Overview
This section identifies the specific statutory authorities granted to the General Services Administration (GSA), Department of Defense (DoD), and Department of Energy (DOE) for utility service procurement. It also establishes the framework for how GSA delegates its primary contracting authority to other federal agencies and the compliance requirements for such delegations.
Key Rules
- GSA Primary Authority: Under 40 U.S.C. 501, GSA is the lead agency for prescribing utility policies, representing the government in regulatory proceedings, and entering into utility contracts for terms up to 10 years.
- Agency-Specific Statutory Limits:
- DoD: Has independent authority to acquire utilities for military facilities.
- DOE: Has independent authority for its operations, including a specific 25-year contract allowance for uranium enrichment installations.
- Existing Delegations: GSA has pre-delegated 10-year contracting authority to DoD and DOE. The Department of Veterans Affairs (VA) has a limited delegation restricted to connection charges only.
- Mandatory Delegation Requests: Any other agency requiring a utility contract longer than one year (but not exceeding 10 years) must formally request authority from GSA.
- Certification Requirements: To receive a delegation, an agency's Senior Procurement Executive must certify that the agency possesses an established acquisition program, technically qualified personnel for utility-specific issues, and internal pre-award review capabilities.
Practical Implications
- Multi-year Limitations: Most civilian agencies are restricted to one-year utility commitments unless they undergo the formal GSA delegation process, which can impact long-term budgeting and energy resilience planning.
- Technical Oversight: Because utility procurement involves specialized regulatory and engineering complexities, GSA maintains the right to audit delegated agencies to ensure they are maintaining the technical expertise and legal compliance required by the delegation.