[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.
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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
