41.101 Definitions
Source: FAR 41.101 on acquisition.gov
FAR 41.101 matters because the defined terms determine the correct utility contracting vehicle, pricing structure, and termination risk before an agency orders service.
Overview
- FAR 41.101 provides the core definitions used throughout FAR Part 41, which governs the acquisition of utility services by Federal agencies.
- Its purpose is to establish consistent meanings for key utility contracting terms so contracting officers and contractors can correctly structure utility service arrangements, pricing, and risk allocation.
Key Rules
- Areawide contracts and authorizations
- An areawide contract is a GSA contract with a utility supplier covering Federal agencies within the supplier’s franchise territory. Agencies place service requests under it through an Authorization form for new service, changes, connections, or disconnections.
- Charges, liabilities, and contract types
- A connection charge covers nonrecurring utility-owned connecting facilities, while termination liability is the Government’s contingent obligation for unrecovered, nonrefundable connection-related costs if the contract ends early. A separate contract is any utility services contract outside an areawide contract, authorization, or interagency agreement.
- Authority, territory, and service scope
- The section defines delegated agency, franchise territory, intervention, multiple service locations, rates, and utility service, clarifying who may contract, where a supplier may serve, and what services Part 41 covers.
Responsibilities
- Contracting Officers: Use these definitions to select the proper utility acquisition vehicle and evaluate pricing, service territory, and termination risk.
- Contractors: Understand how rates, connection charges, and service territory affect contract performance and billing.
- Agencies: Confirm whether GSA, a delegated agency, or another authorized entity is the proper contracting authority.
Practical Implications
- This section exists to prevent misunderstandings in utility acquisitions, where service territories, tariffs, and infrastructure costs can materially affect contract terms.
- In practice, it helps agencies determine whether to use an areawide contract or separate contract, how to document service orders, and how to account for nonrecurring charges and early termination exposure.
- A common pitfall is overlooking termination liability tied to connection charges or assuming nontraditional services automatically fall under Part 41.
As used in this part,
Areawide contract means a contract entered into between the General Services Administration (GSA) and a utility service supplier to cover utility service needs of Federal agencies within the franchise territory of the supplier. Each areawide contract includes an "Authorization" form for requesting service, connection, disconnection, or change in service.
Authorization means the document executed by the ordering agency and the utility supplier to order service under an areawide contract.
Connection charge means all nonrecurring costs, whether refundable or nonrefundable, to be paid by the Government to the utility supplier for the required connecting facilities, which are installed, owned, operated, and maintained by the utility supplier (see Termination liability).
Delegated agency means an agency that has received a written delegation of authority from GSA to contract for utility services for periods not exceeding ten years (see 41.103(b)).
Federal Power and Water Marketing Agency means a Government entity that produces, manages, transports, controls, and sells electrical and water supply service to customers.
Franchise territory means a geographical area that a utility supplier has a right to serve based upon a franchise, a certificate of public convenience and necessity, or other legal means.
Intervention means action by GSA or a delegated agency to formally participate in a utility regulatory proceeding on behalf of all Federal executive agencies.
Multiple service locations means the various locations or delivery points in the utility supplier’s service area to which it provides service under a single contract.
Rates may include rate schedules, riders, rules, terms and conditions of service, and other tariff and service charges, e.g., facilities use charges.
Separate contract means a utility services contract (other than a GSA areawide contract, an Authorization under an areawide contract, or an interagency agreement), to cover the acquisition of utility services.
Termination liability means a contingent Government obligation to pay a utility supplier the unamortized portion of a connection charge and any other applicable nonrefundable service charge as defined in the contract in the event the Government terminates the contract before the cost of connection facilities has been recovered by the utility supplier (see "Connection charge").
Utility service means a service such as furnishing electricity, natural or manufactured gas, water, sewerage, thermal energy, chilled water, steam, hot water, or high temperature hot water. The application of part 41 to other services (e.g., rubbish removal, snow removal) may be appropriate when the acquisition is not subject to the http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter67&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank">41 U.S.C. chapter 67, Service Contract Labor Standards (see 37.107).