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Selling Energy to the Federal Government

Fortnightly Magazine - February 1 1998

contracts); Raymond F. Monroe, "New Opportunities for Gas Sales to the Federal Government," Natural Gas, July 1997. The impact, if any, of deregulation and competition on this market is still to be determined. See generally, Hearings on the Federal Agency Energy Management Provisions of the Energy Policy Act of 1992, Senate Committee on Energy and Natural Resources, 105th Congress (Sept. 25, 1997).

3 The contracting officer has some discretion even with respect to these required clauses and must insert clauses "substantially the same as" the listed clauses [FAR 41.501(c)]. In addition, the contracting officer shall insert other standard clauses "[d]epending on the conditions that are appropriate for each acquisition" [FAR 41.501(e)].

4 FAR 41.202(c). Even without a written contract, the government is likely to argue that certain mandatory requirements are read into these oral contracts by operation of law.

5 FAR 31.205-47(f)(8) (costs unallowable unless incurred "pursuant to a written request from the cognizant contracting officer").

6 This may occur if the contract is for $500,000 or more of goods or services and the prices are not set by tariffs, rates, rules or regulations or the procurement does not qualify for another exception to the requirement for cost or pricing data. See The Truth In Negotiations Act, 10 U.S.C. 2306a; FAR 15.4.

7 See FAR 15.403-4(a)(1)(iii).

8 See, e.g., 31 U.S.C. § 3729-3731; 18 U.S.C. § 1001.

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