for all contract types or all project locations.
Government site required
The contract must be performed on a Government site. The rule is aimed at projects where the Government controls the premises and may be able to furnish existing utility services.
Utility system must be adequate
The contracting officer must determine that the existing utility system(s) can meet the needs of both the Government and the contractor. If the system cannot support both users, the clause should not be used under this section.
Government interest determination
The contracting officer must also decide that furnishing the utilities is in the Government’s interest. This is a separate judgment from adequacy and should be based on the overall benefit to the Government.
Clause insertion is mandatory when conditions are met
If all required conditions exist, the contracting officer shall insert clause 52.236-14 in the solicitation and contract. The rule is mandatory, not discretionary, once the prerequisites are satisfied.
List available utilities
When the clause is used, the contracting officer must list the utilities that are available in the contract. This makes the scope of Government-furnished utility support clear to bidders and the contractor.
Responsibilities
Contracting Officer
Determine whether the contract is a fixed-price construction or fixed-price dismantling/demolition/removal contract, confirm the work will be performed on a Government site, assess whether existing utility systems are adequate for both Government and contractor needs, decide whether furnishing utilities is in the Government’s interest, insert clause 52.236-14 when all conditions are met, and list the available utilities in the contract.
Agency/Project Team
Provide the contracting officer with site and utility information needed to assess capacity, availability, and operational impacts, and support the determination of whether furnishing utilities serves the Government’s interest.
Contractor
Review the solicitation and contract to understand which utilities the Government will provide, factor utility availability and any limitations into pricing and performance planning, and coordinate work accordingly on the Government site.
Practical Implications
This section affects bid pricing because contractors may price differently when utilities are Government-furnished versus contractor-provided.
A common pitfall is assuming utilities are available without checking the contract; the clause must be included and the utilities must be listed to avoid ambiguity.
Contracting officers should verify actual site capacity, not just assume existing systems can handle construction loads or demolition operations.
The Government’s interest determination should be documented in the file, since it supports the decision to furnish utilities and include the clause.
Clear identification of available utilities helps prevent disputes over interruptions, capacity limits, and who is responsible for arranging supplemental service.
Official Regulatory Text
The contracting officer shall insert the clause at 52.236-14 , Availability and Use of Utility Services, in solicitations and contracts when a fixed-price construction contract or a fixed-price dismantling, demolition, or removal of improvements contract is contemplated, the contract is to be performed on Government sites, and the contracting officer decides (a) that the existing utility system(s) is adequate for the needs of both the Government and the contractor, and (b) furnishing it is in the Government’s interest. When this clause is used, the contracting officer shall list the available utilities in the contract.