41.204 GSA areawide contracts.

(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the current, applicable published or unpublished rates, unless other rates, and/or terms and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.

Parent topic: Subpart 41.2 - Acquiring Utility Services