Subpart 41.5 - Solicitation Provision and

Contract Clauses

Parent topic: Part 41 - Acquisition of Utility Services

41.501 Solicitation provision and contract clauses.

(a) Because the terms and conditions under which utility suppliers furnish service may vary from

area to area, the differences may influence the terms and conditions appropriate to a particular

utility’s contracting situation. To accommodate requirements that are peculiar to the contracting

situation, this section prescribes provisions and clauses on a "substantially the same as" basis (see

52.101) which permits the contracting officer to prepare and utilize variations of the prescribed

provision and clauses in accordance with agency procedures.

(b) The contracting officer shall insert in solicitations for utility services a provision substantially the

same as the provision at 52.241-1, Electric Service Territory Compliance Representation, when

proposals from alternative electric suppliers are sought.

(c) The contracting officer shall insert in solicitations and contracts for utility services clauses

substantially the same as the clauses at-

(1) 52.241-2, Order of Precedence-Utilities;

(2) 52.241-3, Scope and Duration of Contract;

(3) 52.241-4, Change in Class of Service;

(4) 52.241-5, Contractor’s Facilities; and

(5) 52.241-6, Service Provisions.

(d) The contracting officer shall insert clauses substantially the same as the clauses listed below in

solicitations and contracts under the prescribed conditions-

(1) 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, when the

utility services are subject to a regulatory body. (Except for GSA areawide contracts, the contracting

officer shall insert in the blank space provided in the clause the name of the contracting officer. For

GSA areawide contracts, the contracting officer shall insert the following: "GSA and each areawide

customer with annual billings that exceed $250,000").

(2) 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services, when

the utility services are not subject to a regulatory body.

(3) 52.241-9, Connection Charge, when a refundable connection charge is required to be paid by the

Government to compensate the contractor for furnishing additional facilities necessary to supply

service. (Use AlternateI to the clause if a nonrefundable charge is to be paid. When conditions

require the incorporation of a nonrecurring, nonrefundable service charge or a termination liability,

see paragraphs (d)(6) and (d)(4) of this section).

(4) 52.241-10, Termination Liability, when payment is to be made to the contractor upon termination
of service in conjunction with or in lieu of a connection charge upon completion of the facilities.

(5) 52.241-11, Multiple Service Locations (as defined in 41.101), when providing for possible

alternative service locations, except under areawide contracts, is required.

(6) 52.241-12, Nonrefundable, Nonrecurring Service Charge, when the Government is required to

pay a nonrefundable, nonrecurring membership fee, a charge for initiation of service, or a

contribution for the cost of facilities construction. The Government may provide for inclusion of such

agreed amount or fee as a part of the connection charge, a part of the initial payment for services, or

as periodic payments to fulfill the Government’s obligation.

(7) 52.241-13, Capital Credits, when the Federal Government is a member of a cooperative and is

entitled to capital credits, consistent with the bylaws and governing documents of the cooperative.

(e) Depending on the conditions that are appropriate for each acquisition, the contracting officer

shall also insert in solicitations and contracts for utility services the provisions and clauses

prescribed elsewhere in the FAR.