AF Form 3551: Annual Gas Utility Contract Review Guide

AF Form 3551: Annual Gas Utility Contract Review Guide – AF Form 3551: Annual Utility Service Contract Review for Gas Service is a key Department of the Air Force (DAF) form used by installation energy managers and civil engineering personnel to document the mandatory annual review of natural gas utility service contracts.

This form helps ensure the U.S. Air Force and Department of the Air Force (including Space Force) acquire natural gas at the most economical rates available while minimizing costs and supporting mission readiness.

What Is AF Form 3551?

AF Form 3551, titled Annual Utility Service Contract Review for Gas Service, is the official document for recording the annual evaluation of gas utility purchase contracts at DAF installations. It is one of a series of utility review forms:

  • AF Form 3550 — Electric Service
  • AF Form 3551 — Gas Service
  • AF Form 3552 — Water and Sewage Service

The form supports compliance with DAFMAN 32-1061, Providing Utilities to Department of the Air Force Installations (updated as of 2025 guidance). The installation energy manager (or designated representative) must complete the review annually or whenever the contract is modified.

Official Download: AF Form 3551 PDF

Why Is the Annual Gas Utility Contract Review Required?

Federal and DAF policy require regular reviews of utility contracts to verify that installations receive the best possible rates and terms. Key objectives include:

  • Ensuring cost minimization for natural gas commodity and transportation services.
  • Identifying opportunities for better rates, alternative suppliers, or contract modifications.
  • Supporting broader energy management goals, including advanced metering, resilience, and potential utility privatization.
  • Maintaining accurate documentation for audits, budgeting, and reporting in systems like the Air Force Energy Reporting System (AFERS).

According to DAFMAN 32-1061, the review must confirm that the DAF acquires utilities “at the most economical rate available and costs are minimized.” Reviews are documented using the appropriate AF Form for each utility type.

This process aligns with Department of Defense energy policy, Federal Acquisition Regulation (FAR) subpart 8.3 on utility services, and related guidance in AFPAM 32-10144.

Who Is Responsible for Completing AF Form 3551?

  • Primary: Installation Energy Manager (or delegee).
  • Oversight: Base Civil Engineer (BCE).
  • Coordination: Often involves the installation contracting officer, legal office, and utility rate experts when rate changes or modifications are proposed.
  • Frequency: Annually, plus any time a contract modification occurs.

The completed form becomes part of the installation’s utility services folder for compliance and historical reference.

Key Elements Typically Reviewed on AF Form 3551

While the exact layout of the fillable PDF includes standard blocks for identification and findings, the review generally covers:

  • Contract Details: Contract number, utility provider (Local Distribution Company or LDC), effective dates, and points of delivery.
  • Consumption and Cost Data: Historical and current natural gas usage (in MBtu or therms), peak demand, firm vs. interruptible service percentages, and total costs.
  • Rate Analysis: Current tariff rates, any special riders, surcharges, or discounts. Comparison against alternative supply options (e.g., direct supply contracts via DLA Energy or GSA areawide contracts).
  • Specifications Compliance: Verification against natural gas service specifications (see Attachment 8 in AFPAM 32-10144), including premises served, estimated maximum daily/ hourly quantities, and service type.
  • Metering: Status of meters, calibration records (where applicable), and advanced metering infrastructure (AMI) for whole-installation visibility.
  • Findings and Recommendations: Any identified savings opportunities, proposed actions (e.g., renegotiation, switch to direct supply, or utility privatization consideration), and signatures/approvals.

The form documents whether the current contract remains the most cost-effective option or if corrective actions are needed.

How to Complete and Use AF Form 3551 (Best Practices)?

  1. Gather supporting documents: Current contract, recent bills, consumption history, meter calibration records, and any rate intervention data.
  2. Analyze rates and terms: Compare against market options, including DLA Energy direct supply natural gas programs where beneficial.
  3. Document savings opportunities: Note potential reductions through contract changes, efficiency measures, or load management.
  4. Coordinate with stakeholders: Involve contracting, legal, and higher headquarters (e.g., AFCEC Utility Rate Management Team) for significant issues.
  5. File and report: Retain the completed AF Form 3551 in the utility services folder and incorporate findings into energy management plans and AFERS reporting.

For detailed natural gas specifications to reference in contracts, consult AFPAM 32-10144, which provides standard formats for Section C of utility service contracts (firm vs. interruptible service, maximum demand, etc.).

Connection to Broader Air Force Utility Management

AF Form 3551 supports larger DAF initiatives, including:

  • Utility Privatization (UP): Evaluating whether conveying gas distribution systems to a third-party owner could yield long-term savings and improved reliability.
  • Utility Energy Service Contracts (UESC): Identifying conservation measures funded through utility incentives.
  • Advanced Metering: Ensuring principal gas feeds have advanced meters where cost-effective to improve visibility and management.
  • Energy Resilience: Supporting microgrid potential and reducing vulnerability to supply disruptions.

Installations with privatized housing or systems must coordinate metering and demarcation points carefully per DAFMAN 32-1061.

Tips for Air Force Personnel

  • Perform the review proactively before contract renewal or rate adjustment periods.
  • Leverage AFCEC resources and utility rate expert services for complex analyses.
  • Stay current with state regulatory changes affecting LDCs, as these can impact rates.
  • Integrate findings with installation energy plans to support DoD and DAF energy and water management goals under DAFI 90-1701.

Download the latest AF Form 3551 directly from the official e-Publishing site to ensure you are using the current version.

Proper use of AF Form 3551 helps Air Force installations control energy costs, enhance operational efficiency, and maintain compliance with federal and DAF utility management requirements. For full procedural details, always refer to the most recent versions of DAFMAN 32-1061 and AFPAM 32-10144 on the Air Force e-Publishing website.

This article is for informational purposes and is based on publicly available Department of the Air Force publications as of 2025–2026. Personnel should consult their local civil engineering squadron, energy manager, or higher headquarters for installation-specific guidance and the latest policy updates.