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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 7 - Agriculture |
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Subtitle B - Regulations of the Department of Agriculture |
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Chapter XVII - Rural Utilities Service, Department of Agriculture |
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Part 1726 - Electric System Construction Policies and Procedures |
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Subpart C - Substation and Transmission Facilities |
§ 1726.77 - Substation and transmission line construction.
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§ 1726.77 Substation and transmission line construction.
(a) Contract forms. The borrower must use RUS Form 830, Electric System Construction Contract—Project Construction, for construction of substations, except for minor modifications or improvements.
(b) Procurement procedures.
(1) It is the responsibility of each borrower to determine the procurement method that best meets its needs to award contracts in amounts of up to a cumulative total of $750$1,000,000 or three four percent of NUP (not to exceed $6, 000,000), whichever is greater, per calendar year of substation and transmission line construction (including minor modifications or improvements), exclusive of the cost of owner furnished materials and equipment. Borrowers may award Cost-Plus/Hourly contracts as part of these borrower responsibility limits up to a cumulative total of $250$500,000 or one two percent of NUP (not to exceed $2, 000,000), whichever is greater, per calendar year of substation and transmission line construction (including minor modifications or improvements), exclusive of the cost of owner furnished materials and equipment.
(2) The borrower shall use formal competitive bidding for all other contract construction unless RUS specifically approves an alternative method. The dollar amount of contracts bid using the formal competitive bidding procedure do not apply to the cumulative total stipulated in paragraph (b)(1) of this section.
(3) An amendment which increases the scope of the contract by adding a project is not considered competitively bid, therefore, the dollar amount of that amendment does apply to the cumulative total stipulated in paragraph (b)(1) of this section.
(c) Contract approval. Individual contracts in the amount of $750$1,000,000 or more or three four percent of NUP (not to exceed $6, 000,000), whichever is greater, exclusive of the cost of owner furnished materials and equipment, are subject to RUS approval.
[60 FR 10155, Feb. 23, 1995, as amended at 69 FR 7109, Feb. 13, 2004; 77 FR 3072, Jan. 23, 2012; 86 FR 36198, July 9, 2021; 89 FR 17275, Mar. 11, 2024]