[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR41.202]

[Page 751-752]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 41_ACQUISITION OF UTILITY SERVICES--Table of Contents
 
                 Subpart 41.2_Acquiring Utility Services
 
Sec.  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).
    (c) When a utility supplier refuses to execute a tendered contract 
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

[[Page 752]]

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 13.302; 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 
(c) of this section, the contracting officer shall, on an annual basis 
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.

[59 FR 67018, Dec. 28, 1994, as amended at 62 FR 64926, Dec. 9, 1997]