41.103 Statutory and delegated authority
Source: FAR 41.103 on acquisition.gov
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.
(a) Statutory authority.
(1) The General Services Administration (GSA) is authorized by http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section501&num=0&edition=prelim" target="_blank">40 U.S.C. 501 to prescribe policies and methods governing the acquisition and supply of utility services for Federal agencies. This authority includes related functions such as managing public utility services and representing Federal agencies in proceedings before Federal and state regulatory bodies. GSA is authorized by http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section501&num=0&edition=prelim" target="_blank">40 U.S.C.501 to contract for utility services for periods not exceeding tenyears.
(2) The Department of Defense (DoD) is authorized by https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3201&num=0&edition=prelim" target="_blank">10 U.S.C. 3201(a) and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title40-section113(e)(3)&num=0&edition=prelim" target="_blank">40 U.S.C. 113(e)(3) to acquire utility services for military facilities.
(3) The Department of Energy (DOE) is authorized by the Department of Energy Organization Act (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section7251&num=0&edition=prelim" target="_blank">42 U.S.C.7251, etseq.) to acquire utility services. DOE is authorized by the Atomic Energy Act of1954, as amended (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2204&num=0&edition=prelim" target="_blank">42 U.S.C. 2204), to enter into new contracts or modify existing contracts for electric services for periods not exceeding 25 years for uranium enrichment installations.
(b) Delegated authority. GSA has delegated its authority to enter into utility service contracts for periods not exceeding tenyears to DoD and DOE, and for connection charges only to the Department of Veteran Affairs. Contracting pursuant to this delegated authority shall be consistent with the requirements of this part. Other agencies requiring utility service contracts for periods over oneyear, but not exceeding tenyears, may request a delegation of authority from GSA at the address specified in 41.301(a). In keeping with its statutory authority, GSA will, as necessary, conduct reviews of delegated agencies’ acquisitions of utility services to ensure compliance with the terms of the delegation and applicable laws and regulations.
(c) Requests for delegations of contracting authority from GSA shall include a certification from the acquiring agency’s Senior Procurement Executive that the agency has-
(1) An established acquisition program;
(2) Personnel technically qualified to deal with specialized utilities problems; and
(3) The ability to accomplish its own pre-award contract review.