FAR 52.241-11—Multiple Service Locations.
Plain-English Summary
FAR 52.241-11, Multiple Service Locations, gives the Contracting Officer a mechanism to add or remove utility service locations within the contractor’s service area during performance. It addresses when the Government may direct service to begin or stop at a particular location, how those changes must be documented, what contract terms must be updated, and how monthly charges are adjusted when service starts or ends mid-period. In practice, this clause is important for utility contracts where the Government may need service at multiple sites, may open or close facilities, or may shift demand among locations over time. It protects both sides by requiring written direction and formal contract modification for changes to service specifications, while also ensuring the contractor is paid fairly only for the period service is actually provided. The clause is narrow but operationally significant because it ties together service activation/discontinuance, pricing, point of delivery, and other terms and conditions into a single contract administration process.
Key Rules
CO may direct location changes
The Contracting Officer may, by written order, designate any location within the contractor’s service area where utility service must begin or be discontinued. This gives the Government flexibility to manage service needs without negotiating a new contract for each location change.
Written order is required
Any designation to start or stop service must be made in writing. Oral instructions or informal communications are not enough to change the contractor’s obligations under the clause.
Service changes require modification
Any change to the service specifications must be incorporated into the contract through a formal contract modification. The modification must identify the service name and location and may also specify a different rate, point of delivery, different service specifications, and any other applicable terms and conditions.
Rates may differ by location
The clause expressly allows the contract modification to establish a different rate for the added or discontinued location. This recognizes that utility service costs may vary depending on geography, infrastructure, or service characteristics.
Monthly charge must be prorated
The applicable monthly charge must be equitably prorated from the period when commencement or discontinuance becomes effective. The contractor should be paid only for the portion of the month during which service is actually required or provided at the designated location.
Applies within service area only
The Government’s authority under this clause is limited to locations within the contractor’s service area. The clause does not expand the contractor’s geographic obligation beyond the area already covered by the contract.
Responsibilities
Contracting Officer
Issue written orders to designate locations where utility service will commence or be discontinued; ensure all service specification changes are documented through a contract modification; identify the affected service, location, rate, point of delivery, and any other changed terms; and ensure charges are prorated correctly when service starts or stops mid-period.
Contractor
Provide or discontinue utility service at locations properly designated by the Contracting Officer within the service area; comply with the modified service specifications and any revised rate or delivery terms; and bill only for the period service is actually effective, using the equitable proration required by the clause.
Agency/Customer Activity
Coordinate operational needs for new, moved, or closed service locations with the Contracting Officer; provide timely information about when service should begin or end; and support accurate identification of the service location, point of delivery, and any special service requirements.
Practical Implications
This clause is mainly an administration tool for utility contracts, so the biggest day-to-day issue is keeping service locations and contract paperwork aligned. If a facility opens, closes, or relocates, the CO should issue the written order and modification promptly so billing and service obligations match reality.
A common pitfall is treating a location change as an informal operational request instead of a contract change. Without a written order and modification, the contractor may have no clear contractual basis to start or stop service, and disputes can arise over payment or performance.
Another watch-out is proration. When service begins or ends partway through a billing cycle, the monthly charge must be adjusted equitably; failing to do so can lead to overbilling, underbilling, or audit issues.
The clause also matters for rate management. Different locations may justify different rates or delivery terms, so the modification should be specific enough to avoid ambiguity about what service is being provided and at what price.
Because the authority is limited to the contractor’s service area, contracting personnel should confirm that any designated location is actually within that area before issuing the order.
Official Regulatory Text
As prescribed in 41.501 (d)(5) , insert a clause substantially the same as the following: Multiple Service Locations (Feb 1995) (a) At any time by written order, the Contracting Officer may designate any location within the service area of the Contractor at which utility service shall commence or be discontinued. Any changes to the service specifications shall be made a part of the contract by the issuance of a contract modification to include the name and location of the service, specifying any different rate, the point of delivery, different service specifications, and any other terms and conditions. (b) The applicable monthly charge specified in this contract shall be equitably prorated from the period in which commencement or discontinuance of service at any service location designated under the Service Specifications shall become effective. (End of clause)