Facilities Engineering

Acquisition and Sale of Utilities Services

By Order of the Secretary of the Army:

RAYMOND T. ODIERNO
General, United States Army
Chief of Staff

Official:

GERALD B. O'KEEFE
Administrative Assistant to the
Secretary of the Army

History. This publication is a major revision.

Summary. This regulation has been revised to update the policy, responsibilities, and mandatory procedures for the acquisition and sale of utilities and related services. It covers policies, responsibilities, and procedures for the preparation, review, approval, award, and post-award administration of solicitations and contracts for the acquisition of utilities services; and contracts, memorandums of understanding, inter-service or intragovernmental support agreements for the sale of utilities and related services. The sections pertaining to the acquisition of utilities services are to be used with the Federal Acquisition Regulation system and implement electricity procurement requirements of the Energy Policy Act of 2005, Executive Order 13423, Executive Order 13514, Department of Defense Instruction 4170.11, and the Department of Defense 4140.25-M chapters pertaining to the competitive acquisition of electricity and natural gas. The sections pertaining to the sale of

utilities and related services implement Section 2686, Title 10, United States Code; Section 2872a, Title 10, United States Code; Section 2916, Title 10, United States Code; Section 1535, Title 31, United States Code; Department of Defense 7000.14-R; Department of Defense instruction 4000.19; Department of Defense Instruction 1015.15; AR 37-49, AR 215-1; AR 215-8, AR 420-1; the Army Reimbursable Policy; and the Army Residential Communities Initiative Utilities Reimbursement Policy.

Applicability. This regulation applies to the Active Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve, unless otherwise stated. It also applies to installations, sites, and/or facilities operated and maintained by Federal funds. Also, applies to facilities under Department of the Army control purchasing utility services needed for Army consumption, and selling utilities and related services to reimbursable customers as permitted by law.

Proponent and exception authority. The proponent of this regulation is the Chief of Engineers. The proponent has the authority to approve exceptions or waivers to this regulation that are consistent with controlling law and regulations. The proponent may delegate this approval authority, in writing, to a division chief within the proponent agency or its direct reporting unit or field operating agency, in the grade of colonel or the civilian equivalent. Activities may request a waiver to this regulation by providing justification that includes a full analysis of the expected benefits and must include formal review by the activity's senior legal officer. All waiver requests will be endorsed by the

commander or senior leader of the requesting activity and forwarded through their higher headquarters to the policy proponent. Refer to AR 25-30 for specific guidance.

Army internal control process. This regulation contains internal control provisions in accordance with AR 11-2 and identifies key internal controls that must be evaluated (see appendix C).

Supplementation. Supplementation of this regulation and the establishment of command and local forms are prohibited without prior approval from the U.S. Army Corps of Engineers (CEMP-CI-I), 441 G Street N.W., Washington, DC 20314-1000.

Suggested improvements. Users are invited to send comments and suggested improvements on DA FormDA FormDepartment of the Army form 2028 (Recommended Changes to Publications and Blank Forms) directly to the U.S. Army Corps of Engineers (CEMP-CI-I), 441 G Street N.W., Washington, DC 20314-1000.

Distribution. This publication is available in electronic media only and is intended for command levels C, D, and E for the Active Army, the Army National Guard/Army National Guard of the United States, and the U.S. Army Reserve.

*This regulation supersedes AR 420-41, dated 15 September 1990.

AR 420-41 • 3 March 2015

UNCLASSIFIED