TABLE XVII.—Summary of cost of money computation on facilities capital (cost of money included in total cost input-regular method) TABLE XVIII.-Summary of cost of money computation on facilities capital (cost of money included in total cost input-alternative method) § 1-4.000 Scope and applicability of part. This part sets forth policies and procedures regarding special types and methods of procurement which include public utility services, livestock products, and automatic data processing equipment and services. [36 F.R. 11199, June 10, 1971] Subparts 1-4.1-1-4.3 [Reserved] Subpart 1-4.4-Public Utilities SOURCE: 31 FR 16417, Dec. 29, 1966, unless otherwise noted. § 1-4.400 Scope of subpart. This subpart prescribes policies and procedures for economical and efficient procurement of public utility services by executive agencies. § 1-4.401 Definition. As used in this Subpart 1-4.4, "utility services" include all utility services (except telecommunications services), such as electricity, gas, steam, water, and sewerage, including facilities on both sides of the delivery point for the supply of such services. (a) The provisions of this Subpart 1-4.4 apply to the procurement of utility services by executive agencies within the United States and its possessions and the Commonwealth of Puerto Rico. (b) The Statement of Areas of Understanding between the Department of Defense and General Services Administration in the Matter of Procurement of Utility Services, as amended (15 FR 8227, 22 FR 871), shall govern the procurement of utility services by the Department of Defense. (c) The provisions of this Subpart 1-4.4 do not apply to: (1) Utility services produced, distributed, or sold by a Federal agency (other than consolidated purchase, joint use, or cross-service by one agency for another agency); or (2) utility services (other than those required for administrative purposes) obtained by purchase, exchange, or otherwise by Federal power or water marketing agencies as a direct incident to such agency's marketing or distribution program. (d) GSA will, upon request, furnish the services provided for in this Subpart 1-4.4 to any other Federal agency, mixed ownership Government corporation the District of Columbia, the Senate, the House of Representatives, or the Architect of the Capitol and any activity under his direction. § 1-4.403 Utility bills rendered to ex. ecutive agencies. Executive agencies shall notify the utility suppliers with which they do business to provide GSA from time to time, upon the request of GSA to the supplier, with duplicate copies of bills rendered to the individual agencies for utility services. The particular billing period will be mutually agreed upon between GSA and the supplier. (a) The Congress and the President, in the declaration of policy in the Federal Property and Administrative Services Act of 1949, stated an intent to provide for the Government an economical and efficient system for, among other things, the procurement of nonpersonal services, including contracting for and management of public utility services (40 U.S.C. 471). In order to implement this policy, GSA has established an experienced staff of utilities technical specialists and engineers, available to all agencies, to provide the necessary capabilities to facilitate more economical and efficient procurement and management of public utility services by Federal agencies.. (b) Agencies not having personnel technically qualified to deal with specialized utilities problems and requiring GSA technical assistance, and other agencies having technically qualified personnel but desiring GSA consulting assistance should obtain assistance from the Federal Supply Service of GSA in Washington, D.C., at the address listed below in § 1-4.405, or in the nearest of the ten GSA regional offices through the Federal Supply Service Regional Commissioner. [31 FR 16417, Dec. 23, 1966, as amended at 40 FR 44139, Sept. 25, 1975] § 1-4.405 Submission of information. All information required by GSA under this Subpart 1-4.4, except where otherwise specified, shall be addressed to the General Services Administration, Federal Supply Service, Public Utilities Management Division, Washington, D.C. 20406. [40 FR 44139 Sept. 25, 1975] It shall be the policy of executive agencies to obtain required utility services from sources of supply which are most advantageous to the Government in terms of economy, efficiency, or service, after investigating all appropriate sources. The supplier of a utility service is usually the sole source thereof. When more than one source of supply is available, the service may also be procured by negotiation since formal advertising is usually not feasible and practicable (see §§ 1-3.101 (a), (d); 1-3.202; 1-3.203; 1-3.210; and Subpart 1-3.3 of this chapter). § 1-4.406-2 Agency supply arrange ments. In implementing the policy stated in § 1-4.406-1, use shall be made by agencles of: (a) GSA areawide contracts (§ 1-4.407); (b) GSA long-term contracts (81-4.408); and (c) consolidated purchase, Joint use, or cross-service by one agency for another agency (§ 1-4.409). § 1-4.407 GSA areawide contracts. (a) GSA enters into areawide contracts with various utility suppliers for the furnishing of utility services to Federal agencies located within the service areas of such suppliers. GSA areawide contracts provide that the utility supplier, upon execution of a Government order in the form of an authorization prescribed by the contract, will furnish, without further negotiation, the services involved in accordance with such of the supplier's rate schedules as are applicable to such services and subject to all the provisions of the areawide contract. (b) Unless it is determined that more advantageous competing services are available, each executive agency in the area covered by a GSA areawide contract shall procure utility services thereunder: Provided, however, That when it is in the best interest of the Government, an agency may negotiate special rates or special services under an areawide contract or under 8 separate contract. (c) When procuring utility services under a GSA areawide contract, each executive agency shall furnish or arrange to furnish to GSA an executed counterpart or conformed copy of the order authorizing service connection, disconnection, or change, as set forth in the particular contract. (d) Upon request, GSA will furnish to Federal agencies a list of GSA areawide public utility contracts, showing in each case the kind of utility service, the serving utility, and the area served. GSA also will make available to Federal agencies, upon request, a copy of any areawide contract. Each contract includes the specimen order form authorizing service connection, disconnection, change. § 1-4.408 GSA long-term contracts. or Executive agencies ordinarily cannot obligate the Government for utility services beyond the current fiscal year. Therefore, affirmative action ordinarily is required in order to renew a contract beyond the current fiscal year. GSA, however, has special statutory authority to enter into long-term contracts for utility services for periods not exceeding 10 years (40 U.S.C. 481). GSA, either on its own initiative or upon request by an agency, will negotiate or assist in the negotiation of a long-term contract for the use and benefit of the agency, if a long-term contract is justified by one or more of the following circumstances: (a) Where lower rates, larger discounts, or more favorable conditions of service can be obtained. (b) Where a proposed connection charge, termination liability or any other facilities charge to be paid by the Government would be eliminated or reduced. (c) Where the utility supplier refuses to render the desired service except under a long-term contract. § 1-4.409 Consolidated purchase, joint use, or cross-service. Consolidated purchase, joint use, or cross-service by one agency for another agency shall be used to procure utility services or facilities when advantageous to the Government in terms of economy, efficiency, or service. (Such methods of procurement do not include cases where utility services are furnished without charge by another Government agency as an incident to space procurement.) A memorandum of understanding, specifying the services or facilities to be supplied and the estimated costs and other 1-4.410-6 Endings shall be in fare and may be reviewed in any competent court. 45. In the event this contract is terminated as provided in paragraph a bereof, the Government shall be entitled t pure the same remedies against the Contractor as it could pursue in the event of a breach of the contract by the Contractor, and itti as a penalty in addition to any other damages to which it may be entitled by law to exemplary damages in an amount (as determined by the Head of the agency or his duly authorized representative, which shall be not less than three nor more than ten times the costs incurred by the Contractor in providing any such gratuities to any such officer or employee. (c) The rights and remedies of the GoTernment provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this contract. (2) Parties of interest. PARTIES OF INTEREST This contract shall be binding upon and inure to the benefit of the successors, legal representatives, and assignees of the respective parties hereto. (3) Privacy Act. (See § 1-1.327-5(c)). (4) Minority Business Enterprises Program. (See § 1Subcontracting 1.1310-2(b)). (5) Small Business Subcontracting Program. (See § 1-1.710-3(b)). (6) Labor Surplus Area Subcontracting Program. (See § 1-1.805-3(b)). (7) Cost accounting standards. Insert the three notices for solicitations as set forth in § 1-3.1203 (a) (3), (h) (2), and (i) (2) in negotiated solicitations under the conditions contained in Subpart 1-3.12. Incorporate the required contract clauses set forth in § 1-3.1204-1 and 1-3.1204-2 in negotiated contracts under the conditions contained in Subpart 1-3.12. Note that as provided in § 1-3.1203, the notices and clauses shall not be used when the price is set by law or regulation or the contract is otherwise exempt under § 1-3.1203 (a) (1) or (2). (c) GSA has included the uniform mandatory clauses listed in paragraph (a) of this section in its GSA Form 1685, Supplemental Provisions (Utility Service Contract). Upon request, GSA will furnish a copy of this form to any agency for its guidance, use, or reproduction as an agency form. [40 FR 60020, 60030, Dec. 31, 1975] § 1-4.410-6 Postreview or periodic re porting. Under governing regulations (41 CFR 101-11.404-2, Schedule 3, Procurement and Supply Records), a copy of each executed utility service procurement document and supporting records is required to be retained in the procuring agency's file for a period of 6 years after completion of service. During the service period and the ensuing 6 years, all such documents and records shall be subject to such on-site postreview or periodic reporting as may be required by GSA. (See also § 1-4.411 on prior review of certain proposed procurements by executive agencies.) § 1-4.411 Prior review of certain proposed procurements. § 1-4.411-1 General. (a) Proposed utility procurements by executive agencies, including proposed contracts, proposed authorizations under applicable GSA areawide contracts, and proposed memorandums of understanding for consolidated purchase, joint use, or cross-service by one agency for another agency, shall be subject to prior review by GSA or, in the alternative, by the procuring agency as described in §14.411-3 below, before execution thereof, if either of the following circumstances applies: (1) The annual cost of the service to be procured is estimated by the using agency. at the time of initiation of the service or annual review of the expendi ture, to exceed $50.000; or (2) A proposed connection charge, termination liability, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $10,000. (b) Proposed utility procurement specified in paragraph (a) of this section shall be referred to GSA for prior review unless the procuring agency has an established program and personnel tech nically qualified to deal with specialized utilities problems, as described in § 1-4 411-3 below. If prior review is handled by GSA, it will follow the provisions set forth in § 1-4.411-2. If, however, prior review is handled by the procuring agency, it shall follow the provisions set forth in 1-4.411-3. In either event guidelines to be used in such prior reviews are set forth in § 1-4.411-4. [31 FR 16417, Dec. 23, 1966, as amended at 40 FR 44140, Sept. 25, 1975] § 1-4.411-2 Prior review by GSA. (a) Where a procuring agency refers the proposed procurements specified in § 1-4.411-1(a) for prior review by GSA |