Federal Acquisition Regulation; Acquisition of Utility Services

Federal RegisterDec 28, 1994

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 6, 8, 15, 41, and 52

[FAC 90-23; FAR Case 91-13; Item IV]

RIN 9000-AE48

Federal Acquisition Regulation; Acquisition of Utility Services

AGENCIES: Department of Defense (DOD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council have agreed on a final rule revising

the FAR coverage dealing with utility services. This rule will replace

the existing coverage concerning acquisition of utility services and

will provide more comprehensive coverage applicable to all executive

agencies. The current FAR coverage, in large measure, did not apply to

the Department of Defense, and it also exempted agency regulatory

requirements in the utility area that predated the establishment of the

FAR. This regulatory action was not subject to Office of Management and

Budget review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb at (202) 501-4547 in

reference to this FAR case. For general information, contact the FAR

Secretariat, room 4037, GS Building, Washington, DC 20405, (202) 501-

4755. Please cite FAC 90-23, FAR case 91-13.

SUPPLEMENTARY INFORMATION:

A. Background

In response to the need to provide more comprehensive utility

coverage in the FAR, a major rewrite of the existing FAR coverage was

undertaken. The principal changes are as follows:

(1) FAR Part 41 applies to all Executive agencies and will enable

agencies to delete most utilities provisions from their agency FAR

supplements. The current FAR Subpart 8.3 permitted agencies' procedures

predating the FAR to continue to be used. In addition, Subpart 8.3

previously exempted DOD from much of the FAR coverage.

(2) Substantial additional guidance for contracting officers in

acquiring and administering utility service contracts are included.

(3) Additional definitions applicable to utility service contracts

are established.

(4) Coverage is established delineating the existing statutory and

delegated authority for utility service contracting.

(5) FAR clauses to be used on a ``substantially the same as'' basis

are established.

(6) Substantive coverage providing for handling rate changes by the

agencies is established. This coverage enables agencies to handle such

matters without automatically referring them to GSA for action.

(7) Coverage is added providing generally for the use of standard

forms for acquisition of utility services.

(8) ``Standard'' specification formats have been established for

use in acquiring utility services. Such formats will not be included in

the FAR but will be available for agency use.

(9) ``Standard'' annual utility service review formats have been

established for use in acquiring utility services. Such formats will

not be included in the FAR but will be available for agency use.

B. Regulatory Flexibility Act

The changes may have a significant economic impact on a substantial

number of small entities within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., because a number of public

utilities, especially rural electrical cooperatives, are small

businesses. A Final Regulatory Flexibility Analysis (FRFA) has been

prepared and will be provided to the Chief Counsel for Advocacy for the

Small Business Administration. A copy of the FRFA may be obtained from

the FAR Secretariat. Comments from small entities concerning the

affected FAR subpart will also be considered in accordance with 5

U.S.C. 610. Such comments must be submitted separately and cite 5 U.S.C

601, et seq. (FAC 90-23, FAR case 91-13) in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. L. 96-511) applies because the

final rule contains information collection requirements. A request for

approval of a new information collection requirement concerning OMB

Control Numbers 9000-0122 through 9000-0126, Acquisition of Utility

Services, was submitted to the Office of Management and Budget under 44

U.S.C. 3501, et seq. The information collection was approved through

March 31, 1995. Public comments concerning this request were invited

through a Federal Register notice published on January 9, 1992.

D. Public Comments

On May 24, 1991, a proposed rule was published in the Federal

rulemaking, 263 public comments were received. The comments of all

respondents were considered in developing this final rule. As a result,

the following changes have been made:

(1) Changes have been made to the definitions of connection charge

and franchise service territory and the definition of shared savings

project has been deleted.

(2) The policies governing delegation of authority to contract for

utility services have been revised.

(3) Changes have been made to the coverage dealing with a utility's

refusal to enter into a contract.

(4) Changes have been made to the coverage providing for monthly

and annual reviews of the utility invoices and or services.

(5) A number of the prescriptions for the solicitation provision

and contract clauses have been modified.

(6) Numerous changes have been made to the contract clauses to

address specific comments and to provide more flexibility for the

contracting officer to tailor specific aspects to reflect the practices

in that area.

(7) Other miscellaneous changes have been made.

List of Subjects in 48 CFR Parts 6, 8, 15, 41, and 52

Government procurement.

Dated: December 7, 1994.

Albert A. Vicchiolla,

Director, Office of Federal Acquisition Policy.

Therefore, 48 CFR parts 6, 8, 15, 41, and 52 are amended as set

forth below:

1. The authority citation for 48 CFR parts 6, 8, 15, 41, and 52

continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42

U.S.C. 2473(c).

PART 6--COMPETITION REQUIREMENTS

2. Section 6.302-1 is amended by revising paragraph (b)(3) to read

as follows:

6.302-1 Only one responsible source and no other supplies or services

will satisfy agency requirements.

* * * * *

(b) * * *

(3) When acquiring utility services (see 41.101), circumstances may

dictate that only one supplier can furnish the service (see 41.202); or

when the contemplated contract is for construction of a part of a

utility system and the utility company itself is the only source

available to work on the system.

* * * * *

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

3. Section 8.002 is amended by revising paragraph (b) to read as

follows:

8.002 Use of other Government supply sources.

* * * * *

(b) Public utility services (see part 41 of this title).

* * * * *

Subpart 8.3 [Removed and Reserved]

4. Subpart 8.3, consisting of sections 8.300 through 8.309, is

removed and reserved.

PART 15--CONTRACTING BY NEGOTIATION

15.812-2 [Amended]

5. Section 15.812-2 is amended in paragraph (a)(3) by removing the

words ``subpart 8.3'' and inserting ``part 41'' in its place.

PART 41--ACQUISITION OF UTILITY SERVICES

6. Part 41, consisting of sections 41.100 through 41.702, is added

to read as follows:

Sec.

Subpart 41.1--General

41.100 Scope of part.

41.101 Definitions.

41.102 Applicability.

41.103 Statutory and delegated authority.

Subpart 41.2--Acquiring Utility Services

41.201 Policy.

41.202 Procedures.

41.203 GSA assistance.

41.204 GSA areawide contracts.

41.205 Separate contracts.

41.206 Interagency agreements.

Subpart 41.3--Requests for Assistance

41.301 Requirements.

Subpart 41.4--Administration

41.401 Monthly and annual review.

41.402 Rate changes and regulatory intervention.

Subpart 41.5--Solicitation Provision and Contract Clauses

41.501 Solicitation provision and contract clauses.

Subpart 41.6--Forms

41.601 Utility services forms.

Subpart 41.7--Formats

41.701 Formats for utility service specifications.

41.702 Formats for annual utility service review.

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42

U.S.C. 2473(c).

Subpart 41.1--General

41.100 Scope of part.

This part prescribes policies, procedures, and contract format for

the acquisition of utility services. (See 41.102(b) for services that

are excluded from this part.)

41.101 Definitions.

As used in this part,

Areawide contract means a contract entered into between the General

Services Administration (GSA) and a utility service supplier to cover

utility service needs of Federal agencies within the franchise

territory of the supplier. Each areawide contract includes an

``Authorization'' form for requesting service, connection,

disconnection, or change in service.

Authorization means the document executed by the ordering agency

and the utility supplier to order service under an areawide contract.

Connection charge means all nonrecurring costs, whether refundable

or nonrefundable, to be paid by the Government to the utility supplier

for the required connecting facilities, which are installed, owned,

operated, and maintained by the utility supplier (see Termination

liability).

Delegated agency means an agency that has received a written

delegation of authority from GSA to contract for utility services for

periods not exceeding ten years (see 41.103(b)).

Federal Power and Water Marketing Agency means a Government entity

that produces, manages, transports, controls, and sells electrical and

water supply service to customers.

Franchise territory means a geographical area that a utility

supplier has a right to serve based upon a franchise, a certificate of

public convenience and necessity, or other legal means.

Intervention means action by GSA or a delegated agency to formally

participate in a utility regulatory proceeding on behalf of all Federal

executive agencies.

Multiple service locations means the various locations or delivery

points in the utility supplier's service area to which it provides

service under a single contract.

Rates may include rate schedules, riders, rules, terms and

conditions of service, and other tariff and service charges, e.g.,

facilities use charges.

Separate contract means a utility services contract (other than a

GSA areawide contract, an Authorization under an areawide contract, or

an interagency agreement) to cover the acquisition of utility services.

Termination liability means a contingent Government obligation to

pay a utility supplier the unamortized portion of a connection charge

and any other applicable nonrefundable service charge as defined in the

contract in the event the Government terminates the contract before the

cost of connection facilities has been recovered by the utility

supplier (see ``Connection charge'').

Utility service means a service such as furnishing electricity,

natural or manufactured gas, water, sewerage, thermal energy, chilled

water, steam, hot water, or high temperature hot water. The application

of part 41 to other services (e.g., rubbish removal, snow removal) may

be appropriate when the acquisition is not subject to the Service

Contract Act of 1965 (see 37.107).

41.102 Applicability.

(a) Except as provided in paragraph (b) of this section, this part

applies to the acquisition of utility services for the Government,

including connection charges and termination liabilities.

(b) This part does not apply to--

(1) Utility services produced, distributed, or sold by another

Federal agency. In those cases, agencies shall use interagency

agreements (see 41.206);

(2) Utility services obtained by purchase, exchange, or otherwise

by a Federal power or water marketing agency incident to that agency's

marketing or distribution program;

(3) Cable television (CATV) and telecommunications services;

(4) Acquisition of natural or manufactured gas when purchased as a

commodity;

(5) Acquisition of utilities services in foreign countries;

(6) Acquisition of rights in real property, acquisition of public

utility facilities, and on-site equipment needed for the facility's own

distribution system, or construction/maintenance of Government-owned

facilities; or

(7) Third party financed shared-savings projects authorized by 42

U.S.C. 8287. However, agencies may utilize part 41 for any energy

savings or purchased utility service directly resulting from

implementation of a third party financed shared-savings project under

42 U.S.C. 8287 for periods not to exceed 25 years.

41.103 Statutory and delegated authority.

(a) Statutory authority. (1) The General Services Administration

(GSA) is authorized by section 201 of the Federal Property and

Administrative Services Act of 1949, as amended (40 U.S.C. 481), to

prescribe policies and methods governing the acquisition and supply of

utility services for Federal agencies. This authority includes related

functions such as managing public utility services and representing

Federal agencies in proceedings before Federal and state regulatory

bodies. GSA is authorized by section 201 of the Act to contract for

utility services for periods not exceeding ten years.

(2) The Department of Defense (DOD) is authorized by 10 U.S.C.

2301, 2304, and 40 U.S.C. 474(3) to acquire utility services for

military facilities.

(3) The Department of Energy (DOE) is authorized by the Department

of Energy Organization Act (42 U.S.C. 2751, et seq.) to acquire utility

services. DOE is authorized by the Atomic Energy Act of 1954, as

amended (42 U.S.C. 2204), to enter into new contracts or modify

existing contracts for electric services for periods not exceeding 25

years for uranium enrichment installations.

(b) Delegated authority. GSA has delegated its authority to enter

into utility service contracts for periods not exceeding ten years to

DOD and DOE, and for connection charges only to the Department of

Veteran Affairs. Contracting pursuant to this delegated authority shall

be consistent with the requirements of this part. Other agencies

requiring utility service contracts for periods over one year, but not

exceeding ten years, may request a delegation of authority from GSA at

the address specified in 41.301(a). In keeping with its statutory

authority, GSA will, as necessary, conduct reviews of delegated

agencies' acquisitions of utility services to ensure compliance with

the terms of the delegation and applicable laws and regulations.

shall include a certification from the acquiring agency's Senior

Procurement Executive that the agency has--

(1) An established acquisition program;

(2) Personnel technically qualified to deal with specialized

utilities problems; and

(3) The ability to accomplish its own pre-award contract review.

Subpart 41.2--Acquiring Utility Services

41.201 Policy.

(a) Subject to paragraph (d) of this section, it is the policy of

the Federal Government that agencies obtain required utility services

from sources of supply which are most advantageous to the Government in

terms of economy, efficiency, reliability, or service.

(b) Except for acquisitions below the small purchase limitation

(see 13.000), agencies shall acquire utility services by a bilateral

written contract, which must include the clauses required by 41.501,

regardless of whether rates or terms and conditions of service are

fixed or adjusted by a regulatory body. Agencies may not use the

utility supplier's forms and clauses to avoid the inclusion of

provisions and clauses required by 41.501 or by statute. (See 41.202(c)

for procedures to be used when the supplier refuses to execute a

written contract.)

for internal agency contract assistance and review, delegations of

authority, and approval thresholds, may be prescribed by an individual

agency subject to compliance with applicable statutes and regulations.

(d)(1) Section 8093 of the Department of Defense Appropriations Act

of 1988, Pub. L. 100-202, provides that none of the funds appropriated

by that Act or any other Act with respect to any fiscal year by any

department, agency, or instrumentality of the United States, may be

used for the purchase of electricity by the Government in any manner

that is inconsistent with state law governing the providing of electric

utility service, including state utility commission rulings and

electric utility franchises or service territories established pursuant

to state statute, state regulation, or state-approved territorial

agreements.

(2) The Act does not preclude--

(i) The head of a Federal agency from entering into a contract

pursuant to 42 U.S.C. 8287 (which pertains to the subject of shared

energy savings including cogeneration);

(ii) The Secretary of a military department from entering into a

contract pursuant to 10 U.S.C. 2394 (which pertains to contracts for

energy or fuel for military installations including the provision and

operation of energy production facilities); or

(iii) The Secretary of a military department from purchasing

electricity from any provider when the utility or utilities having

applicable state-approved franchise or other service authorizations are

found by the Secretary to be unwilling or unable to meet unusual

standards for service reliability that are necessary for purposes of

national defense.

(3) Additionally, the head of a Federal agency may--

(i) Consistent with applicable state law, enter into contracts for

the purchase or transfer of electricity to the agency by a non-utility,

including a qualifying facility under the Public Utility Regulatory

Policies Act of 1978;

(ii) Enter into an interagency agreement, pursuant to 41.206 and

17.5, with a Federal power marketing agency or the Tennessee Valley

Authority for the transfer of electric power to the agency; and

(iii) Enter into a contract with an electric utility under the

authority or tariffs of the Federal Energy Regulatory Commission.

(e) Prior to acquiring electric utility services on a competitive

basis, the contracting officer shall determine, with the advice of

legal counsel, by a market survey or any other appropriate means, e.g.

consultation with the state agency responsible for regulating public

utilities, that such competition would not be inconsistent with state

law governing the provision of electric utility service, including

state utility commission rulings and electric utility franchises or

service territories established pursuant to state statute, state

regulation, or state-approved territorial agreements. Proposals from

alternative electric suppliers must provide a representation that

service can be provided in a manner not inconsistent with section 8093

of Public Law 100-202 (see 41.201(d)). The representation must be

supported with appropriate legal and factual rationale.

41.202 Procedures.

(a) Prior to executing a utility service contract, the contracting

officer shall comply with parts 6 and 7 and 41.201 (d) and (e). In

accordance with parts 6 and 7, agencies shall conduct market surveys

and perform acquisition planning in order to promote and provide for

full and open competition provided that the contracting officer

determines that any resultant contract would not be inconsistent with

applicable state law governing the provision of electric utility

services. If competition for an entire utility service is not

available, the market survey may be used to determine the availability

of competitive sources for certain portions of the requirement. The

scope of the term ``entire utility service'' includes the provision of

the utility service capacity, energy, water, sewage, transportation,

standby or back-up service, transmission and/or distribution service,

quality assurance, system reliability, system operation and

maintenance, metering, and billing.

(b) In performing a market survey (see 7.101), the contracting

officer shall consider, in addition to alternative competitive sources,

use of the following:

(1) GSA areawide contracts (see 41.204);

(2) Separate contracts (see 41.205); and

(3) Interagency agreements (see 41.206).

as outlined in 41.201(b), the agency shall obtain a written definite

and final refusal signed by a corporate officer or other responsible

official of the supplier (or if unobtainable, document any unwritten

refusal), and transmit this document, along with statements of the

reasons for the refusal and the record of negotiations, to GSA at the

address specified at 41.301(a). Unless urgent and compelling

circumstances exist, the contracting officer shall notify GSA prior to

acquiring utility services without executing a tendered contract. After

such notification, the agency may proceed with the acquisition and pay

for the utility service under the provisions of 31 U.S.C. 1501(a)(8)--

(1) By issuing a purchase order in accordance with subpart 13.5; or

(2) By ordering the necessary utility service and paying for it

upon the presentation of an invoice, provided that a determination is

approved by the head of the contracting activity that a written

contract cannot be obtained and that the issuance of a purchase order

is not feasible.

(d) When obtaining service without a bilateral written contract,

the contracting officer shall establish a utility history file on each

acquisition of utility service provided by a contractor. This utility

history file shall contain, in addition to applicable documents in

4.803, the following information:

(1) The unsigned, tendered contract and any related letter of

transmittal.

(2) The reasons stated by the utility supplier for not executing

the tendered contract, the record of negotiations, and a written

definite and final refusal by a corporate officer or other responsible

official of the supplier (or if unobtainable, documentation of

unwritten refusal).

(3) Services to be furnished and the estimated annual cost.

(4) Historical record of any applicable connection charges.

(5) Historical record of any applicable ongoing capital credits.

(6) A copy of the applicable rate schedule.

(e) If the Government obtains utility service pursuant to paragraph

beginning from the date of final refusal, take action to execute a

bilateral written contract. The contracting officer shall document the

utility history file with the efforts made and the agency shall notify

GSA, in writing, if the utility continues to refuse to execute a

bilateral contract.

41.203 GSA assistance.

(a) GSA will, upon request, provide technical and acquisition

assistance, or will delegate its contracting authority for the

furnishing of the services described in this part for any Federal

agency, mixed-ownership Government corporation, the District of

Columbia, the Senate, the House of Representatives, or the Architect of

the Capitol and any activity under the Architect's direction.

(b) Agencies seeking assistance shall provide, upon request by GSA,

the information listed in 41.301.

41.204 GSA areawide contracts.

(a) Purpose. GSA enters into areawide contracts (see 41.101) for

use by Federal agencies. Areawide contracts provide a pre-established

contractual vehicle for ordering utility services under the conditions

in paragraph (c)(1) of this section.

(b) Features. (1) Areawide contracts generally provide for ordering

utility service at rates approved and/or established by a regulatory

body and published in a tariff or rate schedule. However, agencies are

permitted to negotiate other rates and terms and conditions of service

with the supplier (see paragraph (c) of this section). Rates other than

those published may require the approval of the regulatory body.

(2) Areawide contracts are negotiated with utility service

suppliers for the provision of service within the supplier's franchise

territory or service area.

(3) Due to the regulated nature of the utility industry, as well as

statutory restrictions associated with the procurement of electricity

(see 41.201(d)), competition is typically not available within the

entire geographical area covered by an areawide contract, although it

may be available at specific locations within the utility's service

area. When competing suppliers are available, the provisions of

paragraph (c)(1) of this section apply.

a requirement for utility services within an area covered by an

areawide contract shall acquire services under that areawide contract

unless--

(i) Service is available from more than one supplier; or

(ii) The head of the contracting activity or designee otherwise

determines that use of the areawide contract is not advantageous to the

Government. If service is available from more than one supplier,

service shall be acquired using competitive acquisition procedures (see

41.202(a)). The determination required by paragraph (c)(1)(ii) of this

section shall be documented in the contract file with an information

copy furnished to GSA at the address in 41.301(a).

(2) Each areawide contract includes an authorization form for

ordering service, connection, disconnection, or change in service. Upon

execution of an authorization by the contracting officer and utility

supplier, the utility supplier is required to furnish services, without

further negotiation, at the current, applicable published or

unpublished rates, unless other rates, and/or terms and conditions are

separately negotiated by the Federal agency with the supplier.

(3) The contracting officer shall execute the Authorization, and

attach it to a Standard Form (SF) 26, Award/Contract, along with any

modifications such as connection charges, special facilities, or

service arrangements. The contracting officer shall also attach any

specific fiscal, operational, and administrative requirements of the

agency, applicable rate schedules, technical information and detailed

maps or drawings of delivery points, details on Government ownership,

maintenance, or repair of facilities, and other information deemed

necessary to fully define the service conditions in the Authorization/

contract.

(d) List of areawide contracts. A list of current GSA areawide

contracts is available from the GSA office specified at 41.301(a). The

list identifies the types of services and the geographic area served. A

copy of the contract may also be obtained from this office.

(e) Notification. Agencies shall provide GSA at the address

specified at 41.301(a) a copy of each SF 26 and executed Authorization

issued under an areawide contract within 30 days after execution.

41.205 Separate contracts.

(a) In the absence of an areawide contract or interagency agreement

(see 41.206), agencies shall acquire utility services by separate

contract subject to this part, and subject to agency contracting

authority.

(b) If an agency enters into a separate contract, the contracting

officer shall document the contract file with the following

information:

(1) The number of available suppliers.

(2) Any special equipment, service reliability, or facility

requirements and related costs.

(3) The utility supplier's rates, connection charges, and

termination liability.

(4) Total estimated contract value (including costs in

subparagraphs (b) (2) and (3) of this subsection).

(5) Any technical or special contract terms required.

(6) Any unusual characteristics of services required.

(7) The utility's wheeling or transportation policy for utility

service.

requesting agency shall furnish the technical and acquisition data

specified in 41.205(b), 41.301, and such other data as GSA may deem

necessary.

(d) A contract exceeding a 1-year period, but not exceeding ten

years (except pursuant to 41.103), may be justified, and is usually

required, where any of the following circumstances exist:

(1) The Government will obtain lower rates, larger discounts, or

more favorable terms and conditions of service;

(2) A proposed connection charge, termination liability, or any

other facilities charge to be paid by the Federal Government will be

reduced or eliminated; or

(3) The utility service supplier refuses to render the desired

service except under a contract exceeding a 1-year period.

41.206 Interagency agreements.

Agencies shall use interagency agreements (e.g., consolidated

purchase, joint use, or cross-service agreements) when acquiring

utility service or facilities from other Government agencies and shall

comply with the policies and procedures at subpart 17.5, Interagency

Acquisitions under the Economy Act.

Subpart 41.3--Requests for Assistance

41.301 Requirements.

(a) Requests for delegations of GSA contracting authority,

assistance with a proposed contract as provided in 41.203, and the

submission of other information required by this part, shall be sent or

submitted to the General Services Administration (GSA) region in which

service is required. The names and locations of GSA regional offices

are available from the Public Utilities Division (PPU), Public

Buildings Service, Washington, DC 20405.

(b) Requests for contracting assistance for utility services shall

be sent not later than 120 days prior to the date new services are

required to commence an existing contract will expire. Requests for

assistance shall contain the following information:

(1) A technical description or specification of the type, quantity,

and quality of service required, and a delivery schedule.

(2) A copy of any service proposal or proposed contract.

(3) Copies of all current published or unpublished rates of the

utility supplier.

(4) Identification of any unusual factors affecting the

acquisition.

(5) Identification of all available sources or methods of supply,

an analysis of the cost effectiveness of each, and a statement of the

ability of each source to provide the required services, including the

location and a description of each available supplier's facilities at

the nearest point of service, and the cost of providing or obtaining

necessary backup and other ancillary services.

the information in paragraph (a) of this section and the following as

applicable:

(1) The date initial service is required.

(2) For the first 12 months of full service, estimated maximum

demand, monthly consumption, other pertinent information (e.g., demand

side management, load or energy management, peak shaving, on site

generation, load shaping), and annual cost of the service.

(3) Known or estimated time schedule for growth to ultimate

requirements.

(4) Estimated ultimate maximum demand and ultimate monthly

consumption.

(5) A simple schematic diagram or line drawing showing the meter

locations, the location of the new utility facilities to be constructed

on Federal property by the Federal agency, and any required new

connection facilities on either side of the delivery point to be

constructed by the utility supplier to provide the new services.

(6) Accounting and appropriation data to cover the required utility

services and any connection charges required to be paid by the agency

receiving such utility services.

(7) The following data concerning proposed facilities and related

charges or costs:

(i) Proposed refundable or nonrefundable connection charge,

termination liability, or other facilities charge to be paid by the

agency, together with a description of the supplier's proposed

facilities and estimated construction costs, and its rationale for the

charge (e.g., tariff provisions or policies).

(ii) A copy of the acquiring agency's estimate to make its own

connection to the supplier's facilities through use of its own

resources or by separate contract. When feasible, the acquiring agency

shall provide its estimates to construct and operate its own utility

facilities in lieu of participating in a cost-sharing construction

program with the proposed utility supplier.

(d) For existing utility service, the agency shall furnish GSA the

information in paragraph (b) of this section and the following, as

applicable:

(1) A copy of the most recent 12-months' service invoices.

(2) A tabulation, by month, for the most recent 12 months, showing

the actual utility demands, consumption, connection charges, fuel

adjustment charges, and the average monthly cost per unit of

consumption.

(3) An estimate, by month, for the next 12 months, showing the

estimated maximum demands, monthly consumption, other pertinent

information (e.g., demand side management, load or energy management,

peak shaving, on site generation, load shaping), and annual cost of the

service.

(4) Accounting and appropriation data to cover the costs for the

continuation of utility services.

(5) A statement noting whether the transformer, or other system

components, on either side of the delivery point are owned by the

Federal agency or the utility supplier, and if the metering is on the

primary or secondary side of the transformer.

Subpart 41.4--Administration

41.401 Monthly and annual review.

Agencies shall review utility service invoices on a monthly basis

and all utility accounts, with annual values exceeding the small

purchase threshold, on an annual basis. Annual reviews of accounts with

annual values beneath the small purchase dollar threshold shall be

conducted when deemed advantageous to the Government. The purpose of

the monthly review is to ensure the accuracy of utility service

invoices. The purpose of the annual review is to ensure that the

utility supplier is furnishing the services to each facility under the

utility's most economical, applicable rate and to examine competitive

markets for more advantageous service offerings. The annual review

shall be based upon the facility's usage, conditions and

characteristics of service at each individual delivery point for the

most recent 12 months. If a more advantageous rate is appropriate, the

Federal agency shall request the supplier to make such rate change

immediately.

41.402 Rate changes and regulatory intervention.

(a) When a change is proposed to rates or terms and conditions of

service to the Government, the agency shall promptly determine whether

the proposed change is reasonable, justified, and not discriminatory.

(b) If a change is proposed to rates or terms and conditions of

service that may be of interest to other Federal agencies, and

intervention before a regulatory body is considered justified, the

matter shall be referred to GSA. The agency may request from GSA a

delegation of authority for the agency to intervene on behalf of the

consumer interests of the Federal executive agencies (see 41.301).

of Service for Regulated Services, if a regulatory body approves a rate

change, any rate change shall be made a part of the contract by

unilateral contract modification or otherwise documented in accordance

with agency procedures. The approved applicable rate shall be effective

on the date determined by the regulatory body and resulting rates and

charges shall be paid promptly to avoid late payment provisions. Copies

of the modification containing the approved rate change shall be sent

to the agency's paying office or office responsible for verifying

billed amounts (see 41.401).

(d) If the utility supplier is not regulated and the rates, terms,

and conditions of service are subject to negotiation pursuant to the

clause at 52.241-8, Change in Rates or Terms and Conditions of Service

for Unregulated Services, any rate change shall be made a part of the

contract by contract modification, with copies sent to the agency's

paying office or office responsible for verifying billed amounts.

Subpart 41.5--Solicitation Provision and Contract Clauses

41.501 Solicitation provision and contract clauses.

(a) Because the terms and conditions under which utility suppliers

furnish service may vary from area to area, the differences may

influence the terms and conditions appropriate to a particular

utility's contracting situation. To accommodate requirements that are

peculiar to the contracting situation, this section prescribes

provisions and clauses on a ``substantially the same as'' basis (see

52.101) which permits the contracting officer to prepare and utilize

variations of the prescribed provision and clauses in accordance with

agency procedures.

(b) The contracting officer shall insert in solicitations for

utility services a provision substantially the same as the provision at

52.241-1, Electric Service Territory Compliance Representation, when

proposals from alternative electric suppliers are sought.

contracts for utility services clauses substantially the same as the

clauses at--

(1) 52.241-2, Order of Precedence--Utilities;

(2) 52.241-3, Scope and Duration of Contract;

(3) 52.241-4, Change in Class of Service;

(4) 52.241-5, Contractor's Facilities; and

(5) 52.241-6, Service Provisions.

(d) The contracting officer shall insert clauses substantially the

same as the clauses listed below in solicitations and contracts under

the prescribed conditions--

(1) 52.241-7, Change in Rates or Terms and Conditions of Service

for Regulated Services, when the utility services are subject to a

regulatory body. (Except for GSA areawide contracts, the contracting

officer shall insert in the blank space provided in the clause the name

of the contracting officer. For GSA areawide contracts, the contracting

officer shall insert the following: ``GSA and each areawide customer

with annual billings that exceed $250,000.'')

(2) 52.241-8, Change in Rates or Terms and Conditions of Service

for Unregulated Services, when the utility services are not subject to

a regulatory body.

(3) 52.241-9, Connection Charge, when a refundable connection

charge is required to be paid by the Government to compensate the

contractor for furnishing additional facilities necessary to supply

service. (Use Alternate I to the clause if a nonrefundable charge is to

be paid. When conditions require the incorporation of a nonrecurring,

nonrefundable service charge or a termination liability, see paragraphs

(f) and (i) of this section.)

(4) 52.241-10, Termination Liability, when payment is to be made to

the contractor upon termination of service in conjunction with or in

lieu of a connection charge upon completion of the facilities.

(5) 52.241-11, Multiple Service Locations (as defined in 41.101),

when providing for possible alternative service locations, except under

areawide contracts, is required.

(6) 52.241-12, Nonrefundable, Nonrecurring Service Charge, when the

Government is required to pay a nonrefundable, nonrecurring membership

fee, a charge for initiation of service, or a contribution for the cost

of facilities construction. The Government may provide for inclusion of

such agreed amount or fee as a part of the connection charge, a part of

the initial payment for services, or as periodic payments to fulfill

the Government's obligation.

(7) 52.241-13, Capital Credits, when the Federal Government is a

member of a cooperative and is entitled to capital credits, consistent

with the bylaws and governing documents of the cooperative.

(e) Depending on the conditions that are appropriate for each

acquisition, the contracting officer shall also insert in solicitations

and contracts for utility services the provisions and clauses

prescribed elsewhere in the FAR.

Subpart 41.6--Forms

41.601 Utility services forms.

(a) If acquiring utility services under other than an areawide

contract, a purchase order, or an interagency agreement, the Standard

Form (SF) 33, Solicitation, Offer and Award; SF 26, Award/Contract; or

SF 1447, Solicitation/Contract, shall be used.

(b) The contracting officer shall incorporate the applicable rate

schedule in each contract, purchase order or modification.

Subpart 41.7--Formats

41.701 Formats for utility service specifications.

(a) The following specification formats for use in acquiring

utility services are available from the address specified at 41.301(a)

and may be used and modified at the agency's discretion:

(1) Electric service.

(2) Water service.

(3) Steam service.

(4) Sewage service.

(5) Natural gas service.

(b) Contracting officers may modify the specification format

referenced in paragraph (a) of this section and attach technical items,

details on Government ownership of facilities and maintenance or repair

obligations, maps or drawings of delivery points, and other information

deemed necessary to fully define the service conditions.

section) shall be inserted in Section C of the utility service

solicitation and contract.

41.702 Formats for annual utility service review.

(a) Formats for use in conducting annual reviews of the following

utility services are available from the address specified at 41.301(a)

and may be used at the agency's discretion:

(1) Electric service.

(2) Gas service.

(3) Water and sewage service.

(b) Contracting officers may modify the annual utility service

review format as necessary to fully cover the service used.

PART 52 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

52.208-3 [Removed and Reserved]

6. Section 52.208-3 is removed and reserved.

7. Sections 52.241 through 52.241-13 are added to read as follows:

52.241 Utility services provisions and clauses.

52.241-1 Electric service territory compliance representation.

As prescribed in 41.501(b), insert a provision substantially the

same as the following:

Public Law 100-202, Electric Service Territory Compliance

Representation (Feb. 1995)

(a) The Offeror represents as part of its offer that the

Offeror's sale of electricity in accordance with the terms and

conditions of this solicitation is [ ] is not [ ] consistent with

Public Law 100-202, section 8093.

(b) The Offeror's supporting rationale is as follows:

----------------------------------------------------------------------

(End of provision)

52.241-2 Order of precedence-utilities.

As prescribed in 41.501(c)(1), insert a clause substantially the

same as the following:

Order of Precedence-Utilities (Feb. 1995)

In the event of any inconsistency between the terms of this

contract (including the specifications) and any rate schedule,

rider, or exhibit incorporated in this contract by reference or

otherwise, or any of the Contractor's rules and regulations, the

terms of this contract shall control.

(End of clause)

52.241-3 Scope and duration of contract.

As prescribed in 41.501(c)(2), insert a clause substantially the

same as the following:

Scope And Duration of Contract (Feb. 1995)

(a) For the period

, [insert period of service] the Contractor agrees to furnish and the

Government agrees to purchase------------------------------------------

[insert type of service] utility service in accordance with the

applicable tariff(s), rules, and regulations as approved by the

applicable governing regulatory body and as set forth in the

contract.

(b) It is expressly understood that neither the Contractor nor

the Government is under any obligation to continue any service under

the terms and conditions of this contract beyond the expiration

date.

complete set of rates, terms, and conditions of service which are in

effect as of the date of this contract and any subsequently approved

rates.

(d) The Contractor shall be paid at the applicable rate(s) under

the tariff and the Government shall be liable for the minimum

monthly charge, if any, specified in this contract commencing with

the period in which service is initially furnished and continuing

for the term of this contract. Any minimum monthly charge specified

in this contract shall be equitably prorated for the periods in

which commencement and termination of this contract become

effective.

(End of clause)

52.241-4 Change in class of service.

As prescribed in 41.501(c)(3), insert a clause substantially the

same as the following:

Change in Class of Service (Feb. 1995)

(a) In the event of a change in the class of service, such

service shall be provided at the Contractor's lowest available rate

schedule applicable to the class of service furnished.

(b) Where the Contractor does not have on file with the

regulatory body approved rate schedules applicable to services

provided, no clause in this contract shall preclude the parties from

negotiating a rate schedule applicable to the class of service

furnished.

(End of clause)

52.241-5 Contractor's facilities.

As prescribed in 41.501(c)(4), insert a clause substantially the

same as the following:

Contractor's Facilities (Feb. 1995)

(a) The Contractor, at its expense, unless otherwise provided

for in this contract, shall furnish, install, operate, and maintain

all facilities required to furnish service hereunder, and measure

such service at the point of delivery specified in the Service

Specifications. Title to all such facilities shall remain with the

Contractor and the Contractor shall be responsible for loss or

damage to such facilities, except that the Government shall be

responsible to the extent that loss or damage has been caused by the

Government's negligent acts or omissions.

(b) Notwithstanding any terms expressed in this clause, the

Contractor shall obtain approval from the Contracting Officer prior

to any equipment installation, construction, or removal. The

Government hereby grants to the Contractor, free of any rental or

similar charge, but subject to the limitations specified in this

contract, a revocable permit or license to enter the service

location for any proper purpose under this contract. This permit or

license includes use of the site or sites agreed upon by the parties

hereto for the installation, operation, maintenance, and repair of

the facilities of the Contractor required to be located upon

Government premises. All applicable taxes and other charges in

connection therewith, together with all liability of the Contractor

in construction, operation, maintenance and repair of such

facilities, shall be the obligation of the Contractor.

access to the facilities on Government premises at reasonable times

to perform the obligations of the Contractor regarding such

facilities. It is expressly understood that the Government may limit

or restrict the right of access herein granted in any manner

considered necessary (e.g., national security, public safety).

(d) Unless otherwise specified in this contract, the Contractor

shall, at its expense, remove such facilities and restore Government

premises to their original condition as near as practicable within a

reasonable time after the Government terminates this contract. In

the event such termination of this contract is due to the fault of

the Contractor, such facilities may be retained in place at the

option of the Government for a reasonable time while the Government

attempts to obtain service elsewhere comparable to that provided for

hereunder.

(End of clause)

Sec. 52.241-6 Service provisions.

As prescribed in 41.501(c)(5), insert a clause substantially the

same as the following:

Service Provisions (Feb 1995)

(a) Measurement of service. (1) All service furnished by the

Contractor shall be measured by suitable metering equipment of

standard manufacture, to be furnished, installed, maintained,

repaired, calibrated, and read by the Contractor at its expense.

When more than a single meter is installed at a service location,

the readings thereof may be billed conjunctively, if appropriate. In

the event any meter fails to register (or registers incorrectly) the

service furnished, the parties shall agree upon the length of time

of meter malfunction and the quantity of service delivered during

such period of time. An appropriate adjustment shall be made to the

next invoice for the purpose of correcting such errors. However, any

meter which registers not more than ____ percent slow or fast shall

be deemed correct.

(2) The Contractor shall read all meters at periodic intervals

of approximately 30 days or in accordance with the policy of the

cognizant regulatory body or applicable bylaws. All billings based

on meter readings of less than ____ days shall be prorated

accordingly.

(b) Meter test. (1) The Contractor, at its expense, shall

periodically inspect and test Contractor-installed meters at

intervals not exceeding ____ year(s). The Government has the right

to have representation during the inspection and test.

(2) At the written request of the Contracting Officer, the

Contractor shall make additional tests of any or all such meters in

the presence of Government representatives. The cost of such

additional tests shall be borne by the Government if the percentage

of errors is found to be not more than percent slow or fast.

(3) No meter shall be placed in service or allowed to remain in

service which has an error in registration in excess of ____ percent

under normal operating conditions.

given by the Contracting Officer to the Contractor regarding any

material changes anticipated in the volume or characteristics of the

utility service required at each location.

(d) Continuity of service and consumption. The Contractor shall

use reasonable diligence to provide a regular and uninterrupted

supply of service at each service location, but shall not be liable

for damages, breach of contract or otherwise, to the Government for

failure, suspension, diminution, or other variations of service

occasioned by or in consequence of any cause beyond the control of

the Contractor, including but not limited to acts of God or of the

public enemy, fires, floods, earthquakes, or other catastrophe,

strikes, or failure or breakdown of transmission or other

facilities. If any such failure, suspension, diminution, or other

variation of service shall aggregate more than ____ hour(s) during

any billing period hereunder, an equitable adjustment shall be made

in the monthly billing specified in this contract (including the

minimum monthly charge).

(End of clause)

52.241-7 Change in rates or terms and conditions of service for

regulated services.

As prescribed in 41.501(d)(1), insert a clause substantially the

same as the following:

Change In Rates or Terms and Conditions of Service for Regulated

Services (Feb 1995)

(a) This clause applies to the extent services furnished under

this contract are subject to regulation by a regulatory body. The

Contractor agrees to give *____________________ written notice of

(1) the filing of an application for change in rates or terms and

conditions of service concurrently with the filing of the

application and (2) any changes pending with the regulatory body as

of the date of contract award. Such notice shall fully describe the

proposed change. If, during the term of this contract, the

regulatory body having jurisdiction approves any changes, the

Contractor shall forward to the Contracting Officer a copy of such

changes within 15 days after the effective date thereof. The

Contractor agrees to continue furnishing service under this contract

in accordance with the amended tariff, and the Government agrees to

pay for such service at the higher or lower rates as of the date

when such rates are made effective.

(b) The Contractor agrees that throughout the life of this

contract the applicable published and unpublished rate schedule(s)

shall not be in excess of the lowest cost published and unpublished

rate schedule(s) available to any other customers of the same class

under similar conditions of use and service.

regulation concerning matters other than rates which affects this

contract, the Contractor shall immediately provide a copy to the

Contracting Officer. The Government shall not be bound to accept any

new regulation inconsistent with Federal laws or regulations.

(d) Any changes to rates or terms and conditions of service

shall be made a part of this contract by the issuance of a contract

modification unless otherwise specified in the contract. The

effective date of the change shall be the effective date by the

regulatory body. Any factors not governed by the regulatory body

will have an effective date as agreed to by the parties.

(End of clause)

*Note: Insert language prescribed in 41.501(d)(1)

52.241-8 Change in rates or terms and conditions of service for

unregulated services.

As prescribed in 41.501(d)(2), insert a clause substantially the

same as the following:

Change in Rates or Terms and Conditions of Service For Unregulated

Services (Feb 1995)

(a) This clause applies to the extent that services furnished

hereunder are not subject to regulation by a regulatory body.

(b) After ____________________ [insert date], either party may

request a change in rates or terms and conditions of service, unless

otherwise provided in this contract. Both parties agree to enter in

negotiations concerning such changes upon receipt of a written

request detailing the proposed changes and specifying the reasons

for the proposed changes.

the parties. The Contractor agrees that throughout the life of this

contract the rates so negotiated will not be in excess of published

and unpublished rates charged to any other customer of the same

class under similar terms and conditions of use and service.

(d) The failure of the parties to agree upon any change after a

reasonable period of time shall be a dispute under the Disputes

clause of this contract.

(e) Any changes to rates, terms, or conditions as a result of

such negotiations shall be made a part of this contract by the

issuance of a contract modification.

(End of clause)

52.241-9 Connection charge.

As prescribed in 41.501(d)(3), insert a clause substantially the

same as the following:

Connection Charge (Feb. 1995)

(a) Charge. In consideration of the Contractor furnishing and

installing at its expense the new connection facilities described

herein, the Government shall pay the Contractor a connection charge.

The payment shall be in the form of progress payments, advance

payments or as a lump sum, as agreed to by the parties and as

permitted by applicable law. The total amount payable shall be

either the estimated cost of $______ less the agreed to salvage

value of $______, or the actual cost less the salvage value,

whichever is less. As a condition precedent to final payment, the

Contractor shall execute a release of any claims against the

Government arising under or by the virtue of such installation.

(b) Ownership, operation, maintenance and repair of new

facilities to be provided. The facilities to be supplied by the

Contractor under this clause, notwithstanding the payment by the

Government of a connection charge, shall be and remain the property

of the Contractor and shall, at all times during the life of this

contract or any renewals thereof, be operated, maintained, and

repaired by the Contractor at its expense. All taxes and other

charges in connection therewith, together with all liability arising

out of the construction, operations, maintenance, or repair of such

facilities, shall be the obligation of the Contractor.

on each monthly bill for service furnished under this contract to

the service location, a credit of ________ percent of the amount of

each such bill as rendered until the accumulation of credits shall

equal the amount of such connection charge, provided that the

Contractor may at any time allow a credit up to 100 percent of the

amount of each such bill.

(2) In the event the Contractor, before any termination of this

contract but after completion of the facilities provided for in this

clause, serves any customer other than the Government (regardless of

whether the Government is being served simultaneously,

intermittently, or not at all) by means of these facilities, the

Contractor shall promptly notify the Government in writing. Unless

otherwise agreed by the parties in writing at that time, the

Contractor shall promptly accelerate the credits provided for under

subparagraph (c)(1) of this clause, up to 100 percent of each

monthly bill until there is refunded the amount that reflects the

Government's connection costs for that portion of the facilities

used in serving others.

(3) In the event the Contractor terminates this contract, or

defaults in performance, prior to full credit of any connection

charge paid by the Government, the Contractor shall pay to the

Government an amount equal to the uncredited balance of the

connection charge as of the date of the termination or default.

(d) Termination before completion of facilities. The Government

reserves the right to terminate this contract at any time before

completion of the facilities with respect to which the Government is

to pay a connection charge. In the event the Government exercises

this right, the Contractor shall be paid the cost of any work

accomplished, including direct and indirect costs reasonably

allocable to the completed work prior to the time of termination by

the Government, plus the cost of removal, less the salvage value.

(e) Termination after completion of facilities. In the event the

Government terminates this contract after completion of the

facilities with respect to which the Government has paid a

connection charge, but before the crediting in full by the

Contractor of any connection charge in accordance with the terms of

this contract, the Contractor shall have the following options:

(1) To retain in place for ________ months after the notice of

termination by the Government such facilities on condition that--

(i) If, during such ________ month period, the Contractor serves

any other customer by means of such facilities, the Contractor,

shall, in lieu of allowing credits, pay the Government during such

period installments in like amount, manner, and extent as the credit

provided for under paragraph (c) of this clause before such

termination; and

(ii) Immediately after such ________ month period the Contractor

shall promptly pay in full to the Government the uncredited balance

of the connection charge.

(2) To remove such facilities at the Contractor's own expense

within ________ months after the effective date of the termination

by the Government. If the Contractor elects to remove such

facilities, the Government shall then have the option of purchasing

such facilities at the agreed salvage value set forth herein; and

provided further, that the Contractor shall, at the direction of the

Government, leave in place such facilities located on Government

property which the Government elects to purchase at the agreed

salvage value.

(End of clause)

Alternate I (Nov 1994). If the Contracting Officer determines

that a nonrefundable charge is to be paid and no credits are due the

Government, delete paragraphs (c) and (e), renumber paragraph (d) as

(d) Termination after completion of facilities. In the event the

Government terminates this contract after completion of the

facilities with respect to which the Government is to pay a

connection charge, the Contractor shall have the following options:

(1) To retain in place for ________ months after the notice of

termination by the Government. If the Contractor and the Government

have not agreed on terms for retention in place beyond ________

months, then the Contractor must remove the facilities pursuant to

the terms of subparagraph (d)(2) of this clause.

(2) To remove such facilities at the Contractor's own expense

within ________ months after the effective date of the termination

by the Government. If the Contractor elects to remove such

facilities, the Government shall then have the option of purchasing

such facilities at the agreed salvage value set forth herein; and

provided further, that the Contractor shall, at the direction of the

Government, leave in place such facilities located on Government

property which the Government elects to purchase at the agreed

salvage value.

52.241-10 Termination liability.

As prescribed in 41.501(d)(4), insert a clause substantially the

same as the following:

Termination Liability (Feb 1995)

(a) If the Government discontinues utility service under this

contract before completion of the facilities cost recovery period

specified in paragraph (b) of this clause, in consideration of the

Contractor furnishing and installing at its expense, the new

facility described herein, the Government shall pay termination

charges, calculated as set forth in this clause.

(b) Facility cost recovery period. The period of time, not

exceeding the term of this contract, during which the net cost of

the new facility, shall be recovered by the Contractor is--

________ months. [Insert negotiated duration.]

agreed upon salvage value of such facility, is--

$________. [Insert appropriate dollar amount.]

(d) Monthly facility cost recovery rate. The monthly facility

cost recovery rate which the Government shall pay the Contractor

whether or not service is received is--

$________. [Divide the net facility cost in paragraph (c) of

this clause by the facility's cost recovery period in paragraph (b)

of this clause and insert the resultant figure.]

(e) Termination charges. Termination charges = $[Multiply the

remaining months of the facility's cost recovery period specified in

paragraph (b) of this clause by the monthly facility cost recovery

rate in paragraph (d) of this clause and insert the resultant

figure.]

(f) If the Contractor has recovered its capital costs at the

time of termination there will be no termination liability charge.

(End of clause)

52.241-11 Multiple service locations.

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)

52.241-12 Nonrefundable, nonrecurring service charge.

As prescribed in 41.501(d)(6), insert a clause substantially the

same as the following:

Nonrefundable, Nonrecurring Service Charge (Feb 1995)

As provided herein, the Government will pay a nonrefundable,

nonrecurring charge when the rules and regulations of a Contractor

require that a customer pay (1) a charge for the initiation of

service, (2) a contribution in aid of construction, or (3) a

nonrefundable membership fee. This charge may be in addition to or

in lieu of a connection charge. Therefore, there is hereby added to

the Contractor's schedule a nonrefundable, nonrecurring charge for

________ in the amount of $________ dollars payable [specify dates

or schedules].

(End of clause)

52.241-13 Capital credits.

As prescribed in 41.501(d)(7), insert a clause substantially the

same as the following:

Capital Credits (Feb 1995)

(a) The Government is a member of the ________ [insert

cooperative name], and as any other member, is entitled to capital

credits consistent with the bylaws of the cooperative, which states

the obligation of the Contractor to pay capital credits and which

specifies the method and time of payment.

(b) The Contractor shall furnish to the Contracting Officer, or

the designated representative of the Contracting Officer, in

writing, on an ________ basis [insert period of time] a list of

accrued credits by contract number, year, and delivery point.

the ________ [insert agency name], and forwarded to the Contracting

Officer at ________ [insert agency address], unless otherwise

directed in writing by the Contracting Officer. Checks shall cite

the current or last contract number and indicate whether the check

is partial or final payment for all capital credits accrued.

(End of clause)

[FR Doc. 94-30665 Filed 12-27-94; 8:45 am]

BILLING CODE 6820-34-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.