Authority
Section 2 of Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement; Section 4(a) of E.O. 14265, Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base; Office of Management and Budget Memorandum M-25-26, Overhauling the Federal Acquisition Regulation (May 2, 2025)
Summary
The deviation implements the Revolutionary Federal Acquisition Regulation (FAR) Overhaul for utility services acquisitions. Effective 2026-02-01, contracting officers must use revised FAR Part 41 and deviation versions of Defense FAR Supplement (DFARS) Part 241 and DFARS Procedures, Guidance, and Information (PGI) 241. The deviation remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI.
Contracting Officer Actions
1
Effective 2026-02-01, use the revised FAR Part 41 from the Revolutionary FAR Overhaul (RFO) web page. It replaces the codified text at 48 CFR chapter 1.
2
Effective 2026-02-01, use the attached DFARS Part 241, Acquisition of Utility Services. It replaces the codified text at 48 CFR chapter 2.
3
Effective 2026-02-01, use the attached DFARS PGI 241, Acquisition of Utility Services. It replaces the PGI text on the Defense Pricing, Contracting, and Acquisition Policy web page.
4
Insert clause 252.241-7000, Superseding Contract, when the Government must execute a superseding contract and capital credits, connection charge credits or termination liability exist.
5
Insert clause 252.241-7001, Government Access, when FAR clause 52.241-5, Contractor's Facilities, is used.
6
For regulated utility services, insert a clause substantially the same as FAR 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services.
7
For unregulated utility services or services subject to a nonindependent regulatory body, insert a clause substantially the same as FAR 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services.
8
Direct inquiries to osd.pentagon.ousd-a-s.mbx.dfars@mail.mil.
Expiration
This deviation has no fixed expiration date. It remains in effect until rescinded or incorporated into the FAR, DFARS and DFARS PGI.
Regulatory authority basis
Rates set by an independent regulatory body are considered prices set by law or regulation. They are sufficient to establish fair and reasonable prices without certified cost or pricing data under FAR subpart 15.4.
Multiyear electricity contracts
See DFARS 217.103-174 for authority to enter into multiyear contracts for electricity from renewable energy sources.
Contract period limits
See PGI 241.103 for a summary of statutory authorities and maximum contract periods for utility and energy contracts.