Please join Jennifer Schaus & Associates every Wednesday in 2021 for a complimentary Wednesday series. See the full recording on our YouTube Channel (coming soon). For more information about our federal contracting services please visit http://www.Jenniferschaus.com or contact us at 202-365-0598. Win more federal government contracts!

1. DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

2. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting

3. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.

4. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

5. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

6. C3 is a full-service IT provider, helping DoD contractors
achieve CMMC, DFARS and NIST 800-171 compliance
through cloud-based solutions including Microsoft 365
GCC and GCC High.
No Matter Where You Are on Your
Journey to Compliance,
C3 Integrated Solutions Can Help
www.c3isit.com

7. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration

8. J SCHAUS & ASSOCIATES- WASH DC
hello@JenniferSchaus.com
Gov Con - Q&A CAFE
REMAINING GOV CON Q&A CAFÉ WEBINARS…
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DECEMBER – M&A

9. Gov Con
LIVE Q&A
Webinar Series
2021
Anna Urman
Eric Coffie
Cy Alba
Tim Furin
Friday, October 8, 2021
Get LIVE Answers to your
questions about:
Set-Asides

10. Gov Con
LIVE Q&A
Webinar Series
2021
Marsha Lindquist
Michael Gallo
Traci Shepps
Jeff Shapiro
Friday, November 12, 2021
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questions about:
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11. Gov Con
LIVE Q&A
Webinar Series
2021
Shirley Collier
Joshua Dearmon
Kate Troendle
Brad Jorgensen
Friday, December 10, 2021
Get LIVE Answers to your
questions about:
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FISCAL NEW YEAR
BEST PRACTICES FROM INDUSTRY LEADERS
October 1, 2021

13. US FEDERAL
GOVERNMENT
FISCAL NEW
YEAR
WEBINAR
BEST PRACTICES FROM
INDUSTRY LEADERS
October 1, 2021
OPENING SPEAKER – SBA – CONFIRMED!
SESSION 1 – MARKET RESEARCH
SESSION 2 – MARKETING
SESSION 3 – SALES & CAPTURE
SESSION 4 – PROPOSAL WRITING
SESSION 5 – COMPLIANCE
CLOSING SPEAKER – GSA – CONFIRMED!
ATTENDEE REGISTRATION:
https://register.gotowebinar.com/register/2204483846577694479
SPONSOR REGISTRATION:
https://register.gotowebinar.com/register/1301710033692969229

14. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Ned Childs
McGuireWoods LLP
echilds@mcguirewoods.com
202-702-9588

15. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
Acquisition of Utility Services
Wednesday, 15 September 2021

16. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
Agenda - DFARS Part 241 / FAR Part 41
• Procurement of Utility Services Generally (FAR Part 41)
• What is a Utility Service?
• Authority to Regulate Procurement of Utility Services
• Ground Rules and Procedures
• Contract Types
• Contract Clauses
• Procurement of Utility Services (DoD) (DFARS Part 241)
• Policy
• Service and Connection Charges
• Unique Contracting Vehicles

17. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• FAR Part 41 and DFARS Part 241 pertain to the acquisition of “Utility Services”
• What is a “Utility Service”?
• FAR 41.101: Utility service means a service such as furnishing electricity, natural or
manufactured gas, water, sewerage, thermal energy, chilled water, steam, hot water, or high
temperature hot water. The application of part 41 to other services (e.g., rubbish removal, snow
removal) may be appropriate when the acquisition is not subject to the 41 U.S.C. chapter 67,
Service Contract Labor Standards (see 37.107).
• Includes both regulated or unregulated services

18. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• What is not a “Utility Service”? Per FAR 41.102(b)…
• Cable television (CATV) and telecommunications services;
• Natural or manufactured gas when purchased as a commodity;
• Utilities services in foreign countries;
• Rights in real property, acquisition of public utility facilities, and on-site equipment needed for the
facility's own distribution system, or construction/maintenance of Government-owned equipment and
real property; or
• Third party financed energy shared-savings projects authorized by 42 U.S.C. § 8287.
• Agencies, however, may utilize FAR part 41 and DFARS part 241 for any energy savings or purchased
utility service directly resulting from implementation of a third party financed shared-savings project
under 42 U.S.C. § 8287 for periods not to exceed 25 years.

19. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Who has authority to regulate the acquisition of utility services? (FAR 41.103)
• GSA (FAR 41.103(a)(1))
• This authority includes related functions such as managing public utility services and representing
Federal agencies in proceedings before Federal and state regulatory bodies.
• GSA is authorized by 40 U.S.C. 501 to contract for utility services for periods not exceeding ten years.
• This authority includes related functions such as managing public utility services and representing
Federal agencies in proceedings before Federal and state regulatory bodies.
• GSA is authorized by 40 U.S.C. 501 to contract for utility services for periods not exceeding ten years.
• Delegated to DoD and DOE, as well as the VA (connection charges only)
• DoD (FAR 41.103(a)(2))
• DoD is authorized by to acquire utility services for military facilities (10 U.S.C. § 2304, and 40 U.S.C.§
474(d)(3))
• DOE (FAR 41.103(a)(3))
• DOE is authorized to acquire utility services (42 § U.S.C. § 7251, et seq.)
• DOE is authorized to enter into new contracts or modify existing contracts for electric services for
periods not exceeding 25 years for uranium enrichment installations (42 U.S.C. 2204)

20. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Who has authority to regulate the acquisition of utility services? (FAR 41.103)
• GSA (FAR 41.103(a)(1))
• This authority includes related functions such as managing public utility services and representing
Federal agencies in proceedings before Federal and state regulatory bodies.
• GSA is authorized by 40 U.S.C. 501 to contract for utility services for periods not exceeding ten years.
• This authority includes related functions such as managing public utility services and representing
Federal agencies in proceedings before Federal and state regulatory bodies.
• GSA is authorized by 40 U.S.C. 501 to contract for utility services for periods not exceeding ten years.
• Delegated to DoD and DOE, as well as the VA (connection charges only)
• DoD (FAR 41.103(a)(2))
• DoD is authorized by to acquire utility services for military facilities (10 U.S.C. § 2304, and 40 U.S.C.§
474(d)(3))
• DOE (FAR 41.103(a)(3))
• DOE is authorized to acquire utility services (42 § U.S.C. § 7251, et seq.)
• DOE is authorized to enter into new contracts or modify existing contracts for electric services for
periods not exceeding 25 years for uranium enrichment installations (42 U.S.C. 2204)

21. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Ground rules
• Must be consistent with state law governing the providing 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 (FAR 41.201(d)(1))
• Agencies required to review utility invoices monthly and services (over Simplified Acquisition Threshold
annually (FAR 41.401)
• Procedures
• Contracting officer shall conduct market surveys consistent with FAR Parts 6 and 7
• If at or below simplified acquisition threshold, no bilateral contract needed (FAR 41.201(b))
• Can be as simple as a standard commercial customer utility agreement
• If above the SAT, bilateral contract needed, to include mandatory FAR part 52 clause (absent urgent and
compelling need) (FAR 41.202(c))
• Certain procedures and requirements if the provider refuses contractual terms and conditions,
including approval above the contracting officer (GSA)

22. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Contract Types
• Areawide Contracts: Contract between the GSA and a utility service supplier to cover utility service
needs of Federal agencies within the franchise territory of the supplier; includes an “Authorization” form
for requesting service, connection, disconnection, or change in service (FAR 41.101, 41.204)
• Preferred contact type for specific areas (need competition or agency head approval otherwise)
• Rates typically approved and/or established by state regulatory body and published in a tariff or rate
schedule
• Need an SF-26/33 plus authorization form
• Contractors: https://www.gsa.gov/real-estate/environmental-programs/energy-water-
conservation/areawide-public-utility-contracts/download-contracts-modifications
• Interagency Agreements (FAR 41.206)
• To be used only when acquiring utilities from Government agency services or facilities
• Separate contracts (FAR 41.205)
• To be used only in absence of Areawide contract or interagency agreement
• Documentation requirements (FAR 41.205(b)

23. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
Example – Areawide Contact
Authorization Form:

24. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Mandatory clauses:
• 52.241-2, Order of Precedence - Utilities;
• 52.241-3, Scope and Duration of Contract;
• 52.241-4, Change in Class of Service;
• 52.241-5, Contractor's Facilities;
• 52.241-6, Service Provisions;
• 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, when the
utility services are subject to a regulatory body – unilateral, automatic modification;
• 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services, when
the utility services are not subject to a regulatory body;
• 52.241-9, Connection Charge, when a refundable connection charge is required to be paid by
the Government to compensate the contractor for furnishing additional facilities necessary to
supply service;

25. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• Mandatory clauses (cont.):
• FAR 52.241-10, 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;
• FAR 52.241-11, Multiple Service Locations (as defined in 41.101), when providing for
possible alternative service locations, except under areawide contracts, is required;
• FAR 52.241-12, 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; and
• FAR 52.241-13, Capital Credits, when the Federal Government is a member of a cooperative
and is entitled to capital credits, consistent with the bylaws and governing documents of the
cooperative.

26. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• DoD Supplement is included in DFARS Part 241
• Lead entities by branch: Chief of Engineers of the Army, Naval Facilities Engineering
Command (NAVFAC), Air Force head of contracting activity; and Defense Logistics Agency
• Policy Requirements (DFARS 241.201)
• DoD, as a matter of comity, generally complies with the current regulations, practices, and
decisions of independent regulatory bodies (but not non-independent regulatory bodies)
• Purchases of utility services outside the United States may use - (i) Formats and technical
provisions consistent with local practice; and (ii) Dual language forms and contracts
• Rates established by an independent regulatory body are: considered “prices set by law or
regulation”; sufficient to set prices without obtaining certified cost or pricing data; and a
valid basis on which prices can be determined fair and reasonable
• BUT: Compliance with the regulations, practices, and decisions of independent regulatory
bodies as a matter of comity is not a substitute for the procedures at FAR 41.202(a)

27. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• DoD Service and Connection Charges (DFARS 241.202)
• Allowed for under non-DoD contracts, but preference for no charges as to DoD, with following order
of precedence:
• None
• Termination liability. Allowed to use when an obligation is necessary to secure the required
services but cannot be not more than the agreed connection charge, less any net salvage
material costs. Requires the approval of the service power procurement officer or designee.
• Connection charge, refundable. Allowed to use a refundable connection charge when the
supplier refuses to provide the facilities based on lack of capital or published rules which prohibit
providing up-front funding. Contract should provide for refund of the connection charge within
five years unless a longer period or omission of the refund requirement is authorized by the
service power procurement officer or designee
• Connection and service charges, nonrefundable. Allowed to pay certain nonrefundable,
nonrecurring charges including service initiation charges, a contribution in aid of construction,
membership fees, and charges required by the supplier's rules and regulations to be paid by the
customer.

28. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• DoD maintains broader express regulatory authorities than other agencies, including the GSA
(although other agencies do engage in such practices)…
• Utility Privatization. DoD may enter into a utility service contract related to the conveyance
of a utility system for a period not to exceed 50 years (10 U.S.C. § 2688(d)(2))
• Energy Savings Performance Contracts (ESPCs). DoD may enter into an energy savings
contract under for a period not to exceed 25 years (10 U.S.C. § 2913)
• Renewable Energy. DoD may enter into multiyear contracts for electricity from renewable
energy sources (DFARS 217.174)

29. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #241
• DoD maintains broader express regulatory authorities than other agencies, including the GSA
(although other agencies do engage in such practices)…
• Utility Privatization. DoD may enter into a utility service contract related to the conveyance
of a utility system for a period not to exceed 50 years (10 U.S.C. § 2688(d)(2))
• Energy Savings Performance Contracts (ESPCs). DoD may enter into an energy savings
contract under for a period not to exceed 25 years (10 U.S.C. § 2913)
• Renewable Energy. DoD may enter into multiyear contracts for electricity from renewable
energy sources (DFARS 217.174)

30. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
THANK YOU To Our Speaker
Ned Childs
McGuireWoods LLP
echilds@mcguirewoods.com
202-857-1723

31. Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com