RUS Bulletin 1780-23

UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

RUS BULLETIN 1780-23 

RD-GD-2020-111

SUBJECT: Project Management Agreement Between The Regional Commission and RUS

TO: RUS Water and Environmental Programs Staff.

EFFECTIVE DATE: Date of approval. 

OFFICE OF PRIMARY INTEREST: Water and Environmental Programs. 

AVAILABILITY: This Bulletin is available on the Internet at 

http://www.rurdev.usda.gov/RDU_Bulletins_Water_and_Environmental.html 

PURPOSE: This bulletin is issued to outline the agreement between the Rural Utility 

Service and the Regional Commission.

DISCLAIMER: The contents of this guidance document does not have the force and effect of law and is 

not meant to bind the public in any way. This document is intended only to provide clarity to the public 

regarding existing requirements under the law or agency policies.
RUS Bulletin 1780-23

Page 2

Project Management Agreement Between the Regional Commission and the Rural Utilities 

Service

Project No.

Project Management AgreementBetween the 

Regional Commission and the Rural Utilities Service, United States Department of Agriculture 

Pertaining to . 

(grantee) County, . 

I. Introduction

A. The Regional Commission is providing a basic 

grant for (purpose) to

(grantee), and the U.S. 

Department of Agriculture, Rural Utilities Service (RUS) has approved and the Rural 

Economic and Community Development (RECD) State Program Official will administer 

that grant on behalf of RUS. The RUS has determined that funds cannot be made 

available under its funding program for this fiscal year for the project although it meets all 

the requisites for assistance under Section 306(a) of the Consolidated Farm and Rural 

Development Act, as amended (7 U.S.C. 1926). In order to accomplish these purposes, 

the Regional Commission's Federal 

Cochairman and the RECD State Program Official hereby enter into this Memorandum of 

Understanding which is in accordance with 31 U.S.C. 686.

B. This agreement is intended to cover the application phase, construction phase, and

final audit.

II. General

A. Project Cost. The project costs for the purposes of this agreement shall include the

costs of construction, technical services, legal services, land acquisition, permits and

rights-of-way, interest during construction, and contingencies.

B. Grant. The Regional Commission shall make a basic

grant of $ up to but not exceeding % of the total cost of the

project. These funds will be transferred to the Treasury Account of the Rural Utilities 

Service by Standard Form 1151, ``Nonexpenditure Transfer Authorization.''
RUS Bulletin 1780-23

C. The undersigned RECD State Program Official on behalf of RUS, in concurring with

this Project Management Agreement, hereby assures the Federal Cochairman that:

1. The estimated cost of the project is reasonable and the basic grant, with the

funds to be supplied by the applicant, is, in RUS's judgment, sufficient to complete

the project.

2. The funds to be supplied by the applicant are available or RUS is reasonably

satisfied that the applicant has the capability of supplying such funds.

3. RUS is reasonably satisfied that the facility will be properly and efficiently

administered, operated, and maintained and that the applicant will provide sufficient

funds to assure the successful and continuing operation of the facility.

D. The (grantee) is subject to Executive Order 

11246 and will be required to evidence compliance by execution of the following:

1. Form FmHA 400-1, ``Equal Opportunity Agreement.''

2. Form FmHA 400-4, ``Nondiscrimination Agreement.''

E. The (grantee) shall execute 

assurances of nonrelocation.

III. Construction Management

A. The forms and format for the documents shall conform to the requirements in RUS

Instruction 1780. Generally, the following items shall be included.

1. Contract Documents

2. Specifications

3. Plans

B. RUS will approve the plans and specifications.

C. RUS will obtain a certification of adequacy from the Federal Environmental Protection

Agency.
RUS Bulletin 1780-23

Page 2 Page 3 

D. RUS will obtain a non-pollution certificate from the (state)

(agency).

E. RUS will make periodic inspections.

F. Contract change orders will not become effective until approved by RUS.

G. Final inspection will be conducted by RUS.

IV. Financial Management

A. Financial Management of the project shall be according to RUS Instruction 1780.

B. RUS will provide the Regional Commission with a copy of the 

audit report.

C. If actual costs fall below the costs on which the grant was calculated, the Federal and

non-Federal shares will be reduced proportionately.

D. RUS will conform to the financial reporting requirements for transferred funds as

required by the attached copy of ``Reporting of Funds Transfer by Participating Agencies.''

V. Compensation

Services rendered by RUS for the processing and administration of Commission grants in

cases where neither RUS loan nor grant funds are involved shall be on a reimbursable basis. 

Reimbursement will be based on five percent (5%) of the amount of the grant up to $50,000 and 

an additional one percent (1%) of any amount over the first $50,000 of the Commission grant.

The full amount of the reimbursement will be transferred to RUS at the time the grant funds are 

transferred to RUS.
RUS Bulletin 1780-23

VI. No provisions in this agreement shall abrogate the legal requirements of administrative 

responsibilities as set forth in the Consolidated Farm and Rural Development Act or Section 509 

of the Public Works and Economic Development Act of 1965, as amended.

For the Regional Commission.

(name) Federal Cochairman , 19 . 

For the Rural Utilities Service, USDA

(name) State Program Official ,19 .