Subpart 41.5-Solicitation Provision and Contract Clauses 41.501 Solicitation provision and contract clauses. (a) Because the terms and conditions under which utility suppliers furnish service may vary from area to area, the differences may influence the terms and conditions appropriate to a particular utility's contracting situation. To accommodate requirements that are peculiar to the contracting situation, this section prescribes provisions and clauses on a "substantially the same as" basis (see 52.101) which permits the contracting officer to prepare and utilize variations of the prescribed provision and clauses in accordance with agency procedures. (b) The contracting officer shall insert in solicitations for utility services a provision substantially the same as the provision at 52.241-1, Electric Service Territory Compliance Representation, when proposals from alternative electric suppliers are sought. (c) The contracting officer shall insert in solicitations and contracts for utility services clauses substantially the same as the clauses at (1) 52.241-2, Order of PrecedenceUtilities; (2) 52.241-3, Scope and Duration of Contract; (3) 52.241-4, Change in Class of Service; (4) 52.241-5, Contractor's Facilities; and (5) 52.241-6, Service Provisions. (d) The contracting officer shall insert clauses substantially the same as the clauses listed below in solicitations and contracts under the prescribed conditions (1) 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. (Except for GSA areawide contracts, the contracting officer shall insert in the blank space provided in the clause the name of the contracting officer. For GSA area wide contracts, the contracting officer shall insert the following: "GSA and each areawide customer with annual billings that exceed $250,000.") (2) 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. (3) 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. (Use Alternate I to the clause if a nonrefundable charge is to be paid. When conditions require the incorporation of a nonrecurring, nonrefundable service charge or a termination liability, see paragraphs (d)(6) and (d)(4) of this section.) (4) 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. (5) 52.241-11, Multiple Service Locations (as defined in 41.101), when providing for possible alternative service locations, except under areawide contracts, is required. (6) 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. The Government may provide for inclusion of such agreed amount or fee as a part of the connection charge, a part of the initial payment for services, or as periodic payments to fulfill the Government's obligation. (7) 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. (e) Depending on the conditions that are appropriate for each acquisition. the contracting officer shall also insert in solicitations and contracts for utility services the provisions and clauses prescribed elsewhere in the FAR. [59 FR 67018, Dec. 28, 1994, as amended at 60 FR 14377, Mar. 17, 1995] 42.001 [Reserved] 42.002 Interagency agreements. (a) Agencies shall avoid duplicate audits, reviews, inspections, and examinations of contractors or subcontractors, by more than one agency, through the use of interagency agreements. (b) Subject to the fiscal regulations of the agencies and applicable interagency agreements, the requesting agency shall reimburse the servicing agency for rendered services in accordance with the Economy Act (31 U.S.C. 1535). (c) When an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the resolution of issues that may arise under the agreement. [63 FR 9062, Feb. 23, 1998, as amended at 65 FR 36014, June 6, 2000] 42.003 Cognizant Federal agency. (a) For contractors other than educational institutions and nonprofit organizations, the cognizant Federal agency normally will be the agency with the largest dollar amount of negotiated contracts, including options. For educational institutions and nonprofit organizations, the cognizant Federal agency is established according to Subsection G.11 of OMB Circular A-21, Cost Principles for Educational Institutions, and Attachment A, Subsection E.2, of OMB Circular A-122, Cost Principles for Nonprofit Organizations, respectively. (b) Once a Federal agency assumes cognizance for a contractor, it should remain cognizant for at least 5 years to ensure continuity and ease of administration. If, at the end of the 5-year period, another agency has the largest dollar amount of negotiated contracts, including options, the two agencies shall coordinate and determine which will assume cognizance. However, if circumstances warrant it and the affected agencies agree, cognizance may transfer prior to the expiration of the 5-year period. [63 FR 9062, Feb. 23, 1998] Subpart 42.1-Contract Audit Services SOURCE: 63 FR 9062, Feb. 23, 1998, unless otherwise noted. 42.101 Contract audit responsibilities. (a) The auditor is responsible for(1) Submitting information and advice to the requesting activity, based on the auditor's analysis of the contractor's financial and accounting records or other related data as to the acceptability of the contractor's incurred and estimated costs; (2) Reviewing the financial and accounting aspects of the contractor's cost control systems; and (3) Performing other analyses and reviews that require access to the contractor's financial and accounting records supporting proposed and incurred costs. (b) Normally, for contractors other than educational institutions and nonprofit organizations, the Defense Contract Audit Agency (DCAA) is the responsible Government audit agency. However, there may be instances where an agency other than DCAA desires cognizance of a particular contractor. In those instances, the two agencies shall agree on the most efficient and economical approach to meet contract audit requirements. For educational institutions and nonprofit organizations, audit cognizance will be determined according to the provisions of OMB Circular A-133, Audits of Institutions of Higher Education and Other Non-Profit Institutions. 42.102 Assignment of contract audit services. (a) As provided in agency procedures or interagency agreements, contracting officers may request audit services directly from the responsible audit agency cited in the Directory of Federal Contract Audit Offices. The audit request should include a suspense date and should identify any information needed by the contracting officer. (b) The responsible audit agency may decline requests for services on a caseby-case basis, if resources of the audit agency are inadequate to accomplish the tasks. Declinations shall be in writing. 42.103 Contract audit services directory. (a) DCAA maintains and distributes the Directory of Federal Contract Audit Offices. The directory identifies cognizant audit offices and the contractors over which they have cognizance. Changes to audit cognizance shall be provided to DCAA so that the directory can be updated. (b) Agencies may obtain a copy of the directory or information concerning cognizant audit offices by contacting the Defense Contract Audit Agency, ATTN: CMO, Publications Officer, 8725 John J. Kingman Road, Suite 2135, Fort Belvoir, VA 22060-6219. |