[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Rules and Regulations]
[Pages 7135-7152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3921]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1755
Telecommunications Program; Postloan Engineering Services
Contract
Agency: Rural Utilities Service, USDA.
Action: Final rule.
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SUMMARY: The Rural Utilities Service (RUS), successor to the Rural
Electrification Administration (REA), hereby amends its contract for
the procurement of postloan engineering services for telecommunications
systems. This action codifies the terms and conditions of the agreement
to be executed between RUS telecommunications borrowers and consulting
engineering firms hired to design and oversee construction of
telecommunications facilities financed with RUS financing assistance.
Several years have passed since these regulations were last amended and
changes in common contract language have occurred. These amendments
allow contracts to be more consistent with common practice.
EFFECTIVE DATE: This regulation is effective on March 20, 1997.
FOR FURTHER INFORMATION CONTACT: Mr. Orren E. Cameron III, Director,
Telecommunications Standards Division, Rural Utilities Service, U.S.
Department of Agriculture, Ag Box 1598, Washington, DC 20250-1598,
telephone number (202) 720-8663.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866 and therefore has not been reviewed
by OMB.
Executive Order 12988
This final rule has been reviewed under Executive Order 12778,
Civil Justice Reform. RUS has determined that this rule meets the
applicable standards provided in Sec. 3 of the Executive Order.
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) does not apply to this rule.
Information Collection and Recordkeeping Requirements
The reporting and recordkeeping requirements contained in the final
rule were approved by the Office of Management and Budget (OMB)
pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35,
as amended) under control number 0572-0059.
Send questions or comments regarding this burden or any other
aspect of these collections of information, including suggestions for
reducing the burden, to F. Lamont Heppe, Jr., Director, Program Support
Staff, Rural Utilities Service, Ag Box 1522, Washington, DC 20250-1522.
National Environmental Policy Act Certification
RUS has determined that this final rule will not significantly
affect the quality of the human environment as defined by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore,
this action does not require an environmental impact statement or
assessment.
Catalog of Federal Domestic Assistance
The program described by this final rule is listed in the Catalog
of Federal Domestic Assistance Programs under 10.851, Rural Telephone
Loans and Loan Guarantees. This catalog is available on a subscription
basis from the Superintendent of Documents, the United States
Government Printing Office, Washington, DC 20402-9325.
Executive Order 12372
This final rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultation. A Notice of Final Rule entitled
Department Programs and Activities Excluded from Executive Order 12372
(50 FR 47034) exempts RUS loans and loan guarantees to governmental and
nongovernmental entities from coverage under this Order.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review program to eliminate unnecessary regulations and
improve those that remain in force.
Background
Pursuant to 7 CFR part 1753, subpart B, RUS telecommunications
borrowers must use a contract to procure engineering services for
design and construction of facilities which qualify as ``major'' under
that part. The contract required is the RUS Form 217, Postloan
Engineering Services Contract.
The Form 217 contract was developed by REA (predecessor to RUS) to
meet the specific requirements of rural telecommunications borrowers,
and to meet the objectives of the RE Act. It contains provisions to
facilitate the use of RUS-required contract forms for the procurement
of outside plant, central office equipment, special transmission
equipment, and exchange switching equipment buildings. Most of the past
revisions of the Form 217 contract have been triggered by major
revisions of these other RUS construction contracts. Prior to this
action, the RUS Form 217 contract has never been codified.
A major feature of the Form 217 contract is that engineering fees
are agreed to in a manner that makes it possible to estimate them
accurately in advance. This helps RUS ensure that funding set aside for
the construction and engineering of a project will be adequate.
On December 27, 1995, RUS published a proposed rule (60 FR 66936)
in the Federal Register with a 30 day comment period. Comments received
were considered in developing this final rule. The changes made in this
final rule are evolutionary. The duties and responsibilities of the
contracting engineer, and its named representatives, are specified in
more detail. Design and construction monitoring activities are
[[Page 7136]]
more carefully defined. Many terms used throughout the contract form
are now defined. Details for handling termination by the owner and the
engineer are set forth. RUS Form 506, used for estimating and closing
the contract, is made a part of the contract. A number of requirements
of 7 CFR part 1753, subpart B, are brought in to the contract,
including RUS's reduced progress reporting requirements.
Comments
Public comments were received from the Association of Communication
Engineers (ACE). The following comments made in several places in
Sec. 1755.217, are summarized along with RUS's responses as follows:
Comment: The commenter suggested that the word ``All'' is not
necessary and should be deleted in the following sections: Form 217
(Section 3, paragraphs 3.05 and 3.23); Form 217b (Section 2, paragraph
G and Section 3); Form 217c (Section 3, paragraph D and Section 4);
Form 217d (Section 3, paragraph E); Form 217e (Section 2, paragraph E);
Form 217f (Section 4, paragraph C-3); Form 217g (Section 1, paragraphs
G and I)
Response: RUS is of the opinion that ``all'' is necessary to fully
specify the requirements.
Comment: The commenter suggested that the word ``Engineer'' be
deleted after the word ``Resident'' in the following sections: Form 217
(Section 3, paragraph 3.09); Form 217e (Section 2, paragraph G); Form
217g (Section 1, paragraphs B, B-1, B-2, B-4, B-5, and C; Section 5,
paragraph C)
Response: RUS agrees and has made the changes.
Comment (Form 217b Section 2, paragraph I; Form 217c Section 3,
paragraph G; and Form 217d Section 3, paragraph F): The commenter
stated that the last sentence of these paragraphs is in conflict with
the next to the last sentence of Section 1, paragraph A of Form 217g,
and should be deleted and the next to last sentence of Form 217g,
Section 1, paragraph A, should be inserted.
The commenter further stated that AIA form documents, NSPE form
documents, and form documents of other professionals involved in the
construction industry, as well as insurers who insure those
professionals, have repeatedly attempted to make clear that design
professionals have no responsibilities for a contractor's safety
practices. Owner insurers have taken the same stance as to owner
responsibilities for a contractor's safety practices. This sentence
will potentially be interpreted to impose a duty on the engineer to
determine whether a contractor practice that the engineer observes is
in fact safe. Will a person injured by a contractor's practice be able
to sue the engineer because the engineer observed the practice but did
not recognize that it was unsafe but should have? In addition, the
engineer's obligation to ``consult'' with the contractor is not clear
in its scope. Does it mean that the engineer is to consult with the
contractor about how to conform the contractor's practice to safety
standards? Will a person injured by a contractor's safety practice be
able to sue an engineer because the engineer did not properly
``consult'' with the contractor about the practice. Finally, the
sentence suggests that the owner has some responsibility for safety
practices of the contractor. That suggestion derives from the
implication that a report is to be made to the owner so that the owner
can take some action to address safety. If the owner takes no action,
is the owner now liable to someone who is hurt as a result?
Response: RUS does not believe there is a conflict when describing
safety matters that occur and that are resolved routinely between an
engineer and a contractor during a construction project. RUS believes
that the contract language reflects the appropriate responsibilities
among the parties involved in the job.
Comment (Form 217b Section 6, paragraph A; Form 217c Section 6,
paragraph A; Form 217d Section 5, paragraph A; Form 217f Section 5,
paragraph B): The commenter suggested that ``(6) services related to
RUS Form 773 Contracts.'' be added because RUS Form 773 contracts have
not been addressed and probably should be.
Response: 7 CFR 1753 provides specific details on the required
engineering services, whether the construction is classified as major
or minor, and what RUS construction contract form is to be used.
Therefore, it is inappropriate to single out a specific form, such as
RUS Form 773, in the generalized 217 Engineering Services Contract.
The following comments received from ACE pertaining to individual
portions of Sec. 1755.217 are summarized along with RUS's responses as
follows:
RUS Form 217
Comment (Section 1, Definitions): In the definition of ``Inspect,''
the commenter suggested that the word ``observe'' be substituted for
``examine'' stating that observe is used in most AIA, NSPE and ACEC
documents.
Response: RUS believes that ``observe'' does not express the degree
of inspection expected, but can imply that the inspection only covers
the obvious. ``Examine'' implies looking beyond the visually obvious
and looking to the true condition of the construction. RUS believes
that ``examine'' best describes the degree of inspection RUS
historically has expected and continues to expect for government funded
construction.
Comment (Section 1, Definitions): In the definition of
``Inspector,'' the commenter suggested that the word ``Engineer'' be
deleted after the word ``Resident'' since some state statutes prohibit
the use of the title engineer except as it refers to a registered
professional. A non registered engineer cannot be delegated engineering
responsibilities that are not under the direct control and approval of
a registered professional. ASCE, AIA, NSPE and ACEC documents all use
the title Resident alone.
Response: RUS agrees and has made the change.
Comment (Section 1, Definitions): In the definition of ``Resident
Engineer,'' the commenter suggested that the word ``Engineer'' be
deleted after the word ``Resident,'' the word ``engineering'' omitted
after the phrase ``on site'' and the phrase ``of the Engineer'' added
after the word ``responsibilities.'
Response: RUS agrees and has made the changes.
Comment (Section 2, paragraph 2.02): The commenter suggested that
the word ``engineering'' be inserted before ``assistance,'' before
``service'' and before ``advice and assistance'' stating that this
change would make it clear that the engineer is not retained to provide
legal, accounting or other kinds of assistance, service or advice. The
commenter also suggested that the word ``all'' be deleted before
``services'' since it is not necessary to fully describe the
responsibilities and could be interpreted as having connotations beyond
the intended scope. In addition, the commenter suggested that the
phrase ``requested by the Owner'' be inserted after the word
``services'' to identify the source of the request for assistance.
Response: RUS believes that the word ``all'' is necessary to fully
specify the requirement. RUS agrees with the remainder of the comment
and has made the changes.
Comment (Section 3, paragraph 3.03): The commenter suggested that
the words ``Complete and'' be deleted before ``detailed'' stating that
``complete and detailed'' is redundant. Complete is a word that cannot
be specifically identified (i.e., what is complete?). Detailed,
however, can be specifically identified as it relates to plans and
specifications.
[[Page 7137]]
Response: RUS does not believe that the words ``complete'' and
``detailed'' are redundant. Plans and specification may be detailed
without being complete.
Comment (Section 3, paragraph 3.08 (1)): The commenter suggested
that the phrase ``Final Record'' be substituted for the phrase ``As
Built.'' since this phrase better describes the end product.
Response: RUS agrees and has made the change.
Comment (Section 3, paragraph 3.15): The commenter suggested that
the phrase ``or maximum allowed by statute, whichever is less'' be
added after the words ``per annum'' because some states have limits as
to the allowable interest rate.
Response: RUS is not convinced that the addition of this phrase is
necessary. Where there is such a maximum, it can be entered in the
contract.
Comment (Section 3, paragraph 3.15): The commenter suggested that
the sentence which begins ``Such compensation shall be paid'' is not
clear and should be deleted. It is unclear whether it means that
payment of an invoice is not due until 10 days after interest on the
invoice is calculated, or that interest is not due until 10 days after
the interest has been calculated.
Response: RUS has replaced ``compensation'' with ``interest'' to
clarify the meaning.
Comment (Section 3, paragraph 3.22): The commenter suggested that
the last sentence in the paragraph should be deleted or rewritten to
insure that the engineer is compensated for expenses incurred beyond
his control. If the Engineer incurs costs as a result of Owner delays,
contractor delays or acts of God, then he should be compensated (i.e.,
Resident and Inspector time when rain delays occur or when contractor
has equipment breakdown, etc.).
Response: RUS believes this sentence is necessary as written
because the Form 217 is a contract between the Engineer and the Owner
and does not address other parties.
RUS Form 217a
Comment (Section 1, paragraph A): The commenter suggested that the
phrase ``Project Schedule'' be inserted after the phrase ``Loan
Design'' because the Project Schedule is an important element of the
total project and should be so recognized.
Response: RUS agrees with this comment and has made this change
recognizing, however, that Project Schedules are not always prepared
and therefore, adding the phase ``if developed'' after ``Project
Schedule.''.
Comment (Section 2): The commenter suggested that the ``Owner's''
or ``the Owner'' be inserted before the word ``obtaining'' in both
places where it appears and the words ``without limitation'' be changed
to ``by way of illustration.'' Without these changes, this is an overly
broad statement of what can reasonably be expected of an engineer.
Response: RUS has reworded this paragraph in accordance with the
comment, but does not agree that ``without limitation'' should be
deleted.
RUS Form 217b
Comment (Section 2, paragraph H): The commenter suggested that
``contractor'' or ``Contract Installer'' be used in lieu of
``Installer.''
Response: RUS agrees and has reworded the paragraph in accordance
with the comment.
Comment (Section 5, paragraph B): The commenter suggested that the
phrase ``including applicable sales and use taxes'' be inserted after
``materials'' in both places in the last sentence. Even though this has
been a long standing interpretation by RUS, it should be so stated to
avoid future misunderstandings.
Response: RUS does not believe this addition is appropriate because
compensation to reflect the collection of sales and use taxes is not
necessary.
RUS Form 217c
Comment (Section 3, paragraph E): The commenter suggested that the
phrase ``assure that the Contractor comply'' be deleted and replaced by
the phrase ``to determine the Contractor's proposed compliance'' since
it would be impossible to determine or assure any kind of compliance at
a preinstallation meeting.
Response: RUS believes that this paragraph reflects RUS'
intentions.
RUS Form 217e
Comment (Section 2, paragraph C): The commenter suggested that the
phrase ``in writing'' be inserted after ``notifying the Engineer'' to
avoid a potential conflict.
Response: RUS agrees and has made the change.
Comment (Section 2): The commenter suggested that paragraph J be
added as follows: ``The Engineer with the approval of the Owner shall
have the option of performing staking on the project in urban and
congested areas on a time and expense basis consistent with Table 2 of
this Agreement. Urban and congested area staking shall be defined as
any area containing one or more of the following characteristics:
1. Restricted Corridor
2. One or more existing buried telephone cables on the same side of
the road where staking is to occur.
3. Other utilities (i.e., gas, water, sanitary sewer, buried Power
Cable, etc.) on the same side of the road where staking is to occur.
4. Right-of-way restrictions imposed by some state Departments of
Transportation.
The commenter further stated that in urban and congested areas, it
is not in the best interest of the Owner or the Engineer to perform
staking for a per mile fee. Congested area staking often requires
extensive location of existing facilities to determine where and if
additional facilities can be placed. The contract should not be
structured toward the Owner gaining a windfall at the Engineer's
expense or the Engineer gaining a windfall at the Owner's expense. This
option should be incorporated into the Proposed 217e to allow for time
and expense staking where it would be in the best interest of the Owner
and Engineer jointly.
Response: RUS does not agree with the suggested addition because
the situations listed are not unique. However, RUS does recognize that
there are special circumstances where time and expenses for staking are
warranted and has changed the wording accordingly.
RUS Form 217f
Comment (Section 4, paragraphs B-1 and B-2): The commenter
suggested that the phrase ``or electronic equivalent'' be inserted
after the word ``system.'' Since tracings are no longer used by a
number of Owners, this phrase should be included to recognize new
media.
Response: RUS does not believe this is appropriate since not all
the recipients of the plans and specifications may have the necessary
equipment/software to be able to use the electronic equivalent
provided.
Comment (Section 5, paragraph B): The commenter stated that
rebidding is covered in paragraph C4, not C3, of Section 4.
Response: RUS has made the appropriate changes in the paragraph.
RUS Form 217g
Comment (Section 1, paragraph A-3): The commenter suggested that
the word ``reject'' be replaced by the phrase ``recommend to the Owner
that'' and the phrase ``be rejected'' be added after the word
``specifications.'' Since the Construction Contract is between the
Owner and the Contractor, the Owner has the ultimate authority to
accept or
[[Page 7138]]
reject. The engineer only makes recommendations.
Response: RUS believes that the Engineer, as the agent of the
Owner, should have this authority and responsibility.
Comment (Section 1, paragraph A-4): The commenter suggested that
the word ``reject'' be replaced by the phrase ``recommend to the Owner
rejection of.'
Response: RUS believes that the Engineer, as the agent of the
Owner, should have this authority and responsibility.
Comment (Section 1, paragraph B-5): The commenter suggested that
this paragraph be omitted and the number of Residents and Inspectors be
stated on the estimated RUS Form 506. This would probably clear up some
confusion that has come up on previous occasions with Owners.
Response: The reason for this paragraph is to highlight the number
of Residents and Inspectors that the Engineer and the Owner agree will
be used on the project. Relegating this information to Form 506 would
make this decision unilateral on the part of the Engineer.
Comment (Section 3, paragraphs A-1 and B-1): The commenter
suggested that the phrase ``As Constructed'' be changed to ``Final
Record'' since the term ``As Constructed'' depicts] a degree of total
information that cannot be assured by the Engineer.
Response: RUS believes that ``As constructed'' better describes the
intent of the cable schematics to include everything constructed in
preparation for cutover even if the construction was not part of the
project under contract with the Engineer.
List of Subjects in 7 CFR Part 1755
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telecommunications.
For reasons set out in the preamble, RUS amends Chapter XVII of
title 7 of the Code of Federal Regulations as follows:
PART 1755--TELECOMMUNICATIONS STANDARDS AND SPECIFICATIONS FOR
MATERIALS, EQUIPMENT AND CONSTRUCTION
1. The authority citation for part 1755 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq.
2. Section 1755.217 is added to read as follows:
Sec. 1755.217 Postloan engineering services contract, RUS Form 217.
Engineering services provided for major construction are to be
covered by the Postloan Engineering Services Contract, RUS Form 217.
The requirements and procedures for the use of this contract are
contained in 7 CFR 1753.17.
Postloan Engineering Services Contract--Telecommunications Systems
AGREEMENT made ______, ______, between ______ (hereinafter
called the ``Owner'') and ______ (hereinafter called the
``Engineer'').
In consideration of the mutual undertakings herein contained,
the parties hereto agree as follows:
Section 1. Definitions. For purposes of this Agreement the
following definitions shall be used:
Administrator. The Administrator of RUS or personnel delegated
authority to act for the Administrator.
Borrower's Environmental Report. An environmental study as
described in 7 CFR 1794. For the purposes of this contract, this is
the level of environmental review as described in 7 CFR 1794
required for the Project by RUS. In most cases of telecommunications
construction, this will be a Borrower's Environmental Report.
Contractor. A provider of goods or services for the Project,
other than the Engineer.
Construction Administration. The coordination of construction
activities.
Construction Drawings. The drawings developed through the
Staking used to guide the construction of outside plant facilities.
Cut Sheets. The complete and sequential plans for Cutover.
Cutover. The orderly integration of new facilities with existing
facilities.
Description of Project. The work and facilities listed by
principal subdivisions in Table 1.
Inspect. To monitor and examine the work of the Contractor,
compare the work to the contract, and note the details and
quantities of construction on records and progress reports.
Inspector. A competent representative of the Engineer who
inspects construction and reports compliance or noncompliance to the
Resident.
Loan Design. Supplemental information which supports a loan
application, as described in 7 CFR 1737.32.
Marker. A physical indicator at the construction site to guide
the Contractor in construction of facilities.
Project. The telecommunications construction and procurements
financed by a particular RUS loan.
Resident. The competent representative of the Engineer who is
delegated full time ``on site'' Construction Administration
responsibilities of the Engineer.
Staking. The determination of the approximate location of the
facilities to be placed and creation of schematic drawings which
show the facilities located with respect to the physical terrain.
Work Sector. A localized portion of the Project.
Section 2. General
2.01 Financing of the Project. All or part of the financing of
the Project, including costs of materials, construction,
installation, and engineering, shall be by a loan administrated by
RUS.
If the Project is financed in part by the Rural Telephone Bank,
an agency of the United States of America, the references in this
Agreement to ``The United States of America'' and the ``Government''
shall mean the ``Rural Telephone Bank'' as well, and the references
to the ``Administrator'' shall mean the ``Governor'' of the Rural
Telephone Bank as well. If the Project is financed wholly by the
Rural Telephone Bank, the references to ``The United States of
America'' and the ``Government'' shall mean the ``Rural Telephone
Bank'' and the references to the ``Administrator'' shall mean the
``Governor'' of the Rural Telephone Bank.
2.02. Compliance with Regulations. The objective of this
Agreement is for the Owner to obtain engineering assistance in
completing a Project, while complying with RUS postloan construction
regulations. The Engineer shall, therefore, perform all engineering
services requested by the Owner hereunder, and render engineering
advice and assistance, so as to enable the Owner to comply with 7
CFR Part 1753 and other applicable RUS regulations.
2.03 General Obligation. The Engineer shall, consistent with
sound professional practices, diligently and competently render the
engineering services required in this Agreement. These engineering
services shall be reasonably necessary or advisable for the
expeditious, economical, and sound design and construction of the
Project listed in Table 1 by means of the services described in this
agreement and its attachments. The Engineer shall also render other
preparatory work as is necessary to place such portion of the
Project in service, except where such duties are excluded from the
terms of this Agreement. The enumeration of specific duties and
obligations to be performed by the Engineer and included herewith,
shall not be construed to limit the foregoing general undertaking of
the Engineer, with reference to such portion of the Project.
2.04 Description of Project. The Project shall consist of the
subdivisions of the work and facilities listed by exchanges in Table
1 attached hereto.
Section 3. Miscellaneous
3.01 Insurance. The Engineer shall take out and maintain
throughout the contract period the minimum insurance as required in
Subpart C of 7 CFR part 1788 in effect at the date of this
Agreement.
3.02 Project Schedule. The Engineer shall prepare in
collaboration with the Owner, a work and progress report schedule to
facilitate coordination of activities for Cutover of the Owner's
Project. The Engineer shall report construction progress to the
Owner monthly during all times when one or more contracts are open.
3.03 Plans and Specifications. Complete and detailed plans and
specifications, drawings, maps and other engineering documents as
required for the construction of the Project (all of the foregoing
being herein sometimes collectively called the ``plans and
specifications''), shall be prepared by the Engineer, pursuant to
the various
[[Page 7139]]
attachments to this Agreement, and made a part hereof.
3.04 Scope of Services. The Engineer shall not be obligated to
perform any services for the Project or any part thereof except to
the extent that the Project as defined in Table 1, (or the parts
thereof and the services related thereto) are delineated in (1) the
attachments to this Agreement and (2) the plans and specifications
approved by the Owner and the Administrator, as they may be amended
from time to time, prepared pursuant to this Agreement.
3.05 Standards. All maps, drawings, plans, specifications,
estimates, studies and other engineering documents required to be
prepared or submitted by the Engineer under this Agreement shall
conform to the applicable standard specifications and other forms
prescribed by the Administrator and in effect at the date of this
Agreement.
3.06 Termination by Owner. The Owner may at any time terminate
this Agreement by giving notice to the Engineer, in writing, to that
effect not less than thirty (30) days prior to the effective date of
termination specified in this notice. Such notice shall be deemed
given if delivered or mailed to the last known address of the
Engineer. From and after the effective date specified in such notice
this Agreement shall be terminated.
When termination is initiated by the owner, compensation for
services hereunder shall be computed as far as possible in
accordance with the provisions of the applicable attachment to this
Agreement. To the extent that the provisions of any such attachment
cannot be applied because construction is incomplete at the
effective date of such termination, then the Engineer shall be paid
for engineering services in respect to such incomplete construction,
a sum which shall bear the same ratio to the compensation which
would have been payable under the provisions of any such attachment
to this Agreement, if such construction had been completed. If
requested by the Owner, the Engineer shall submit to the Owner in
duplicate a certified statement of the Engineer's actual expenses in
respect of such incomplete construction. All compensation invoiced
by the Engineer and payable under this paragraph shall be due and
payable thirty (30) days after the approval by the Owner and the
Administrator of the amount due. In any case, compensation shall be
due 30 days after the date Project documentation is delivered to the
Owner under paragraph 3.08 of this Agreement.
3.07 Termination by the Engineer. The Engineer shall have the
right, by giving to the Owner not less than thirty (30) days notice
in writing, to terminate this Agreement if the Engineer shall have
been prevented by conditions beyond the control and without the
fault of the Engineer: (i) from commencing performance of this
Agreement for a period of twelve (12) months from the date of this
Agreement; or (ii) from proceeding with the completion of full
performance of any remaining services, required of the Engineer
pursuant to this Agreement, for a period of six (6) months from the
date of last performance by the Engineer of other services required
pursuant to this Agreement. From and after the effective date
specified in such notice this Agreement shall be terminated, except
that the Engineer shall be entitled to receive compensation for
services performed hereunder, computed and payable in the same
manner as set forth in paragraph 3.06.
3.08 Project Documents. Upon final payment by the Owner to the
Engineer in accordance with the Statement of Engineering Fees, RUS
Form 506, the following documents in final form become the property
of the Owner and may be used by the Owner for Project operation and
future development:
1. ``Final record'' system maps, in master form (electronic or
original hard copy)
2. Cable schematics
3. Construction sheets
4. Cable assignment sheets
5. All contract documents including attached plans and
specifications and final inventories.
All other documents and engineering records, including
preliminary forms of the above documents, remain the property of the
Engineer.
Upon termination of this Agreement the Engineer shall deliver to
the Owner at a mutually agreeable place within 5 working days after
the date of termination all Project documents (electronic or
original hard copy) including records, map tracings, plans and
specifications, test data, and field notes.
If requested by the Owner upon completion of the Project, the
Engineer shall deliver to the Owner those documents which are the
Owner's property, at a mutually agreed upon place and time.
3.09 Employee's Qualifications. The obligations and duties to
be performed by the Engineer under this Agreement shall be performed
by persons qualified to perform such duties efficiently. The
Engineer, if the Owner shall so direct, shall promptly replace any
Resident or other person employed by the Engineer in connection with
the Project.
For information of the Owner and the Administrator, the Engineer
shall file with the Owner statements signed by the Engineer of the
qualifications, including resumes of specific experience, and the
duties to be assigned to each Resident, Inspector and such other
personnel assigned to the Project as may be requested by the Owner
and Administrator.
The term Resident and Inspector, as used in this Agreement,
shall mean a person properly trained and experienced to perform the
services required under the terms of this Agreement, and does not
mean that the person performing those duties must be a licensed or a
registered professional engineer.
3.10 License. The Engineer shall comply with all applicable
statutes pertaining to engineering and warrants that ______ (Fill in
name of individual) who shall be in responsible charge of the
Project possesses license number ______ issued by the State of
______ on the ______ day of ______.
3.11 Payments of Engineer's Employees. For each invoice the
Engineer, if requested by the Owner, shall furnish to the Owner as a
prior condition to payment, a certificate to the effect that all
salaries or wages earned by the employees of the Engineer in
connection with the Project have been fully paid by the Engineer up
to and including a date not more than thirty (30) days prior to the
date of such invoice. Before final payment under this Agreement the
Engineer shall furnish to the Owner a certificate that all of the
employees of the Engineer have been paid for services rendered by
them in connection with the Project, and that all other obligations
which might become a lien upon the Project have been paid.
3.12 Engineer's Records. The Owner and the Administrator shall
have the right to Inspect and audit all payrolls, records, and
accounts of the Engineer relevant to the work performed for the
purposes of this Agreement and the Engineer agrees to provide all
reasonable facilities necessary for such inspection and audit.
3.13 Compensation. For the purpose of this Agreement,
compensation for each type of work covered by the attachments and
thereby made a part of this Agreement shall be as outlined in said
attachments except where compensation is listed as being a ``time
and expense'' basis, in which case the rates in Table 2 attached
hereto (or as subsequently modified by approved amendments to this
Agreement) shall apply.
3.14 Taxes. Any taxes or levies (excluding Federal, State, and
local income taxes) which may be assessed against the Engineer for
services performed or payments for services performed by the
Engineer per this Agreement shall be in addition to the compensation
set forth in the attachments to this Agreement. Such taxes or levies
when paid by the Engineer shall be stated separately on all invoices
and paid by the Owner.
3.15 Interest. Interest at the rate of ______ percent (______%)
per annum shall be paid by the Owner to the Engineer on any unpaid
balance due the Engineer, commencing thirty (30) days after the
receipt of the Engineer's invoice, provided that the delay in
payment beyond such time shall not have been caused by any
conditions within the control of the Engineer. Such interest shall
be paid ten (10) days after the amount of interest has been
determined by the Engineer and the Owner. The start date of interest
accrual is irrespective of the date of the Owner's approval of the
invoice, but the interest computation shall be based on the invoice
approved by the Owner.
3.16 Non-Assignment. The obligations of the Engineer under this
Agreement shall not be assigned without the approval in writing of
the Owner and the Administrator.
3.17 Attachments. The following listed attachments, when
checked in appropriate boxes, are attached to and made a part of
this contract, by this reference:
____ RUS Form 217a--Project Design, Assistance and Coordination;
____ RUS Form 217b--Central Office Equipment Engineering Services;
____ RUS Form 217c--Transmission Facilities Engineering Services;
____ RUS Form 217d--Building Engineering Services;
____ RUS Form 217e--Outside Plant Staking Services;
____ RUS Form 217f--Outside Plant Contract Document Phase
Engineering Services; and
[[Page 7140]]
____ RUS Form 217g--Outside Plant Construction Phase Engineering
Services.
3.18 Service Addition. When a service listed in paragraph 3.17
above is added to this contract after execution, an amendment to the
Contract is required.
3.19 Engineering Fee. The Engineer shall provide an initial
estimate, monthly updates and a final statement of engineering fees
using RUS Form 506, Statement of Engineering Fees, or a facsimile
thereof. Where a fixed amount or percentage is used in the
attachments checked in section 3.17 above, the same fixed amount or
percentage shall be used in the statement of engineering fees.
3.20 Contract Amendment. When the total engineering fee exceeds
the initial contract estimate by 20% or more, an amendment to the
contract shall be required as set forth in 7 CFR Part 1753.
3.21 Compensation for Corrections. No compensation shall be due
or payable to the Engineer, pursuant to this Agreement, for any
engineering services performed by the Engineer in connection with
effecting of corrections to the design or construction of the
Project, when such corrections are required as a direct result of
failure by the Engineer to properly fulfill one or more of the
Engineer's obligations as set forth in this Agreement.
3.22 Force Majeure. The Engineer shall not be held responsible
for Project delays which are a result of Owner delays, Contractor
delays or acts of God. The Engineer shall not be entitled to
additional compensation unless the delays are the result of the
Owner's negligence.
3.23 Contract Beneficiaries. Nothing under this Agreement shall
be construed to give any rights or benefits in this Agreement to
anyone other than the Owner, the Engineer and the Administrator, and
all duties and responsibilities undertaken pursuant to this
Agreement shall be for the sole and exclusive benefit of the Owner,
Engineer and Administrator and not for the benefit of any other
party. This paragraph does not relieve the Engineer of any
obligation or responsibilities conferred upon licensed engineers
under State law.
3.24 Addenda. Any addenda required for this contract should be
placed before Table 1.
3.25 Contract Completion and Closeout. Upon completion of all
services covered by this Contract, the Engineer shall execute the
Statement of Engineering Fees, RUS Form 506, and submit copies to
the Owner as prescribed under 7 CFR 1753 Subpart B.
In witness whereof, the parties hereto have caused this
Agreement to be duly executed.
----------------------------------------------------------------------
Owner
By---------------------------------------------------------------------
President
ATTEST:----------------------------------------------------------------
Secretary
----------------------------------------------------------------------
Engineer
By---------------------------------------------------------------------
President, Partner (Strike out inapplicable Designation--If
partnership, all partners shall sign)
ATTEST:----------------------------------------------------------------
Secretary
Table 1.--Description of Project
[Attach supplemental sheets, as required]
____EXCHANGE
MILEAGE OF OUTSIDE PLANT____
EQUIPMENT BUILDING\1\____
CENTRAL OFFICE EQUIPMENT\1\____
ASSOCIATED FACILITIES\2\____
OTHER\3\____
EXCLUDED SERVICES \2\____
\1\ Insert ``new'' or ``additional'' or ``none'' as appropriate.
\2\ Insert ``none'' or list as appropriate.
\3\ Describe.
Table 2.--Schedule of Time, Expense and Equipment Usage Rates, Dated
______
1. Time Rates. Includes all costs associated with the employees except
for those itemized in Paragraph 2, below.
Job Classification and Employee Name, if Known ______
Hourly Billing Rate ______ (Attached supplemental sheet, as required)
2. Expense Rates. These shall include subsistence expense, if any, paid
to (or on behalf of) employees; plus reasonable employee transportation
costs; plus the cost of printing (including mailing and transportation
expenses), telephone, facsimile, and other materials and equipment
related to the Project.
3. Test Equipment and Computer Usage Rates. Description of Equipment
______ Hourly Billing Rate ______ (Attached supplemental sheet, as
required)
4. Review of Rates. To the extent that the completion date of the
Agreement, to which this Table 2 applies, shall extend 12 months beyond
the date when this Agreement is originally executed; and on each
subsequent anniversary of such Agreement this schedule of rates shall
be verified or modified in writing by the Parties, to new rates
mutually agreeable to the Parties to such Agreement, until Completion
or Termination of such Agreement as provided therein.
5. Information for Owner. With each invoice for payment, the Engineer
shall furnish the Owner information of the type outlined in a jointly
approved format similar to that shown in Exhibit A.
6. Compensation Payment. Unless otherwise specified in this Agreement,
compensation payable pursuant to Table 2 shall be due and payable ten
(10) days after approval of the Owner of the service performed and the
invoice of the Engineer, including the detail breakdown of the cost by
the portion of the Project and section of the contract for which the
service was performed. The Engineer shall be notified, within ten (10)
days of receipt of invoices, of any discrepancies which require
correction or addition as precedent for payment of such invoices by the
Owner.
Exhibit A
Suggested Information and Format for Time & Expense Billing
Certificate of Time, Expense & Equipment Usage Charges
Project Designation:
Postloan Engineering Contract, RUS Form 217:
Name: ______
Dated: ______
Classification: ______
Invoice period ending: ______
Date ______
Service Performed 1 ______
---------------------------------------------------------------------------
\1\ Service performed to be included by description of activity
and by reference to paragraph number in RUS Form 217 Attachment.
Example: Pre-Bid Conference: 217c 3 refers to conducting Pre-Bid
Conference.
---------------------------------------------------------------------------
Hourly Rate ____
Number of Hours ____
Extended Costs ____
Miles Driven ____
Cost Per Mile ____
Extended Costs ____
Other Transportation ____
Air Travel ____
Other (Explain) ____
Extended Costs ____
Lodging ______
Subsistence ______
Computer ______
Rate ____
Hours ____
Extended Costs ____
Date: ____
EQUIPMENT RENTAL:
COE Test Equipment ______
Hourly Rate ____
Number of Hours ____
Extended Costs ____
O. P. Test Equipment ______
Hourly Rate ____
Number of Hours ____
Extended Costs ____
Transmission Testing ______
Hourly Rate ____
Number of Hours ____
Extended Costs ____
OTHER EXPENSES:
Telephone Charges ______
Facsimile Charges ______
Printing ______
Construction Sheets ____
Maps ____
SUBMITTED (by Engineer): ______
Title------------------------------------------------------------------
Date-------------------------------------------------------------------
APPROVED (by Owner): ______
Title------------------------------------------------------------------
Date-------------------------------------------------------------------
BILLING CODE 3410-15-P
[[Page 7141]]
[GRAPHIC] [TIFF OMITTED] TR18FE97.001
[[Page 7142]]
[GRAPHIC] [TIFF OMITTED] TR18FE97.002
BILLING CODE 3410-15-C
[[Page 7143]]
Attachment-RUS Form 217a
Project Design, Assistance and Coordination
Section 1. Project Design.
A. Design. The Project shall be constructed in accordance with
the current Loan Design, Project Schedule (if developed), and
Borrower's Environmental Report. Such Loan Design shall be based on
the latest applicable criteria as specified by the Owner and the
Administrator.
When necessary for the preparation of plans and specifications,
the Engineer shall, upon request of the Owner and with the approval
of the Administrator: (1) Revise as necessary the Loan Design and
Borrower's Environmental Report; (2) prepare or revise as necessary
the outside plant design; (3) make measurements and analyses of
existing traffic; (4) make tests of existing cable, including the
determination of field locations for treatment of existing
facilities associated with installation of carrier equipment; and
(5) submit the resulting Loan Design and Borrower's Environmental
Report to the Owner in a format suitable for approval by the
Administrator.
B. Change in Design. If, after the approval of the Loan Design
and Borrower's Environmental Report, or plans and specifications by
the Owner and the Administrator, it shall be determined by the Owner
that any change is required, the Engineer shall prepare such
revisions in the Loan Design, Borrower's Environmental Report, and
plans and specifications, or any part thereof, as is necessitated by
the changes in requirements for service, design criteria, or other
reasons arising during the performance of services for the Project.
Section 2. Assistance To Owner. The Engineer, to the extent
requested by the Owner, shall assist in the Owner's obtaining
agreements and authorizations required for the Project, including
without limitation the furnishing of engineering information and
drawings and participating in the Owner's obtaining:
A. Toll, EAS, operator assistance, special services and other
connecting company commitments;
B. Joint use or joint occupancy agreements with other utilities;
C. Permits for crossing public roads, railroads, navigable
streams or bodies of water;
D. Right-of-way authorizations, easements, and other permits
necessary for encroachment on public or private lands;
E. Authorizations from regulatory bodies and franchises from
public bodies; and
F. Environmental studies and clearances.
Section 3. Coordination. The Engineer, to the extent requested
by the Owner, shall coordinate the work of others engaged in the
Project, including work performed or supervised by the Owner,
architect, and other engineers, to facilitate expeditious and
economical completion of the Project. Services pursuant to this
section shall be in addition to, and shall not include, services
required by other provisions of this Agreement.
Section 4. Plant Records. The Owner shall furnish to the
Engineer current and accurate plant records. If such records are not
available the Owner may direct the Engineer to update existing
records to current status. This may include conversion of existing
records to a new medium.
Section 5. Compensation. The Owner shall pay the Engineer for
services performed pursuant to this RUS Form 217a the ``time and
expense'' compensation as defined in Table 2 of this Agreement.
Section 6. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217a--Project Design, Assistance and
Coordination).
Attachment--Form 217b
Central Office Equipment Engineering Services
Section 1. Review of Requirements. Prior to the preparation of
plans and specifications, the Engineer shall review with the Owner
the current and future requirements of the Project, in respect to
central office equipment additions, replacements, modifications or
complete new offices. The Engineer, to the extent requested by the
Owner, shall prepare such studies as the Owner may require to
support the selection by the Owner of the final design plan.
Section 2. Plans and Specifications and Contracts.
A. Preparation of Plans and Specifications. Plans and
specifications shall be prepared by the Engineer in accordance with
standard RUS specifications and requirements for central office
equipment, and shall be submitted to the Owner in a format suitable
for approval by the Administrator.
B. Bidders Qualifications. The Engineer shall review with the
Owner all Bidder qualifications and shall prepare and furnish to the
qualified bidders the plans and specifications upon the conditions
provided in the applicable standard RUS contract forms and in
accordance with 7 CFR Part 1753.
C. Bid or Proposal. The Engineer shall be available to each
prospective bidder for consultation with respect to the details of
the plans and specifications and all other matters pertaining to the
preparation of the proposals for the supply of equipment or services
therefore. All changes to or clarifications of the plans and
specifications provided to one prospective bidder shall be provided
by the Engineer in writing to all other prospective bidders and to
the Owner.
The Engineer shall attend and supervise all technical prebid
review meetings and openings of quotes for the furnishing of
equipment or services therefor. Where additions to existing
equipment are proposed, a quote may be solicited from the original
supplier or separate materials and installation contracts may be
requested from several suppliers. The Engineer shall carefully check
all quotes received and shall render to the Owner assistance in
connection with the Owner's consideration of the quotes received so
that contracts may be prudently and properly awarded.
The Engineer shall submit in writing to the Owner
recommendations of first and second choice of bidders stating the
reasons therefor, or, if the analysis of quotes indicates that no
quote is satisfactory because of prices or other conditions, the
Engineer shall recommend to the Owner that all quotes be rejected,
giving reasons therefor. Unless otherwise directed by the Owner, the
Engineer shall proceed in respect to rebidding in the manner
provided for herein for the initial bidding.
D. Award of Contract. The Engineer shall prepare and furnish to
the Owner three (3) copies of a detailed tabulation of all the bids
or quotes and a tabulation showing the bidders' names and totals.
The Owner shall submit to the Administrator the bidding information
required for approval of the award of the contract by the
Administrator. Upon receipt of notice from the Owner of the
Administrator's approval of the award of the contract, the Engineer
shall prepare contracts in accordance with 7 CFR Part 1753.
E. Contract Amendments. If, after the equipment contract and the
installation contract have been approved by the Owner and the
Administrator, it shall be determined by the Owner that any change
or changes in the plans and specifications are advisable, the
Engineer shall prepare and submit a contract amendment in accordance
with 7 CFR Part 1753.
F. Customer Information and Engineering Meeting. If necessary,
the Engineer shall arrange, at a mutually agreeable time, a Customer
Information and Engineering Meeting with the Owner, Contractor and
Engineer to review the Contractor's proposal, equipment lists,
software, data requirements, translation requirements, etc. prior to
beginning of manufacture.
G. Compliance. The Engineer shall review all equipment lists,
manufacturer's drawings, and other data submitted by the Contractor,
to determine apparent compliance of such lists, drawings and other
data with the approved contract. This shall not relieve the
Contractor of its obligation to meet the performance specifications
of the contract.
H. Pre-Installation Meeting. The Engineer shall arrange at a
mutually agreeable time, a pre-installation meeting between the
Contractor, Owner
[[Page 7144]]
and Engineer, after the Contractor's installer has arrived at the
contract site, to clarify areas of responsibility, check scheduling
and to determine the Contractor's proposed compliance with the plans
and specifications.
I. Progress Reports. A competent representative of the Engineer
shall make periodic visits to the equipment installation site to
Inspect the progress and quality of the executed work and to
determine, in general, if the work is proceeding in accordance with
the contract. The Engineer shall report at least monthly to the
Owner in writing stating the results of Inspections. When the
Engineer observes any failure of the executed work or work in
progress to comply with the requirements of the contract, this shall
be reported to the Owner immediately. These reports shall include
suitable recommendations. If the engineer observes an unsafe
practice, his only responsibility shall be to consult immediately
with the Contractor and if his concerns are not satisfied, to notify
the Owner immediately.
Section 3. Tests. The Engineer shall conduct, or cause to be
conducted by the installer, such tests of all such equipment as
required by the Owner and the Administrator to determine that the
equipment meets the performance requirements of the plans and
specifications. The Engineer shall make recommendations for the
correction of performance or operational difficulties. All cases of
performance or operational difficulties due to faulty installation
or defective equipment shall be reported to the Contractor, for
correction. When the corrections have been made, the Engineer shall
retest the equipment. The Engineer shall furnish test equipment,
when required, for all required tests or measurements performed by
the Engineer.
The Owner and a representative of the Administrator will
normally conduct a final inspection of completed construction. When
requested by the Owner, a qualified representative of the Engineer
shall be present.
Section 4. Final Documents. The Engineer shall prepare or cause
to be prepared, and shall submit to the Owner for approval, in a
format suitable for approval by the Administrator, complete and
detailed final documents as specified in 7 CFR 1753 and a statement
showing the total amounts due the Contractor, pursuant to the terms
of the contract, including any amendments thereto. The final
documents shall be submitted for the Owner's approval within forty
(40) calendar days after the completion of construction based on the
date on the certificate of completion covered by each central office
equipment contract and each installation contract.
Section 5. Compensation.
A. Time and Expense. The Owner shall pay the Engineer ``time and
expense'' compensation as outlined in the current Table 2 of this
Agreement for: (1) All services performed pursuant to section 1; (2)
``rebidding'' pursuant to paragraph C of section 2; (3) all services
in connection with additions to, replacement of components in,
modifications of, or removal of, existing central office equipment;
(4) all services pursuant to paragraphs F, H, and I of section 2;
and (5) all services pursuant to section 3.
B. Percent of Cost. The Owner shall pay the Engineer for all
other services performed pursuant to this RUS Form 217b, including
final documents, for each central office equipment contract an
amount equal to: ______ percent (______ %) of the first one hundred
thousand dollars ($100,000); plus ______ percent (______ %) of the
next three hundred thousand dollars ($300,000); plus ______ percent
(______ %) of the balance of the installed cost of such equipment
for each complete new central office equipment contract, and for
each installation contract an amount equal to ______ % of such
installation contract. Ninety percent (90%) of such sums shall be
due and payable ten (10) days after approval by the Administrator of
each contract (or force account proposal) and the balance of the
compensation shall be due and payable ten (10) days after approval
by the Owner and the Administrator of a certificate of completion of
installation for each such equipment.
``Installed cost'' shall mean the total cost of labor and
materials of the central office equipment as shown on the final
inventory documents prepared by the Engineer and approved by the
Owner and the Administrator. For a materials only contract,
``installed cost'' shall mean the amount for materials shown on the
final inventory documents.
Section 6. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217b--Central Office Equipment Engineering
Services).
Attachment--RUS Form 217c
Transmission Facilities Engineering Services
Section 1. Review of Requirements. Prior to the preparation of
plans and specifications for transmission facilities the Engineer
shall review with the Owner the up-to-date requirements of the
Project, as related to transmission facilities.
Section 2. Plans and Specifications. The Engineer shall prepare,
and submit to the Owner in a format suitable for approval by the
Administrator, the plans and specifications for the purchase and
installation of such transmission facilities in sufficient time to
allow normal scheduled delivery and installation of such to
coordinate with the schedule of completion of the Project.
Section 3. Contracts.
A. Bid or Proposal. The Engineer shall be available to each
prospective bidder for consultation with respect to the details of
the plans and specifications and all other matters pertaining to the
preparation of the proposals for the supply of equipment or services
therefor. All changes to or clarifications of the plans and
specifications provided to one prospective bidder shall be provided
by the engineer in writing to all other prospective bidders and to
the Owner.
The Engineer shall attend and supervise all technical prebid
review meetings and openings of quotes for the furnishing of
equipment or services therefor. Where additions to existing
equipment are proposed, a quote may be solicited from the original
supplier or separate materials and installation contracts may be
requested from several suppliers. The Engineer shall carefully check
all quotes received and shall render to the Owner assistance in
connection with the Owner's consideration of the quotes received so
that contracts may be prudently and properly awarded.
The Engineer shall submit in writing to the Owner
recommendations of first and second choice of bidders stating the
reasons therefor, or, if the analysis of quotes indicates that no
quote is satisfactory because of prices or other conditions, the
Engineer shall recommend to the Owner that all quotes be rejected,
giving the reasons therefor. Unless otherwise directed by the Owner,
the Engineer shall proceed in respect to rebidding in the manner
provided for herein for the initial bidding.
B. Award of Contract. Upon receipt of notice from the Owner of
the Administrator's approval of the award of any contract, or bid
proposal, the Engineer shall prepare and submit contracts in
accordance with 7 CFR Part 1753.
C. Contract Amendments. If, after any such contract has been
approved by the Owner and the Administrator, it shall be determined
by the Owner that any change or changes in the plans and
specifications are advisable, the Engineer shall prepare and submit
a contract amendment in accordance with 7 CFR Part 1753.
D. Compliance. The Engineer shall review all equipment lists and
manufacturer's drawings, and other data submitted by the Contractor,
to determine apparent compliance of such lists, drawings and other
data with the approved contract. This shall not relieve the
Contractor of its obligation to meet the performance specifications
of the contract.
E. Pre-Installation Meeting. The Engineer shall arrange, when
requested by the Owner, at a mutually agreeable time, a pre-
installation meeting between the Contractor, Owner and Engineer to
clarify areas of responsibility, check delivery and completion
scheduling and to assure that the Contractor comply with the plans
and specifications.
F. Customer Information and Engineering Meeting. The Engineer
shall arrange, if necessary, at a mutually agreeable time a customer
information and engineering meeting with Owner, Contractor and
Engineer to review the Contractor's proposal, equipment lists,
software, data requirements, translation requirements, etc. prior to
beginning of manufacture.
G. Progress Reports. A competent representative of the Engineer
shall make periodic visits to the equipment installation site to
Inspect the progress and quality of the executed work and to
determine, in general, if the work is proceeding in accordance with
the contract. The Engineer shall report at
[[Page 7145]]
least monthly to the Owner in writing stating the results of
Inspections. When the Engineer observes any failure of the executed
work or work in progress to comply with the requirements of the
contract, this shall be reported to the Owner immediately. These
reports shall include suitable recommendations. If the engineer
observes an unsafe practice, his only responsibility shall be to
consult immediately with the Contractor and if his concerns are not
satisfied, to notify the Owner immediately.
Section 4. Tests. The Engineer shall conduct, or cause to be
conducted, such tests as required by the Owner and the Administrator
to determine that the equipment meets the performance requirements
of the plans and specifications. The Engineer shall make
recommendations for the correction of performance or operational
difficulties. All cases of performance or operational difficulties
due to faulty installation or defective equipment shall be reported
to the Contractor for correction. When the corrections have been
made, the Engineer shall retest the equipment. The Engineer shall
furnish test equipment, when required, for all required tests or
measurements performed by the Engineer.
The Owner and a representative of the Administrator will
normally conduct a final inspection of completed construction. When
requested by the Owner, a qualified representative of the Engineer
shall be present.
Section 5. Final Documents. The Engineer shall prepare or cause
to be prepared, and shall submit to the Owner for approval, in a
format suitable for approval by the Administrator, complete and
detailed final documents as specified in 7 CFR Part 1753 and a
statement showing the total amounts due the Contractor, pursuant to
the terms of the contract, including any amendments thereto. The
final documents shall be submitted for the Owner's approval within
forty (40) calendar days after the completion of construction based
on the date on the certificate of completion covered by each
transmission facilities contract and each installation contract.
Section 6. Compensation.
A. Time and Expense. The Owner shall pay the Engineer ``time and
expense'' compensation as defined in the current Table 2 of this
Agreement for: (1) All services performed pursuant to section 1; (2)
all services in connection with additions to, replacement or removal
of components in, modifications of, relocation of existing systems
of transmission facilities; (3) ``rebidding'' pursuant to paragraph
A of section 3; (4) all services pursuant to paragraphs E, F, and G
of section 3; and (5) all services pursuant to section 4.
B. Percent of Cost. The Owner shall pay the Engineer for all
other services pursuant to this RUS Form 217c, including final
documents, for each contract or force account proposal for new
transmission facilities, an amount equal to: ______ percent (______
%) of the first fifty thousand dollars ($50,000.00); plus ______
percent (______ %) of the next one hundred fifty thousand dollars
($150,000.00); plus ______ percent (______ %) of the balance of the
installed cost of each such document and for each installation
contract an amount equal to ______ % of such document. Ninety
percent (90%) of such sums shall be due and payable ten (10) days
after approval by the Owner of the document for the purchase or
installation of such equipment. The balance of the compensation
shall be due and payable ten (10) days after approval by the Owner
and the Administrator of a certificate of completion of installation
for such equipment.
``Installed cost'' shall mean the total cost of labor and
materials of the transmission facilities as shown on the final
documents prepared by the Engineer and approved by the Owner and the
Administrator. For a material's only contract, ``installed cost''
shall mean the amount for materials shown on the final inventory
documents.
Section 7. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217c--Transmission Facilities Engineering
Services).
Attachment--RUS Form 217d
Building Engineering Services
Section 1. Review of Requirements. Prior to the preparation of
plans and specifications, the Engineer shall review with the Owner
the current and future requirements for buildings to be constructed
as a part of the Project.
Section 2. Plans and Specifications. The plans and
specifications for the construction of buildings shall be prepared
in sufficient time to allow normal completion of construction of the
buildings at least thirty (30) days prior to delivery of central
office equipment as specified in the central office equipment
contract. The plans and specifications shall, unless otherwise
directed by the Owner, be prepared in accordance with standard RUS
specifications and construction drawings relating thereto.
Additionally, the plans and specifications shall include such
details as the characteristics of the building site(s) may require,
including, without limitation, a plot plan and description of site
development work, if any. The plans and specifications shall be
submitted to the Owner in a format suitable for approval by the
Administrator.
Section 3. Contracts
A. Bidder's Qualifications. After approval of the plans and
specifications by the Owner and Administrator, notices shall be sent
to prospective bidders in accordance with 7 CFR Part 1753. The names
of those so notified shall be forwarded to the Owner at the time
such notices are sent. The Engineer shall review with the Owner and
the Owner shall approve the qualifications of all prospective
bidders. The Engineer shall prepare and furnish to qualified
contractors requesting them, the plans and specifications upon the
conditions provided in the applicable standard RUS contract forms.
B. Proposals. The Engineer shall be available to each
prospective bidder for consultation with respect to the details of
the plans and specifications and all other matters pertaining to the
preparation of the proposals for the construction of the building(s)
or the supply of materials and equipment or services therefor. All
changes to or clarifications of the plans and specifications
provided to one prospective bidder shall be provided in writing to
all other prospective bidders and to the Owner.
The Owner shall return unopened the bids received from bidders
not specifically qualified to bid the plans and specifications.
The Engineer shall attend and supervise all openings of bids for
the construction of the building(s) or for the furnishing of
materials and equipment or services therefor. In the event that less
than three (3) bids are received from qualified bidders, the bids
shall remain unopened and the Engineer shall notify the
Administrator thereof immediately. Unless otherwise directed by the
Owner, the Engineer shall proceed, in respect of the rebidding, in
the manner provided for herein for the initial bidding. The Engineer
shall carefully check all bids received and shall render to the
Owner all such assistance as shall be required in connection with
consideration of the bids received so that contracts may be
prudently and properly awarded.
The Engineer shall submit in writing to the Owner
recommendations of first, second and third choice of bidders,
stating the reasons therefor, or if the analysis of bids indicates
that no bid is satisfactory because of prices or other conditions,
the engineer shall recommend to the Owner that all bids be rejected,
giving the reasons therefor.
C. Award of Contract. The Engineer shall prepare and furnish to
the Owner three (3) copies of a detailed tabulation of all the bids
and a tabulation showing the bidders' names and totals of all bids.
The Owner shall submit to the Administrator the bidding information
required for approval of the award of the contract by the
Administrator. Upon receipt of notice from the Owner of the
Administrator's approval of the award of the contract, the Engineer
shall prepare contracts in accordance with 7 CFR Part 1753.
D. Contract Amendments. If, after the contract has been approved
by the Administrator it shall be determined by the Owner that any
change or changes in the plans and specifications are advisable, the
Engineer shall prepare and submit a contract amendment in accordance
with 7 CFR Part 1753.
E. Compliance. The Engineer shall review all shop and
manufacturer's drawings, construction detail variations, and other
data submitted by the Contractor, to determine apparent compliance
of such lists, drawings and other data with the approved contract.
This shall not relieve the Contractor of its obligation to comply
with the plans and specifications.
F. Progress Reports. A competent representative of the Engineer
shall make periodic visits to the construction site to Inspect the
progress and quality of the executed work and to determine, in
general, if the work is proceeding in accordance with
[[Page 7146]]
the contract. The Engineer shall report at least monthly to the
Owner in writing stating the results of Inspections. When the
Engineer observes any failure of the executed work or work in
progress to comply with the requirements of the contract, this shall
be reported to the Owner immediately. These reports shall include
suitable recommendations. If the engineer observes an unsafe
practice, his only responsibility shall be to consult immediately
with the Contractor and if his concerns are not satisfied, to notify
the Owner immediately.
G. Final Inspection. The Owner and a representative of the
Administrator will normally conduct a final inspection of completed
construction. When requested by the Owner, a qualified
representative of the Engineer shall be present.
Section 4. Final Documents. The Engineer shall prepare, and
shall submit to the Owner in a format suitable for approval by the
Administrator, complete and detailed final documents as specified in
7 CFR 1753 and a statement showing the total amounts due the
Contractor pursuant to the terms of the construction contract,
including any approved amendments thereto. The final documents shall
be submitted for the Owner's approval within sixty (60) calendar
days after the completion of construction based on the date shown on
the certificate of completion covered by each contract.
Section 5. Compensation
A. Time and Expense. The Owner shall pay the Engineer ``time and
expense'' compensation as defined in the current Table 2 of this
Agreement for: (1) all services performed pursuant to section 1; (2)
services performed for rebidding pursuant to paragraph B of section
3; (3) all services in connection with additions to or modifications
of existing buildings; and (4) inspection of construction pursuant
to paragraphs F and G of section 3.
B. Percent of Cost. The Owner shall pay the Engineer for all
other services performed pursuant to this RUS Form 217d, including
final documents, for each new building contract included in the
Project an amount equal to: ______ percent (______%) of the first
fifty thousand dollars ($50,000.00); plus ______ percent (______%)
of the balance of the cost of construction thereof, of which sums
ninety percent (90%) shall be due and payable ten (10) days after
approval by the Administrator of a contract (or force account
proposal) for the construction of the buildings; and the balance of
the compensation shall be due and payable ten (10) days after
approval by the Owner and the Administrator of a certificate of
completion of construction for all such buildings included in the
Project (or in a completed section of the Project).
``Cost of construction'' shall mean the total cost of labor and
materials (including Owner-furnished materials and labor) used in
the construction of such buildings as shown on the final documents
prepared by the Engineer and approved by the Owner and
Administrator.
Section 6. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217d--Building Plans and Specifications and
Contracts).
Attachment--RUS Form 217e
Outside Plant Staking Services
Section 1. Review of Requirements. Prior to the commencement of
Staking, the Engineer shall review with the Owner the current
requirements of the Project with respect to outside plant and
service entrance Staking. At this review, decisions shall be reached
concerning public and private rights-of-way, nominal width of
construction corridors, and design status.
Section 2. Staking Requirements
A. General
1. Staking for aerial plant shall include locating the proposed
line and marking all new pole and other locations as necessary to
construct the facilities.
2. Staking for buried plant shall include locating the proposed
facilities indicating all pertinent construction information
including details of the construction corridor.
3. Staking for underground plant shall include locating conduit
systems, construction corridors, marking manhole sites and detailing
all other pertinent information.
4. Staking for service entrances shall include locating
protectors on the structure, the routing of aerial or buried
entrances and the placement of markers, if required, to indicate
construction information.
B. Commencement. The Engineer, with the approval of the Owner,
shall determine when Staking of the Project shall begin. The
Engineer shall not commence Staking in any area of the Project until
the Owner has:
1. Either (a) stated in writing that right-of-way authorizations
and easements reasonably required therefor have been procured, or
(b) directed the Engineer in writing to perform right-of-way
procurement under section 2, paragraph D, of RUS Form 217a--Project
Design, Assistance, and Coordination;
2. Identified to the Engineer, by map locations, which line
segments shall be staked on public right-of-way and which line
segments shall be staked on privately owned right-of-way; and
3. Provided information to the Engineer pertaining to
limitations on width of construction corridors for each such line
segment.
The Owner shall review with the Engineer, and shall inform the
Engineer, which specific lines are to be staked. The Owner shall
furnish to the Engineer a current list of all existing and potential
subscribers by map location and grade of service for whom service is
to be furnished. When requested by the Engineer, the Owner shall
also furnish the telephone numbers of the existing subscribers. In
determining when to proceed with Staking, farming operations and
other relevant conditions shall be taken into consideration so as to
minimize the need for restaking. The Owner, when requested by the
Engineer, shall furnish a qualified person to accompany each Staking
crew for the purpose of negotiating with landowners or tenants with
respect to such right-of-way authorizations and easements, widths of
construction corridors, and locations of proposed facilities.
C. Changes
1. If, during the progress of Staking by the Engineer, the Owner
shall change the routing or location of a particular line segment,
the Owner shall as early as practicable, notify the Engineer in
writing of such changes. Upon such notice the Engineer shall duly
note such change and instruct the Staking crews accordingly. The
same procedure shall be followed for changes made in type or
quantity of facilities during the Staking phase of the Project.
2. If during the process of Staking, the Engineer determines
that the routing of facilities along the right-of-way designated by
the Owner would result in high costs of placement due to obstacles,
inadequate construction corridors, or other circumstances, the
Engineer shall notify the Owner and recommend alternative routing.
If alternative routing is approved by the Owner and right-of-way can
be obtained, the Engineer shall arrange to stake the facilities
along the alternate route.
D. Time of Staking
1. The Engineer shall proceed diligently with Staking and
continue therewith in such a manner that, prior to the release of
plans and specifications to bidders, the Staking of all outside
plant facilities except service entrances shall be complete in order
that the plans and specifications shall be complete and accurate.
2. If service entrances are included in the construction
contract, Staking of the service entrances shall be completed prior
to beginning of construction in a Work Sector. If such Staking is
being performed by the Owner, the Engineer shall keep the Owner
advised of the status of construction and the Owner shall do the
Staking in a timely manner.
3. The Engineer shall perform all restaking made necessary by
changes discussed under paragraph C of section 2, above, as
necessary to minimize delays in construction.
E. Manner of Staking. The Staking shall be done in a thorough
and workmanlike manner such that construction can be completed in
accordance with the latest revision of the National Electrical
Safety Code, National Electric Code, local and State laws, rules,
regulations and orders of regulatory bodies having jurisdiction; and
the Loan Design, Borrower's Environmental Report, and specifications
approved by the Owner and the Administrator. The Engineer shall in
no case stake lines other than those shown in the approved Loan
Design except for minor re-routing and minor changes dictated by
field conditions, unless such change shall have been previously
approved by the Owner and the Administrator. The Engineer shall
replace all markers lost or removed prior to or during construction
of the Project. All costs, including costs of markers, equipment,
and other materials used in connection with the Staking, shall be
borne by the Engineer. All markers and existing poles shall be
properly identified with corresponding listing on the construction
sheets. Where it is probable that the Contractor or the Owner will
have difficulty in locating markers, the Engineer shall provide some
other suitable means to identify the location. When Staking
[[Page 7147]]
service entrances, the Engineer shall give due consideration to the
location of the station protector (or network interface device if it
incorporates a station protector) in relation to the availability of
adequate grounding and the length of the service drop and station
wiring.
F. Construction Sheets. The Engineer shall prepare or maintain
construction sheets in such standard form as the Owner shall require
(and as hereinafter described) to: Serve as the means by which
directions are given for the construction of the Project; serve as
the permanent plant record by the Owner's facilities as built; and
identify adequately the geographical location of the facilities,
including non-standard construction corridors and cable placement
locations. The Engineer shall enter thereon all pertinent and useful
design, specifications and data governing the construction of the
Project, including, without limitations:
1. Detailed instructions on the point of attachment of the
Owner's facilities on existing pole lines employed in joint use with
others;
2. Non-standard depths for installing buried and underground
facilities;
3. The presence, but not location of, buried facilities of other
utilities when known;
4. The presence of rock when known;
5. Vegetation clearing requirements; and
6. Surface type and surface features of terrain if appropriate.
Copies of construction sheets shall be made available for sale
to all prospective bidders in advance of the pre-bid conference. For
contract construction five counterparts of the construction sheets
shall be supplied by the Engineer to the Contractor for construction
use and two copies shall be supplied to the Owner. For force account
construction three copies of the construction sheets shall be
supplied to the Owner. When revisions in Staking are necessary, the
Engineer shall issue copies of the revised construction sheets.
G. Resident. A Resident, with full authority to act for the
Engineer per this attachment, shall be maintained by the Engineer at
the site of the Project at all times when Staking or other services
required under this attachment are being performed at the site of
this Project. The Resident may also be engaged in Staking as well as
in supervising the Staking activities of other Staking crews of the
Engineer. The Engineer shall establish and maintain, in the
proximity of the Project, a field office with telephone service at
all times when Staking or other services required under this RUS
Form 217e are in progress.
H. Reporting. The Engineer shall prepare, execute, and submit to
the Owner ______ (insert frequency of reporting--minimal monthly)
all estimates, certificates, reports and other documents required to
be executed by the Engineer pursuant to the loan contract.
I. Joint Use or Joint Occupancy. In connection with Staking of
joint use or joint occupancy facilities the Engineer shall:
1. Prepare and submit to the Owner for approval, detailed
information on pole changes, additional poles, and other changes or
additions required in existing facilities of other parties to joint
use or joint occupancy agreements to accommodate the Owner's
facilities; and
2. Coordinate engineering activities under direction of the
Owner with other parties to joint use or joint occupancy agreements.
J. The Engineer with the approval of the Owner shall have the
option of performing staking on the project under the circumstances
described below on a time and expense basis consistent with Table 2
of this Agreement.
1. Less than 10 miles of buried or aerial plant,
2. Emergency restoral of service, or
3. Natural disasters.
Section 3. Compensation. The Owner shall pay the Engineer for
services performed pursuant to this RUS Form 217e as follows:
A. Staking Fee. For all services in connection with the Staking
of the Project lines provided for in the approved Project design,
including lines which, pursuant to the direction of the Owner, with
the approval of the Administrator, shall not be constructed, and for
all other services outlined in this RUS Form 217e (except as
provided in paragraph C of section 3):
1. The sum of ______ dollars ($______) per mile of existing
buried plant Project lines to be modified; plus
2. The sum of ______ dollars ($______) per mile of new buried
plant Project lines; plus
3. The sum of ______ dollars ($______) per mile of underground
cable to be installed in ducts; plus
4. The sum of ______ dollars ($______) per mile of new aerial
Project lines; plus
5. The sum of ______ dollars ($______) per mile of existing
aerial Project lines to be modified; plus
6. The sum of ______ dollars ($______) per mile of new joint use
or joint occupancy Project lines; plus
7. The sum of ______ dollars ($______) per mile of existing
Project lines to be removed where no construction or modification
work is to be performed; plus
8. The sum of ______ dollars ($______) for each new service
entrance staked and for which a construction sheet is prepared and
each existing service drop to be modified as part of the Project;
plus
9. The sum of ______ dollars ($______) for each subscriber shown
on the construction sheets.
For purposes of this section ``modified'' means rearrangements,
additions, change of pair assignments, etc., which require
preparation of construction sheets to implement.
The length of the Project lines shall be determined by taking
the sum of all distances between terminal points for underground
cable and buried cable or conductor, and new service entrances added
as part of the Project and all distances between pole markers or
from center to center of poles carrying aerial conductor or cable,
including joint use or joint occupancy poles, plus the vertical
distances parallel to vertical cable runs for aerial cable
installations.
B. Time and Expenses. The Owner shall pay the Engineer ``time
and expense'' compensation as defined in the current Table 2 of this
Agreement for all services performed in this RUS Form 217e in
connection with: section 1; paragraph C of section 2; paragraph I of
section 2; paragraph J of section 2; and for the replacement of
markers made necessary by causes beyond the control of the Engineer.
C. Payments. Compensation under paragraph A of this section 3
shall be due and payable ten (10) days after delivery to the Owner,
on a monthly basis, a copy of the construction sheets representing
the Staking completed during that month and a recapitulation of the
mileage of the various types of line covered by such construction
sheets and by previous construction sheets for which compensation
has been requested.
The Staking shall be subject to review and inspection by the
Owner and the Administrator. The Engineer, when notified to do so by
the Owner or the Administrator, shall correct such Staking as the
review and inspection may indicate to be necessary. Such review and
payments shall not constitute unqualified approval of the Staking.
Where restaking is required for reasons within the control of the
Engineer, no additional compensation shall be payable.
The compensation payable for lines actually constructed, shall
be adjusted to the number of units actually constructed or actually
completed as part of the construction of the Project, as reflected
in the final documents. Compensation payable for lines which have
been staked, but which shall not be constructed, shall be determined
from the construction sheets as covered by line abandonment order.
D. Plant Retained in Place. Compensation under this section, for
Staking existing Project lines on which modification work is to be
performed, shall include compensation for the designation of
assembly units of existing plant to be retained in place, and shown
on the construction sheets.
Section 4. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217e--Outside Plant Staking Services).
Attachment--RUS Form 217f
Outside Plant Contract Document Phase Engineering Services
Section 1. Review of Requirements. The Engineer shall use the
Loan Design and other information furnished by the Owner under this
Agreement as the basis for the preparation of the plans and
specifications. Prior to the beginning of the preparation of the
plans and specifications, the Engineer shall review with the Owner
all data furnished to determine the most recent requirements for
facilities to be included in the plans and specifications.
Section 2. Map Tracings and Other Data. Prior to and during the
preparation of the plans and specifications by the Engineer, the
Owner, if it has not previously done so by other provisions of this
Agreement, shall furnish any of the following items needed by the
Engineer:
A. Up-to-date tracings of the detail and town maps of the area
of the proposed system on which the Loan Design was based and which
show the existing system, and a tracing of the key map when a key
map is required by the Owner;
[[Page 7148]]
B. Up-to-date cable schematics (cable plant layout), and
construction sheets showing the existing system construction;
C. Up-to-date line and station data on existing subscribers;
D. The Loan Design and Borrower's Environmental Report on which
the loan was based;
E. Current information as to the location and extent of electric
and other lines available for joint use, together with conformed
copies of all existing joint use or joint occupancy agreements
covering such lines;
F. Current listing of existing, signed, and potential
subscribers by map location and grade of service to be considered in
the preparation of the plans and specifications. The list of
existing subscribers shall be properly referenced to the line and
station data;
G. Detailed lists of materials on hand, or on order, which are
to be furnished by the Owner in the construction of the Project,
together with the quantity and value of each item of such materials;
and
H. A written statement setting forth the scope of plans and
specifications and the sequence in which the construction shall be
performed and whether service entrances are to be included in the
plans and specifications.
The map tracings, schematics, and construction sheets are to be
of suitable material capable of allowing corrections to be made of
the information shown thereon and capable of being reproduced.
Section 3. Schematics, Assignments, and Cut Sheets
A. Cable Schematics. The Engineer shall prepare cable schematics
in such form as the Owner shall require to: (a) serve as a means by
which directions are given for connecting feeder cable and
distribution cable pairs, cross-connection terminals, connecting
load coils, and such other directions as may be necessary for
properly splicing the feeder cables, distribution cables and other
facilities being installed; (b) serve as the permanent circuit
assignment record of the Owner's cable and wire facilities; and (c)
adequately identify the physical location of all equipment, devices
and connections other than services, associated with the pairs of
such feeder cable and distribution cable facilities.
B. Circuit and Number Assignments. If requested by the Owner,
the Engineer shall prepare telephone number assignments and shall
identify the circuit to which the service is to be connected for
station installations, including without limitation such information
with respect to central office equipment connections as may be
required.
C. Cut Sheets. Where modification of existing lines is to be
performed, the Engineer shall furnish in such form as the Owner
shall require complete and detailed information, collectively known
as ``Cut Sheets'' for: (a) Making such changes in circuit
connections in the existing outside plant as may be required,
including without limitation all associated devices such as load
coils, terminals, and temporary connections; (b) making such changes
in telephone number assignments and service connections as may be
required, including without limitations, the corresponding
connection changes required at the central office end; and (c)
designating the sequence to be followed in making such changes.
Section 4. Outside Plant Plans and Specifications and Contracts
A. Plans and Specifications. The Engineer shall, to the extent
not previously prepared under other provisions of this Agreement,
prepare and review with the Owner complete and detailed plans and
specifications, drawings, maps and other documents required for the
construction of the outside plant facilities to be included as a
part of the Project. During the preparation of the plans and
specifications, the Engineer shall make such changes in the plans
and specifications as may be reasonably required by the Owner as a
condition of approval by the Owner and Administrator.
B. Content of Plans and Specifications. The plans and
specifications for outside plant shall be prepared in sufficient
time to allow normal completion of construction of the outside plant
to coincide with the established service dates and shall include the
following:
1. One copy of the key map of the system, when a tracing is
furnished by the Owner.
2. One copy (or more if necessary for clarity) of the central
office area detail maps (sometimes referred to as exchange detail
maps) and town maps of the system, on which there shall be indicated
the following:
a. Location of lines to be constructed, indicating joint use or
joint occupancy lines;
b. Location of switching centers and pair-gain devices;
c. Location of existing lines included as part of the proposed
system and modification of such lines;
d. Location of existing lines to be retired;
e. Locations other than service entrances, where right-of-way
has not been obtained;
f. Work Sectors indicating sequence of construction;
3. Complete drawings of each type of non-standard RUS unit
covering the construction and the materials to be used.
4. An estimate of quantities of the various units of
construction.
5. A complete cable plant layout and cable schematics, when
applicable, for each central office area as prepared pursuant to
paragraph A of section 3.
6. If the Project contains requirements for installation of
underground conduit, manholes and associated appurtenances, the
Engineer, during the preparation of the plans and specifications,
shall secure field data necessary for the proper design of such
facilities (including plan and profile data, if required, and detail
construction drawings, including cable to be installed), and shall
proceed with the preparation of detailed plans and specifications
for the construction of such facilities. Such drawings and
specifications, when completed, shall be added to, and made a part
of, the construction plans and specifications.
7. An itemized list of materials on hand or on order to be
furnished by the Owner, showing the locations of delivery points and
delivery schedules of such materials, the quantity, unit price and
extended price.
8. The form of the contract to be entered into between a
Contractor and the Owner for the construction of the outside plant,
including forms of notice and instructions to bidders, Contractor's
proposal, materials and construction specifications, Contractor's
bond, description of assembly units and construction drawings.
Note: Plans and specifications for outside plant facilities to
be constructed under a force account proposal do not require Items 7
and 8, above.
C. Contracts
1. Upon receipt of notice by the Engineer from the Owner of the
Administrator's approval of the plans and specifications, the
Engineer shall, unless otherwise instructed by the Owner, with the
approval of the Administrator, proceed to take all usual and
customary actions, including compliance with the procedures set
forth herein and in 7 CFR Part 1753, to facilitate full, free, and
competitive bidding for the award of contracts.
2. Notices to Bidders shall be sent in accordance with Subpart F
of 7 CFR Part 1753. The Engineer shall then review with the Owner
and the Owner shall approve the qualifications of bidders who
replied to the notice, as a condition of release of bid documents to
any such bidder. The Engineer shall prepare and furnish to such
qualified bidders the appropriate bid documents including
construction sheets, and the plans and specifications upon the
conditions provided in the applicable standard RUS contract forms.
The construction sheets shall be furnished upon payment of
reasonable charges. The Engineer shall also prepare and furnish,
upon payment of reasonable charges, to material suppliers requesting
them, copies of the Contractor's proposal sheets for outside plant
together with any special drawings or material specifications
pertaining thereto and a list of materials to be furnished by the
Owner.
3. The Engineer shall conduct a Pre-Bid Conference in accordance
with Subpart F of 7 CFR Part 1753 and shall be available to each
prospective bidder for consultation with respect to the details of
the plans and specifications and all other matters pertaining to the
preparation of the proposals for the construction, or the supply of
materials and equipment or services therefor. All changes to or
clarifications of the plans and specifications provided to one
prospective bidder shall be provided in writing to all other
prospective bidders and to the Owner.
4. The Engineer shall attend and supervise all openings of bids
for the construction, or for the furnishing of materials and
equipment or services therefor. The Owner shall return unopened bids
received from Bidders not previously qualified under paragraph C2 of
this section. In the event that bids are received from less than
three (3) qualified bidders, the bids shall remain unopened and the
Owner shall notify the Administrator thereof immediately. If
directed by the Owner, the Engineer shall proceed in respect of the
rebidding, in the manner provided for herein for the initial
bidding. The Engineer shall check the assembly unit prices and
[[Page 7149]]
summarize of all bids received. The Engineer shall render to the
Owner assistance in connection with the Owner's consideration of the
bids received so that contracts may be prudently and properly
awarded. The Engineer shall submit to the Owner a written
recommendation for award of the contract or rejection of all bids
stating the reasons therefor.
5. The Engineer shall prepare and furnish to the Owner three (3)
copies of the detailed proposal sheets or a detailed tabulation of
the low bid, and a tabulation showing the names and totals of all
bids. The Owner shall submit to the Administrator the bidding
information for approval by the Administrator of the award of the
contract. Upon receipt of notice from the Owner of the
Administrator's approval of the award of the contract, the Engineer
shall prepare three (3) counterparts of the construction contract to
be executed by the Owner and the successful bidder and the Owner
shall forward such executed counterparts to the Administrator for
approval.
6. If, after the construction contract has been approved by the
Owner and the Administrator, it shall be determined by the Owner
that any changes in the plans and specifications are advisable, the
Engineer shall prepare and submit a contract amendment in accordance
with 7 CFR Part 1753.
D. Force Account
1. If all or a portion of the Project, shall be constructed by
force account, the Engineer shall prepare a force account proposal
in accordance with Subpart G of 7 CFR Part 1753.
a. When requested by the Owner, the Engineer shall prepare an
itemized list of the total quantities of all items of materials
required for the construction showing in addition the quantity of
each item of materials the Owner has on hand based on the list
furnished by the Owner pursuant to paragraph G of section 2.
b. The force account proposal shall include an estimate,
prepared in collaboration with the Owner, of the unit construction
costs in substantially the same form as the Contractor's proposal in
the standard contract form, and a summary of the total estimated
cost of construction, setting forth the following:
(1) The total Cost of labor and other;
(2) The total Cost of materials; and
(3) The number of calendar days required for the construction.
2. After receipt of notice by the Engineer from the Owner of
approval by the Administrator of the force account proposal, the
Engineer, in collaboration with the Owner, shall fix a date for the
commencement of construction. In the determination of this date,
consideration shall be given to the status of material deliveries,
Staking, easements, and the availability of competent construction
personnel and adequate equipment to facilitate continuous
construction in an efficient and expeditious manner. Such date as
agreed upon shall be submitted to the Administrator by the Owner and
the date thus established shall be the ``Commencement Date'' for the
construction. The Engineer shall be available to the Owner for
consultation with respect to the details of the plans and
specifications and all other matters pertaining to the construction
of the Project.
3. If, after the force account proposal has been approved by the
Owner and the Administrator, it shall be determined by the Owner
that any change or changes in the force account proposal are
advisable, the Engineer shall prepare and submit to the Owner all
necessary details in connection with the change or changes, and upon
approval thereof by the Owner, the proposed change or changes shall
be submitted by the Owner to the Administrator. To the extent that
the Administrator approves such proposed change or changes they
shall be included as part of the force account proposal, and the
Engineer shall immediately proceed in respect of any additional
Staking, construction, and material contracts or amendments required
thereby in like manner as though such Staking, construction, and
material contracts or amendments were originally included as part of
the force account proposal.
Section 5. Compensation
A. The Owner shall pay the Engineer for services performed
pursuant to this RUS Form 217f (except as provided in paragraph B of
this section) as follows:
1. The sum of ______ dollars ($______) or when the outside plant
is divided into sections for construction purposes requiring
separate plans and specifications for each section; a sum of ______
dollars ($______) for each such section for which complete plans and
specifications are prepared; plus,
2. The sum of ______ dollars ($______) for each approved
amendment to the contract; plus
3. The sum of ______ dollars ($______) per mile for each mile of
Project line facilities (1) included in the plans and
specifications, and (2) added or deleted by approved amendments to
the plans and specifications; plus
4. The sum of ______ dollars ($______) for each approved force
account proposal.
The compensation payable under paragraph A of this section shall
be due and payable ten (10) days after the approval of the plans and
specifications or approved amendments by the Owner and the
Administrator.
B. The Owner shall pay the Engineer ``time and expense''
compensation as defined in the current Table 2 of this Agreement for
services: (1) As requested by the Owner, in connection with
corrections to, or the furnishing of, items required to be furnished
by the Owner per section 2; (2) required under section 3; (3) in
connection with underground conduits, paragraph B6 of section 4; (4)
for changes in force account plans and specifications, paragraph D3
of section 4; and (5) in connection with the conducting of the Pre-
Bid Conference, paragraph C3 of section 4, and for rebidding,
paragraph C4 of section 4.
Section 6. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment (RUS Form 217f--Outside Plant Plans and Specifications
and Contracts).
Attachment--RUS Form 217g
Outside Plant Construction Phase Engineering Services
Section 1. Construction Phase
A. General. As engineering representative of the Owner, and in
accordance with sound and accepted engineering practices, the
Engineer: (1) Shall provide Construction Administration and
Inspection services; (2) shall assist the Owner in obtaining the
expeditious and economical construction of the Project in accordance
with the approved plans and specifications, the terms of the
construction contract or force account proposal, and 7 CFR Part
1753; and (3) shall have and exercise sole responsibility for the
issuance of supplemental directives to the Contractor regarding the
Contractor's performance in accordance with the terms of the
construction contract as approved by the Owner and the
Administrator. The Engineer's undertaking hereunder shall not
relieve the Contractor of the Contractor's obligation to perform the
work in conformity with the plans and specifications and in a
workmanlike manner and shall not impose upon the Engineer any
obligation to see that the work is performed in a safe manner. The
Engineer shall not be responsible for the failure of the Contractor
to perform the work in accordance with the contract or to perform
the work in a safe workmanlike manner. In fulfilling the above
responsibility, the Engineer shall as necessary:
1. Interpret the plans and specifications and convey such
interpretation to the Contractor;
2. Inspect the progress of and quality of construction, in
sufficient detail to provide reasonable assurance to the Owner of
the adequacy of such progress and quality of construction, pursuant
to the requirements of the plans and specifications and contract;
3. Confirm the acceptability of materials and equipment proposed
by the Contractor to be utilized in the construction prior to the
use of such materials or equipment on the Project and promptly
reject materials and equipment not in compliance with the plans and
specifications; and
4. Inspect the manner of incorporation of the materials and
equipment into the Project, and the workmanship with which such
materials and equipment are incorporated and reject materials,
equipment and workmanship which the Engineer determines will not be
in compliance with the plans and specifications. Such Inspection
shall be deemed to be adequate if a reasonable percentage of all
routine construction units (other than units requiring detailed
inspection) are observed at the time of installation and found free
of error.
The above enumeration of specific requirements shall not limit
the general undertakings of the Engineer to perform services set
forth in the first sentence of paragraph A of this section. The
obligations of the Engineer hereunder are for the benefit of only
the Owner and the Administrator, and shall not relieve the
Contractor of any of its own responsibilities under its contract
with the Owner.
[[Page 7150]]
B. Residents and Inspectors
1. A Resident with full authority to act for the Engineer shall
be maintained by the Engineer at the site of the Project at all
times during the entire period of scheduled construction (including
times when the Resident is available and through no fault of the
Engineer scheduled construction is not performed, and including
times when corrective work is being performed) unless specifically
directed otherwise by the Owner with the approval of the
Administrator. A Resident shall be necessary for each outside plant
construction contract.
2. If, at any time during construction, a Resident, or
Inspector, is not required at the Project site, or such personnel
are not available because of other responsibilities on the Project,
the Engineer shall assign a Resident and/or Inspector on an
intermittent basis, to effect necessary observations of construction
during any critical phase of such construction.
3. If the Engineer determines that particular components of the
work or particular circumstances during construction require the
presence of a specialized representative of the Engineer, such as an
architect, structural engineer, design engineer or other specialist
for the purpose of interpreting contract requirements, or performing
special inspections or tests to facilitate compliance by the
Contractor with the plans and specifications and terms of the
construction contract, the Engineer with prior approval of the Owner
shall assign such personnel to the Project site.
4. The Engineer shall maintain at the site of the Project and
under the direct supervision of the Resident a sufficient number of
qualified Inspectors, to fully discharge the responsibility of the
Engineer pursuant to paragraph A of this section (including times
when such assigned Inspectors are available and through no fault of
the Engineer scheduled construction is not performed). The number of
Inspectors so required will vary with the size of the Project, the
number of construction crews, and the speed of construction.
5. The number of Residents and Inspectors required by the
Engineer for a routine construction schedule for this Project to
effect completion within the allowed number of scheduled ``working
days'' is as follows:
a. ______ (______) Resident(s);
b. ______ (______) Inspectors(s);
6. In the event conditions should arise, through no fault of and
beyond control of the Engineer, which would require the placement by
the Engineer of additional Inspectors (or Residents) on the Project,
to accommodate special needs of the Owner (or Contractor, with
approval of the Owner), then, with the approval of the Owner prior
to their assignment to the Project, the Engineer shall assign such
additional qualified personnel to the Project for the limited time
of such requirements.
C. Pre-Construction Conference. A competent representative from
the office of the Engineer, and the Resident (or Residents) to be
assigned to the Project, shall conduct the outside plant pre-
construction conference. The detailed notes taken by the Engineer on
items discussed shall be furnished to all parties. Such notes shall
be used by the Resident, as applicable, in interpreting the plans
and specifications pursuant to paragraph A1 of this section.
D. Project Office. The Engineer shall establish and maintain a
field office, with telephone service, in the proximity of the
Project when construction is in progress and shall notify the Owner
of the address and telephone number of such field office. Any
notices, instructions or communications delivered to such field
office shall be deemed to have been delivered to the Engineer.
E. Defective Construction. If the construction is by contract,
the Engineer shall notify the Contractor in writing of all observed
or otherwise determined defects in workmanship or materials in
accordance with the terms of the construction contract. If the
construction is by force account, the Engineer shall advise the
Owner relative to the correction of such defects.
F. Joint Use or Joint Occupancy. In connection with all joint
use or joint occupancy construction, the Engineer shall:
1. Coordinate construction activities for the Owner with the
designated representative of other parties to joint use or joint
occupancy agreements;
2. Review for the Owner all changes proposed by other parties to
joint use or joint occupancy agreements for changes in and additions
to their existing pole lines under such agreements and submit to the
Owner recommendations thereon.
G. Tests. The Engineer shall conduct, or cause to be conducted,
such tests of circuits and equipment as required by the Owner and
the Administrator to determine compliance with the performance
requirements of the plans and specifications. The Engineer shall
make recommendations in writing for the correction of defective
materials, workmanship, or equipment. All cases of transmission or
operational difficulties due to faulty construction or defective
materials or equipment in the Project shall be reported in writing
to the Contractor for correction if the construction is by contract
or to the Owner if construction is by force account. When the
corrections have been made, the circuits and equipment shall again
be tested. The Engineer shall furnish test equipment as required for
performing all required tests or measurements.
The outside plant tests to be made on this Project are noted in
the table below:
----------------------------------------------------------------------------------------------------------------
Test or Measurements Will perform or participate in
---------------------------------- performing tests
Description of Test or Measurements Subscriber Loop ---------------------------------
Plant Trunk Plant Owner Engineer
----------------------------------------------------------------------------------------------------------------
C.O. Ground Measurement..................... ............... ............... ............... X
Copper Shield or Shield/Armor Continuity.... X X ............... X
Conductor Continuity........................ X X ............... X
Shield or Armor Ground Resistance........... X X ............... X
Conductor Insulation Resistance............. X X ............... X
DC Loop Resistance.......................... ............... ............... ............... ...............
DC Loop Resistance Unbalance................ ............... ............... ............... ...............
VF Insertion Loss........................... ............... ............... ............... ...............
Loop Measurements (Loop Checking)........... ............... ............... ............... ...............
Two-Person Structural Return Loss........... ............... ............... ............... ...............
One-Person Open Circuit Measurements........ ............... ............... ............... ...............
Cable Insertion Loss at Carrier Frequency... ............... ............... ............... ...............
Fiber Armor Continuity...................... X X ............... X
Fiber Optic Splice Loss--Field.............. X X ............... X
Fiber Optic Splice Loss--C. O............... X X ............... X
End-to End Attenuation...................... X X ............... X
End-to End Fiber Signature.................. X X ............... ...............
----------------------------------------------------------------------------------------------------------------
As appropriate, complete the table using these symbols:
X--These are standard tests and measurements required on facilities as desired by the owner or required by the
Administrator.
*--These tests will not be required if the distribution pairs are not cross-connected to feeder pairs at the
time of acceptance testing.
N/A--Not Applicable.
H. Connecting Companies. The Engineer shall coordinate all
engineering and construction activities with connecting companies
and shall notify the Owner when the Project, or a section thereof,
shall be ready to be placed in service. After giving
[[Page 7151]]
such notice, the Engineer shall, when directed to do so by the
Owner, cause the Project, or such section thereof as may be ready,
to be placed in service.
I. Reporting. The Engineers shall prepare, execute and submit to
the Owner ______ (insert frequency of reporting--minimal monthly)
all estimates, certificates, reports, and other documents required
to be executed by the Engineer pursuant to a construction contract,
a force account proposal, or the 7 CFR Part 1753. The Engineer shall
review and, if satisfactory, recommend for approval each periodic
estimate submitted by contractors prior to approval and payment by
the Owner. Such recommendations shall include a statement by the
Engineer based on the Engineer's Inspection of executed work and the
progress of the work and subject to evaluation and testing of the
work as a completed Project, that all construction for which payment
is requested has been completed and cleaned up in accordance with
the terms of the construction contract and that all defective
construction of which the Contractor shall have received fifteen
(15) or more days written notice, has been corrected.
The Engineer shall maintain a cumulative inventory of all units
of construction incorporated in the Project, showing unit prices and
extended totals, for all such units of construction. When it appears
that the previously approved contract total is likely to be
exceeded, the Engineer shall immediately notify the Owner in a
format suitable for notifying the Administrator. When requested by
the Owner or when the ``Overrun'' results in 20% above the contract
total, the Engineer shall prepare a contract amendment in accordance
with 7 CFR Part 1753 for execution by the Parties to the
construction contract, to cover the additions or changes in
construction units that are resulting in such ``Overrun''.
J. Final Inspection. The Owner and a representative of the
Administrator will normally conduct a final inspection of completed
construction. When requested by the Owner, a qualified
representative of the Engineer shall be present.
Section 2. Final Documents
A. Contract Construction. If the Project or any portion thereof
shall be constructed pursuant to a construction contract, the
Engineer shall prepare and submit to the Owner complete and detailed
final documents as specified in 7 CFR 1753 and a statement of all
amounts payable by the Owner under the construction contract. The
final documents shall be in a format suitable for approval by the
Owner and subsequent submission to the Administrator for approval.
These final documents shall be submitted to the Owner within forty-
five (45) calendar days after the completion of construction based
on the date shown on the certificate of completion covered by each
contract.
B. Force Account Construction. If the Project or any portion
thereof shall be constructed by force account:
1. Within thirty (30) calendar days after completion of
construction of the Project, the Owner shall furnish to the Engineer
the following data:
a. The cost of all materials used in construction of the
Project;
b. Cost of right-of-way clearing (direct labor costs);
c. All direct labor costs chargeable to construction exclusive
of the right-of-way clearing; and
d. A list of all items of overhead cost applicable to the
construction of the Project, but excluding the cost of engineering,
legal, accounting and other professional services, interest during
construction and preliminary survey charges.
2. Within forty-five (45) calendar days after the completion of
construction of the Project, the engineer shall prepare and submit
to the Owner for approval complete and detailed final documents in
such form as the Administrator may prescribe, including without
limitation, a final inventory of construction and a final inventory
of retirements. The final documents shall contain the labor and
material unit costs based on data supplied by the Owner.
C. Number of Copies. Copies of final documents shall be
furnished in accordance with 7 CFR Part 1753.
Section 3. Plant Records
A. Prior to Cutover. If the Owner shall have notified the
Engineer not later than ten (10) days prior to of the start of
construction in a central office area that the Owner elects to
assign to the Engineer the preparation of any of the following plant
records, the Engineer shall prepare and deliver these records to the
Owner, not later than fifteen (15) calendar days prior to the start
of Cutover of each central office area included as a part of the
Project. These records cover the Cutover work on facilities
completed as of the date of delivery of such records for each such
area. The following records shall be in such form as the Owner, with
the approval of the Administrator, may prescribe:
1. Cable schematics, corrected to show ``as constructed''
conditions of that portion of the Project as of such date;
2. Cable records data, for completed line segments as of such
date;
3. Line and station data for completed line segments as of such
date; and
4. Terminal assignment records.
B. After Cutover. The Engineer shall deliver to the Owner,
within thirty (30) calendar days after Cutover of facilities in any
completed exchange area or completed section of the Project, the
record drawings of the following plant records covering such Project
area (excluding any of such records that the Owner has previously
elected to prepare with its own forces):
1. Cable schematics, corrected to show ``as constructed''
conditions of such Project area;
2. Cable record data, for all construction completed in such
Project area;
3. Line and station records for all lines completed in such
Project area as a part of the Project;
4. Final maps, showing record drawings facilities completed in
such Project area; and
5. Final complete and detailed construction sheets, showing
facilities completed in such Project area, including the designation
of assembly units of existing plant retained in place along existing
plant lines segments on which modification work was performed as a
part of the Project.
Section 4. Inventory and Appraisal. When requested by the Owner,
the Engineer shall prepare within thirty (30) calendar days after
completion of construction of the Project and submit to the Owner an
inventory and appraisal of all existing telephone plant retained as
part of the Owner's system. The inventory and appraisal shall be in
such form and provide such data as the Owner, with the approval of
the Administrator, may prescribe.
Section 5. Compensation
A. For Services Under sections 1, 3 and 4. The Owner shall pay
the Engineer ``time and expense'' compensation, as defined and
detailed in current Table 2 of this Agreement for all services
performed under sections 1, 3 and 4. Compensation under this section
shall not exceed ______ dollars ($______) unless said amount has
been increased by a contract amendment approved by the Owner and the
Administrator. Appropriate documentation justifying the increase
shall accompany the contract amendment.
Compensation under paragraph A of this section shall be due and
payable as follows:
1. Ninety-five Percent (95%) thereof shall be due and payable
ten (10) days after delivery each month of the invoice of the
Engineer;
2. The balance of such compensation shall be due and payable ten
(10) days after delivery of a statement by the Engineer to the Owner
certifying that all final documents prepared by the Engineer, for
execution by the Contractor, have been mailed or delivered to the
Contractor for execution.
B. For Services Under section 2. The Owner shall pay the
Engineer for all services performed under section 2 as follows:
1. The sum of ______ dollars ($______) for each service entrance
to be installed, replaced or modified during the construction of the
Project; plus
2. The sum of ______ dollars ($______); or when the Project is
divided into sections for which separate outside plant plans and
specifications are prepared, the sum of ______ dollars ($______) for
each section requiring final documents; plus the sum of ______
dollars ($______) for each mile of Project line facilities included
in the final documents. Ninety-five (95%) percent of the
compensation under this paragraph shall be due and payable ten (10)
days after approval by the Owner and the Administrator of the
respective final documents and the balance of the compensation under
this paragraph shall be due and payable ten (10) days after
completion of the Project as defined in the Table 1.
C. Bi-weekly Statement. For compensation covered by paragraph A
this section, the Engineer shall submit to the Owner a biweekly
statement showing the names of the Residents and Inspectors, and the
actual time spent on the Project by each Resident and each Inspector
during the preceding period. The statement should be prepared and
submitted to the Owner in a format similar to that shown in RUS Form
217, Exhibit A.
Section 6. Section Reference. Unless otherwise specified or
indicated, any reference to ``section'' shall mean within this
attachment RUS Form 217g--Outside Plant
[[Page 7152]]
Construction-Project Direction, Inspection, Testing and Contract
Closeout.
[End of clause]
Dated: February 10, 1997.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 97-3921 Filed 2-14-97; 8:45 am]
BILLING CODE 3410-15-P
