AF Form 3553: Utility Sales Agreement (Download PDF)

AF Form 3553: Utility Sales Agreement (Download PDF) – AF Form 3553: Utility Sales Agreement for Non-Federal Organizations is the official Department of the Air Force form used to establish written agreements for selling utility services—such as electricity, natural gas, water, or sewer service—from Air Force installations to non-federal organizations.

Non-federal entities located near or connected to DAF (Department of the Air Force) utility infrastructure may need this agreement when they cannot readily obtain services from commercial providers or when proximity and existing connections make Air Force supply the practical option. The form formalizes the terms, rates, responsibilities, and conditions for such sales while ensuring compliance with federal regulations and cost-recovery requirements.

What Is AF Form 3553 Used For?

AF Form 3553 creates a binding Utility Sales Agreement between the U.S. Air Force (or Department of the Air Force) and non-federal organizations. These typically include private companies, contractors working on or near the installation, certain permitted non-governmental entities, or other off-base customers connected to base utility systems.

Key purposes include:

  • Documenting the specific utilities provided (electric, gas, water, sewer, etc.).
  • Establishing pricing and payment terms.
  • Outlining delivery methods, metering, inspection rights, and termination conditions.
  • Ensuring the Air Force recovers appropriate costs while complying with legal restrictions on selling utilities to non-federal parties.

Sales to non-federal customers are generally limited to situations where the customer is in close proximity to the installation, already connected to DAF infrastructure, and meets specific regulatory criteria outlined in governing guidance.

Note: A related form, AF Form 3554, handles utility sales agreements for DoD agencies and certain non-federal agencies, while AF Form 3555 serves as the rates exhibit attached to these agreements.

Governing Regulation: DAFMAN 32-1061

The primary policy document is DAFMAN 32-1061, Providing Utilities to U.S. Air Force Installations (updated with DAFGM 2025-01). This manual details:

  • Authority for selling utilities to non-DAF entities.
  • Approval processes (installation commander approval is often required for off-base customers).
  • Rate-setting principles (rates typically aim to maximize reimbursement while remaining economically feasible; non-federal customers generally pay the higher of full cost recovery—including O&M, capital charges, and overhead—or local prevailing rates).
  • Restrictions, especially for selling water (coordination with bioenvironmental, legal, and environmental offices is required due to safe drinking water regulations).
  • Annual reviews using AF Form 3557, Utility Service Annual Review.

The manual emphasizes that utility sales to non-federal organizations are not routine and require justification. Installation energy managers or civil engineer squadrons typically lead coordination, often involving the local Judge Advocate (JA) office and higher-level approvals for certain interconnections or net metering arrangements.

Who Needs AF Form 3553?

Common users include:

  • Private contractors or companies with facilities adjacent to an Air Force base that tap into base utilities.
  • Permitted non-federal entities operating on or near the installation (subject to DoDI 1000.15 and other guidance).
  • Organizations involved in redevelopment or legacy connections where disconnection is impractical.

Federal agencies or DoD components generally use different processes or forms. Sales are prohibited in many cases unless explicitly authorized.

Key Sections and How to Complete AF Form 3553

While the exact layout is a standard multi-part fillable form (available as a PDF from official Air Force e-Publishing sources), typical elements include:

  • Parties to the Agreement: Identification of the Air Force installation/activity and the non-federal organization (name, address, point of contact, etc.).
  • Utilities Covered: Specific services (electric power, natural gas, water, wastewater/sewer).
  • Service Location and Metering: Point of delivery, meter details, and responsibility for maintenance.
  • Rates and Payment: Reference to attached AF Form 3555 (Utility Sales Rates Exhibit) or specified rates. Payment schedules, late fees, and billing address.
  • Terms and Conditions: Duration of agreement, inspection rights, force majeure, termination clauses, liability, and compliance with applicable laws.
  • Signatures: Authorized signatures from the non-federal organization and Air Force representatives (often including the Base Civil Engineer and Installation Commander or their designees).

Download the Official Form:
AF Form 3553 PDF

Always use the most current version from the official Air Force e-Publishing site (www.e-publishing.af.mil). Third-party sites may host outdated copies.

Tip for Completion: Work with the installation’s Civil Engineer Squadron (or energy manager) early. They coordinate rate calculations, legal review, and required approvals. Rates and terms are not arbitrary—they must align with DAFMAN 32-1061 and often require input from AFCEC (Air Force Civil Engineer Center).

Step-by-Step Process for Utility Sales Agreements

  1. Initial Request — Non-federal organization contacts the base Civil Engineer Squadron or energy office.
  2. Feasibility Review — Determine if sale is authorized under DAFMAN 32-1061 (proximity, connection, regulatory compliance).
  3. Rate Development — Calculate reimbursable rates (full cost or prevailing local rate, whichever is higher in many cases).
  4. Draft Agreement — Complete AF Form 3553 with attached rates exhibit (AF Form 3555).
  5. Legal and Command Review — Route through JA and obtain required approvals (installation commander for off-base sales).
  6. Execution — Both parties sign; retain copies per records management policy.
  7. Annual Review — Use AF Form 3557 to review usage, rates, and agreement status each year.

For off-base or complex sales (including net metering), higher-level approvals (e.g., SAF/IEI or SAF/IEE) may apply.

Important Considerations for Non-Federal Organizations

  • Cost — Expect rates that fully reimburse the government; subsidies are generally not available.
  • Regulatory Compliance — Water sales may trigger additional Safe Drinking Water Act considerations.
  • Termination — Agreements can usually be terminated with notice; plan for potential transition to commercial service.
  • Interconnection/Net Metering — Special approvals and coordination are required if customer-owned generation is involved.
  • Record Keeping — Both parties should maintain the agreement and related billing records.

Non-federal customers should consult their own legal counsel alongside Air Force JA input.

Where to Get Help?

  • Installation Civil Engineer Squadron / Energy Manager — Primary point of contact.
  • Air Force Civil Engineer Center (AFCEC) — Policy and technical support.
  • Local Judge Advocate Office — Legal review of agreements.
  • Official Source for Forms — Air Force e-Publishing.

For the latest guidance, refer directly to DAFMAN 32-1061 on the e-Publishing site, as policies can receive updates via DAF Guidance Memorandums (DAFGM).

Conclusion

AF Form 3553 provides a standardized, compliant way for non-federal organizations to purchase utility services from U.S. Air Force installations when authorized. Proper use protects both parties, ensures fair cost recovery for the government, and maintains regulatory compliance. Start by contacting the specific installation’s Civil Engineer team to discuss feasibility and begin the process.

Download AF Form 3553 here: Official PDF Link

This article is for informational purposes only and is based on publicly available Department of the Air Force publications as of 2025–2026. Always verify current requirements with the relevant Air Force installation and official sources, as policies and forms may be updated.