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   <concept id="DFARS_PGI_PGI_241.205"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">PGI 241.205</ph> Separate contracts.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List2" class="- topic/p ">(1)  <i class="+ topic/ph hi-d/i ">Definitions</i>.  As used in this section—</p>
         <p class="- topic/p ">“Definite term contract” means a contract for utility services for a definite period of not less than one nor more than ten years.</p>
         <p class="- topic/p ">“Indefinite term contract” means a month-to-month contract for utility services that may be terminated by the Government upon proper notice.</p>
         <p outputclass="List2" class="- topic/p ">(2)  Requests for proposals shall state the anticipated service period in terms of months or years.  If the period extends beyond the current fiscal year, evaluate offers of incentives for a definite term contract.</p>
         <p outputclass="List2" class="- topic/p ">(3)  The solicitation may permit offerors the choice of proposing on the basis of—</p>
         <p outputclass="List3" class="- topic/p ">(i)  A definite term not to exceed the anticipated service period; or</p>
         <p outputclass="List3" class="- topic/p ">(ii)  An indefinite term contract.</p>
         <p outputclass="List2" class="- topic/p ">(4)  If the expected service period is less than the current fiscal year, the solicitation shall be on the basis of an indefinite term contract.</p>
         <p outputclass="List2" class="- topic/p ">(5)  Contracts for utility services for leased premises shall identify the lease document on the face of the contract.</p>
         <p outputclass="List2" class="- topic/p ">(6)  Use an indefinite term utility service contract when it is considered to be in the Government's best interest to—</p>
         <p outputclass="List3" class="- topic/p ">(i)  Have the right to terminate on a 30-day (or longer) notice.  A notice of up to one year may be granted by an installation if needed to obtain a more favorable rate, more advantageous conditions, or for other valid reasons; or</p>
         <p outputclass="List3" class="- topic/p ">(ii)  Grant the supplier the right to terminate the contract when of benefit to the Government in the form of lower rates, larger discounts, or more favorable terms and conditions.</p>
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