FAR and DFARS › FAR Part 41: Acquisition of Utility Services › Subpart 41.4
FAR 41.402 Rate changes and regulatory intervention.
The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.
In plain English
This section explains how agencies handle changes to utility rates or terms of service for government contracts. It requires agencies to review proposed changes for reasonableness and to incorporate approved rate changes into contracts, ensuring contractors are paid promptly.
Applies to: Government agencies managing utility service contracts
What it requires
- Agency shall promptly determine if a proposed rate change is reasonable, justified, and not discriminatory.
- If a regulatory body approves a rate change, it shall be made part of the contract by unilateral modification or documented per agency procedures.
- Copies of the modification containing the approved rate change shall be sent to the paying office or office verifying billed amounts.
- For unregulated utilities, any rate change shall be made part of the contract by contract modification, with copies sent to the paying office.
Key terms: rate change · regulatory body · unilateral contract modification · regulated services · unregulated services
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) When a change is proposed to rates or terms and conditions of service to the Government, the agency shall promptly determine whether the proposed change is reasonable, justified, and not discriminatory.
(b) If a change is proposed to rates or terms and conditions of service that may be of interest to other Federal agencies, and intervention before a regulatory body is considered justified, the matter shall be referred to GSA. The agency may request from GSA a delegation of authority for the agency to intervene on behalf of the consumer interests of the Federal executive agencies (see 41.301).
(c) Pursuant to 52.241-7, Change in Rates or Terms and Conditions of Service for Regulated Services, if a regulatory body approves a rate change, any rate change shall be made a part of the contract by unilateral contract modification or otherwise documented in accordance with agency procedures. The approved applicable rate shall be effective on the date determined by the regulatory body and resulting rates and charges shall be paid promptly to avoid late payment provisions. Copies of the modification containing the approved rate change shall be sent to the agency's paying office or office responsible for verifying billed amounts (see 41.401).
(d) If the utility supplier is not regulated and the rates, terms, and conditions of service are subject to negotiation pursuant to the clause at 52.241-8, Change in Rates or Terms and Conditions of Service for Unregulated Services, any rate change shall be made a part of the contract by contract modification, with copies sent to the agency's paying office or office responsible for verifying billed amounts.
← 41.401 Monthly and annual review. · 41.501 Solicitation provision and contract clauses. →
Rule changes for FAR Part 41
- Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 6, 7, 10, 18, 26, 37, and 41 ↗ · proposed 2026-06-23 · comments due 2026-07-23
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.