41.103
Statutory and delegated authority
Only agencies with statutory or properly delegated authority may contract for utility services, and must meet specific certification and oversight requirements.
Overview
FAR 41.103 outlines the statutory and delegated authority for acquiring utility services for federal agencies. It specifies which agencies have direct authority to contract for utility services, the duration limits for such contracts, and the process for other agencies to obtain delegated authority from the General Services Administration (GSA). The section also details the requirements for agencies seeking delegation, including necessary certifications and qualifications, and emphasizes GSA's oversight role to ensure compliance with statutory and regulatory requirements.
Key Rules
- Statutory Authority
- GSA, DoD, and DOE have specific statutory authority to acquire utility services, with defined contract duration limits (generally up to 10 years, and up to 25 years for DOE electric services for uranium enrichment).
- Delegated Authority
- GSA may delegate authority to DoD, DOE, and the Department of Veterans Affairs (for connection charges), and other agencies may request delegation for contracts over one year but not exceeding ten years.
- Delegation Requests
- Requests for delegation must include certification from the agency’s Senior Procurement Executive confirming an established acquisition program, technically qualified personnel, and the ability to conduct pre-award contract reviews.
- GSA Oversight
- GSA retains the right to review delegated acquisitions to ensure compliance with delegation terms and applicable laws.
Responsibilities
- Contracting Officers: Must ensure their agency has proper authority or delegation before entering into utility service contracts and comply with all certification and review requirements.
- Contractors: Should verify that the agency has the necessary authority or delegation for the contract.
- Agencies: Must request delegation from GSA when required, provide necessary certifications, and maintain compliance with GSA oversight.
Practical Implications
- This section ensures only authorized agencies can contract for utility services, protecting the government’s interests and ensuring regulatory compliance.
- Agencies must be proactive in securing delegation and maintaining qualified personnel and programs.
- Failure to comply may result in contract delays or invalidation, and GSA oversight may identify deficiencies.