Proposed Rule2026-20317
General Services Administration Acquisition Regulation; GSAR Implementation of Executive Order 14275, Acquisition of Utility Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 5, 2026
Issuing agencies
General Services Administration
Abstract
GSA is proposing to amend the General Services Administration Acquisition Regulation (GSAR) part 541 which outlines procedures and guidance for the procurement of utility services. GSA guidance does not apply to agencies using their special authorities listed in Federal Acquisition Regulation (FAR) section 41.103(a)(2) and (3). This proposed rule would align the GSAR with the FAR Council's proposed rule for FAR part 41.
Full Text
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<title>Federal Register, Volume 91 Issue 191 (Monday, October 5, 2026)</title>
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[Federal Register Volume 91, Number 191 (Monday, October 5, 2026)]
[Proposed Rules]
[Pages 63243-63250]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20317]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 541 and 552
[GSAR Case 2026-G502; Docket No. GSA-GSAR-2026-0595; Sequence No. 1]
RIN 3090-AL14
General Services Administration Acquisition Regulation; GSAR
Implementation of Executive Order 14275, Acquisition of Utility
Services
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Proposed rule.
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SUMMARY: GSA is proposing to amend the General Services Administration
Acquisition Regulation (GSAR) part 541 which outlines procedures and
guidance for the procurement of utility services. GSA guidance does not
apply to agencies using their special authorities listed in Federal
Acquisition Regulation (FAR) section 41.103(a)(2) and (3). This
proposed rule would align the GSAR with the FAR Council's proposed rule
for FAR part 41.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
November 4, 2026 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to GSAR case 2026-G502 to:
<a href="https://www.regulations.gov">https://www.regulations.gov</a> via the Federal eRulemaking portal by
searching for ``GSAR Case 2026-G502''. Select the link ``Comment Now''
that corresponds with GSAR Case 2026-G502. Follow the instructions
provided at the ``Comment Now'' screen. Please include your name,
company name (if any), and ``GSAR Case 2026-G502'' on your attached
document. If your comment cannot be submitted using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
To view the docket summary, click on ``View docket'' on the top
left corner of the screen.''
Instructions: Please submit comments only and cite GSAR Case 2026-
G502, in all correspondence related to this case. Comments received
generally will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Bryon Boyer at <a href="/cdn-cgi/l/email-protection#edaabeacbfbd8281848e94add18ccd859f888bd0" http: gsa.gov">gsa.gov</a>">GSARPolicy@<a href="http://gsa.gov">gsa.gov</a></a> or call 202-430-0972 and cite ``GSAR
Case 2026-G502''. For information pertaining to status or publication
schedules, contact the Regulatory Secretariat Division at 202-501-4755
or <a href="/cdn-cgi/l/email-protection#3f786c7e6d5a586c5a5c7f035e1f574d5a5902" http: gsa.gov">gsa.gov</a>">GSARegSec@<a href="http://gsa.gov">gsa.gov</a></a>. Please cite GSAR Case 2026-G502.
SUPPLEMENTARY INFORMATION:
I. Background
Office of Federal Procurement Policy (OFPP), Office of Management
and Budget (OMB); Department of Defense (DoD); General Services
Administration (GSA); and National Aeronautics and Space Administration
(NASA) (collectively referred to as the Federal Acquisition Regulatory
Council or FAR Council) are working to amend the FAR to implement
Executive Order (E.O.) 14275, Restoring Common Sense to Federal
Procurement. The E.O. directs the elimination of excessive acquisition
regulations to stop the inefficient use of American taxpayer dollars.
In response to E.O. 14275, the Office of Management and Budget issued
memorandum M-25-26, Overhauling the Federal Acquisition Regulation. The
Memo directed the FAR Council to complete a ``revolutionary overhaul''
of the FAR (herein referred to as ``Revolutionary FAR Overhaul'' or
``RFO''). The FAR Council is issuing several proposed rules that
collectively will streamline the FAR in its entirety.
One of the FAR Council's RFO proposed rules (FAR case 2026-002)
revises FAR part 41, acquisitions of utility services, to only include
regulations applicable to the Department of Defense and Department of
Energy when using their special statutory authorities (see FAR 41.103),
and directs other agencies (and Department of Defense and Department of
Energy when not using their special statutory authorities) to use the
procedures and guidance provided by GSA. As a result, GSA is proposing
to amend the GSAR to adopt relevant regulations in GSAR part 541.
II. Discussion and Analysis
This proposed change would simplify the acquisition process for
agencies when ordering utility services, and further encourages the use
of GSA's ``areawide'' contracts, which are governmentwide ordering
vehicles, to ensure efficient and consolidated procurement to the
maximum extent practicable.
A. General
The proposed revisions move the regulations governing utilities
currently found in FAR part 41 to GSA's Federal Acquisition
Supplement--the GSAR--which reflects the principles of the RFO and
directs agencies to contact GSA prior to making any utility-related
acquisition. This will allow GSA subject-matter experts to ensure the
most efficient procurement strategy, typically use of GSA areawide
contracts.
B. Summary of Changes
1. Statutory Requirements
Statutory requirements and principles retained in the revised
ordering procedures include 40 U.S.C. 501, Services for Executive
Agencies.
2. Plain Language Requirements
The revised utility services acquisition procedures align with the
federal plain language guidelines as directed by the Plain Writing Act
of 2010 (Pub. L. 111-274). Plain language revisions include the
following:
<bullet> Changes to active voice.
<bullet> Edits to improve readability and clarity.
<bullet> Reorganization to present information more logically.
<bullet> Replacing the term ``shall'' with ``must'' or ``will,'' as
appropriate.
3. Harmonization With the RFO
The proposed rule harmonizes utility services ordering requirements
and moves them to the GSAR in support of the RFO. Revisions include
moving requirements into the GSAR and directing agencies to follow GSA
guidance and collaborate with GSA prior to making acquisitions.
4. Applicability to Agencies and GSA's Guidance
The proposed rule directs agencies to first contact GSA for
assistance prior to acquiring utility services (so that GSA can offer
expert advice and direct agencies to the most efficient vehicles for
acquiring utility services). Next, the proposed rule provides a
mechanism for agencies to request GSA to delegate contracting authority
and specific contracting assistance requests, specific to utilities-
related acquisitions.
[[Page 63244]]
5. Transfer of Provisions and Clauses
This proposed rule moves the provisions and clauses and their
prescriptions from the FAR into the GSAR.
III. Expected Impact of the Rule
This proposed rule creates no significant new or additional costs.
The rule moves the procedures from the FAR to GSA and streamlines the
language.
The revisions proposed by this rule will significantly benefit the
agencies. GSA anticipates that these revisions will result in
qualitative benefits, such as: (1) improving agency satisfaction and
agency costs (e.g., time) associated with acquiring utility services;
(2) reducing administrative costs for agencies who acquire utility
services; and (3) encouraging the use of consolidated procurement
vehicles (namely GSA areawide contracts) in the name of efficient
procurement.
GSA anticipates minimal non-recurring costs associated with
familiarization and training related to the rule, as the primary
message is to obtain utility services through GSA. Entities looking to
award their own utility contracts will need to take the time to
familiarize themselves with the new location of the utility procedures
(i.e., from FAR part 41 to GSAR part 541).
GSA calculates the estimated cost for ordering activities to
familiarize themselves with the proposed rule as $5,000 (rounded).\1\
GSA calculates the estimated cost for existing utility business
concerns to familiarize themselves with the proposed rule as $3,047
(rounded).\2\
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\1\ The anticipated costs is calculated as follows: estimated
.25 hours * $66.23 hourly rate * 300 (estimated impacted ordering
entities). The hourly rate is based on GS-12 Step 5 base pay plus
``Rest of US Locality Pay'' plus ``Fringe''). The hourly rate for
GS-12 is $66.23 ($48.61 as a GS-12/step 5 salary OPM 2026 pay scale
Rest of US, with a 36.25% ($17.62) fringe factor pursuant to OMB
memorandum M-08-13). The total estimated impacted entities is
calculated by estimating the number of contracting officers
procuring utility services or establishing utility-related
governmentwide vehicles.
\2\ The anticipated costs is calculated as follows: estimated .5
hour * $66.23 hourly rate * 92 (estimated impacted business
entities). The hourly rate is based on GS-12 Step 5 base pay plus
``Rest of US Locality Pay'' plus ``Fringe''). The hourly rate for
GS-12 is $66.23 ($48.61 as a GS-12/step 5 salary OPM 2026 pay scale
Rest of US, with a 36.25% ($17.62) fringe factor pursuant to OMB
memorandum M-08-13). The total estimated impacted entities is
calculated by estimating the number of utility-related business
concerns.
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In whole, the streamlined procedures--removing unnecessary
requirements not based in statute or executive order--and the
qualitative benefits outlined offset any new, de minimis non-recurring
costs identified above.
GSA anticipates no additional or new recurring costs beyond those
exclusively due to moving utility procedures from FAR part 41 to GSAR
part 541.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action under section 3(f) of E.O.
12866 and, therefore, was subject to review under Section 6(b) of E.O.
12866.
V. Executive Order 14192
This proposed rule, if finalized as proposed, is not an E.O. 14192
regulatory action because it does not impose any more than de minimis
regulatory costs. See discussion in the ``Expected Impact of the Rule''
section of this preamble.
VI. Regulatory Flexibility Act
GSA does not expect this proposed rule to 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 this rule is simply removing the existing procedures from the
FAR and placing them into the GSAR. However, an Initial Regulatory
Flexibility Analysis (IRFA) has been prepared consistent with 5 U.S.C.
603.
The analysis is summarized as follows:
1. Reasons for the action.
OFPP, DoD, GSA, and NASA (collectively referred to as the Federal
Acquisition Regulatory Council or FAR Council) are proposing to amend
the Federal Acquisition Regulation (FAR) to implement Executive Order
(E.O.) 14275, Restoring Common Sense to Federal Procurement, and Office
of Management and Budget issued memorandum M-25-26, Overhauling the
Federal Acquisition Regulation. This effort is collectively referred to
as the Revolutionary FAR Overhaul (RFO).
One of the FAR Council's proposed rules includes the complete
revision to FAR part 41, which currently contains requirements,
guidance, and procedures for ordering utility services. The FAR
Council's proposed rule proposes to apply only to the Department of
Defense and Department of Energy (when using certain statutory
authorities) and directs all other agencies (and the Department of
Defense and Department of Energy when not using their statutory
authorities) to follow procedures and guidance established by GSA at
GSAR Part 541. This approach simplifies the acquisition process for
agencies when acquiring utility services.
As a result, GSA is proposing to amend the GSAR to provide
procedures and guidance to agencies for the acquisition of utility
services. GSA is proposing to add these procedures and guidance to GSAR
part 541.
2. Objective of, and legal basis for, the rule.
The rewrite of the FAR represents a paradigm shift in federal
acquisition. It emphasizes streamlining, clarity, and accessibility,
while ensuring that the regulation focuses only on statutory mandates
and foundational procurement principles. The RFO is designed to
streamline compliance for contracting professionals, improve
acquisition speed and agility, and reinforce mission outcomes over
process formalities.
For purposes of adding procedures and guidance for acquiring
utility services into the GSAR, GSA is generally moving the existing
requirements and procedures currently codified in FAR part 41 into GSAR
part 541. The proposed changes support the RFO objectives and do not
create any new burden on the Government or industry. Instead these
changes simplify and reduce the requirements needed for agencies to
acquire utility services, thereby making the acquisition process faster
and more efficient.
The basis for the RFO, which encompasses the basis for this rule,
is E.O. 14275, Restoring Common Sense to Federal Procurement. GSA's
authority for promulgation of ordering procedures for the FSS Program
is 10 U.S.C. 3012(3); 40 U.S.C. 121(c); 40 U.S.C. 501; 41 U.S.C.
152(3); and 41 U.S.C. 3302. These procedures have been coordinated with
The Administrator for Federal Procurement Policy in accordance with 41
U.S.C. 4104(c).
3. Description of, and estimate of, the number of small entities to
which the rule will apply.
The proposed changes to the GSAR do not impose any new requirements
or burdens on small business concerns. The proposed changes impact the
internal procedures of the Government concerning the acquisition of
utility services. Therefore, the changes proposed by this rule are not
expected to have a significant economic impact
[[Page 63245]]
on a substantial number of small entities. The GSA has always
maintained a website at <a href="http://gsa.gov">gsa.gov</a> for utilities services acquisition for
the benefit of the government acquisition workforce and industry. The
changes due to this proposed rule are merely enhancements and
improvements to the existing website.
It is recognized that small business concerns seeking to do
business with the Federal Government as utility services contractors,
if any, will have to familiarize themselves with the reorganized,
streamlined, and revised provisions and clauses for the acquisition of
utility services, however, these clauses are ``substantially the same
as'' the clauses found in the FAR. As of January 2026, there were 92
utility suppliers with federal government contracts (not necessarily
represented in <a href="http://SAM.gov">SAM.gov</a>). At the end of Fiscal Year 2025, there were
approximately 92 active vendors selling utilities services (out of
which approximately 12 (13 percent) were small business contractors).
GSA anticipates non-recurring costs associated with familiarization and
training related to the rule (i.e., from FAR part 41 to GSAR part 541).
GSA calculates the estimated cost for small businesses to familiarize
themselves with the proposed rule as $199 (rounded).\3\
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\3\ The anticipated costs is calculated as follows: estimated
.25 hours * $66.23 hourly rate * 12 (estimated 12 small businesses
affected). The hourly rate is based on GS-12 Step 5 base pay plus
``Rest of US Locality Pay'' plus ``Fringe''). The hourly rate for
GS-12 is $66.23 ($48.61 as a GS-12/step 5 salary OPM 2026 pay scale
Rest of US, with a 36.25% ($17.62) fringe factor pursuant to OMB
memorandum M-08-13). The total estimated impacted entities is
calculated by estimating the number of total small business concerns
that offer utility services to the federal government.
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4. Description of projected reporting, recordkeeping, and other
compliance requirements of the rule.
The proposed rule does not impose any new reporting, recording
keeping, or compliance requirements. Any existing reporting,
recordkeeping, or other compliance requirements were captured by the
FAR rule for part 41.
5. Relevant Federal rules which may duplicate, overlap, or conflict
with the rule.
The proposed rule, if finalized, would not duplicate, overlap, or
conflict with other Federal rules.
6. Description of any significant alternatives to the rule which
accomplish the stated objectives of applicable statutes and which
minimize any significant economic impact of the rule on small entities.
There are no significant alternatives that would minimize the
impact of the rule on small entities.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. The FAR Council invites comments from small
business concerns and other interested parties on the expected impact
of this proposed rule on small entities.
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by the rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (GSAR Case 2026-G502), in
correspondence.
VII. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the GSAR do not impose recordkeeping or information collection
requirements, or the collection of information from offerors,
contractors, or members of the public that require the approval of the
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 541 and 552
Government procurement.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Government-wide Policy, General Services Administration.
Therefore, GSA proposes to amend 48 CFR parts 541 and 552 as set
forth below:
PART 541--ACQUSITION OF UTILITY SERVICES
0
1. The authority citation for 48 CFR Part 541 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
2. Revise subpart 541.5 to read as follows:
Subpart 541.5--General
541.501 Applicability to Agencies and GSA Guidance.
In accordance with FAR 41.102(a), agencies must follow GSA
procedures and guidance for the acquisition of utilities located on the
website available at: <a href="http://gsa.gov/utilities">gsa.gov/utilities</a>.
541.502 Requests for GSA Assistance and/or Delegation.
Requests for contracting assistance or contracting authority from
GSA are made via email request to GSA at <a href="/cdn-cgi/l/email-protection#93e6e7fafffae7faf6e0d3aff2b3fbe1f6f5ae" http: gsa.gov">gsa.gov</a>">utilities@<a href="http://gsa.gov">gsa.gov</a></a>. Guidance
for agencies to submit requests is located at <a href="http://gsa.gov/utilities">gsa.gov/utilities</a>. GSA
may require additional information based on the request.
0
3. Add subpart 541.6 to read as follows:
Subpart 541.6--Solicitation Provision and Contract Clauses
541.601 Solicitation provision and contract clauses.
Because the terms and conditions under which utility suppliers
furnish services 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, which
permits the contracting officer to prepare and utilize variations of
the prescribed provisions and clauses in accordance with agency
procedures. Insert the following provisions and clauses in
solicitations and contracts for utility services, as prescribed,
including utility services that are commercial services:
(a) Insert a provision substantially the same as the provision at
552.241-1, Electric Service Territory Compliance Representation, in
solicitations when proposals from alternative electric suppliers are
sought.
(b) Insert in solicitations and contracts for utility services
clauses substantially the same as the clauses at--
(1) 552.241-2, Order of Precedence--Utilities;
(2) 552.241-3, Scope and Duration of Contract;
(3) 552.241-4, Change in Class of Service;
(4) 552.241-5, Contractor's Facilities; and
(5) 552.241-6, Service Provisions.
(6) 552.241-7, Disputes (Utility Contracts).
(c) Insert clauses substantially the same as the clauses listed
below in solicitations and contracts under the prescribed conditions--
(1) 552.241-8, Change in Rates or Terms and Conditions of Service
for Regulated Services, when the utility services are subject to a
regulatory body.
(2) 552.241-9, Change in Rates or Terms and Conditions of Service
for Unregulated Services, when the utility services are not subject to
a regulatory body.
(3) 552.241-10, Connection Charge, when a refundable connection
charge is required to be paid by the government to compensate the
contractor for furnishing additional facilities
[[Page 63246]]
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 (c)(4) and (c)(6) of this
section.)
(4) 552.241-11, 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) 552.241-12, Multiple Service Locations, when providing for
possible alternative service locations, except under areawide
contracts, is required.
(6) 552.241-13, 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) 552.241-14, Cooperative Membership, when the government is a
member of a cooperative.
(8) 552.241-15, Economic Price Adjustment--Deregulated Electric
Supply, when procuring electricity from deregulated electricity
providers.
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. The authority citation for part 552 continues to read as follows:
Authority: 40 U.S.C. 121(c).
0
5. Add subpart 552.241-1 through 552.241-15 to read as follows:
552.241-1 Electric Service Territory Compliance Representation.
As prescribed in 541.501(a), insert a provision substantially the
same as the following:
Electric Service Territory Compliance Representation (Date)
(a) Section 8093 of Public Law 100-202 generally requires purchases
of electricity by any department, agency, or instrumentality of the
United States to be consistent 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.
(b) By signing this offer, the offeror represents that this offer
to sell electricity is consistent with Section 8093 of Public Law 100-
202.
(End of provision)
552.241-2 Order of Precedence--Utilities.
As prescribed in 541.501(b)(1), insert a clause substantially the
same as the following:
Order of Precedence--Utilities (Date)
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 control.
(End of clause)
552.241-3 Scope and Duration of Contract.
As prescribed in 541.501(b)(2), insert a clause substantially the
same as the following:
Scope and Duration of Contract (Date)
(a) For the period ____, [contracting officer to insert period of
service] the contractor agrees to furnish and the government agrees to
purchase [contracting officer to 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.
(c) The contractor must, in the same manner that it customarily or
regularly provides notice to its non-government customers, provide the
government with one 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, which may specifically be satisfied by the
contractor publishing their rates on publicly available websites.
(d) The contractor will be paid at the applicable rate(s) under the
tariff and the government will 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
must be equitably prorated for the periods in which commencement and
termination of this contract become effective.
(End of clause)
552.241-4 Change in Class of Service.
As prescribed in 541.501(b)(3), insert a clause substantially the
same as the following:
Change in Class of Service (Date)
(a) In the event of a change in the class of service, such service
must 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 precludes the government and the contractor from
negotiating a rate schedule applicable to the class of service
furnished.
(End of clause)
552.241-5 Contractor's Facilities.
As prescribed in 541.501(b)(4), insert a clause substantially the
same as the following:
Contractor's Facilities (Date)
(a) The contractor, at its expense, unless otherwise provided for
in this contract, must 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 remains with the
contractor and the contractor is responsible for loss or damage to such
facilities, except that the government will 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 must 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, are the obligation of the contractor.
[[Page 63247]]
(c) Authorized representatives of the contractor will be allowed
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
must, 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)
552.241-6 Service Provisions.
As prescribed in 541.501(b)(5), insert a clause substantially the
same as the following:
Service Provisions (Date)
(a) Measurement of service.
(1) All service furnished by the contractor must 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 government and contractor must
agree upon the length of time of meter malfunction and the quantity of
service delivered during such period of time. An appropriate adjustment
must be made by the contractor to the next invoice for the purpose of
correcting such errors. However, any meter which registers not more
than _ [contracting officer to insert percentage variance] percent slow
or fast is deemed correct.
(2) The contractor must 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 _ [contracting officer to insert number of days]
days must be prorated accordingly.
(b) Meter test.
(1) The contractor, at its expense, must periodically inspect and
test contractor-installed meters at intervals not exceeding _
[contracting officer to insert interval--e.g., number of month(s) or
year(s) inspection/testing is required]. The government has the right
to have representation during the inspection and test.
(2) At the written request of the contracting officer, the
contractor must make additional tests of any or all such meters in the
presence of government representatives. The cost of such additional
tests will be borne by the government if the percentage of errors is
found to be not more than _ [contracting officer to insert percentage
variance] percent slow or fast.
(3) No meter may be placed in service or allowed to remain in
service which has an error in registration in excess of _ [contracting
officer to insert percentage variance] percent under normal operating
conditions.
(c) Change in volume or character. Reasonable notice will be 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 must use
reasonable diligence to provide a regular and uninterrupted supply of
service at each service location, but will 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, in the aggregate
is more than _ [contracting officer to insert amount of hours] hour(s)
during any billing period hereunder, an equitable adjustment must be
made by the contractor in the monthly billing specified in this
contract (including the minimum monthly charge).
(End of clause)
552.241-7 Disputes (Utility Contracts).
As prescribed in 541.501(b)(6), insert the following clause:
Disputes (Utility Contracts) (Date)
The requirements of the Disputes clause at FAR 52.233-1 are
supplemented to provide that matters involving the interpretation of
tariffed retail rates, tariff rate schedules, and tariffed terms
provided under this contract are subject to the jurisdiction and
regulation of the utility rate commission having jurisdiction.
(End of clause)
552.241-8 Change in Rates or Terms and Conditions of Service for
Regulated Services.
As prescribed in 541.501(c)(1), insert a clause substantially the
same as the following:
Change in Rates or Terms and Conditions of Service for Regulated
Services (Date)
(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 *_____[Except for GSA areawide contracts, contracting
officer to insert their name. For GSA areawide contracts, the
contracting officer must insert the following: ``GSA and each areawide
customer with annual billings that exceed the Simplified Acquisition
Threshold at the time of contract award.''] written notice to the
contracting officer, in the same manner that it customarily or
regularly provides notice to its non-government customers, 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. If, during the term of this contract, the regulatory body having
jurisdiction approves any changes, the contractor must forward to the
contracting officer a copy of any documentation of such changes that it
customarily or regularly provides to its non-government customers
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) cannot 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.
(c) In the event that the regulatory body promulgates any
regulation concerning matters other than rates which affects this
contract, the contractor must immediately provide a copy to the
contracting officer in the
[[Page 63248]]
same manner that it customarily or regularly provides to its non-
government customers. The government is not bound to accept any new
regulation inconsistent with Federal laws or regulations.
(d) Any changes to rates or terms and conditions of service must be
made a part of this contract by the issuance of a unilateral contract
modification by the government, unless otherwise specified in the
contract. The effective date of the change is 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)
552.241-9 Change in Rates or Terms and Conditions of Service for
Unregulated Services.
As prescribed in 541.501(c)(2), insert a clause substantially the
same as the following:
Change in Rates or Terms and Conditions of Service for Unregulated
Services (Date)
(a) This clause applies to the extent that services furnished
hereunder are not subject to regulation by a regulatory body.
(b) After___ [contracting officer to insert date], either the
government or the contractor may request a change in rates or terms and
conditions of service, unless otherwise provided in this contract. Both
the government and the contractor 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.
(c) The effective date of any change is as agreed to by the
government and the contractor. 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 government and the contractor to agree upon
any change after a reasonable period of time is a dispute under the
Disputes clause of this contract.
(e) Any changes to rates, terms, or conditions as a result of such
negotiations must be made a part of this contract by the issuance of a
bilateral contract modification.
(End of clause)
552.241-10 Connection Charge.
As prescribed in 541.501(c)(3), insert a clause substantially the
same as the following:
Connection Charge (Date)
(a) Charge. In consideration of the contractor furnishing and
installing at its expense the new connection facilities described
herein, the government will pay the contractor a connection charge. The
payment will be in the form of progress payments, advance payments or
as a lump sum, as agreed to by the government and the contractor, and
as permitted by applicable law. The total amount payable [s the lower
of either: the estimated cost of $___[contracting officer to insert
dollar amount] less the agreed to salvage value of $___[contracting
officer to insert dollar amount], or the actual cost less the salvage
value. As a condition precedent to final payment, the contractor must
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, are the property of the contractor and must, 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, are the obligation of the contractor.
(c) Credits.
(1) The contractor agrees to allow the government, on each monthly
bill for service furnished under this contract to the service location,
a credit of ___[contracting officer to insert percentage] percent of
the amount of each such bill as rendered until the accumulation of
credits equals 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 must
promptly notify the government in writing. Unless otherwise agreed by
the government and the contractor in writing at that time, the
contractor must 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 must 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 will 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 has the
following options:
(1) To retain in place for ___[contracting officer to insert number
of months] months after the notice of termination by the government
such facilities on condition that--
(i) If, during such ___[contracting officer to insert number of
months] month period, the contractor serves any other customer by means
of such facilities, the contractor, must, 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 ___[contracting officer to insert
number of months] month period the contractor must 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 ___[contracting officer to insert number of months] months after
the effective date of the termination by the government. If the
contractor elects to remove such facilities, the government has the
option of purchasing such facilities at the agreed salvage value set
forth herein;
[[Page 63249]]
and provided further, that the contractor must, 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 [(Date)]. 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
(c) and add the following as paragraph (d):
(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 has the following options:
(1) To retain in place for ___ [contracting officer to insert
number of months] 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 ___ [contracting officer to insert
number of months] months, then the contractor must remove the
facilities pursuant to the terms of paragraph (d)(2) of this clause.
(2) To remove such facilities at the contractor's own expense
within ___ [contracting officer to insert number of months] months
after the effective date of the termination by the government. If the
contractor elects to remove such facilities, the government then has
the option of purchasing such facilities at the agreed salvage value
set forth herein; and provided further, that the contractor must, 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.
552.241-11 Termination Liability.
As prescribed in 541.501(c)(4), insert a clause substantially the
same as the following:
Termination Liability (Date)
(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 will 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 will be recovered by the contractor is--___ months.
[contracting officer to insert negotiated duration.]
(c) Net facility cost. The cost of the new facility, less the
agreed upon salvage value of such facility, is--$___ months.
[contracting officer to insert appropriate dollar amount.]
(d) Monthly facility cost recovery rate. The monthly facility cost
recovery rate which the government will 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)
552.241-12 Multiple Service Locations.
As prescribed in 541.501(c)(5), insert a clause substantially the
same as the following:
Multiple Service Locations (Date)
(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 must commence or be discontinued. Any changes to
the service specifications must be made a part of the contract by the
issuance of a bilateral 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 must
be equitably prorated from the period in which commencement or
discontinuance of service at any service location designated under the
Service Specifications is effective.
(End of clause)
552.241-13 Nonrefundable, Nonrecurring Service Charge.
As prescribed in 541.501(c)(6), insert a clause substantially the
same as the following:
Nonrefundable, Nonrecurring Service Charge (Date)
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 ___
[contracting officer to insert type of nonrecurring charge] in the
amount of $___ [contracting officer to insert dollar amount] dollars
payable.
(End of clause)
552.241-14 Cooperative Membership.
As prescribed in 541.501(c)(7), insert a clause substantially the
same as the following:
Cooperative Membership (Date)
The performance of this contract includes the requirement that the
contractor must follow the bylaws of __________ [contracting officer to
insert cooperative name].
(End of clause)
552.241-15 Economic Price Adjustment-Deregulated Electric Supply.
As prescribed in 541.501(c)(8), insert a clause substantially the
same as the following:
Economic Price Adjustment--Deregulated Electric Supply (Date)
(a) Definition.
Economic price adjustment method, as used in this clause, means the
agreed upon procedures by which pricing may be adjusted upwards or
downwards throughout the contract period to include, but not limited
to, the mechanism(s) to be used to adjust pricing (e.g., adjustments
based on regional transmission organizations and/or pricing groups),
the pricing subject to adjustment, and any other requirements (e.g.,
timing, frequency, limits on increases).
(b) General. This contract provides for economic price adjustment
(EPA) to contract pricing based on the established EPA price adjustment
method. EPA provides for the increase or decrease to contract pricing
upon the occurrence of specified conditions described in the EPA price
adjustment method, such as changes to charge categories incurred by the
contractor and billed to the government (e.g., capacity charges,
transmission charges, reliability-must-run charges, Federal Energy
Regulatory Commission Order 745 Charges) or changes to the formulas for
calculating the amounts for such charge categories incurred by the
contractor and billed to the government.
[[Page 63250]]
(c) Exceptions. This clause does not cover--
(1) Adjustments based on statute, Executive Order, or regulatory
changes other than those identified in the EPA price adjustment method;
(2) Adjustments based on a changes clause;
(3) Adjustments based on a contract clause that authorizes an
adjustment based on other specified actions or conditions.
(End of clause)
[FR Doc. 2026-20317 Filed 10-2-26; 8:45 am]
BILLING CODE 6820-61-P
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</html>Indexed from Federal Register on October 5, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.