FAR 41.204—GSA areawide contracts.
Plain-English Summary
FAR 41.204 explains how agencies use GSA areawide contracts to obtain utility services. It covers the purpose of areawide contracts, their basic features, how agencies must decide whether to use them, when competition is required because more than one supplier is available, how the contracting officer executes the Authorization and attaches it to SF 26, what supporting information must be included in the contract file and attachment package, where agencies can find the current list of areawide contracts, and the post-award notification requirement to send copies to GSA within 30 days. In practice, this section is the operating rulebook for buying regulated utility services through a pre-established vehicle instead of starting a new procurement from scratch. It matters because utility service is often tied to franchise territories, tariffs, and regulatory approvals, so normal competition rules do not always apply in the same way. The section also ensures agencies document when they depart from the areawide contract, preserve the terms that define service delivery, and keep GSA informed of executed utility arrangements. For contracting officers and program offices, the practical effect is that utility acquisitions must be handled with close attention to service area, rate schedules, regulatory status, and the exact paperwork required to make the service order enforceable.
Key Rules
Areawide contracts are pre-established
GSA enters into areawide contracts for use by Federal agencies as a ready-made contractual vehicle for ordering utility services. They exist to streamline utility acquisitions where service is typically governed by regulated rates and service territories.
Use the contract when covered
If an agency needs utility services in an area covered by an areawide contract, it must acquire the services under that contract unless an exception applies. The default rule is mandatory use, not optional use.
Exception for multiple suppliers
If more than one supplier can provide the service, the agency must use competitive acquisition procedures. In that situation, the areawide contract does not control the acquisition the same way because competition is available.
Exception for nonadvantageous use
The head of the contracting activity, or a designee, may determine that using the areawide contract is not advantageous to the Government. That determination must be documented in the contract file, and GSA must receive an information copy.
Rates and terms may be tariff-based or negotiated
Areawide contracts generally use rates approved or established by a regulatory body and published in a tariff or rate schedule. Agencies may negotiate other rates and terms and conditions, but those alternative rates may require regulatory approval.
Authorization is required to order service
Each areawide contract includes an authorization form for ordering service, connection, disconnection, or changes in service. Once the contracting officer and utility supplier execute the Authorization, the supplier must furnish service without further negotiation at the applicable rates unless separate terms are negotiated.
Contracting officer must complete the package
The contracting officer must execute the Authorization and attach it to SF 26, along with any modifications such as connection charges, special facilities, or service arrangements. The package must also include agency fiscal, operational, and administrative requirements, applicable rate schedules, technical information, maps or drawings of delivery points, and details on Government-owned facilities or other necessary information.
GSA list and contract access
A current list of areawide contracts is available from the GSA office identified in FAR 41.301(a). The list shows the types of services and geographic areas served, and a copy of the contract may also be obtained from that office.
Mandatory post-execution notice
Agencies must send GSA a copy of each SF 26 and executed Authorization issued under an areawide contract within 30 days after execution. This keeps GSA informed of agency use of the contract vehicle.
Responsibilities
Federal Agency
Use the applicable areawide contract for utility services within the covered area unless an exception applies; determine whether more than one supplier is available; ensure any nonuse determination is properly documented; and send GSA copies of executed SF 26s and Authorizations within 30 days.
Head of the Contracting Activity or Designee
Make and document the determination that use of the areawide contract is not advantageous to the Government when that exception is relied upon.
Contracting Officer
Execute the Authorization, attach it to SF 26, include all required modifications and supporting information, and ensure the contract package fully defines the service conditions.
Utility Supplier
Provide service under the executed Authorization at the applicable published or separately negotiated rates and terms; furnish service without further negotiation once the Authorization is executed.
GSA
Maintain areawide contracts for agency use, provide the current list of contracts and copies upon request, and receive agency notification copies of executed SF 26s and Authorizations.
Practical Implications
This section is highly procedural: missing the Authorization, SF 26 attachment, or required supporting documents can leave the utility arrangement incomplete or poorly defined.
Agencies should verify whether more than one supplier is actually available in the service area before defaulting to the areawide contract, because that changes the acquisition method.
If an agency decides not to use the areawide contract, the file must clearly show why the contract was not advantageous; an undocumented exception is a common compliance risk.
Because utility rates may be tariff-based or separately negotiated, contracting officers should confirm whether any nonpublished rate or special term needs regulatory approval before execution.
The 30-day GSA notification requirement is easy to overlook but important for oversight and contract administration, so agencies should build it into their closeout or award workflow.
Official Regulatory Text
(a) Purpose . GSA enters into areawide contracts (see 41.101 ) for use by Federal agencies. Areawide contracts provide a pre-established contractual vehicle for ordering utility services under the conditions in paragraph (c)(1) of this section. (b) Features. (1) Areawide contracts generally provide for ordering utility service at rates approved and/or established by a regulatory body and published in a tariff or rate schedule. However, agencies are permitted to negotiate other rates and terms and conditions of service with the supplier (see paragraph (c) of this section). Rates other than those published may require the approval of the regulatory body. (2) Areawide contracts are negotiated with utility service suppliers for the provision of service within the supplier’s franchise territory or service area. (3) Due to the regulated nature of the utility industry, as well as statutory restrictions associated with the procurement of electricity (see 41.201 (d)), competition is typically not available within the entire geographical area covered by an areawide contract, although it may be available at specific locations within the utility’s service area. When competing suppliers are available, the provisions of paragraph (c)(1) of this section apply. (c) Procedures for obtaining service. (1) Any Federal agency having a requirement for utility services within an area covered by an areawide contract shall acquire services under that areawide contract unless- (i) Service is available from more than one supplier, or (ii) The head of the contracting activity or designee otherwise determines that use of the areawide contract is not advantageous to the Government. If service is available from more than one supplier, service shall be acquired using competitive acquisition procedures (see 41.202 (a)). The determination required by paragraph (c)(1)(ii) of this section shall be documented in the contract file with an information copy furnished to GSA at the address in 41.301 (a). (2) Each areawide contract includes an authorization form for ordering service, connection, disconnection, or change in service. Upon execution of an authorization by the contracting officer and utility supplier, the utility supplier is required to furnish services, without further negotiation, at the current, applicable published or unpublished rates, unless other rates, and/or terms and conditions are separately negotiated by the Federal agency with the supplier. (3) The contracting officer shall execute the Authorization, and attach it to a Standard Form (SF) 26 , Award/Contract, along with any modifications such as connection charges, special facilities, or service arrangements. The contracting officer shall also attach any specific fiscal, operational, and administrative requirements of the agency, applicable rate schedules, technical information and detailed maps or drawings of delivery points, details on Government ownership, maintenance, or repair of facilities, and other information deemed necessary to fully define the service conditions in the Authorization/contract. (d) List of areawide contracts . A list of current GSA areawide contracts is available from the GSA office specified at 41.301 (a). The list identifies the types of services and the geographic area served. A copy of the contract may also be obtained from this office. (e) Notification . Agencies shall provide GSA at the address specified at 41.301 (a) a copy of each SF 26 and executed Authorization issued under an areawide contract within 30 days after execution.