Utility Services Provisions and Clauses
FAR 52.241 standardizes the provisions and clauses for utility service contracts to ensure compliance, clarity, and protection of government interests.
Overview
FAR 52.241 outlines the standard provisions and clauses used in contracts for utility services, such as electricity, water, and gas. This section provides the required language and conditions that must be included in solicitations and contracts involving utility services, ensuring compliance with federal regulations and protecting government interests. The clauses address key topics such as service territory compliance, order of precedence, contract scope and duration, changes in service or rates, connection and service charges, termination liability, and handling of multiple service locations. These provisions are designed to clarify the rights and responsibilities of both the government and utility service providers, manage changes in regulated and unregulated services, and establish procedures for charges and credits related to utility contracts.
Key Rules
- Electric Service Territory Compliance Representation
- Contractors must certify compliance with applicable service territory laws and regulations.
- Order of Precedence-Utilities
- Establishes the hierarchy of contract documents in case of conflicts.
- Scope and Duration of Contract
- Defines the period and extent of utility services to be provided.
- Change in Class of Service/Change in Rates or Terms
- Procedures for modifying service class or adjusting rates/terms for regulated and unregulated services.
- Connection and Service Charges
- Addresses charges for connecting to utility services and nonrecurring fees.
- Termination Liability
- Outlines government obligations if the contract is terminated early.
- Multiple Service Locations/Capital Credits
- Covers contracts serving multiple locations and the handling of capital credits.
Responsibilities
- Contracting Officers: Ensure inclusion of appropriate clauses, verify compliance, and manage contract modifications.
- Contractors: Certify compliance, adhere to service and rate provisions, and provide required notifications.
- Agencies: Oversee contract administration and ensure regulatory compliance.
Practical Implications
- Ensures clear expectations and legal compliance in utility service contracts.
- Reduces disputes by standardizing terms for changes, charges, and termination.
- Contractors must be diligent in understanding and adhering to all included clauses, especially regarding rate changes and service modifications.