FAR 41.1—Subpart 41.1

Scope of part.

FAR 41.100 is the scope statement for FAR Part 41, and it tells readers what this part is about: the policies, procedures, and contract format used when the Government acquires utility services. In practical terms, it signals that Part 41 is the primary FAR framework for buying utility services such as electricity, natural gas, water, wastewater, steam, and similar utility offerings, subject to the exclusions in FAR 41.102(b). The section does not itself set detailed ordering or pricing rules, but it establishes that those rules belong in this part and should be used when structuring utility-service acquisitions. Its significance is that utility procurements often differ from ordinary service buys because they may involve regulated rates, service territories, special contract forms, and utility-specific terms and conditions. By defining the part’s scope, FAR 41.100 helps contracting personnel know when to apply Part 41 instead of general service contracting rules and helps contractors understand that utility acquisitions may be handled under specialized procedures and formats.

Definitions.

FAR 41.101 defines the core terms used throughout FAR Part 41, which governs the acquisition of utility services by federal agencies. This section covers the meaning of areawide contract, authorization, connection charge, delegated agency, Federal Power and Water Marketing Agency, franchise territory, intervention, multiple service locations, rates, separate contract, termination liability, and utility service. It also explains that Part 41 may sometimes apply to other services, such as rubbish or snow removal, when those services are not subject to the Service Contract Labor Standards. In practice, these definitions control how agencies structure utility acquisitions, who has authority to contract, how service is ordered and priced, when termination costs may apply, and when GSA or a delegated agency may participate in utility regulatory proceedings. Because utility procurement often involves regulated monopolies, tariffs, and long-term infrastructure costs, these definitions are essential for determining the correct contracting vehicle and the Government’s financial exposure.

Applicability.

FAR 41.102 explains when FAR Part 41 applies to utility service acquisitions and when it does not. In general, it covers the Government’s purchase of utility services, including related connection charges and termination liabilities, so contracting personnel know when Part 41 procedures govern the buy. It also lists important exclusions: utility services provided by another Federal agency, services obtained by Federal power or water marketing agencies as part of their programs, CATV and telecommunications services, natural or manufactured gas bought as a commodity, utility services acquired in foreign countries, certain real property and utility-facility acquisitions, and third-party financed shared-savings projects under 42 U.S.C. 8287. The section further clarifies that agencies may still use Part 41 for energy savings or purchased utility services directly resulting from a qualifying shared-savings project, but only for up to 25 years. Practically, this section is a threshold rule: before choosing acquisition strategy, the agency must determine whether the requirement is a Part 41 utility service action or falls under another acquisition framework.

Statutory and delegated authority.

FAR 41.103 explains who has legal authority to acquire utility services for the federal government and how that authority can be delegated. It covers the statutory authority of GSA, DoD, and DOE; the special authority for DOE to enter certain long-term electric service contracts for uranium enrichment installations; GSA’s delegation of utility contracting authority to DoD, DOE, and the Department of Veterans Affairs for connection charges; the process for other agencies to request a delegation from GSA; and GSA’s oversight role in reviewing delegated acquisitions. It also sets the conditions an agency must meet before GSA will delegate contracting authority, including certification by the Senior Procurement Executive that the agency has an established acquisition program, technically qualified personnel, and the ability to perform pre-award contract review. In practice, this section determines whether an agency may contract for utility services on its own, must rely on GSA, or must obtain a formal delegation before proceeding. It matters because utility acquisitions often involve specialized regulatory, technical, and rate-setting issues, and an invalid delegation or noncompliant contract action can create legal and operational problems.