Overview
FAR 41.102 defines the scope of Part 41, establishing that it governs the acquisition of utility services, connection charges, and termination liabilities for the federal government while providing a specific list of exemptions.
Key Rules
- General Scope: Applies to all federal acquisitions of utility services unless a specific exemption exists.
- Interagency Transfers: Does not apply when utilities are provided by another Federal agency; these must be handled via interagency agreements under FAR 41.206.
- Specific Exclusions: The regulation expressly excludes telecommunications, cable television (CATV), gas purchased as a commodity, and utility acquisitions performed in foreign countries.
- Real Property and Infrastructure: Excludes the acquisition of real property rights, public utility facilities, or the construction and maintenance of government-owned equipment.
- Energy Savings Projects: Generally excludes third-party financed shared-savings projects (ESPCs), though agencies may use Part 41 for the resulting energy savings or services for terms up to 25 years.
Practical Implications
- Contracting Officers must verify the nature of the procurement; for instance, if gas is being purchased as a "commodity" rather than a "service," FAR Part 41 does not apply.
- When a facility requires new infrastructure or "connection charges," Part 41 provides the regulatory authority to include these costs in the utility service contract rather than a separate construction contract.