41.101
Definitions
FAR 41.101 defines essential terms for utility service contracting, ensuring all parties interpret and comply with Part 41 requirements consistently.
Overview
FAR 41.101 provides definitions for key terms used throughout FAR Part 41, which governs the acquisition of utility services by federal agencies. Understanding these definitions is essential for both contracting officers and contractors to ensure proper interpretation and compliance with the requirements for utility service contracts, including areawide contracts, authorizations, connection charges, and termination liabilities. The section clarifies the roles of GSA, delegated agencies, and utility suppliers, as well as the scope of services and contractual arrangements covered under this part.
Key Rules
- Areawide Contract
- Defines contracts between GSA and utility suppliers for federal agencies within a supplier's franchise territory.
- Authorization
- Specifies the document used by agencies to order, change, or discontinue utility services under an areawide contract.
- Connection Charge & Termination Liability
- Explains the costs and potential government obligations related to connecting and terminating utility services.
- Delegated Agency
- Identifies agencies authorized by GSA to contract for utility services independently for up to ten years.
- Utility Service Scope
- Lists the types of services covered, such as electricity, water, and gas, and notes possible inclusion of other services under certain conditions.
Responsibilities
- Contracting Officers: Must use these definitions to interpret and apply Part 41 requirements accurately.
- Contractors: Should understand these terms to ensure compliance with contract provisions and obligations.
- Agencies: Must recognize their roles, especially if acting as a delegated agency or participating in regulatory proceedings.
Practical Implications
- This section ensures all parties have a common understanding of terms, reducing misinterpretation and disputes.
- Accurate use of these definitions is critical for drafting, negotiating, and administering utility service contracts.
- Misunderstanding key terms can lead to compliance failures, financial liabilities, or improper contract execution.