41.102 Applicability
Source: FAR 41.102 on acquisition.gov
FAR 41.102 clearly defines when Part 41 applies to utility service acquisitions and lists specific exemptions, ensuring agencies use the correct procurement procedures.
Overview
FAR 41.102 defines when Part 41 applies to the acquisition of utility services by the federal government. It clarifies that, unless specifically exempted, this part governs the procurement of utility services, including connection charges and termination liabilities. The section also lists several exceptions where Part 41 does not apply, such as utility services from other federal agencies, services obtained by federal power or water marketing agencies, cable television and telecommunications, commodity gas purchases, foreign utility acquisitions, certain real property and equipment acquisitions, and specific third-party financed shared-savings projects. Agencies must use interagency agreements for utility services from other federal agencies and may use Part 41 for certain energy savings or purchased utility services under shared-savings projects, but only for up to 25 years.
Key Rules
- General Applicability
- Part 41 applies to most federal acquisitions of utility services, including related charges and liabilities.
- Exemptions
- Several categories are exempt, including interagency utility services, federal power/water marketing agency acquisitions, CATV and telecom, commodity gas, foreign utilities, certain real property/equipment, and specific shared-savings projects.
Responsibilities
- Contracting Officers: Must determine if a utility service acquisition falls under Part 41 or is exempt, and apply the correct procedures or agreements accordingly.
- Contractors: Should understand whether their services are covered by Part 41 or fall under an exemption.
- Agencies: Must ensure compliance with the correct acquisition method and document the basis for any exemption.
Practical Implications
- This section helps agencies and contractors quickly determine if Part 41 applies to a utility service acquisition, preventing misapplication of procurement rules.
- Misclassifying a utility service could lead to improper contracting methods or compliance issues.
- Understanding the exemptions is critical for efficient and compliant utility service procurement.
(a) Except as provided in paragraph (b) of this section, this part applies to the acquisition of utility services for the Government, including connection charges and termination liabilities.
(b) This part does not apply to-
(1) Utility services produced, distributed, or sold by another Federal agency. In those cases, agencies shall use interagency agreements (see 41.206);
(2) Utility services obtained by purchase, exchange, or otherwise by a Federal power or water marketing agency incident to that agency’s marketing or distribution program;
(3) Cable television (CATV) and telecommunications services;
(4) Acquisition of natural or manufactured gas when purchased as a commodity;
(5) Acquisition of utilities services in foreign countries;
(6) Acquisition of rights in real property, acquisition of public utility facilities, and on-site equipment needed for the facility’s own distribution system, or construction/maintenance of Government-owned equipment and real property; or
(7) Third party financed shared-savings projects authorized by http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section8287&num=0&edition=prelim" target="_blank">42 U.S.C. 8287. However, agencies may utilize part 41 for any energy savings or purchased utility service directly resulting from implementation of a third party financed shared-savings project under http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section8287&num=0&edition=prelim" target="_blank">42 U.S.C.8287 for periods not to exceed 25 years.