FAR 41.103—Statutory and delegated authority.
Plain-English Summary
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.
Key Rules
GSA’s statutory role
GSA is the primary civilian authority for prescribing policies and methods for acquiring and supplying utility services for federal agencies. Its authority also includes related utility management functions and representation of agencies before federal and state regulatory bodies.
Ten-year utility contracts
Under 40 U.S.C. 501, GSA may contract for utility services for periods not exceeding ten years. That statutory limit frames the maximum term for utility contracts made under GSA authority or delegated authority tied to that authority.
DoD and DOE authority
DoD and DOE each have independent statutory authority to acquire utility services for their missions and facilities. DOE also has special authority under the Atomic Energy Act to enter into or modify certain electric service contracts for uranium enrichment installations for up to 25 years.
Delegated authority from GSA
GSA has delegated authority to DoD and DOE to enter utility service contracts for up to ten years, and to VA for connection charges only. Any contracting under a delegation must comply with FAR Part 41 and the terms of the delegation.
Other agencies need delegation
Agencies other than those already delegated must request authority from GSA if they need utility service contracts for more than one year but not more than ten years. The request must be sent to the address in FAR 41.301(a).
GSA oversight and review
GSA may review delegated agencies’ utility acquisitions to ensure they comply with the delegation and applicable laws and regulations. Delegation does not eliminate GSA’s oversight role.
Certification prerequisites
A request for delegation must include a certification from the Senior Procurement Executive that the agency has an established acquisition program, technically qualified personnel for specialized utility issues, and the ability to conduct its own pre-award contract review.
Responsibilities
GSA
Prescribe policies and methods for utility acquisitions, manage related utility functions, represent agencies in regulatory proceedings, issue delegations of authority, and review delegated acquisitions for compliance.
DoD
Use its statutory authority to acquire utility services for military facilities and comply with FAR Part 41 and the terms of GSA’s delegation when contracting under delegated authority.
DOE
Use its statutory authority to acquire utility services, comply with FAR Part 41 and delegation terms when using GSA-delegated authority, and use its special long-term electric service authority only within the statutory limits for uranium enrichment installations.
Department of Veterans Affairs
Use GSA’s delegated authority only for connection charges and follow the applicable requirements of FAR Part 41 and the delegation.
Other federal agencies
If they need utility service contracts longer than one year but not more than ten years, request a delegation from GSA and ensure they meet the prerequisites for delegation.
Senior Procurement Executive
Certify that the agency has an established acquisition program, technically qualified personnel, and the ability to perform pre-award contract review before a delegation request is submitted.
Contracting officers
Verify the agency’s authority before soliciting or awarding utility contracts, ensure the contract term stays within statutory and delegated limits, and follow the delegation’s conditions and FAR Part 41 requirements.
Practical Implications
Before negotiating a utility contract, confirm whether your agency has independent authority, a GSA delegation, or must request one; authority problems can invalidate the procurement path.
Watch the contract term carefully. The general ceiling under GSA authority is ten years, while DOE’s uranium enrichment electric service authority has a separate 25-year limit.
Do not assume all agencies can self-acquire utility services. Many agencies need a formal delegation from GSA before entering contracts over one year.
Delegation requests are not automatic. Agencies must show they have the technical staff, acquisition program, and pre-award review capability to handle utility acquisitions responsibly.
GSA can review delegated acquisitions after delegation is granted, so agencies should maintain documentation showing compliance with the delegation, applicable statutes, and FAR Part 41.
Official Regulatory Text
(a) Statutory authority. (1) The General Services Administration (GSA) is authorized by 40 U.S.C. 501 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 40 U.S.C.501 to contract for utility services for periods not exceeding tenyears. (2) The Department of Defense (DoD) is authorized by 10 U.S.C. 3201(a) and 40 U.S.C. 113(e)(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.7251 , etseq .) to acquire utility services. DOE is authorized by the Atomic Energy Act of1954, 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 tenyears 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 oneyear, but not exceeding tenyears, 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.