94-4858. Post-Loan Policies and Procedures Common to Guaranteed and Insured Telephone Loans; Telecommunications System Construction Policies and Procedures  

  • [Federal Register Volume 59, Number 43 (Friday, March 4, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-4858]
    
    
    [[Page Unknown]]
    
    [Federal Register: March 4, 1994]
    
    
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    DEPARTMENT OF AGRICULTURE
    Rural Electrification Administration
    
    7 CFR Parts 1744, 1753
    
     
    
    Post-Loan Policies and Procedures Common to Guaranteed and 
    Insured Telephone Loans; Telecommunications System Construction 
    Policies and Procedures
    
    AGENCY: Rural Electrification Administration, USDA.
    
    ACTION: Proposed rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Rural Electrification Administration (REA) proposes to 
    amend its post-loan regulations for telephone borrowers to ease 
    borrower reporting requirements and further clarify existing REA 
    policy. In addition, REA proposes to amend the telecommunications 
    system construction regulations to reflect minor technical changes such 
    as moving the definitions section from one subpart to another.
    
    DATES: Comments concerning this proposed rule must be received by REA 
    or bear a postmark or its equivalent no later than May 3, 1994.
    
    ADDRESSES: Submit written comments to Matthew P. Link, Director, Rural 
    Telephone Bank Management Staff, U.S. Department of Agriculture, Rural 
    Electrification Administration, 14th & Independence Avenue, SW., room 
    2832-S, Washington, DC 20250-1500. REA requests an original and three 
    copies of all comments (7 CFR part 1700). All comments received will be 
    made available for public inspection at room 2238-S, at the address 
    listed above, between 8:30 a.m. and 5 p.m. (7 CFR 1.27(b)).
    
    FOR FURTHER INFORMATION CONTACT: Orren E. Cameron, III, Chief, 
    Northeast Engineering Branch, Eastern Regional Division, at the address 
    listed above, telephone number (202) 720-3299.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This proposed rule has been determined to be not significant for 
    purposes of Executive Order 12866 and therefore has not been reviewed 
    by OMB.
    
    Executive Order 12778
    
        This proposed rule has been reviewed under Executive Order 12778, 
    Civil Justice Reform. If adopted, this proposed rule will not:
        (1) Preempt any State or local laws, regulations, or policies, 
    unless they present an irreconcilable conflict with this rule;
        (2) Have any retroactive effect; and
        (3) Require administrative proceedings before parties may file suit 
    challenging the provisions of this rule.
    
    Regulatory Flexibility Act Certification
    
        REA has determined that this proposed rule will not have a 
    significant economic impact on a substantial number of small entities, 
    as defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 
    The REA telephone program provides loans to REA borrowers at interest 
    rates and terms that are more favorable than those generally available 
    from the private sector. REA borrowers, as a result of obtaining 
    federal financing, receive economic benefits which exceed any direct 
    economic costs associated with complying with REA regulations and 
    requirements. Moreover, this action liberalizes certain contract 
    requirements by changing contract limits and allowing negotiation of 
    fee schedules which further offsets economic costs.
    
    Information Collection and Recordkeeping Requirements
    
        In compliance with the Office of Management and Budget (OMB) 
    regulations (5 CFR part 1320) which implement the Paperwork Reduction 
    Act of 1980 (Pub. L. 96-511) and section 3504 of that Act, the 
    information collection and recordkeeping requirements contained in this 
    proposed rule have been submitted to OMB for approval. Comments 
    concerning these requirements should be directed to the Office of 
    Information and Regulatory Affairs of OMB, Attention: Desk Officer for 
    USDA, room 3201, New Executive Office Building, Washington, DC 20503.
    
    National Environmental Policy Act Certification
    
        REA has determined that this proposed 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 proposed rule is listed in the 
    Catalog of Federal Domestic Assistance Programs under 10.851, Rural 
    Telephone Loans and Loan Guarantees, and 10.852, Rural Telephone Bank 
    Loans. 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 proposed 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 REA and RTB loans and loan guarantees to 
    governmental and nongovernmental entities from coverage under this 
    Order.
    
    Background
    
        The proposed rules are primarily aimed at further clarifying and 
    relaxing existing REA regulations concerning post-loan and system 
    construction policies and procedures. Further clarification of REA 
    policy would ease borrower reporting requirements by clearly defining 
    certain post-loan construction procedures, such as contract 
    construction and closeout procedures.
        In part 1744, subpart B is revised to explain what REA means by 
    ``in the interests of the Government''. Also, definitions sections of 
    subpart B and subpart C are combined into a single list of definitions, 
    located in subpart B.
        In part 1753, subpart B is revised to delete definitions which 
    merely repeat those in subpart A. Also, a monthly construction progress 
    reporting requirement is deleted because it contains information 
    reported elsewhere.
        Subparts F and I are revised to increase the maximum allowable 
    dollar amount of the Form 773 contract. This requires miscellaneous 
    revisions throughout part 1753.
        Minor and technical corrections are made throughout part 1753.
        Appendices A through F are revised to change the requirement to 
    distribute certain documents to REA.
        Specifically, Appendix A is amended by adding to the table the 
    distribution of Seismic Safety Certifications, required by 7 CFR part 
    1792, to the contractor and REA.
        Appendix B is amended by removing from the table the distribution 
    of the Switching Diagram and Set of Drawings to REA, and to delete 
    reference to REA Form 744 which has been replaced by REA Form 754.
        Appendix C is amended by removing from the table the distribution 
    of Final Key Maps and Final Central Office Area and Town Detail Maps to 
    REA, and to reduce to one copy the number of other final documents 
    required for REA.
        Appendix D is amended to comply with the revisions proposed to 
    Appendix C.
        Appendix E is amended by removing from the table the distribution 
    of Detail Maps and Key Maps to REA.
        Appendix F is amended by adding to the table the distribution of 
    REA Form 213, Buy American Certificate to REA.
    
    List of Subjects
    
    7 CFR Part 1744
    
        Accounting, Loan programs-communications, Reporting and 
    recordkeeping requirements, Rural areas, Telephone.
    
    7 CFR Part 1753
    
        Loan programs-communications, Telecommunications, Telephone.
    
        For reasons set forth in the preamble, 7 CFR chapter XVII is 
    proposed to be amended as follows:
    
    PART 1744--POST-LOAN POLICIES AND PROCEDURES COMMON TO GUARANTEED 
    AND INSURED TELEPHONE LOANS
    
        1. The authority citation for part 1744 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 901 et seq., 1921 et seq.
    
        2. In Sec. 1744.40, paragraph (a)(3) is revised to read as follows:
    
    
    Sec. 1744.40  Non-act purposes.
    
        (a) * * *
        (3) Approval of the request is in the interests of the Government. 
    Generally, it would not be in the Government's interest if the 
    accommodation or subordination is being requested to enable the 
    borrower to avoid complying with such REA policies or procedures, as 
    competitive bid procedures or purchasing equipment acceptable to REA, 
    under 7 CFR part 1753.
    * * * * *
    
    
    Sec. 1744.21  [Amended]
    
    
    Sec. 1744.61  [Removed and reversed]
    
        3. The paragraph designations in Secs. 1744.21 and 1744.61 are 
    removed, the definition in Sec. 1744.21 are put in alphabetical order, 
    the definitions in Sec. 1744.61 are transferred to Sec. 1744.21 in 
    alphabetical order, and Sec. 1744.61 is removed and reserved.
    
    PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND 
    PROCEDURES
    
        1. The authority citation for part 1753 continues to read as 
    follows:
    
    
        Authority: 7 U.S.C. 901 et seq., 1921 et seq.
    
        2. In Sec. 1753.5, paragraph (b)(1) is revised to read as follows:
    
    
    Sec. 1753.5  Methods of major construction.
    
    * * * * *
        (b) Contract construction. (1) Whether the contractor is selected 
    through sealed competitive bidding or negotiation, as approved by REA, 
    award of the contract is subject to REA approval.
    * * * * *
        3. In Sec. 1753.6, paragraph (b) is revised to read as follows:
    
    
    Sec. 1753.6  Standards, specifications, and general requirements.
    
    * * * * *
        (b) The borrower may use REA loan funds to finance nonstandard 
    construction materials or equipment only if approved by REA in writing 
    prior to purchase or commencement of construction.
    * * * * *
        4. In Sec. 1753.8, paragraphs (a)(11)(ii), (a)(12)(i), (b)(2), 
    (b)(3), and (b)(4) are revised, and paragraph (b)(5) is removed to read 
    as follows:
    
    
    Sec. 1753.8  Contract construction procedures.
    
        (a) * * *
        (11) * * *
        (ii) If an award is made, the borrower shall award the contract to 
    the lowest responsive bidder, subject to REA approval. The borrower may 
    award the contract immediately upon determination of the lowest 
    responsive bidder if the following conditions are met:
        (A) The project is included in an approved loan and adequate funds 
    were budgeted in the loan and are available.
        (B) All applicable REA procedures were followed, including those in 
    the Notice and Instructions to Bid in the standard forms of contract.
    * * * * *
        (12) Execution of contract: (i) Upon approval by REA of the award 
    of contract by the borrower, the borrower shall submit to REA three 
    original counterparts of the contract executed by the contractor and 
    borrower.
    * * * * *
        (b) * * *
        (2) For negotiated purchases, borrowers shall use REA contract 
    forms, standards, and specifications.
        (3) For all contract forms except REA Form 773:
        (i) After a satisfactory negotiated proposal has been obtained, the 
    borrower shall submit it to REA for approval, along with the engineer's 
    recommendation, and evidence of acceptance by the borrower.
        (ii) If REA approves the negotiated proposal, the borrower shall 
    submit three copies of the contract, executed by the contractor and 
    borrower, to REA for approval.
        (iii) If REA approves the contract, REA shall return one copy of 
    the contract to the borrower and one copy to the contractor.
        (4) For REA Form 773, the borrower is responsible for negotiating a 
    satisfactory proposal, executing contracts, and closing the contract. 
    See 7 CFR 1753, subparts F and I, for requirements for major and minor 
    construction, respectively, on Form 773.
        5. In Sec. 1753.9, paragraphs (a) and (c) are revised to read as 
    follows:
    
    
    Sec. 1753.9  Subcontracts.
    
        (a) REA construction contract Forms 257, 397, 515, and 525 contain 
    provisions for subcontracting. Reference should be made to the 
    individual contracts for the amounts and conditions under which a 
    contractor may subcontract work under the contract.
    * * * * *
        (c) As stated in contract Forms 257, 397, 515, and 525, the 
    contractor shall bear full responsibility for the acts and omissions of 
    the subcontractor and is not relieved of any obligations to the 
    borrower and to the Government under the contract.
    * * * * *
        6. In Sec. 1753.16, paragraphs (b)(3), (b)(4) and (b)(5) are 
    redesignated as paragraphs (b)(4), (b)(5) and (b)(6), respectively, and 
    a new paragraph (b)(3) is added to read as follows:
    
    
    Sec. 1753.16  Architectural services.
    
    * * * * * 
        (b) * * *
        (3) If the fee schedule has to be modified in order for the 
    borrower to obtain adequate architectural services, the borrower shall 
    obtain written REA approval of the revised fee schedule prior to 
    executing contracts.
    * * * * * 
        7. In Sec. 1753.17, paragraph (e) is revised to read as follows: 
    Sec. 1753.17  Engineering services.
    
    * * * * * 
        (e) The borrower shall obtain status of contract and force account 
    proposal reports from the engineer once each month. The report shall 
    show for each contract or FAP the approved contract or FAP amount, the 
    date of approval, the scheduled date construction was to begin and the 
    actual date construction began, the scheduled completion date, the 
    estimated or actual completion date, the estimated or actual date of 
    submission of closeout documents, and an explanation of delays or other 
    pertinent data relative to progress of the project. One copy of this 
    report shall be submitted to the GFR.
    * * * * * 
        8. In Sec. 1753.25, a new paragraph (f)(4) is added to read as 
    follows: 
    Sec. 1753.25  General.
    
    * * * * * 
        (f) * * *
        (4) 7 CFR 1792, subpart C, which requires that the building design 
    comply with applicable seismic design criteria. Prior to the design of 
    buildings, borrowers shall submit to REA a written acknowledgement from 
    the architect or engineer that the design will comply.
    * * * * * 
        9. In Sec. 1753.26, paragraph (b) introductory text is revised, 
    paragraph (c) is redesignated as paragraph (d), and new paragraph (c) 
    is added to read as follows: 
    Sec. 1753.26  Plans and specifications (P&S).
    
    * * * * *
        (b) REA Contract Form 257 shall be completed as follows:
    * * * * *
        (c) The plans and specifications shall show the identification and 
    date of the model code used for seismic safety design considerations, 
    and the seismic factor used. See 7 CFR 1792, subpart C.
    * * * * *
    
    
    Sec. 1753.29  [Amended]
    
        10. In Sec. 1753.29, paragraph (a) is removed, and paragraphs (b), 
    (c), (d), and (e) are redesignated as paragraphs (a), (b), (c), and 
    (d).
        11. In Sec. 1753.30, paragraphs (b)(2)(i) and (c)(2) are revised to 
    read as follows:
    
    
    Sec. 1753.30  Closeout procedures.
    
    * * * * *
        (b) * * *
        (2) * * *
        (i) Arrange with its architect or engineer, contractor, and the GFR 
    for final inspection of the project.
    * * * * *
        (c) * * *
        (2) Complete, with the assistance of its architect or engineer, the 
    documents listed in Appendix A that are required for the closeout of 
    force account construction.
    * * * * *
        12. In Sec. 1753.39, paragraph (g) is revised to read as follows:
    
    
    Sec. 1753.39  Closeout documents.
    
    * * * * *
        (g) Final payment shall be made according to the payment terms of 
    the contract.
    * * * * *
        13. In Sec. 1753.46, paragraph (c) is added to read as follows:
    
    
    Sec. 1753.46  General.
    
    * * * * *
        (c) The two contract forms which may be used for major outside 
    plant construction are Form 515 and Form 773. Limitations on the 
    applicability of these forms shall be as follows:
        (1) Form 515 shall be used for major outside plant construction 
    projects which will be competitively bid. The contract contains plans 
    and specifications and has no dollar limitation. See Secs. 1753.47, 
    1753.48 and 1753.49.
        (2) A Form 515 contract which is for less than $200,000, may, at 
    the borrower's option, be negotiated. See Sec. 1753.48(b).
        (3) Form 773 shall be used for major outside plant projects which 
    may not be competitively bid, and which cannot be designed and staked 
    at the time of contract execution. Projects of this nature include 
    routine line extensions and placement of subscriber drops. The Form 773 
    contract is limited to a maximum of $200,000. REA will not finance more 
    than $400,000 in Form 773 contracts for a borrower in any twelve month 
    period. This $400,000 limitation includes all major and minor 
    construction performed under Form 773 contracts, and is determined by 
    the date the Form 773 contract is executed. See Sec. 1753.50.
        14. In Sec. 1753.49, paragraph (c)(3) is revised to read as 
    follows:
    
    
    Sec. 1753.49  Closeout documents.
    
    * * * * *
        (c) * * *
        (3) Final payment shall be made according to the payment provisions 
    of Article III of Form 515.
        15. Sec. 1753.50 is added to read as follows: 
    Sec. 1753.50  Construction by Form 773 contract. 
        (a) The borrower shall prepare the contract form and provide such 
    details of construction as may be available. Compensation may be based 
    upon unit prices, hourly rates, or another mutually agreeable basis.
        (b) Neither the selection of the contractor nor the contract 
    requires REA approval.
        (c) Borrowers are urged to obtain quotations from several 
    contractors before entering into a contract to be assured of obtaining 
    the lowest cost.
        (d) The borrower must ensure that the contractor selected meets all 
    Federal and State requirements, and that the contractor maintains the 
    insurance coverage required by the contract for the duration of the 
    work. See 7 CFR part 1788.
        (e) The borrower shall finance major construction under the Form 
    773 contract with general funds and obtain reimbursement with loan 
    funds when construction is completed and an executed Form 771 has been 
    submitted to REA.
        (f) If the contract exceeds $100,000, a contractor's bond shall be 
    required. See 7 CFR part 1788.
        (g) When the construction is completed to the borrower's 
    satisfaction, the borrower shall obtain from the contractor a final 
    invoice and an executed copy of REA Form 743, Certificate of Contractor 
    and Indemnity Agreement.
        (h) The closeout document for the Form 773 contract is REA Form 
    771. See Sec. 1753.81 for the requirements for completing Form 771.
        (i) An original and two copies of Form 771 shall be sent to the 
    GFR. The GFR may inspect the construction, and will initial and return 
    the original and one copy to the borrower.
        (j) The original Form 771 shall be submitted with an FRS to REA 
    only in conjunction with a request for an advance of loan funds for the 
    work.
        16. In Sec. 1753.68, paragraph (d)(3)(iii) is revised to read as 
    follows: 
    Sec. 1753.68  Purchasing special equipment.
    
    * * * * *
        (d) * * *
        (3) * * *
        (iii) Final payment shall be made according to the payment terms of 
    the contract.
        17. In Sec. 1753.78, paragraph (a) is revised to read as follows:
    
    
    Sec. 1753.78  Construction by contract.
    
        (a) REA Form 773 shall be used for minor construction by contract. 
    Compensation may be based upon unit prices, hourly rates, or another 
    basis agreed to in advance by the borrower and the contractor. A single 
    work project may require more than one contractor.
    * * * * *
        18. In Sec. 1753.80, paragraph (a) is revised to read as follows:
    
    
    Sec. 1753.80  Minor construction procedure.
    
        (a) If the borrower performs minor construction financed with loan 
    funds, the borrower's regular work order procedure shall be used to 
    administer construction activities that may be performed entirely by a 
    contractor under Form 773 contract, by work order, or jointly by work 
    order and one or more contractors under Form 773 contracts. REA will 
    not finance more than $400,000 in Form 773 contracts for a borrower in 
    any twelve month period. This $400,000 limitation includes all major 
    and minor construction performed under Form 773 contracts, and is 
    determined by the date the Form 773 contract is executed.
    * * * * *
        19. Appendices A through F of part 1753 are revised to read as 
    follows:
    
    Appendices to Part 1753
    
                                              Appendix A.--Documents Required to Closeout Construction of Buildings                                         
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Use with                     Prepared by                                    Distribution              
     Form furnished                           ------------------------------------------------------------  Number -----------------------------------------
         by REA             Description                       Force                Architect/                 of                                            
                                                Contract     account   Contractor   engineer    Borrower    copies  Borrower    REA    Architect  Contractor
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    238............  Construction or           x           ..........  ..........  x           ..........        3  ........        3  .........  ..........
                      Equipment Contract                                                                                                                    
                      Amendment (Submit to                                                                                                                  
                      REA for approval, as                                                                                                                  
                      required).                                                                                                                            
    181............  Certificate of            x           ..........  ..........  x           ..........        3         1        1  .........          1 
                      Completion (Contract                                                                                                                  
                      Construction)\1\.                                                                                                                     
    181a...........  Certificate of            ..........  x           ..........  x           ..........        2         1        1  .........  ..........
                      Completion (Force                                                                                                                     
                      Account Construction).                                                                                                                
    231............  Certificate of            x           ..........  x           ..........  ..........        2         1        1  .........  ..........
                      Contractor.                                                                                                                           
    224............  Waiver and Release of     x           ..........  x           ..........  ..........        2         1        1  .........  ..........
                      Lien (2 copies from                                                                                                                   
                      each supplier).                                                                                                                       
    213............  Certificate (Buy          x           ..........  x           ..........  ..........        1         1  .......  .........  ..........
                      American).                                                                                                                            
    284............  Statement of Architect's  x           x           ..........  x           ..........        3         1        1         1   ..........
                      Fee.                                                                                                                                  
                     Inventory--List           x           x           ..........  ..........  x                 3         1        1         1   ..........
                      Materials and Services                                                                                                                
                      Furnished by Borrower                                                                                                                 
                      Upon Which                                                                                                                            
                      Architectural Services                                                                                                                
                      Were Furnished. Show                                                                                                                  
                      Cost (See Form 284).                                                                                                                  
                     Inventory--List           x           x           ..........  ..........  x                 3         1        1         1   ..........
                      Materials and Services                                                                                                                
                      Furnished by Borrower                                                                                                                 
                      Upon Which                                                                                                                            
                      Architectural Services                                                                                                                
                      Were Not Performed Show                                                                                                               
                      Cost.                                                                                                                                 
    (2)............  ``As Built'' Plans and    x           x           ..........  x           ..........        1         1  .......  .........  ..........
                      Specifications.                                                                                                                       
                     Guarantees, Warranties,   x           ..........  x           ..........  ..........        1         1  .......  .........  ..........
                      Bonds, Operating or                                                                                                                   
                      Maintenance                                                                                                                           
                      Instructions, et cetera.                                                                                                              
                     Architect/Engineer        x           x           ..........  x           ..........        3         1        1  .........         1  
                      Seismic Safety                                                                                                                        
                      Certification.                                                                                                                        
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    \1\Cost of Materials and Services Furnished by Borrower not to be Included in total Cost on Form 181.                                                   
    \2\When only Minor Changes Were Made During Construction, Two Copies of a Statement to that Effect from the Architect Will be Accepted in Lieu of the   
      ``As-Built Plans and Specifications.                                                                                                                  
    
    
                                          Appendix B.--Documents Required to Closeout Central Office Equipment Contract                                     
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Use with                  Prepared by                             Distribution         
     Form furnished                                        --------------------------------------------------------   Total  -------------------------------
        by REA                    Description               REA form 525  REA form 545                               No. of   Borrower  Contractor          
                                                                                         Contractor     Engineer     copies                            REA  
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    238............  Construction or Equipment Contract     x             x             ............  x                    3  ........  ..........         3
                      Amendment (Submit to REA for                                                                                                          
                      approval, if required, before                                                                                                         
                      following documents).                                                                                                                 
    754............  Certificate of Completion and          x             ............  x             x                    4         2          1          1
                      Certificate of Contractor and                                                                                                         
                      Indemnity Agreement (If submitted,                                                                                                    
                      Form 744 is not required).                                                                                                            
    517............  Results of Acceptance Tests (Prepare   x             ............  ............  x                    2         1          1   ........
                      and distribute copies immediately                                                                                                     
                      upon completion of the acceptance                                                                                                     
                      tests of each central office).                                                                                                        
    752a...........  Certificate of Completion--Not         ............  x             ............  x                    3         1          1          1
                      Including Installation.                                                                                                               
    224............  Waiver and Release of Lien (Two        x             ............  x             ............         2         1  ..........         1
                      copies from each supplier).                                                                                                           
    231............  Certificate of Contractor............  x             ............  x             ............         2         1  ..........         1
    213............  Certificate (Buy American)...........  x             x             x             ............         1         2  ..........         1
                     Switching Diagram, as installed......  x             x             x             ............         2         2  ..........  ........
                     Set of Drawings (Each set to include   x             x             x             ............         2         2  ..........  ........
                      all the drawings required under the                                                                                                   
                      Specification REA Form 522).                                                                                                          
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    
    
                                    Appendix C.--Documents Required to Closeout Telephone Construction Contract REA Form 515                                
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Prepared by                    Distribution          
                                                                          No. of      Form     -------------------------------------------------------------
     REA Form No.                       Description                      Copies     available                                          Contractor           
                                                                                    from REA      Engineer     Contractor   Borrower                  REA   
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    724............  Final Inventory...................................        3  x             x             ............          1           1          1
    724a...........  Final Inventory...................................        3  x             x             ............          1           1          1
                     Contractor's Board Extension (When required)......        3  ............  ............  x                     1           1          1
    281............  Tabulation of Materials Furnished by Borrower.....        3  ............  x             ............          1           1          1
    213............  Certificate (``Buy American'')....................        1  x             ............  x                     1  ..........  .........
                     Listing of Construction Change Orders.............        2  ............                ............  .........  ..........          1
    224............  Waiver and Release of Lien (Two copies from each          2  x             x...........  x...........          1  ..........          1
                      supplier).                                                                                                                            
    231............  Certificate of Contractor.........................        2  x             ............  x                     1  ..........          1
    527............  Final Statement of Construction...................        3  x             x             ............          1           1          1
                     Reports on Results of Acceptance Tests............        2  ............  x             ............          1           1  .........
                     Set of Final Staking Sheets.......................        1  ............  x             ............          1  ..........  .........
                     Tabulation of Staking Sheets......................        1  ............  x             ............          1  ..........  .........
                     Treated Forest Products Inspection Reports or             1  ............  ............  ............          1  ..........  .........
                      Certificates of Compliance (Prepared by                                                                                               
                      inspection company or supplier).                                                                                                      
                     Final Key Map (when applicable)...................        1  ............  x             ............          1  ..........          1
                     Final Central Office Area and Town Detail Maps....        1  ............  x             ............          1  ..........          1
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    
    
          Appendix D.--Step-by-Step Procedure for Closing Out Telephone     
            Construction Contract--Labor and Materials, REA Form 515        
    ------------------------------------------------------------------------
           Sequence                                                         
    ------------------------                                                
     Step                          By                    Procedure          
     No.         When                                                       
    ------------------------------------------------------------------------
    1.      Prior to         Borrower's       Receives instructions from the
             completion of    Engineer.        GFR concerning the closeout  
             construction.                     procedure.                   
    2.      Upon completion  Borrower's       Prepares the following: 1 set 
             of               Engineer.        of Key Maps, when applicable,
             construction.                     which show work done under   
                                               the construction contract    
                                               marked with red pencil. 1 set
                                               of Detail Maps, which show   
                                               work done under the          
                                               construction contract marked 
                                               with red pencil. 1 copy of   
                                               Tabulation of Staking Sheets.
                                               1 copy of tentative Final    
                                               Inventory, REA Forms 724,    
                                               724a.                        
    3.      After            Borrower's       Forwards letter to the        
             construction     Engineer.        borrower with copies to the  
             has been                          GFR stating that the project 
             completed and                     is ready for final           
             acceptance                        inspection.                  
             tests made.                                                    
    4.      Upon receipt of  GFR............  Promptly arranges with        
             letter from                       borrower, borrower's         
             borrower's                        engineer, and contractor for 
             engineer.                         final inspection of          
                                               construction. It is          
                                               contemplated that final      
                                               inspections will be made on  
                                               sections of line as          
                                               construction is completed,   
                                               leaving a minimum amount to  
                                               be inspected at this time.   
    5.      When requested   REA Field        Audits REA Form 281, if       
             by the GFR.      Accountant.      borrower supplied part of the
                                               materials.                   
    6.      Inspection date  Borrower's       Shall have the following      
             scheduled.       Engineer.        documents available for the  
                                               GFR: 1 set of ``as           
                                               constructed'' Key Maps (when 
                                               applicable). 1 set of ``as   
                                               constructed'' Detail Maps. 1 
                                               copy of the List of          
                                               Construction Change Orders. 1
                                               set of Final Staking Sheets. 
                                               1 copy of Tabulation Staking 
                                               Sheets. 1 copy of Treated    
                                               Forest Products Inspection   
                                               Reports or Certificates of   
                                               Compliance. 1 copy of        
                                               tentative Final Inventory REA
                                               Form 724, 724a. 1 copy of    
                                               tentative Tabulation, REA    
                                               Form 231, if borrower        
                                               furnished part of material. 1
                                               copy of Report on Results of 
                                               Acceptance Tests.            
    7.      During           Borrower's       Issues instructions to        
             inspection.      Engineer.        contractor covering          
                                               corrections in construction  
                                               found during inspection by   
                                               GFR in the company of the    
                                               borrower's engineer and the  
                                               contractor or his/her        
                                               representative.              
    8.      During           Contractor.....  Corrects defects in           
             inspection.                       construction on basis of     
                                               instructions from the        
                                               borrower's engineer. The     
                                               corrections should proceed   
                                               closely behind the inspection
                                               in order that the borrower's 
                                               engineer can check the       
                                               corrections before leaving   
                                               the system.                  
    9.      During           Borrower's       With GFR inspects and approves
             inspection.      Engineer.        corrected construction.      
    10.     During           Borrower's       Marks inspected areas on the  
             inspection.      Engineer.        Key Map, if available,       
                                               otherwise on the Detail Maps.
    11.     Upon completion  Borrower's       Prepares or obtains all the   
             of inspection.   Engineer.        closeout documents listed in 
                                               Appendix C. Makes            
                                               distribution of the copies of
                                               the documents as indicated in
                                               Appendix C. Forwards the     
                                               documents for REA to the GFR.
    12.     After reviewing  REA GFR........  Reviews documents and         
             final                             distributes copies as        
             documents.                        indicated in Appendix C.     
    13.     After signing    Borrower.......  Prepares and submits Financial
             final                             Requirement Statement, REA   
             inventory.                        Form 481, requesting amount  
                                               necessary to make final      
                                               payment due under contract.  
    14.     On receipt of    Borrower.......  Promptly forwards check for   
             final advance.                    final payment to contractor. 
    15.     During next      REA Field        Makes an examination of       
             loan fund        accountant.      borrowers construction       
             audit review                      records for (1) compliance   
             after final                       with the construction        
             payment to                        contract and Subpart F and   
             contractor.                       (2) REA Form 281, Tabulation 
                                               of Materials Furnished by    
                                               Borrowers, if any, for       
                                               appropriate costs.           
    ------------------------------------------------------------------------
    
    
    Appendix E.--Documents Required to Close Out Force Account Outside Plant
                                  Construction                              
    ------------------------------------------------------------------------
                                                     No. of copies required 
                                                      and distribution of   
     Item    REA form    Description on title of           documents        
      No.       No.              document         --------------------------
                                                    Total                   
                                                     No.     Owner     REA  
    ------------------------------------------------------------------------
    a.      817, 817a,  Final inventory force            2        1        1
             817b        account construciton and                           
                         certificate of engineer.                           
    b.      213         Certificate, ``Buy               1        1        0
                         American'' (as                                     
                         applicable--one from                               
                         each supplier).                                    
    c.                  Detail maps..............        1        1        0
    d.                  Key map if applicable....        1        1        0
    e.                  Staking sheets...........        1        1        0
    f.                  Tabulation of staking            1        1        0
                         sheets.                                            
    g.                  Treated forest porducts          1        1        0
                         inspection reports, if                             
                         applicable.                                        
    ------------------------------------------------------------------------
    
    
                                                 Appendix F.--Documents Required to Closeout Equipment Contracts                                            
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                No. of                         Prepared by                              Distribution        
         Form                                                   copies    ----------------------------------------------------------------------------------
     furnished by                 Description               --------------         Form 397                  Form 398                                       
         REA                                                  Form   Form ---------------------------------------------------- Borrower  Contractor    REA  
                                                              397    398    Contractor    Engineer   Contractor     Engineer                                
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    238            Construction or Equipment Contract            3      3  ...........  x            ...........  x            ........  ..........        3
                    Amendment (If required, submit to REA                                                                                                   
                    for approval before other closeout                                                                                                      
                    documents.).                                                                                                                            
    396            Certificate of Completion--Special            3  .....  ...........  x            ...........  x                   1          1         1
                    Equipment Contract (Including                                                                                                           
                    Installation).                                                                                                                          
    396a           Certificate of Completion--Special        .....      3  ...........  x            ...........  x                   1          1         1
                    Equipment Contract (Not Including                                                                                                       
                    Installation).                                                                                                                          
    744            Certificate of Contractor and Indemnity       2  .....  x            ...........  ...........  ...........         1  ..........        1
                    Agreement.                                                                                                                              
    213            Certificate (Buy American)..............      2      2  x            ...........  x            ...........         1  ..........        1
                   Report in writing, including all              2      2  x            ...........  ...........  x                   1  ..........        1
                    measurements and other information                                                                                                      
                    required under Part II of the                                                                                                           
                    applicable specifications.                                                                                                              
                   Set of maintenance recommendations for        1      1  x            ...........  x            ...........         1  ..........  .......
                    all equipment furnished under the                                                                                                       
                    contract.                                                                                                                               
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    
        Dated: February 25, 1994.
    Bob J. Nash,
    Under Secretary, Small Community and Rural Development.
    [FR Doc. 94-4858 Filed 3-3-94; 8:45 am]
    BILLING CODE 3410-15-P
    
    
    

Document Information

Published:
03/04/1994
Department:
Agriculture Department
Entry Type:
Uncategorized Document
Action:
Proposed rule.
Document Number:
94-4858
Dates:
Comments concerning this proposed rule must be received by REA or bear a postmark or its equivalent no later than May 3, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: March 4, 1994
CFR: (20)
7 CFR 1744.21
7 CFR 1744.40
7 CFR 1744.61
7 CFR 1753.5
7 CFR 1753.6
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