52.241-11 Multiple Service Locations
Source: FAR 52.241-11 on acquisition.gov
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.
As prescribed in 41.501(d)(5), insert a clause substantially the same as the following:
Multiple Service Locations (Feb 1995)
(a) At any time by written order, the Contracting Officer may designate any location within the service area of the Contractor at which utility service shall commence or be discontinued. Any changes to the service specifications shall be made a part of the contract by the issuance of a contract modification to include the name and location of the service, specifying any different rate, the point of delivery, different service specifications, and any other terms and conditions.
(b) The applicable monthly charge specified in this contract shall be equitably prorated from the period in which commencement or discontinuance of service at any service location designated under the Service Specifications shall become effective.
(End of clause)