41.202 Procedures.

(a) Prior to executing a utility service contract, the contracting officer shall comply with parts 6 and

7 and subsections 41.201(d) and (e) of this part. In accordance with parts 6 and 7, agencies shall

conduct market surveys and perform acquisition planning in order to promote and provide for full

and open competition provided that the contracting officer determines that any resultant contract

would not be inconsistent with applicable state law governing the provision of electric utility

services. If competition for an entire utility service is not available, the market survey may be used

to determine the availability of competitive sources for certain portions of the requirement. The

scope of the term "entire utility service" includes the provision of the utility service capacity, energy,

water, sewage, transportation, standby or back-up service, transmission and/or distribution service,

quality assurance, system reliability, system operation and maintenance, metering, and billing.

(b) In performing a market survey (see 7.101), the contracting officer shall consider, in addition to

alternative competitive sources, use of the following:

(1) GSA areawide contracts (see 41.204).

(2) Separate contracts (see 41.205).

(3) Interagency agreements (see 41.206).

(c) When a utility supplier refuses to execute a tendered contract as outlined in 41.201(b), the

agency shall obtain a written definite and final refusal signed by a corporate officer or other

responsible official of the supplier (or if unobtainable, document any unwritten refusal) and transmit

this document, along with statements of the reasons for the refusal and the record of negotiations, to

GSA at the address specified at 41.301(a). Unless urgent and compelling circumstances exist, the

contracting officer shall notify GSA prior to acquiring utility services without executing a tendered

contract. After such notification, the agency may proceed with the acquisition and pay for the utility

service under the provisions of 31 U.S.C.1501(a)(8)-

(1) By issuing a purchase order in accordance with 13.302; or

(2) By ordering the necessary utility service and paying for it upon the presentation of an invoice,

provided that a determination is approved by the head of the contracting activity that a written

contract cannot be obtained and that the issuance of a purchase order is not feasible.

(d) When obtaining service without a bilateral written contract, the contracting officer shall

establish a utility history file on each acquisition of utility service provided by a contractor. This

utility history file shall contain, in addition to applicable documents in 4.803, the following

information:

(1) The unsigned, tendered contract and any related letter of transmittal.

(2) The reasons stated by the utility supplier for not executing the tendered contract, the record of

negotiations, and a written definite and final refusal by a corporate officer or other responsible

official of the supplier (or if unobtainable, documentation of unwritten refusal).

(3) Services to be furnished and the estimated annual cost.

(4) Historical record of any applicable connection charges.
(5) Historical record of any applicable ongoing capital credits.

(6) A copy of the applicable rate schedule.

(e) If the Government obtains utility service pursuant to paragraph (c) of this section, the

contracting officer shall, on an annual basis beginning from the date of final refusal, take action to

execute a bilateral written contract. The contracting officer shall document the utility history file

with the efforts made and the agency shall notify GSA, in writing, if the utility continues to refuse to

execute a bilateral contract.

Parent topic: Subpart 41.2 - Acquiring Utility Services