How to buy utility services for your agency

Your agency needs utilities like electricity, natural gas, and water to operate. We are here to help you get the services you need. The process for buying utilities depends on where your facility is located. The first step is to know if you are in a regulated or deregulated utility market.

Option 1: for regulated markets, use areawide contracts

If you’re in a regulated market, the our areawide contract (if available) is a mandatory source

• What it is: A pre-negotiated agreement between GSA and a utility company. It simplifies the buying process and includes all required federal terms and conditions.
• When to use it: You must use an areawide contract if one is available and your agency spends more than $250,000 per year on that utility.
• Exceptions: You may not need to use an areawide contract if another federal agency provides your utilities or if we approve a separate contract for your situation.

Option 2: for deregulated markets, use third party / retail contract

If you’re in a deregulated market for electricity or natural gas, you can choose your supplier through our Retail Choice Program.

• What it is: We bring together qualified suppliers to compete for your business in a reverse auction.
• How it works: Suppliers bid their prices down to win the contract. This process helps ensure your agency gets the lowest possible price for energy. You then place a task order against the winning contract.

How to get started

We partner with you to secure the most valuable utility services. Here’s how:

1. Contact us

   Reach out to utilities@gsa.gov. We’ll determine if your facility is in a regulated or deregulated market. If you are eligible for Retail Choice, we will guide you through the next steps. 

2. Authorize data sharing

   You’ll sign a Letter of Authorization, or LOA, allowing your local utility company to share your past energy usage data with us. This helps us understand your needs.

3. We review your usage

   Our team will analyze your recent energy bills to understand your consumption patterns and costs.

4. Sign an MOA

   You’ll sign a Memorandum of Agreement, or MOA, that authorizes us to find a utility supplier on your behalf.

5. We find a supplier

   We will run a competitive auction to get the lowest price from technically qualified suppliers.

6. You accept the price and issue an order

   We will present you with the winning price. If you accept it, you will then issue a task order to the new supplier to start service and payments.

GSA vs. agency responsibilities

Here’s a simple breakdown of responsibilities during the Retail Choice process.

Important contract details

• Program fee: Agencies in the Retail Choice program pay a small fee – currently $0.0007 per kWh – which is included in the per kWh charge on their utility/supplier bill. This fee covers the cost of our auction platform and expert support.
• Usage changes: Contracts allow for a variance of +/- 20% more or less in usage. It is rare for a single agency’s usage to exceed this limit on our aggregated contracts.
• Adding or removing accounts: The contract allows you to add or remove accounts. We will negotiate rates for new accounts and manage any early termination charges your agency may be required to pay if an account is removed.
• Contract clauses: Our contracts use standard federal clauses. Please do not modify them at the task order level without our approval, as this could lead to increased costs.