UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Electrification Administration

October 8, 1981* 

Supersedes 4/1/71

SUBJECT:

REA BULLETIN 345-3

RD-GD-1981-07

Acceptance of Standards, Specifications, Equipment

Contract Forms, Manual Sections, Drawings, 

Materials and Equipment for the Telephone Program 

I. Purpose: This bulletin sets forth policy and procedure for the 

determination of standards, specifications, equipment contract 

forms, manual sections, drawings, materials and equipment acceptable 

for Rural Electrification Administration financing for the telephone 

program.

II.

General: In order to assure that telephone systems financed with

loan funds are adequate to serve the purposes for which they are to be 

constructed and that loan funds are adequately secured, REA deter-mines

the standards, specifications, equipment contract forms, manual

sections, drawings, equipment and materials that will be acceptable for

REA financing.

III. Responsibility for Acceptance of Standards, Specifications, Equipment

Contract Forms, Manual Sections, Drawings, Materials and Equipment: The

determination of acceptability for those items which are to be used in

communication systems, (excluding office equipment, tools and work

equipment, and subscriber-owned terminal facilities) is made by REA

through its Technical Standards Committees (Telephone).

A. The Technical Standards Committee are as follows:

1. Technical Standards Committee "A" (Telephone)

This Committee reviews all proposals relating to acceptance of

material, equipment, standards, contract forms, and specifications. By a majority vote, Technical Standards Committee "A"

(Telephone) may accept, reject, or table a proposal. Accep-tance

constitutes REA acceptance of the proposal. Tabling will

normally occur when further information is required to permit the 

Committee to reach a decision. Tabling invites resubmission at a 

future meeting at which time the proposal must be accepted or 

rejected. A sponsor may appeal to Committee "B" from a decision 

by Committee "A" rejecting a proposal.

2. Technical Standards Committee "B" (Telephone)

This Committee reviews and makes a decision on all cases referred 

to it by Committee "A" or by appeal from a sponsor from an 

adverse decision by Committee "A". A majority vote

IV. This bulletin is being revised to clarify operating procedures and to

provide additional safeguards in actions removing a supplier from the

List of Materials (Bulletin 344-2).

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.
Bulletin 345-3 

Page 2

serves to accept, reject, or table a proposal. Tabling invites 

resubmission at a future meeting at which time the proposal 

must be accepted or rejected. A sponsor may appeal to the 

Administrator from an adverse decision by Committee "B".

B. Publication of Items Accepted for Listing

1. Items accepted without condition will be considered to be

accepted on a general basis; whereas items accepted subject

to certain conditions, such as limited use to gain service

experience or limited use appropriate to certain areas,

conditions or applications, will be considered to be accepted

on a conditional basis and the conditions will be cited as a

part of the listing.

2. Those items accepted by the Technical Standards Committees

(Telephone), with the exception of technically accepted

foreign items (i.e., those not meeting the requirements of

Bulletin 344-3 as domestic products), are listed on the "List

of Materials Acceptable for Use on Telephone Systems of REA

Borrowers." Foreign items which have been accepted by Technical

Standards Committees are accepted on a technical basis only,

(Technical Acceptance) and will not be included in the List of

Materials.

3. No restrictions as to quantity or application are placed on

items which have received general acceptance.

4. The listings apply only to new items of materials and equipment

and not to used items.

C. Items for which Categorical Acceptability has not been Established

by the Technical Standards Committees. The responsibility for

determining acceptability and granting permission to use items in

categories which are not listed is assigned to the Area Directors

(Telephone). This permission shall only be granted on a case-bycase basis for each request to use materials or equipment falling

into this category. The borrower desiring to use such items should

contact the REA Area with its request.

D. Items for Special Circumstances. The responsibility for determining

the acceptability of items for use in special circumstances is

assigned to the Area Directors (Telephone) with concurrence of the

Director of the Telecommunications Engineering and Standards

Division. This permission shall be granted only on a case-by-case

basis. A special circumstance is defined as a situation wherein the

supply of standard materials and equipment in the industry is not

reasonably available for, or the standard designs are not applicable

to, the borrower's specific problem under consideration.

E. Items for Field Trial Use. Arrangements for field trial use of newly

developed items requiring trial installation will be made in accordance with Bulletin 345-45.
Bulletin 345-3

 Page 3

IV. Procedure for Submission or Review of a Proposal:

A. Submission of Proposal for Materials or Equipment. REA

consideration of items of materials or equipment for acceptance 

may be obtained by manufacturers or producers through the submission of a written request including the following information:

1. A letter of request, in original and five copies, addressed

to the Chairman, Technical Standards Committee "A" (Telephone) 

(In the event that an item of material or equipment is being 

submitted for consideration by both Electric and Telephone 

Committees, a separate letter of request should be addressed 

to each Committee Chairman.) The letter should include the 

catalog number, as well as a description of the item of 

material or equipment.

2. Six copies of abbreviated specifications of manufacture, drawings 

and test data as applicable. One detailed and complete copy of 

specifications of manufacture, drawings, and test data as 

applicable.

3. Six copies of performance history, if an established item in 

the industry.

4. One or more samples of the item of material or, equipment, if 

requested by REA.

B. Submission of Proposal for Standards, Specifications, Equipment 

Contract Forms, Manual Sections, or Drawings. Consideration of 

standards, specifications, contract forms, manual sections or 

drawings for approval or withdrawal may be obtained through the 

submission of a written request by a member of the REA staff. 

Such action may also be initiated by the Technical Standards 

Committees.

C. Action on Proposal. Sponsors will be informed in writing by REA 

of the action taken on their proposals.

D. Appeal from an Adverse Decision. A sponsor may request a review of 

an adverse decision by Technical Standards Committee "A" by submittmg a letter requesting such review to the Chairman, Technical 

Standards Committee "B" (Telephone). In the event of an adverse 

decision by Committee "B", the sponsor may request a review by the 

Office of the Administrator by submitting a letter requesting such 

review.

V. Regulations for the Establishment of Standards of Materials and Equipment:

A. Where practical, REA is guided by the standards, rules, and regulations of such engineering and standardizing groups as the American 

National Standards Institute, the various national engineering 

societies, the National Electrical Safety Code, and the National 

Electrical Code as outlined in OMB Circular No. A-119, "Federal 

Participation in the Development and Use of Voluntary Standards."
Bulletin 345-3

 Page 4

B. The Technical Standards Committees normally accept for listing 

only one item of a particular type of material or equipment for 

each manufacturer. If a manufacturer submits an item of material 

or equipment to perform the identical function of an accepted 

item, the Committees may elect to list only one and request that 

the manufacturer identify the unit to be listed.

C. The manufacturer will be responsible for submitting to the 

Technical Standards Committees any design changes affecting the

quality, strength, electrical characteristics, or the performance 

or interface criteria for an item which has been previously considered and accepted by the Committees. Failure to comply is 

justification for delisting of the item in accordance with 

Section VI.

D. No member of the REA staff is permitted to authorize deviation 

from the standard specifications or their effective dates, or to 

establish or change technical standards, or to authorize the use 

of items that have not received acceptance by the Technical

Standards Committees, except as provided for under paragraphs III.C, 

III.D, and III.E above, or by authorization and instructions from 

the Administrator.

VI. Misrepresented or Unsatisfactory Equipment:

A. An item of equipment or material previously accepted by the 

Technical Standards Committees may be removed from the "List of 

Materials Acceptable for Use on Telephone Systems of REA Borrowers" 

by a majority vote of Technical Standards Committee "A" (Telephone) 

upon a finding that the item is unsatisfactory or has been misrepresented to a borrower or REA.

B. Removal Procedures Before Committee "A"

An item of material or equipment may be removed from the List of 

Materials in accordance with the following procedures:

1. The sponsor has been notified in writing of the proposed action. 

All information relating to the proposed action which is available to Committee "A" shall also be available to the sponsor 

unless the sponsor is informed in writing of the reason or 

reasons information is withheld.

2. Within 10 days of such notification, the sponsor may submit to 

Committee "A" a letter expressing its intent to submit written 

information relevant to Committee "A"'s determination. The 

sponsor shall submit such information within 20 days from the 

submission of its letter to Committee "A". Committee "A" may 

make a decision following expiration of the time periods provided in this paragraph.

3. Committee "A" shall consider all relevant information presented 

to it in determining whether an item should be removed from the 

List. Formal rules of evidence and procedure shall not apply 

to proceedings before Committee "A".
Bulletin 345-3

 Page 5

4. At the request of the sponsor, REA may decide to afford 

additional opportunity for presentation or consideration

of relevant information; including, without limitation, a 

meeting between REA and the sponsor in such forum as REA 

may determine. In making this decision, REA shall consider, 

among other things, the best interests of REA, its borrowers, 

and the sponsor and the best manner to develop sufficient 

relevant information concerning the proposed action.

5. Committee "A", by majority vote, may order the immediate 

removal of an item of material or equipment from the List,

may establish conditions for the continued listing of such 

item, may recommend a basis for settlement which adequately 

protects the interests of the Government, and may, at its 

option, postpone the effectiveness of its decision for a 

time sufficient to allow the sponsor to appeal to Committee 

"B". By a majority vote Committee "A" may also "table" a 

proposal pending further investigation of questions raised

by the Committee. Written notice of Committee "A"'s decision, 

stating the basis for the decision, shall be provided to the 

sponsor.

C. Appeals to Technical Standards Committee "B" (Telephone}

A sponsor may appeal Committee "A"'s decision to Committee "B" in 

accordance with the following procedures:

1. Within 10 days of notification of Committee "A"'s decision a 

sponsor may submit to Committee "B" a written request for a 

review of Committee "A"'s decision, specifying the reasons for 

the request.

2. Committee "B"'s determination in response to such request shall 

be based on the record developed before Committee "A" and such 

additional information as Committee "B" may request. Formal 

rules of procedure and evidence shall not apply to proceedings 

before Committee "B".

3. Committee "B", by majority vote, may uphold the action of. 

Committee "A", may order the immediate removal of an item of 

material or equipment from the List, may establish conditions 

for the continued listing of such item, may recommend a basis 

for settlement which adequately protects the interests of the 

Government, and may, at its option, postpone the effectiveness 

of its decision for a time sufficient to allow the sponsor to 

appeal to the Administrator. By a majority vote Committee "B" 

may also "table" a proposal pending further investigation of 

questions raised by the Committee. Written notice of 

Committee "B"'s decision, stating the basis for the decision, 

shall be provided to the sponsor.

D. Appeals to the Administrator. A sponsor may appeal Committee "B"'s 

decision to the Administrator of the REA in accordance with the 

following procedures:
Bulletin 345-3

 Page 6

1. Within 10 days of the receipt of Committee "B"'s decision a 

sponsor may submit to the Administrator a written request 

for a review of Committee "B"'s decision, specifying the 

reasons for such request.

2. The Administrator may decline to review the decision of 

Committee "B" in which case the decision of Committee "B" 

shall stand. If a review is granted, the determination by 

the Administrator, or the Administrator's designee, shall 

be based on the record developed before Committees "A" and 

"B" and such additional information as the Administrator may 

request. Formal rules of procedure and evidence shall not 

apply to the actions of the Administrator.

3. The Administrator may uphold the decision of Committee "B", 

may order the immediate removal of an item of material or 

equipment from the List, may establish conditions for the 

continued listing of such item, or may recommend a basis for 

settlement which adequately protects the interests of the 

Government. Written notice of the Administrator's determination, stating the basis for the decision, shall be 

provided to the sponsor.

E. Temporary Removal

1. Committee "A" may, by a majority vote, temporarily remove an 

item from the List of Materials effective immediately, upon a 

determination that there is adequate information that:

a. Continuation of the item on the List might immediately 

impair Act purposes, endanger health and safety, or 

undermine loan security, and

b. An item is unsatisfactory or has been misrepresented to 

the borrowers or REA.

2. The sponsor shall be notified promptly that its product has 

been temporarily removed from the List of Materials, and that 

procedures as established in Sections IV.A through D will be 

undertaken promptly.

3. Such suspension shall remain in effect pending the completion

of administrative proceedings.

Harold V. Hunter

Administrator

Index:

COMMITTEES:

Technical Standards 

MATERIALS AND EQUIPMENT:

Acceptance

SPECIFICATIONS AND STANDARDS:

Acceptance