1841.101 Definitions.
"Utility suppliers," as used in this subpart, may be quasi-public service corporations, private concerns, municipalities, associations, or cooperatives. They generally operate in a franchised territory without competition, so they may frequently be in a sole-source position. Under common law, public utilities must render service at reasonable rates and without discrimination. Their operations, management, rates, and profits are usually regulated by Federal, State, or local regulatory bodies, but absence of a regulatory body does not necessarily mean a complete lack of control. Administrative remedies pursuant to enabling statutes may be pursued or complaints may be taken to a court of competent jurisdiction.
UTILITY SERVICES
1841.201 Policy.
(a) Requirements for utility services shall be determined by technically qualified personnel who will assist the contracting officer as required. Before soliciting technical assistance outside the agency (see FAR 41.203), technical personnel shall contact the Environmental Management Division (Code JE), NASA Headquarters.
(b) Appropriated funds may not be used to purchase electricity in a manner inconsistent 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 (Pub. L. 100-202, Sec. 8093, 101 Stat. 1329-79). Before acquiring electric utility service, the contracting officer shall determine whether the manner of acquisition, in particular, competitive acquisition under FAR 41.205(b), would be inconsistent with state law. Section 8093 of Pub. L. 100-202 is not intended to affect transfers of electricity to agencies from Federal power marketing agencies or the Tennessee Valley Authority, such as NASA's power allocation from the Western Area Power Marketing Administration. Such transfers do not constitute "purchases" for purposes of section 8093.
1841.204 GSA areawide contracts.
(a) GSA publishes a checklist of utility services available under its areawide public utility contracts. The checklist specifies contract numbers, expiration dates, companies, and areas served. Copies of the checklist may be obtained from GSA, Public Utility Division (PPU), Public Buildings Service, Washington, DC 20405 ((202) 501-3994).
(b) In determining whether a GSA area-wide public utility contract is adequate to meet requirements, procurement offices should consider (1) the areawide contract rates and volume of service required, (2) any unusual characteristics of the service required, (3) any special equipment or facility requirements, (4) any special technical contract provisions required, and (5) any other special circumstances.
(c) If a procurement officer finds that a separately negotiated contract would be more advantageous to the Government than the GSA areawide public utility contract, the procurement officer shall submit a request to the Associate Administrator for Procurement, NASA Headquarters (Code HS), for a waiver of the requirement to use the GSA areawide public utility contract. The request shall explain the merit of a separately negotiated contract.
1841.205 Separate contracts.
1841.205-70 Renewal of contracts.
(a) A contract may be renewed or extended by option, provided that the contract is not in effect for more than a total of 5 successive years.
(b) Contracting officers shall consider selecting an expiration date for the contract sufficiently after the end of the fiscal year to ensure that appropriations will be available when the option is exercised.
1841.205-71 Headquarters requirement for copies of contracts.
The contracting officer shall forward, promptly after execution, one copy of each contract, service authorization form, memorandum of understanding, and modification to the Associate Administrator for Procurement, NASA Headquarters (Code HS) and to the Environmental Management Division, NASA Headquarters (Code JE).
1841.205-72 Contents of a negotiated utility service contract.
(a) All negotiated utility service contracts estimated to exceed $2,500 annually shall be written in accordance with the directions in paragraphs (a)(1) through (5) of this section:
(1) SF 26. Use Standard Form 26 (see FAR 53.215-1(b)).
(2) Appendix A.
(i) Include the rate schedule, which shall consist of--
(A) The published rate schedule of the contractor approved or established by a Federal, State, or other regulatory body; or
(B) The rate schedule negotiated between the contractor and the Government.
(ii) The rate schedule shall bear the legend "Appendix A, attached to and made a part of Contract No. ," and be enti tled "Rate Schedule." Each page shall indicate its number and the total number of pages comprising Appendix A, as, for example, "page 1 of 3." In addition to stating the rate applicable to the contract, Appendix A shall include any applicable rules or regulations (whether established by the regulatory body, the contractor, or negotiation between the contractor and the Government) pertaining to the Rate Schedule. Appendix A may provide for payment to the contractor of a nonrecurring, nonrefundable fee not exceeding $1,000 for the costs of connecting the contractor's facilities to, and disconnecting them from, the Government's facilities, if the contract period is less than 6 months. In all other instances where a connection charge is involved, the "Connection Charge" clause (FAR 52.241-9) and Appendix C (see paragraph (a)(4) of this section) shall be included in the contract.
(3) Appendix B. Include the service specifications applicable to the contract, which shall consist of a specially drafted attachment to the contract bearing the legend "Appendix B, attached to and made a part of Contract No. ," and the title of the appropriate service specifications. Each page shall indicate its number and the total number of pages comprising Appendix B, as, for example, "page 1 of 3." Such appendix shall contain as a minimum--
(i) The premises to be served;
(ii) An estimate of the service requirements;
(iii) The point of delivery to the Government;
(iv) A description of the service;
(v) A statement of how the service is to be measured for purposes of billing; and
(vi) A statement of the capacity and flow of the service.
(4) Appendix C. Include the connection charge schedule required whenever the contract includes the connection charge clause at FAR 52.241-9 or the termination clause at FAR 52.241-10. It shall bear the legend "Appendix C, attached to and made a part of Contract No. ," and be entitled "Connection Charge Schedule." Each page shall indicate its number and the total number of pages comprising Appendix C, as, for example, "page 1 of 3." The appendix shall contain as a minimum a detailed description of the new facilities to be furnished by the contractor.
(5) Include any contract clauses required by 1841.501 or FAR 41.501.
(b) Any negotiated utility service contract estimated not to exceed $2,500 annually shall consist of--
(1) Standard Form 26 (FAR 53.215-1(b));
(2) An Appendix A (see paragraph (a)(2) of this section); and
(3) Any contract clauses required by 1841.501 or FAR 41.501.
1841.205-73 Authorization for procurement of wellhead natural gas.
(a) Acquisition of wellhead natural gas and interstate transportation of the natural gas to locally franchised distribution utility companies' receipt points (city gate) is considered the procurement of supplies rather than the procurement of public utility services described in FAR part 41. Therefore, wellhead natural gas and interstate transportation of such gas should be obtained directly by NASA under applicable authorities and FAR procedures governing the acquisition of supplies. Redelivery of the gas from the city gate to the NASA facility is considered a utility service since it is provided only by the locally franchised utility. GSA is responsible for obtaining an appropriate contract for the redelivery service in accordance with FAR 41.204.
(b) GSA provides assistance to Federal agencies in the procurement of natural gas wellhead supplies. Contracting officers requiring assistance in determining the feasibility of procuring natural gas supplies on a facility by facility basis may contact General Services Administration, Public Building Services, Public Utilities Division, Code PPU ((202) 501-3994). In contacting GSA, contracting officers should provide data pertaining to present gas usage exceeding 50,000 Mcf per year. GSA has found that 50,000 Mcf is the annual volume below which wellhead purchases may not be economically feasible.
1841.205-74 Utility service narrative.
(a) Before initiating negotiations, the contracting officer shall submit a Utility Service Narrative for proposed procurements for new utilities services, renegotiations or extensions of existing utility services, or existing contracts that require a negotiation for change of rate schedules, to the Associate Administrator for Procurement (Code HS), NASA Headquarters. The Utility Service Narrative shall include--
(1) A brief technical description of the service required or being furnished;
(2) Justification of the reasonableness of the proposed rate;
(3) An outline of the field installation's proposed negotiation tactics, basis for position, and any alternative position;
(4) An estimate of the annual cost of service; and
(5) Other related items, as applicable, such as connection charges, termination liability, facilities charges, requirement for Government capital costs, or any unusual factors affecting the procurement.
(b) The Associate Administrator for Procurement (Code HS), with the coordination of the Environmental Management Division (Code JE), will review the information submitted under paragraph (a) of this section. If NASA Headquarters desires to participate in the negotiations, the Associate Administrator for Procurement (Code HS), NASA Headquarters, shall inform the contracting officer within 30 days after receipt of the Utility Service Narrative.
1841.205-75 Contracts requiring Headquarters approval.
Contracts and supplemental agreements for utility services shall be submitted to the Associate Administrator for Procurement, NASA Headquarters (Code HS), for approval as required by 18-4.7203 and 18-7.71.
1841.206 Interagency agreements.
(a) The Department of Defense (DOD) enters into areawide fuel oil and other energy-service contracts. DOD areawide contracts provide that the contractor shall, upon receipt of an order in the form prescribed by the contract, furnish the service involved without further negotiations as to rates and charges, in accordance with the established and filed rate schedules applicable to the service.
(b) When procuring utility services from another Government agency by cross-servicing, the procurement office shall use a memorandum of understanding specifying the services to be provided and the conditions under which they will be supplied. A Utility Service Narrative shall be submitted in accordance with 1841.205-74.
1841.402 Rate changes and regulatory intervention.
(a) When the contractor notifies the contracting officer as provided in the change of rates clause at FAR 52.241-7, or whenever the contractor requests that rate changes be negotiated, as provided in the change in rates clause at FAR 52.241-8, the contracting officer shall notify the Associate Administrator for Procurement, NASA Headquarters (Code HS) and the Environmental Management Division, NASA Headquarters (Code JE). The notification shall include sufficient information to permit a determination of the monetary effect of the proposed changes, a recommendation under paragraph (a)(1) or (2) of this section, and the basis for the recommendation.
(1) When notice is received that the contractor has filed an application for rate changes before the local regulatory body, the contracting officer shall recommend whether or not the Government should intervene at the hearing on the application. If it is recommended that the Government intervene, the recommendation shall be accompanied by a statement containing the basis for intervention and the extent to which the installation can support intervention by presenting testimony, preparing exhibits, and furnishing legal counsel.
(2) When notice is received that the contractor requests that rate changes be negotiated, the contracting officer shall recommend the position to be taken by the Government regarding the rate changes and state the extent to which installation personnel are available to support this position.
(b) The Associate Administrator for Procurement, NASA Headquarters, with the technical assistance of the Environmental Management Division (Code JE), NASA Headquarters, shall furnish the contracting officer a recommendation concerning the proposed rate changes and the extent to which NASA Headquarters will participate in the intervention before the local regulatory body or in negotiations with the contractor. Before recommending any action, the Associate Administrator for Procurement, NASA Headquarters shall, as necessary, coordinate with other staff offices or divisions, or other Government agencies. The contracting officer shall await the instructions of the Associate Administrator for Procurement, NASA Headquarters, for at least 30 calendar days before submitting the matter to GSA (see FAR 41.402(b)) or taking other action concerning the proposed rate changes.
1841.501 Solicitation provision and contract clauses.
The contracting officer shall insert the clause at 1852.241-70, Renewal of Contract, whenever it is desirable that the utility service be provided under the same terms and conditions for more than 1 year (see 1841.205-70).