samsearch
    Platform
    01InfluenceShape the requirement before it's on your competitor's radar.
    Signal
    Recompete window opens in 42 days
    Facilities maintenance IDIQ$8.4M
    Forecast
    Agency spend up 18% next FY
    DoD facilitiesQ3 window
    02CaptureFind and qualify the work across every market.
    Federal91%
    Network engineering support — GSA MAS
    GSA541512
    SLED88%
    Custodial services — Fairfax County Public Schools
    K-12561720
    DIBBS79%
    Aircraft hydraulic fitting — DLA Aviation
    DLANSN 5330
    03AnalyzeExtract requirements and build the compliance matrix.
    Compliance matrix
    L.2.1Technical approachVol I
    L.3.4Staffing planVol I
    M.1Past performanceEvaluated
    SOW breakdown
    Requirements extracted38
    Mapped to Section L/M38
    Every extractionCited
    Ask Sammy
    “Do we meet the small business set-aside?”
    04ManageRun the pursuit through to award.
    Pipeline
    QualifyFacilities support · USACE
    CaptureComms upgrade · DLA
    ProposalShipyard dredging · NAVSEA
    PriyaAlex
    This week
    Submit past performance refsThu
    Confirm subK teamingFri
    Upload SF 33Mon
    05RespondDraft and submit your response.
    Drafting · Volume I
    247 words
    RFI response
    CompanyAcme Robotics LLC
    UEIJK4M8…
    Capability narrativeDrafted
    06FinanceGet paid faster on what you win.
    Capital available
    $2.4M against your award
    Facilities maintenance IDIQAwarded
    Partner matched
    LenderFederal Capital Partners
    Draw available$2.4M
    UnderwritingCleared
    The platform
    Influence
    Capture
    Analyze
    Manage
    Respond
    Finance
    One pipeline, six stages, start to award.
    See the whole platform
    Solutions
    By industry
    Tech & softwareSoftware and SaaS companies entering GovCon.Defense contractorsPrimes and subs in the defense industrial base.ConstructionBuilders bidding federal, state, and local work.CybersecuritySecurity vendors pursuing federal mandates.
    By team
    Capture managers & BDPipeline, qualification, and win strategy.Proposal teamsCompliance matrices and proposal drafting.Subcontractors & primesTeaming, subcontracting, and partner fit.
    By company size
    Small businessesSet-aside and small business contractors.EnterpriseLarge contractors running multiple pursuits.ConsultantsAdvisors and capture consultants.
    Browse all industries
    CustomersPricing
    ResourcesNew
    Learn
    AcademyCourses, guides, and playbooks.WebinarsLive sessions and recordings.DocsProduct documentation and setup guides.Implementation planOperational rollout guidance.
    Tools & data
    Free GovCon toolsCalculators, lookups, and more.Gov ExploreContracts, agencies, and NAICS codes.GovCon eventsConferences, training, and set-aside events.
    Latest blogIntroducing the New SamSearch: The Operating System for Government ContractingSamSearch has a new brand, a new site, and a new way of explaining what the platform actually does — the operating system for government contracting, organized around six stages instead of a single search box. Here's what changed and why.Read the post →
    All resources and tools
    Sign inRequest a demo
    Home/FAR Navigator/41/41.1/41.102

    FAR Navigator

    • 1Federal Acquisition Regulations System
    • 2Definitions of Words and Terms
    • 3Improper Business Practices and Personal Conflicts of Interest
    • 4Administrative and Information Matters
    • 5Publicizing Contract Actions
    • 6Competition Requirements
    • 7Acquisition Planning
    • 8Required Sources of Supplies and Services
    • 9Contractor Qualifications
    • 10Market Research
    • 11Describing Agency Needs
    • 12Acquisition of Commercial Products and Commercial Services
    • 13Simplified Acquisition Procedures
    • 14Sealed Bidding
    • 15Contracting by Negotiation
    • 16Types of Contracts
    • 17Special Contracting Methods
    • 18Emergency Acquisitions
    • 19Small Business Programs
    • 22Application of Labor Laws to Government Acquisitions
    • 23Environment, Energy and Water Efficiency, Renewable Energy Technologies, Occupational Safety, and Drug-Free Workplace
    • 24Protection of Privacy and Freedom of Information
    • 25Foreign Acquisition
    • 26Other Socioeconomic Programs
    • 27Patents, Data, and Copyrights
    • 28Bonds and Insurance
    • 29Taxes
    • 30Cost Accounting Standards Administration
    • 31Contract Cost Principles and Procedures
    • 32Contract Financing
    • 33Protests, Disputes, and Appeals
    • 34Major System Acquisition
    • 35Research and Development Contracting
    • 36Construction and Architect-Engineer Contracts
    • 37Service Contracting
    • 38Federal Supply Schedule Contracting
    • 39Acquisition of Information Technology
    • 40Reserved
    • 41Acquisition of Utility Services
      • 41.1Subpart 41.1
        • 41.100Scope of part.
        • 41.101Definitions.
        • 41.102Applicability.
        • 41.103Statutory and delegated authority.
      • 41.2Subpart 41.2
      • 41.3Subpart 41.3
      • 41.4Subpart 41.4
      • 41.5Subpart 41.5
      • 41.6Subpart 41.6
      • 41.7Subpart 41.7
    • 42Contract Administration and Audit Services
    • 43Contract Modifications
    • 44Subcontracting Policies and Procedures
    • 45Government Property
    • 46Quality Assurance
    • 47Transportation
    • 48Value Engineering
    • 49Termination of Contracts
    • 50Extraordinary Contractual Actions and the Safety Act
    • 51Use of Government Sources by Contractors
    • 52Solicitation Provisions and Contract Clauses
    • 53Forms
    Up to 41.1
    SectionUpdated April 16, 2026

    FAR 41.102—Applicability.

    Plain-English Summary

    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.

    Key Rules

    Part 41 generally applies

    FAR Part 41 governs acquisitions of utility services for the Government. This includes not only the utility service itself, but also connection charges and termination liabilities associated with obtaining that service.

    Interagency utility services excluded

    If the utility service is produced, distributed, or sold by another Federal agency, Part 41 does not apply. In those cases, agencies must use interagency agreements under FAR 41.206.

    Certain agency programs excluded

    Utility services obtained by a Federal power or water marketing agency as part of its marketing or distribution program are outside Part 41. These transactions are handled under the authority and structure of that agency’s program, not as standard Part 41 utility procurements.

    CATV and telecom excluded

    Cable television and telecommunications services are not covered by this part. They must be acquired under the rules that apply to those services, rather than the utility-service rules in Part 41.

    Gas commodity purchases excluded

    The acquisition of natural or manufactured gas when purchased as a commodity is excluded from Part 41. The key distinction is whether the Government is buying gas as a commodity rather than acquiring utility service under the part.

    Foreign-country utility acquisitions excluded

    Utility services acquired in foreign countries are not subject to Part 41. Agencies must use the acquisition approach applicable to overseas requirements and local conditions.

    Real property and facility rights excluded

    Part 41 does not apply to acquiring rights in real property, public utility facilities, on-site equipment needed for a facility’s own distribution system, or construction and maintenance of Government-owned equipment and real property. These are treated as property or construction-related actions, not utility-service acquisitions.

    Shared-savings projects limited exception

    Third-party financed shared-savings projects authorized by 42 U.S.C. 8287 are excluded from Part 41, but agencies may use Part 41 for energy savings or purchased utility services directly resulting from such a project. That use is limited to periods not exceeding 25 years.

    Responsibilities

    Contracting Officer

    Determine whether the requirement is a utility service acquisition covered by FAR Part 41 or falls within one of the listed exclusions. If the service is provided by another Federal agency, ensure the agency uses an interagency agreement under FAR 41.206, and if a shared-savings project is involved, confirm any Part 41 use stays within the 25-year limit.

    Agency Program/Requirements Office

    Identify the nature of the requirement early—utility service, commodity purchase, telecom, foreign acquisition, property/facility acquisition, or shared-savings project—so the correct acquisition vehicle and regulatory framework are used from the start.

    Federal Power or Water Marketing Agency

    When acquiring utility services incident to its marketing or distribution program, follow the special program authority rather than Part 41 utility-service procedures.

    Other Federal Agency Providing Utility Services

    When producing, distributing, or selling utility services to another agency, support the transaction through an interagency agreement rather than a Part 41 procurement.

    Contractor/Utility Provider

    Understand whether the Government’s requirement is being acquired under Part 41 or under an excluded framework, because the applicable terms, pricing structure, and contract vehicle may differ significantly.

    Practical Implications

    1

    The first practical step is classification: many disputes and procurement errors come from mislabeling a requirement as a utility service when it is actually telecom, a commodity gas purchase, a property right, or a construction-related acquisition.

    2

    If another Federal agency is the provider, the buyer should not run a normal utility procurement; it should use an interagency agreement, which changes documentation, approvals, and often pricing treatment.

    3

    Shared-savings and energy-savings projects need special attention because Part 41 is generally excluded, but a limited Part 41 path exists for resulting utility services or energy savings for up to 25 years.

    4

    Connection charges and termination liabilities are part of the Part 41 universe, so contracting officers should account for them early when estimating total cost and negotiating terms.

    5

    A common pitfall is assuming all utility-related purchases are covered by the same rules; the exclusions in this section are broad and can shift the acquisition into a completely different FAR part or statutory regime.

    Official Regulatory Text

    (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 equipment and real property; 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.

    Back to 41.1FAR Navigator
    samsearch

    The Complete AI Platform for Government Contracting

    Platform
    • Product
    • Pricing
    • ROI calculator
    • Integrations
    • Changelog
    Solutions
    • Solutions
    • Customers
    • Comparisons
    • Market watch
    Resources
    • Blog
    • Free GovCon tools
    • Glossary
    • Docs
    Company
    • API & partnerships
    • Careers
    • Support
    • Compliance
    • Trust centre
    • Contact
    Recognised & verified
    SOC 2 Type II Compliant, SamSearchAWS Partner - Advanced, SamSearch on AWS MarketplaceGartner Peer Insights Customer First, SamSearch
    Ask AI about samsearch
    Ask ChatGPTAsk ClaudeAsk Perplexity
    Follow

    © 2026 samsearch. All rights reserved.

    Terms of usePrivacy policy