FAR 52.241-1—Electric Service Territory Compliance Representation.
Plain-English Summary
FAR 52.241-1 is a solicitation provision used when the Government is buying electricity and needs the offeror to confirm that the proposed supply arrangement complies with state electric service territory rules. It implements Section 8093 of Public Law 100-202, which generally requires federal electricity purchases to align with state law governing electric utility service, including state utility commission rulings, utility franchises, service territories, and state-approved territorial agreements. The provision is primarily a compliance screen: it asks the offeror, by signing the offer, to represent that the proposed sale of electricity is lawful under the applicable state territorial framework. It also gives the Contracting Officer the right to request supporting legal and factual justification if the representation needs to be verified. In practice, this clause matters because electricity procurement can implicate regulated utility territories, and a federal buyer cannot simply choose any supplier if state law limits who may serve a particular location. The provision helps reduce the risk of awarding to an offer that would conflict with state utility regulation or create service-rights disputes after award.
Key Rules
State law compliance required
Federal purchases of electricity must generally be consistent with state law governing electric utility service. That includes state utility commission rulings, utility franchises, service territories, and state-approved territorial agreements.
Offeror makes a representation
By signing the offer, the offeror is representing that its proposed sale of electricity complies with Section 8093 of Public Law 100-202. This is a contractual statement of compliance, not just background information.
Supporting rationale may be requested
If the Contracting Officer asks, the offeror must provide legal and factual support for the representation. The burden is on the offeror to explain why the proposed service is lawful in the relevant territory.
Applies at the solicitation stage
This is a provision, so it is inserted in solicitations rather than as a post-award contract clause. Its purpose is to evaluate compliance before award is made.
Electricity-specific procurement rule
The provision is limited to purchases of electricity and the territorial restrictions associated with electric utility service. It does not create a general rule for other commodities or services.
Responsibilities
Contracting Officer
Include the provision when applicable under the prescription, evaluate the offeror’s representation, and request supporting legal and factual rationale when needed to confirm compliance with state territorial requirements.
Offeror
By signing the offer, represent that the proposed electricity sale is consistent with Section 8093 of Public Law 100-202, and provide supporting legal and factual rationale if the Contracting Officer requests it.
Agency
Ensure electricity acquisitions are structured and competed in a way that respects applicable state utility laws and territorial restrictions, so the Government does not seek service from an unauthorized supplier.
Practical Implications
Offerors should verify service territory rights before submitting an offer; a low price will not cure a territorial violation.
Contracting Officers should not treat the representation as a formality when the service area is regulated or disputed; they may need documentation early in the acquisition.
A common pitfall is assuming that deregulation or retail choice eliminates all territorial restrictions; state law may still control who can serve a location.
If the Government site is in an area with exclusive utility service rights, the offeror may need franchise, commission, or territorial agreement evidence to support its representation.
Because the provision is a pre-award compliance check, unresolved territory issues can delay award or make an otherwise acceptable offer ineligible.
Official Regulatory Text
As prescribed in 41.501 (b) , insert a provision substantially the same as the following: Electric Service Territory Compliance Representation (May 1999) (a) Section 8093 of Public Law100-202 generally requires purchases of electricity by any department, agency, or instrumentality of the United States to be consistent with State law governing the provision of electric utility service, including State utility commission rulings and electric utility franchises or service territories established pursuant to State statute, State regulation, or State-approved territorial agreements. (b) By signing this offer, the offeror represents that this offer to sell electricity is consistent with Section 8093 of Public Law100-202. (c) Upon request of the Contracting Officer, the offeror shall submit supporting legal and factual rationale for this representation. (End of clause)