[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