FAR 41.702—Formats for annual utility service review.
Plain-English Summary
FAR 41.702 addresses the format used to perform annual reviews of utility service contracts. It identifies the utility services for which standard review formats are available—electric service, gas service, and water and sewage service—and explains that these formats may be obtained from the address listed in FAR 41.301(a). The section also makes clear that use of the formats is discretionary, not mandatory, so agencies can decide whether to use them. In addition, it gives contracting officers authority to modify the annual review format as needed so the review fully covers the specific utility service being examined. In practice, this provision is about giving agencies a common starting point for reviewing utility contracts while preserving flexibility to tailor the review to local conditions, service characteristics, and contract requirements.
Key Rules
Standard formats are available
Formats for annual reviews exist for electric, gas, and water and sewage services. These formats can be obtained from the address referenced in FAR 41.301(a).
Use is discretionary
Agencies may use the available formats at their discretion; the rule does not require a particular format to be used in every case.
Contracting officers may modify
Contracting officers are allowed to change the annual review format as necessary. The purpose is to ensure the review fully addresses the utility service actually being used.
Responsibilities
Agency
Decide whether to use the available annual utility service review formats for electric, gas, or water and sewage services.
Contracting Officer
Obtain the applicable format, determine whether modifications are needed, and tailor the review so it fully covers the utility service under contract.
Contracting Activity
Ensure personnel know where to access the formats referenced in FAR 41.301(a) and support consistent review practices when the agency chooses to use them.
Practical Implications
This section is mainly a flexibility provision: it gives agencies a template but does not lock them into a rigid review form.
Contracting officers should not assume the standard format is always sufficient; utility arrangements can vary widely, so the review may need added questions or data points.
A common pitfall is using the template without adapting it to the actual service, which can leave gaps in the annual review and weaken contract oversight.
Another practical issue is failing to locate or use the correct format source referenced in FAR 41.301(a), especially when agency procedures or local practices differ.
For contractors, the main impact is indirect: annual reviews may request service-specific information, and the scope of those requests can vary depending on how the contracting officer modifies the format.
Official Regulatory Text
(a) Formats for use in conducting annual reviews of the following utility services are available from the address specified at 41.301 (a) and may be used at the agency’s discretion: (1) Electric service. (2) Gas service. (3) Water and sewage service. (b) Contracting officers may modify the annual utility service review format as necessary to fully cover the service used.