Solicitation provision and contract clauses
FAR 41.501 requires contracting officers to include and, when necessary, tailor specific solicitation provisions and contract clauses for utility service contracts to ensure compliance and address unique contracting situations.
Overview
FAR 41.501 outlines the requirements for including specific solicitation provisions and contract clauses in government contracts for utility services. Recognizing that utility service terms can vary by region and supplier, this section allows contracting officers to tailor provisions and clauses to fit the unique circumstances of each utility contract, provided they remain substantially the same as the prescribed FAR language. The section mandates the use of certain clauses and provisions—such as those addressing electric service territory compliance, order of precedence, contract scope and duration, changes in service, contractor facilities, and service provisions—in all utility service solicitations and contracts. Additional clauses are required under specific conditions, such as regulated or unregulated services, connection charges, termination liabilities, multiple service locations, nonrefundable charges, and capital credits. Contracting officers must also include any other relevant FAR provisions and clauses as appropriate for the acquisition.
Key Rules
- Tailoring of Provisions and Clauses
- Contracting officers may adapt prescribed provisions and clauses to fit specific utility contracting situations, as long as they remain substantially the same as the FAR templates.
- Mandatory Clauses for Utility Services
- Specific clauses (e.g., 52.241-2 through 52.241-6) must be included in all utility service solicitations and contracts.
- Conditional Clauses
- Additional clauses (e.g., 52.241-7 through 52.241-13) are required based on the nature of the utility service, such as regulation status, connection charges, or service locations.
- Inclusion of Other FAR Clauses
- Contracting officers must also include any other applicable FAR provisions and clauses relevant to the acquisition.
Responsibilities
- Contracting Officers: Must determine which clauses apply, tailor them as needed, and ensure all required provisions are included in solicitations and contracts for utility services.
- Contractors: Must comply with all included provisions and clauses, including those specific to their utility service arrangement.
- Agencies: Oversee compliance with FAR requirements and ensure contracting officers follow proper procedures.
Practical Implications
- This section ensures that utility service contracts are comprehensive and tailored to the specific regulatory and operational environment of each acquisition.
- Failure to include required clauses can result in noncompliance, contract disputes, or unenforceable terms.
- Contracting officers must be diligent in assessing the unique aspects of each utility contract and applying the correct clauses, including any agency-specific adaptations.