52.241-11
Multiple Service Locations
When the Government adds or removes a utility service location, contractors should act only on written direction and ensure the contract and monthly charges are formally updated and prorated correctly.
Overview
- FAR 52.241-11, Multiple Service Locations is a utility-services clause that allows the Government to start or stop utility service at different locations within the contractor’s service area during contract performance.
- Its purpose is to give the Contracting Officer flexibility to add or remove service locations while ensuring the contract is formally updated and charges are adjusted fairly.
Key Rules
- Designation of service locations by written order
- The Contracting Officer may, at any time, issue a written order designating a location within the contractor’s service area where utility service will begin or end.
- Contract modification for service specification changes
- Any change to service specifications must be incorporated through a contract modification. The modification must identify the service name and location, any different rate, the point of delivery, revised service specifications, and any other applicable terms and conditions.
- Equitable proration of monthly charges
- When service starts or stops at a designated location, the monthly charge stated in the contract must be equitably prorated for the effective period of commencement or discontinuance.
Responsibilities
- Contracting Officers: Issue written orders for service changes and execute contract modifications reflecting revised service details.
- Contractors: Implement service commencement or discontinuance at designated locations and apply prorated monthly charges accurately.
- Agencies: Ensure billing and contract administration align with modified service specifications and effective dates.
Practical Implications
- This clause exists to manage utility contracts covering multiple service points without rewriting the entire contract each time a location changes.
- It affects billing, service activation/deactivation, and contract administration.
- Common pitfalls include acting on informal requests, failing to document changed service specifications, and miscalculating prorated charges.