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 § 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. As used in this Subpart 1-4.4, "utility services" include all utility services (exsuch cept telecommunications services), as electricity, gas, steam, water, and sewerage, including facilities on both sides of the delivery point for the supply of such services. § 1-4.402 Applicability. (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 program. marketing or distribution (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 § 1-4.403 Utility bills rendered to ex ecutive agencies. Executive agencies shall notify the util ity 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 mu tually agreed upon between GSA and the supplier. § 1-4.404 GSA assistance. (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 staf of utilities technical specialists and engl. neers, available to all agencies, to provide the necessary capabilities to facili tate 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] § 1-4.406 Procurement policy and regulations. 81-4.406-1 Policy. 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). 81-4.406-2 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 a 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, or change. § 1-4.408 GSA long-term contracts. 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 conditions under which they will be procured, shall be used in cases of consolidated purchase, joint use, or cross-service. A copy of each memorandum shall be retained in the procuring agency's file until the end of the retention period specified in § 1-4.410-6. These memorandums shall be subject to such on-site postreview or periodic reporting as may be required by GSA. § 1-4.410 Independent procurement by executive agencies. § 1-4.410-1 General. (a) In the absence of available GSA areawide contracts (§ 1-4.407), GSA long-term contracts (§ 1-4.408), or consolidated purchase, joint use, or crossservice (§ 1-4.409), executive agencies may procure utility services and facilities, within the scope of their authority, by independent procurement for their own accounts, subject to the policy provisions of § 1-4.406, the procedural provisions of § 1-4.410, and the review provisions of § 1-4.411. or (b) Such procurement may be effected by formal bilateral written contract or by simple procurement documents, such as Government purchase orders or other written requests for service. A standard utility supplier application form similar document shall not be used, and If a Government purchase order or other written request for service will not be accepted by the utility supplier, the agency shall negotiate a formal bilateral written contract. § 1-4.410-2 Documentation of procurements from regulated utility suppliers. Utility services may be procured by executive agencies by a simple procurement document, such as one of those mentioned in § 1-4.410-1, rather than by a formal bilateral written contract, when the utility supplier's rates are fixed or adjusted by a Federal, State, or other public regulatory body, except that a formal bilateral written contract shall be used under one or more of the following circumstances: (a) The utility service is available from more than one source of supply, in which case such service shall be procured as provided in § 1-4.406-1. (b) The supplier requires the execution of a contract. (c) 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 expend!. ture, to be over $10.000. (d) A proposed connection charge for connecting the using agency's facilitles to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facilities, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $10,000. (e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government [31 FR 16417, Dec. 23, 1966, as amended at 40 FR 44140, Sept. 25, 1975] § 1-4.410-3 Documentation of pro curements from unregulated utility suppliers. Utility services shall be procured by executive agencies by a formal bilateral written contract, rather than by a simple procurement document, such as one of those mentioned in § 1-4.410-1, when the utility supplier's rates are not fixed or adjusted by a Federal, State, or other public regulatory body, and one or more of the following circumstances exists: (a) The utility service is available from more than one source of supply, in which case such service shall be procured as provided in § 1-4.406-1. (b) The supplier requires the execu tion of a contract. (c) 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 expenditure, to be over $10,000. (d) A proposed connection charge for connecting the using agency's facilities to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facilities, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $10,000. (e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government. [31 FR 16417, Dec. 23, 1966, as amended at 40 FR 44140, Sept. 25, 1975] § 1-4.410-4 Negotiations with utility suppliers. (a) In the event that a utility supplier declines, after appropriate initial request, |