[Federal Register Volume 65, Number 166 (Friday, August 25, 2000)]
[Rules and Regulations]
[Pages 51749-51750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21774]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1755

RIN 0572-AB35


RUS Form 397, Special Equipment Contract (Including Installation)

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Utilities Service (RUS) is amending its regulation 
on RUS Telecommunications Standards and Specifications for Material, 
Equipment and Construction to revise RUS Form 397, Special Equipment 
Contract (including installation). This contract incorporates 
amendments currently attached to the RUS Form 397, Special Equipment 
Contract, and updates contract terms and format.

EFFECTIVE DATE: September 25, 2000.

FOR FURTHER INFORMATION CONTACT: John J. Schell, Chief, Inside Plant 
Branch, Telecommunications Standards Division, Rural Utilities Service, 
U.S. Department of Agriculture, STOP 1598, 1400 Independence Ave., SW, 
Washington, DC 20250-1598, telephone number (202) 720-0671.

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 the Office of Management and Budget (OMB).

Executive Order 12372

    This final rule is excluded from the scope of Executive Order 
12372, Intergovernmental Consultation, which may require a consultation 
with State and local officials. See the final rule related notice 
entitled, ``Department Programs and Activities Excluded from Executive 
Order 12372'' (50 FR 47034).

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 
accordance with the Executive Order and the rule: (1) All state and 
local laws and regulations that are in conflict with this rule will be 
preempted; (2) no retroactive effort will be given to this rule; and, 
(3) in accordance with Sec. 212(c) of the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6912(c)), administrative appeal 
procedures, if any, must be exhausted prior to initiating litigaton 
against the Department or its agencies.

Regulatory Flexibility Act Certification

    RUS has determined that this final rule will not have a significant 
economic impact on a substantial number of small entities, as defined 
by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The RUS 
telecommunications program provides loans to borrowers at interest 
rates and terms that are more favorable than those generally available 
from the private sector. RUS borrowers, as a result of obtaining 
federal financing, receive economic benefits that exceed any direct 
economic costs associated with complying with RUS regulations and 
requirements.

Information Collection and Recordkeeping Requirements

    This rule contains no new reporting or recordkeeping burdens under 
OMB control number 0572-0059 that would require approval under the 
Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35).

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 proposed rule is listed in the 
Catalog of Federal Domestic Assistance programs under number 10.851, 
Rural Telephone Loans and Loan Guarantees, and number 10.852, Rural 
Telephone Bank Loans. This catalog is available on a subscription basis 
from the Superintendent of Documents, the United States Government 
Printing Office, Washington, DC 20402. Telephone: (202) 512-1800.

Unfunded Mandates

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for 
State, local, and tribal governments for the private sector. Thus, this 
rule is not

[[Page 51750]]

subject to the requirements of section 202 and 205 of the Unfunded 
Mandates Reform Act of 1995.

Background

    The last revision to the RUS Form 397 was December 1967. Since that 
date, divestiture, competition, legislation and regulation have changed 
business practices in the telecommunications industry. Contract terms 
and obligations in RUS Form 397 have been modified and updated to 
reflect present business practices as well as changes in technology, 
services and equipment. Notable advances in fiber optics, digital 
subscriber line (DSL) and radio technology have made many new services 
available. Consequently, significant changes have been made in the way 
business is conducted in the telecommunications industry.
    The RUS Form 397 incorporates those changes into the Special 
Equipment Contract. The main changes to the contract include but are 
not limited to the following: (1) Format for listing bid prices and 
alternatives; (2) delivery and installation requirements; (3) payments 
and releases of lien requirements; (4) particular undertakings of the 
bidder requirements; (5) Equal Employment requirements; (6) payments to 
the contractor; (7) insurance; (8) liquidated damages; and (9) 
completion of the project. The above actions will make it possible for 
RUS telecommunications borrowers to continue to provide their 
subscribers with the most modern and efficient telecommunications 
service.
    A proposed rule was issued in the Federal Register on February 20, 
1998, at 63 FR 8582, requesting comments on these changes. The comment 
period closed April 21, 1998. Public comments were received from Hart 
Engineers, Martin and Associates, Hicks & Ragland Engineering Company 
and Associated Communications & Research Services. The comments with 
responses are presented as follows:
    Although not a requirement in the current RUS Form 397, Special 
Equipment Contract, competitive bidding procedures with sealed bid 
requirements were added to the proposed contract. All four commenters 
stated the competitive bidding process would increase the time and 
costs associated with the purchase of transmission equipment. As part 
of RUS efforts in governmental streamlining and empowering the 
recipients of RUS loans, RUS will place more responsibility with the 
borrowers to ensure a more cost effective review process while 
maintaining the required loan security. Hence, the procurement of 
special equipment will follow the procedures outlined in 7 CFR Part 
1753, Telecommunication Systems Construction Policies and Procedures, 
Sec. 1753.68, giving the borrower the option to use the full 
competitive bidding process.
    The proposed contract added the requirement that a contract 
amendment needed to be prepared and approved by RUS to revise delivery 
or completion of project scheduled dates. A commenter stated this 
change would increase the time and engineering costs associated with 
granting the manufacturer a time extension. RUS will remove the added 
requirement and continue using the procedure whereby the owner can 
grant a time extension by letter to the vendor without issuing a 
contract amendment.

List of Subjects in 7 CFR Part 1755

    Loan programs-communications, Reporting and recordkeeping 
requirements, Rural areas, Telephone.

    For the reasons set forth in the preamble, Chapter XVII of Title 7 
of the Code of Federal Regulations is amended 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., 7941 et seq.

    2. Section 1755.30(c)(27) is revised to read as follows:


Sec. 1755.30  List of telecommunications standard contract forms.

* * * * *
    (c) * * *
    (27) RUS Form 397, issued September 25, 2000, Special Equipment 
Contract (Including Installation).
* * * * *

    Dated: August 17, 2000.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 00-21774 Filed 8-24-00; 8:45 am]
BILLING CODE 3410-15-P