[Federal Register Volume 63, Number 210 (Friday, October 30, 1998)]
[Rules and Regulations]
[Pages 58283-58288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29131]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 63, No. 210 / Friday, October 30, 1998 /
Rules and Regulations
[[Page 58283]]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1724 and 1726
RIN 0572-AB42
Electric Program Standard Contract Forms
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Utilities Service (RUS) is amending its regulations
to change the manner in which it publishes the standard forms of
contracts that borrowers are required to use when contracting for
construction, procurement, engineering services, or architectural
services financed through loans made or guaranteed by RUS. The required
contract forms are currently published in text format in the Code of
Federal Regulations (CFR). This final rule would eliminate this
unnecessary and burdensome publication in the CFR.
DATES: Effective October 30, 1998.
FOR FURTHER INFORMATION CONTACT: F. Lamont Heppe, Jr., Director,
Program Development and Regulatory Analysis, Rural Utilities Service,
U.S. Department of Agriculture, Stop 1522, 1400 Independence Avenue,
SW., Washington, DC 20250-1522. Telephone: (202) 720-9550. FAX: (202)
720-4120. E-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12372
This final rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultation, which may require consultation
with State and local officials. A notice of final rule entitled
``Department Programs and Activities Excluded from Executive Order
12372,'' (50 FR 47034) exempted RUS loans and loan guarantees from
coverage under this order.
Executive Order 12866
This final rule has been determined to be not significant for the
purposes of Executive Order 12866 and, therefore, has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. RUS has determined that this rule meets the
applicable standards provided in section 3 of the Executive Order. In
addition, all state and local laws and regulations that are in conflict
with this rule will be preempted. No retroactive effect will be given
to this rule and in accordance with Sec. 212(e) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. Sec. 6912(e))
administrative appeal procedures, if any, must be exhausted before an
action against the Department or its agencies may be initiated.
Regulatory Flexibility Act Certification
The Administrator of RUS has determined that this rule will not
have significant impact on a substantial number of small entities
defined in the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), and
therefore, the Regulatory Flexibility Act does not apply to this rule.
National Environmental Policy Act Certification
The Administrator of 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 No. 10.850, Rural
Electrification 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, telephone
number (202) 512-1800.
Information Collection and Recordkeeping Requirements
The recordkeeping and reporting burdens contained in this final
rule have been submitted to OMB for approval. The paperwork contained
in this rule will not be effective until approved by OMB.
Send questions or comments regarding any aspect of this collection
of information, including suggestions for reducing the burden, to F.
Lamont Heppe, Jr., Director, Program Development and Regulatory
Analysis, Rural Utilities Service, U.S. Department of Agriculture, Stop
1522, 1400 Independence Avenue, SW., Washington, DC 20250-1522.
Unfunded Mandates
This final rule contains no Federal mandates (under the regulatory
provision of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments or the private sector. Thus, this
final rule is not subject to the requirements of sections 202 and 205
of the Unfunded Mandates Reform Act of 1995.
Background
RUS will change the manner in which it publishes the standard forms
of contracts that borrowers are required to use when contracting for
construction, procurement, architectural, or engineering services
financed through loans made or guaranteed by RUS.
The standard loan agreement between RUS and its borrowers provides
that, in accordance with applicable RUS regulations, the borrower shall
use standard forms of contracts promulgated by RUS for construction,
procurement, engineering services, and architectural services financed
by a loan made or guaranteed by RUS. See section 5.16 of appendix A to
subpart C to part 1718. RUS currently implements these provisions of
its loan agreement through parts 1724 and 1726 which generally
prescribe when and how borrowers are required to use RUS standard form
contracts and identify the standard contract forms to be used. Title 7
CFR part 1724 covers engineering and architectural services contract
forms, and 7 CFR part 1726 covers construction and procurement contract
forms.
The required standard contract forms currently are published in
full text format in title 7 of the CFR (see, e.g.,
[[Page 58284]]
Sec. Sec. 1724.74-1724.76 and Sec. Sec. 1726.312-1726.352.) RUS also
publishes forms of contracts which serve as guidance to borrowers and
which borrowers may use at their discretion. All of these forms are
available, in a format suitable for use as a contract, from RUS or the
Government Printing Office (GPO), as provided in Sec. 1724.70 and
Sec. 1726.300. If an RUS borrower is required by part 1724 or 1726 to
use a form of contract, the borrower must use the contract form in that
format available from RUS or GPO. RUS believes that the current system
of publishing the complete text of the contract forms in the CFR is
unnecessary and that, consistent with the agency's objective to
streamline regulatory text and to provide borrowers' with a user
friendly regulatory system, the complete text of the required contract
forms should no longer be published in the CFR.
Rather than publish the complete text of the standard contract
forms in the CFR, RUS will identify in Sec. 1724.74 and Sec. 1726.304
all required contract forms by number, issue date, name, purpose, and
source. To the extent that RUS may be required to publish its forms of
contract pursuant to section 552(a) of the Administrative Procedure Act
(APA) (5 U.S.C. 552(a)) or otherwise, such requirement is met by the
identification of the standard contract forms in parts 1724 and 1726.
Moreover, RUS provides all borrowers with actual notice of the forms of
contract they are required to use in contracting. As the rule states in
Sec. 1724.73 and Sec. 1726.303, upon initially entering into a loan
agreement with RUS, borrowers are provided with copies of contract
forms. Thereafter, should RUS promulgate new or revised standard
contract form(s), following the procedures discussed below, RUS will
revise the list of standard forms as set forth in Sec. 1724.74 or
Sec. 1726.304 or both and send the new or revised standard forms to all
affected borrowers by regular or electronic mail. Borrowers, as well as
the public, can obtain copies of all standard contract forms from RUS
or GPO.
In addition to identifying standard forms and eliminating full
publication of the text of each standard contract form in the CFR, RUS
will clarify the procedures that will be followed when RUS promulgates
a new or revised standard contract form. To the extent that RUS is
required by section 553 of the APA (5 U.S.C. 553) or otherwise to
provide notice in the FR and an opportunity for public comment in
promulgating standard contract forms, RUS will publish a FR notice of
rulemaking announcing, as appropriate, a revision in, or a proposal to
revise the list of standard contract forms set forth in sections
1724.74 or 1726.304 or both. The revision may change the existing list
by, for example, identifying a new required contract form or changing
the issuance date of a listed form. The supplementary information
section of the FR notice will describe the substantive change in the
identified standard contract form and may append the standard contract
form or relevant portions thereof. As appropriate, the notice will
provide an opportunity for interested persons to provide comments. A
copy of each such Federal Register notice will be sent by regular or
electronic mail to all borrowers.
Finally, this final rule clarifies certain aspects of the
requirement that borrowers use RUS standard forms of contract. Absent a
waiver by RUS, borrowers are required to use those standard forms in
effect as of the date the borrower issues bid package to bidders.
Borrowers can determine the appropriate standard form based on the
issuance date of the form as identified by the most recently published
list set forth in Sec. 1724.74 and Sec. 1726.304. RUS may waive for
good cause, on a case by case basis, the requirement to use RUS
standard forms of contracts pursuant to procedures set forth in the
regulation. A failure on the part of the borrower to use standard forms
of contracts as prescribed in parts 1724 or 1726 is a violation of the
terms of its loan agreement with RUS and RUS may exercise any and all
remedies available under the terms of the agreement or otherwise.
Consistent with the changes discussed above, RUS is amending those
sections of existing regulations that currently set forth the full text
of contracts for the purpose of deleting such text. Deletion of the
full text from the CFR will not affect the requirement that borrowers
use the prescribed forms of contracts. The rule also relocates and
makes minor revisions to information regarding contractors bonds and
interest on overdue accounts.
List of Subjects
7 CFR Part 1724
Electric power, Loan programs--energy, Reporting and recordkeeping
requirements, Rural areas.
7 CFR Part 1726
Electric power, Loan programs-energy, Reporting and recordkeeping
requirements, Rural areas.
Accordingly, 7 CFR Chapter XVII is amended as follows:
PART 1724--ELECTRIC ENGINEERING, ARCHITECTURAL SERVICES AND DESIGN
POLICIES AND PROCEDURES
1. The authority citation for part 1724 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
2. Section 1724.3 is amended by adding definitions in alphabetical
order to read as follows:
Sec. 1724.3 Definitions.
* * * * *
GPO means Government Printing Office.
* * * * *
RE Act means the Rural Electrification Act of 1936 as amended (7
U.S.C. 901 et seq.).
RUS means Rural Utilities Service
* * * * *
3. Section 1724.10 is added to subpart A to read as follows:
Sec. 1724.10 Standard forms of contracts for borrowers.
The standard loan agreement between RUS and its borrowers provides
that, in accordance with applicable RUS regulations in this chapter,
the borrower shall use standard forms of contracts promulgated by RUS
for construction, procurement, engineering services, and architectural
services financed by a loan made or guaranteed by RUS. This part
implements these provisions of the RUS loan agreement. Subparts A
through E of this part prescribe when and how borrowers are required to
use RUS standard forms of contracts for engineering and architectural
services. Subpart F of this part prescribes the procedures that RUS
follows in promulgating standard contract forms and identifies those
contract forms that borrowers are required to use for engineering and
architectural services.
4. Section 1724.70 is revised to read as follows:
Sec. 1724.70 Standard forms of contracts for borrowers.
(a) General. The standard loan agreement between RUS and its
borrowers provides that, in accordance with applicable RUS regulations
in this chapter, the borrower shall use standard forms of contract
promulgated by RUS for construction, procurement, engineering services,
and architectural services financed by a loan made or guaranteed by
RUS. (See section 5.16 of appendix A to subpart C of part 1718 of this
chapter.) This subpart prescribes RUS procedures in promulgating
electric program standard contract forms
[[Page 58285]]
and identifies those forms that borrowers are required to use.
(b) Contract forms. RUS promulgates standard contract forms,
identified in the List of Required Contract Forms, Sec. 1724.74(c),
that borrowers are required to use in accordance with the provisions of
this part. In addition, RUS promulgates standard contract forms
identified in the List of Guidance Contract Forms contained in
Sec. 1724.74(c) that the borrowers may but are not required to use in
the planning, design, and construction of their electric systems.
Borrowers are not required to use these guidance contract forms in the
absence of an agreement to do so.
5. Section 1724.71 is revised to read as follows:
Sec. 1724.71 Borrower contractual obligations.
(a) Loan agreement. As a condition of a loan or loan guarantee
under the RE Act, borrowers are normally required to enter into RUS
loan agreements pursuant to which the borrower agrees to use RUS
standard forms of contracts for construction, procurement, engineering
services and architectural services financed in whole or in part by the
RUS loan. Normally, this obligation is contained in section 5.16 of the
loan contract. To comply with the provisions of the loan agreements as
implemented by this part, borrowers must use those forms of contract
(hereinafter sometimes called ``listed contract forms'') identified in
the List of Required Standard Contract Forms contained in
Sec. 1724.74(c).
(b) Compliance. If a borrower is required by this part to use a
listed contract form, the borrower shall use the listed contract form
in the format available from RUS. The forms shall not be retyped,
changed, modified, or altered in any manner not specifically authorized
in this part or approved by RUS in writing. Any modifications approved
by RUS must be clearly shown so as to indicate the difference from the
listed contract form. Electronic reproduction is not acceptable.
(c) Amendment. Where a borrower has entered into a contract in the
form required by this part, no change may be made in the terms of the
contract, by amendment, waiver or otherwise, without the prior written
approval of RUS.
(d) Waiver. RUS may waive for good cause, on a case by case basis,
the requirements imposed on a borrower pursuant to this part. Borrowers
seeking a waiver by RUS must provide RUS with a written request
explaining the need for the waiver.
(e) Violations. A failure on the part of the borrower to use listed
contracts as prescribed in this part is a violation of the terms of its
loan agreement with RUS and RUS may exercise any and all remedies
available under the terms of the agreement or otherwise.
6. Section 1724.72 is added to read as follows:
Sec. 1724.72 Notice and publication of listed contract forms.
(a) Notice. Upon initially entering into a loan agreement with RUS,
borrowers will be provided with all listed contract forms. Thereafter,
new or revised listed contract forms promulgated by RUS, including RUS
approved exceptions and alternatives, will be sent by regular or
electronic mail to the address of the borrower as identified in its
loan agreement with RUS.
(b) Availability. Listed contract forms are published by RUS.
Interested parties may obtain the forms from: Rural Utilities Service,
Program Development and Regulatory Analysis, U.S. Department of
Agriculture, Stop 1522, 1400 Independence Avenue, SW, Stop 1522,
Washington, DC 20250-1522, telephone number (202) 720-8674. The list of
contract forms can be found in Sec. 1724.74(c), List of Required
Contract Forms.
7. Section 1724.73 is added to read as follows:
Sec. 1724.73 Promulgation of new or revised contract forms.
RUS may, from time to time, undertake to promulgate new contract
forms or revise or eliminate existing contract forms. In so doing, RUS
shall publish notice of rulemaking in the Federal Register announcing,
as appropriate, a revision in, or a proposal to amend Sec. 1724.74,
List of Electric Program Standard Contract Forms. The amendment may
change the existing identification of a listed contract form; for
example, changing the issuance date of a listed contract form or by
identifying a new required contract form. The notice of rulemaking will
describe the new standard contract form or the substantive change in
the listed contract form, as the case may be, and the issues involved.
The standard contract form or relevant portions thereof may be appended
to the supplementary information section of the notice of rulemaking.
As appropriate, the notice of rulemaking shall provide an opportunity
for interested persons to provide comments. A copy of each such Federal
Register document shall be sent by regular or electronic mail to all
borrowers.
8. Section 1724.74 is revised to read as follows:
Sec. 1724.74 List of electric program standard contract forms.
(a) General. The following is a list of RUS electric program
standard contract forms for architectural and engineering services.
Paragraph (c) of this section contains the list of required contract
forms, i.e., those forms of contracts that borrowers are required to
use by the terms of their RUS loan agreements as implemented by the
provisions of this part. Paragraph (d) of this section contains the
list of guidance contract forms, i.e., those forms of contracts
provided as guidance to borrowers in the planning, design, and
construction of their systems. All of these forms are available from
RUS. See Sec. 1724.72(b) for availability of these forms.
(b) Issuance date. Where required by this part to use a standard
form of contract in connection with RUS financing, the borrower shall
use that form identified by issuance date in the List of Required
Contract Forms in paragraph (c) of this section, as most recently
published as of the date the borrower executes the contract.
(c) List of required contract forms. (1) RUS Form 211, Rev. 6-98,
Engineering Service Contract for the Design and Construction of a
Generating Plant. This form is used for engineering services for
generating plant construction.
(2) RUS Form 220, Rev. 6-98, Architectural Services Contract. This
form is used for architectural services for building construction.
(3) RUS Form 236, Rev. 6-98, Engineering Service Contract--Electric
System Design and Construction. This form is used for engineering
services for distribution, transmission, substation, and communications
and control facilities.
(d) List of guidance contract forms. (1) RUS Form 179, Rev. 9-66,
Architects and Engineers Qualifications. This form is used to document
architects and engineers qualifications.
(2) RUS Form 215, Rev. 5-67, Engineering Service Contract--System
Planning. This form is used for engineering services for system
planning.
(3) RUS Form 234, Rev. 3-57, Final Statement of Engineering Fee.
This form is used for the closeout of engineering services contracts.
(4) RUS Form 241, Rev. 3-56, Amendment of Engineering Service
Contract. This form is used for amending engineering service contracts.
(5) RUS Form 244, Rev. 12-55, Engineering Service Contract--Special
[[Page 58286]]
Services. This form is used for miscellaneous engineering services.
(6) RUS Form 258, Rev. 4-58, Amendment of Engineering Service
Contract--Additional Project. This form is used for amending
engineering service contracts to add an additional project.
(7) RUS Form 284, Rev. 2-84, Final Statement of Cost for
Architectural Service. This form is used for the closeout of
architectural services contracts.
(8) RUS Form 297, Rev. 12-55, Engineering Service Contract--
Retainer for Consultation Service. This form is used for engineering
services for consultation service on a retainer basis.
(9) RUS Form 459, Rev. 9-58, Engineering Service Contract--Power
Study. This form is used for engineering services for power studies.
Secs. 1724.75 and 1724.76 [Removed and Reserved]
9. Sections 1724.75 and 1724.76 are removed and reserved.
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES
10. The authority citation for part 1726 is revised to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.
11. Section 1726.24 is amended by revising the section heading and
paragraph (a) to read as follows:
Sec. 1726.24 Standard forms of contracts for borrowers.
(a) General. The standard loan agreement between RUS and the
borrowers provides that, in accordance with applicable RUS regulations
in this chapter, the borrower shall use standard forms of contracts
promulgated by RUS for construction, procurement, engineering services,
and architectural services financed by a loan made or guaranteed by
RUS. This part implements these provisions of the RUS loan agreement.
Subparts A through H and J of this part prescribe when and how
borrowers are required to use RUS standard forms of contracts in
procurement and construction. Subpart I of this part prescribes the
procedures that RUS follows in promulgating standard contract forms and
identifies those contract forms that borrowers are required to use for
procurement and construction.
* * * * *
12. Section 1726.26 is added to read as follows:
Sec. 1726.26 Interest on overdue accounts.
Certain RUS contract forms contain a provision concerning payment
of interest on overdue accounts. Prior to issuing the invitation to
bidders, the borrower must insert an interest rate equal to the lowest
``Prime Rate'' listed in the ``Money Rates'' section of the Wall Street
Journal on the date such invitation to bid is issued. If no prime rate
is published on that date, the last such rate published prior to that
date must be used. The rate must not, however, exceed the maximum rate
allowed by any applicable state law.
13. Section 1726.27 is added to read as follows:
Sec. 1726.27 Contractor's bonds.
(a) RUS Form 168b, Contractor's Bond, shall be used when a
contractor's bond is required by RUS Forms 200, 201, 203, 257, 764,
786, 790, 792, 830, or 831 unless the contractor's surety has accepted
a Small Business Administration guarantee and the contract is for $1
million or less.
(b) RUS Form 168c, Contractor's Bond, shall be used when a
contractor's bond is required by RUS Form 200, 201, 203, 257, 764, 786,
790, 792, 830, or 831 and the contractor's surety has accepted a Small
Business Administration guarantee and the contract is for $1 million or
less.
(c) Surety companies providing contractor's bonds shall be listed
as acceptable sureties in the U.S. Department of the Treasury Circular
No. 570, Companies Holding Certificates of Authority as Acceptable
Sureties on Federal Bonds and as Acceptable Reinsuring Companies.
Copies of the circular and interim changes may be obtained directly
from the Government Printing Office (202) 512-1800. Interim changes are
published in the Federal Register as they occur. The list is also
available through the Internet at http://www.fms.treas.gov/c570/
index.html and on the Department of the Treasury's computerized public
bulletin board at (202) 874-6887.
14. Section 1726.300 is revised to read as follows:
Sec. 1726.300 Standard forms of contracts for borrowers.
(a) General. The standard loan agreement between RUS and its
borrowers provides that, in accordance with applicable RUS regulations
in this chapter, the borrower shall use standard forms of contract
promulgated by RUS for construction, procurement, engineering services,
and architectural services financed by a loan made or guaranteed by
RUS. (See section 5.16 of appendix A to subpart C of part 1718 of this
chapter.) This subpart prescribes RUS procedures in promulgating
standard contract forms and identifies those forms that borrowers are
required to use.
(b) Contract forms. RUS promulgates standard contract forms,
identified in the List of Required Contract Forms, Sec. 1726.304(c),
that borrowers are required to use in accordance with the provisions of
this part. In addition, RUS promulgates standard contract forms
contained in Sec. 1726.304(d) that the borrowers may but are not
required to use in the construction of their electric systems.
Borrowers are not required to use these guidance contract forms in the
absence of an agreement to do so.
15. Section 1726.301 is revised to read as follows:
Sec. 1726.301 Borrower contractual obligations.
(a) Loan agreement. As a condition of a loan or loan guarantee
under the Rural Electrification Act, borrowers are normally required to
enter into RUS loan agreements pursuant to which the borrower agrees to
use RUS standard forms of contracts for construction, procurement,
engineering services and architectural services financed in whole or in
part by the RUS loan. Normally, this obligation is contained in section
5.16 of the loan contract. To comply with the provisions of the loan
agreements as implemented by this part, borrowers must use those forms
of contract (hereinafter sometimes called ``listed contract forms'')
identified in the List of Required Contract Forms, Sec. 1724.304(c).
(b) Compliance. If a borrower is required by this part or by the
loan agreement to use a listed contract form, the borrower shall use
the listed contracts in the format available from RUS or GPO. The forms
shall not be retyped, changed, modified, or altered in any manner not
specifically authorized in this part or approved by RUS in writing. Any
modifications approved by RUS must be clearly shown so as to indicate
the difference from the listed contract form. Electronic reproduction
is not acceptable except where indicated in Sec. 1726.304(c).
(c) Amendment. Where a borrower has entered into a contract in the
form required by this part, no change may be made in the terms of the
contract, by amendment, waiver or otherwise, without the prior written
approval of RUS.
(d) Waiver. RUS may waive for good cause, on a case by case basis,
the requirements imposed on a borrower pursuant to this part. Borrowers
seeking a waiver by RUS must provide RUS
[[Page 58287]]
with a written request explaining the need for the waiver. Waiver
requests should be made prior to issuing the bid package to bidders.
(e) Violations. A failure on the part of the borrower to use listed
contracts as prescribed in this part is a violation of the terms of its
loan agreement with RUS and RUS may exercise any and all remedies
available under the terms of the agreement or otherwise.
16. Section 1726.302 is revised to read as follows:
Sec. 1726.302 Notice and publication of listed contract forms.
(a) Notice. Upon initially entering into a loan agreement with RUS,
borrowers will be provided with all listed contract forms. Thereafter,
new or revised listed contract forms promulgated by RUS, including RUS
approved exceptions and alternatives, will be sent by regular or
electronic mail to the address of the borrower as identified in its
loan agreement with RUS.
(b) Availability. Listed contract forms are available from either
RUS or the Government Printing Office (GPO), as indicated in
Sec. 1726.304. Interested parties may obtain the forms from: Rural
Utilities Service, Program Development and Regulatory Analysis, U.S.
Department of Agriculture, Stop 1522, 1400 Independence Avenue, SW,
Washington DC 20250-1522, telephone number (202) 720-8674, or the
Superintendent of Documents, P.O. Box 371954, Pittsburgh, Pennsylvania
15250-7954, telephone number (202) 512-1800. The listed contract forms
can be found in Sec. 1724.304(c), List of Required Contract Forms.
17. Section 1726.303 is revised to read as follows:
Sec. 1726.303 Promulgation of new or revised contract forms.
RUS may, from time to time, undertake to promulgate new contract
forms or revise or eliminate existing contract forms. In so doing, RUS
shall publish notice of rulemaking in the Federal Register announcing,
as appropriate, a revision in, or a proposal to amend Sec. 1726.304,
List of Electric Program Standard Contract Forms. The amendment may
change the existing identification of a listed contract form; for
example, changing the issuance date of a listed contract form or by
identifying a new required contract form. The notice of rulemaking will
describe the new standard contract form or the substantive change in
the listed contract form, as the case may be, and the issues involved.
The standard contract form or relevant portions thereof may be appended
to the supplementary information section of the notice of rulemaking.
As appropriate, the document shall provide an opportunity for
interested persons to provide comments. A copy of each such Federal
Register document will be sent by regular or electronic mail to all
borrowers.
18. Section 1726.304 is added to read as follows:
Sec. 1726.304 List of electric program standard contract forms.
(a) General. This section contains a list of RUS electric program
standard contract forms. Paragraph (c) of this section contains the
list of required contract forms, i.e., those forms of contracts that
borrowers are required to use by the terms of their RUS loan agreements
as implemented by the provisions of this part. Paragraph (d) of this
section sets forth the list of guidance contract forms, i.e., those
forms of contracts provided as guidance to borrowers in the
construction of their systems. See Sec. 1726.302(b) for availability of
these forms.
(b) Issuance date. Where required by this part to use a standard
form of contract in connection with RUS financing, the borrower shall
use that form identified by issuance date in the List of Required
Contract Forms in paragraph (c) of this section, as most recently
published as of the date the borrower issues the bid package to
bidders.
(c) List of required contract forms. (1) RUS Form 168b, Rev. 2-95,
Contractor's Bond. This form is used to obtain a surety bond and is
included in RUS Forms 200, 201, 203, 257, 764, 786, 790, 792, 830, and
831.
(2) RUS Form 168c, Rev. 2-95, Contractor's Bond (less than $1
million). This form is used in lieu of RUS Form 168b to obtain a surety
bond when contractor's surety has accepted a Small Business
Administration guarantee. This form is available from RUS.
(3) RUS Form 180, Rev. 2-95, Construction Contract Amendment. This
form is used to amend distribution line construction contracts. This
form is available from RUS.
(4) RUS Form 181, Rev. 2-95, Certificate of Completion, Contract
Construction for Buildings. This form is used for the closeout of RUS
Form 257. This form is available from RUS.
(5) RUS Form 187, Rev. 2-95, Certificate of Completion, Contract
Construction. This form is used for the closeout of and is included in
RUS Forms 200, 203, 764, 786, 830, and 831.
(6) RUS Form 198, Rev. 2-95, Equipment Contract. This form is used
for equipment purchases. This form is available from RUS.
(7) RUS Form 200, Rev. 2-95, Construction Contract--Generating.
This form is used for generating plant construction or for the
furnishing and installation of major items of equipment. This form is
available from RUS.
(8) RUS Form 201, Rev. 2-95, Right-of-Way Clearing Contract. This
form is used for distribution line right-of-way clearing work which is
to be performed separate from line construction. This form is available
from RUS.
(9) RUS Form 203, Rev. 2-95, Transmission System Right-of-Way
Clearing Contract. This form is used for transmission right-of-way
clearing work which is to be performed separate from line construction.
This form is available from RUS.
(10) RUS Form 213, Rev. 2-95, Certificate (``Buy American''). This
form is used to document compliance with the ``Buy American''
requirement. This form is available from RUS.
(11) RUS Form 224, Rev. 2-95, Waiver and Release of Lien. This form
is used for the closeout of and is included in RUS Forms 200, 203, 764,
786, 830, and 831.
(12) RUS Form 231, Rev. 2-95, Certificate of Contractor. This form
is used for the closeout of and is included in RUS Forms 200, 203, 764,
786, 830, and 831.
(13) RUS Form 238, Rev. 2-95, Construction or Equipment Contract
Amendment. This form is used to amend contracts except distribution
line construction contracts. This form is available from RUS.
(14) RUS Form 251, Rev. 2-95, Material Receipt. This form is used
to document receipt of owner furnished materials and is included in RUS
Forms 764, 830, and 831. Electronic reproduction is acceptable for RUS
Form 251.
(15) RUS Form 254, Rev. 2-95, Construction Inventory. This form is
used for the closeout of RUS Forms 203, 764, 830, and 831. This form is
available from RUS. Electronic reproduction is acceptable for RUS Form
254.
(16) RUS Form 257, Rev. 2-95, Contract to Construct Buildings. This
form is used to construct headquarters buildings and other structure
construction. This form is available from GPO.
(17) RUS Form 307, Rev. 2-95, Bid Bond. This form is used to obtain
a bid bond and is included in RUS Forms 200, 203, 257, 764, 830, and
831.
(18) RUS Form 764, Rev. 2-95, Substation and Switching Station
Erection Contract. This form is used to
[[Page 58288]]
construct substations and switching stations. This form is available
from RUS.
(19) RUS Form 786, Rev. 2-95, Electric System Communications and
Control Equipment Contract. This form is used for delivery and
installation of equipment for system communications. This form is
available from RUS.
(20) RUS Form 790, Rev. 2-95, Distribution Line Extension
Construction Contract (Labor and Materials). This form is used for
limited distribution construction accounted for under work order
procedure. This form is available from GPO.
(21) RUS Form 792, Rev. 2-95, Distribution Line Extension
Construction Contract (Labor Only). This form is used for limited
distribution construction accounted for under work order procedure.
This form is available from GPO.
(22) RUS Form 792b, Rev. 2-95, Certificate of Construction and
Indemnity Agreement. This form is used for the closeout of and is
included in RUS Forms 201, 790, 792.
(23) RUS Form 792c, Rev. 2-95, Supplemental Contract for Additional
Project. This form is used to amend other contracts and is included in
RUS Forms 201, 790, 792.
(24) RUS Form 830, Rev. 2-95, Electric System Construction Contract
(Labor and Materials). This form is used for distribution and
transmission line project construction. This form is available from
GPO.
(25) RUS Form 831, Rev. 2-95, Electric Transmission Construction
Contract (Labor and Materials). This form is used for transmission line
project construction. This form is available from GPO.
(d) List of guidance contract forms. (1) RUS Form 172, Rev. 9-58,
Certificate of Inspection, Contract Construction. This form is used to
notify RUS that construction is ready for inspection. This form is
available from RUS.
(2) RUS Form 173, Rev. 3-55, Materials Contract. This form is used
for distribution, transmission, and general plant material purchases.
This form is available from RUS.
(3) RUS Form 274, Rev. 6-81, Bidder's Qualifications. This form is
used to document bidder's qualifications. This form is available from
RUS.
(4) RUS Form 282, Rev. 11-53, Subcontract. This form is used for
subcontracting. This form is available from RUS.
(5) RUS Form 458, Rev. 3-55, Materials Contract. This form is used
to obtain generation plant material and equipment purchases not
requiring acceptance tests at the project site. This form is available
from RUS.
Secs. 1726.310--1726.352 [Removed and Reserved]
18. Sections 1726.310 through 1726.352 are removed and reserved.
Dated: October 23, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-29131 Filed 10-29-98; 8:45 am]
BILLING CODE 3410-15-P