41.204
GSA areawide contracts
Federal agencies must use GSA areawide contracts for utility services unless competition exists or a justified exception is documented, and must notify GSA after contract execution.
Overview
FAR 41.204 outlines the use of GSA areawide contracts for acquiring utility services by federal agencies. These contracts provide a streamlined, pre-established method for agencies to order utility services within a supplier’s franchise area, typically at regulated rates. Agencies must use the areawide contract unless multiple suppliers are available or a determination is made that another method is more advantageous. The section details procedures for ordering, including required documentation, and mandates notification to GSA after contract execution.
Key Rules
- Mandatory Use of Areawide Contracts
- Agencies must use the GSA areawide contract for utility services within the covered area unless competition exists or a justified exception is documented.
- Ordering Procedures
- Orders are placed using an Authorization form attached to SF 26, including all relevant technical and administrative details.
- Rate Negotiation
- Agencies may negotiate rates and terms different from published tariffs, subject to regulatory approval.
- Notification Requirement
- Agencies must send GSA a copy of each executed SF 26 and Authorization within 30 days.
Responsibilities
- Contracting Officers: Must execute Authorizations, attach all required documentation, and ensure compliance with ordering and notification procedures.
- Contractors (Utility Suppliers): Must provide services as authorized, at agreed rates and terms.
- Agencies: Must use areawide contracts unless exceptions apply, maintain proper documentation, and notify GSA as required.
Practical Implications
- This section ensures efficient, compliant acquisition of utility services, leveraging pre-negotiated contracts to reduce administrative burden. Failure to follow procedures or notify GSA can result in compliance issues. Agencies must be diligent in documenting exceptions and maintaining thorough contract files.