52.241-1
Electric Service Territory Compliance Representation
When offering to sell electricity to the Government, the offeror is certifying that the sale complies with applicable State utility service territory laws and must be ready to prove it if the Contracting Officer asks.
Overview
- FAR 52.241-1 is a solicitation provision used when the Government is buying electricity. Its purpose is to ensure that offers for electric service comply with State law governing electric utility service territories, as required by Section 8093 of Public Law 100-202.
- In practical terms, the provision requires an offeror to affirm that its proposed sale of electricity is legally authorized within the applicable State-regulated service area.
Key Rules
- State-law consistency requirement
- Federal purchases of electricity generally must be consistent with State law, including utility commission rulings, utility franchises, and service territories established by statute, regulation, or State-approved territorial agreements.
- Offeror representation
- By signing the offer, the offeror represents that its offer to sell electricity complies with Section 8093 of Public Law 100-202.
- Supporting rationale upon request
- If the Contracting Officer asks, the offeror must provide legal and factual support showing why its offer is consistent with the applicable State electric service territory requirements.
Responsibilities
- Contracting Officers: Include the provision when prescribed and request supporting rationale when needed to validate the representation.
- Contractors: Ensure the offered electric service is lawful under applicable State service territory rules and be prepared to substantiate that representation.
- Agencies: Conduct electricity acquisitions in a manner consistent with State utility service laws and related territorial determinations.
Practical Implications
- This provision exists to prevent the Government from purchasing electricity from a supplier that lacks authority to serve the location under State law.
- It affects source selection and proposal preparation by requiring suppliers to confirm territorial compliance before offering.
- A common pitfall is assuming federal procurement overrides State utility territory restrictions; this provision makes clear that it generally does not.