Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 7135

* * * * *

4. Section 457.104 is amended by adding

a new paragraph 13. to read as follows:

13. Written Agreement.

Designated terms of this policy may be

altered by written agreement. The following

conditions will apply:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

13(e).

(b) The application for written agreement

must contain all terms of the contract

between the insurance provider and the

insured that will be in effect if the written

agreement is not approved.

(c) If approved, the written agreement must

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election.

(d) Each written agreement will only be

valid for one year. If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy.

(e) An application for written agreement

submitted after the sales closing date may be

approved if, after a physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington DC, on February 6,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–3847 Filed 2–14–97; 8:45 am]

BILLING CODE 3410–FA–P

Rural Utilities Service

7 CFR Part 1755

Telecommunications Program;

Postloan Engineering Services

Contract

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

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
7136 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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

§ 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 § 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.
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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
7138 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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:

§ 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 lll, lll,

between lll (hereinafter called the

‘‘Owner’’) and lll (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
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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 lll (Fill in

name of individual) who shall be in

responsible charge of the Project possesses

license number lll issued by the State of

lll on the lll day of lll.

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 lll

percent (lll%) 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:

ll RUS Form 217a—Project Design,

Assistance and Coordination;

ll RUS Form 217b—Central Office

Equipment Engineering Services;

ll RUS Form 217c—Transmission

Facilities Engineering Services;

ll RUS Form 217d—Building Engineering

Services;

ll RUS Form 217e—Outside Plant Staking

Services;

ll RUS Form 217f—Outside Plant Contract

Document Phase Engineering Services;

and
7140 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

1Service 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.

ll 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.

lllllllllllllllllllll

Owner

By lllllllllllllllllll

President

ATTEST: llllllllllllllll

Secretary

lllllllllllllllllllll

Engineer

By lllllllllllllllllll

President, Partner (Strike out inapplicable

Designation—If partnership, all partners shall

sign)

ATTEST: llllllllllllllll

Secretary

Table 1.—Description of Project

[Attach supplemental sheets, as required]

llEXCHANGE

MILEAGE OF OUTSIDE PLANTll

EQUIPMENT BUILDING1ll

CENTRAL OFFICE EQUIPMENT1ll

ASSOCIATED FACILITIES2ll

OTHER3ll

EXCLUDED SERVICES2ll

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 lll

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 lll

Hourly Billing Rate lll (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 lll

Hourly Billing Rate lll (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: lll

Dated: lll

Classification: lll

Invoice period ending: lll

Date lll

Service Performed 1 lll

Hourly Rate ll

Number of Hours ll

Extended Costs ll

Miles Driven ll

Cost Per Mile ll

Extended Costs ll

Other Transportation ll

Air Travel ll

Other (Explain) ll

Extended Costs ll

Lodging lll

Subsistence lll

Computer lll

Rate ll

Hours ll

Extended Costs ll

Date: ll

EQUIPMENT RENTAL:

COE Test Equipment lll

Hourly Rate ll

Number of Hours ll

Extended Costs ll

O. P. Test Equipment lll

Hourly Rate ll

Number of Hours ll

Extended Costs ll

Transmission Testing lll

Hourly Rate ll

Number of Hours ll

Extended Costs ll

OTHER EXPENSES:

Telephone Charges lll

Facsimile Charges lll

Printing lll

Construction Sheets ll

Maps ll

SUBMITTED (by Engineer): lll

Title llllllllllllllllll

Date llllllllllllllllll

APPROVED (by Owner): lll

Title llllllllllllllllll

Date llllllllllllllllll

BILLING CODE 3410–15–P
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 7141
7142 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

BILLING CODE 3410–15–C
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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 7144and Engineer, after the
7144 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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:

lll percent (lll %) of the first one

hundred thousand dollars ($100,000); plus

lll percent (lll %) of the next three

hundred thousand dollars ($300,000); plus

lll percent (lll %) 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 lll % 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 preinstallation 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
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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: lll percent (lll %)

of the first fifty thousand dollars

($50,000.00); plus lll percent (lll %)

of the next one hundred fifty thousand

dollars ($150,000.00); plus lll percent

(lll %) of the balance of the installed cost

of each such document and for each

installation contract an amount equal to

lll % 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
7146 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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: lll percent (lll%) of the first

fifty thousand dollars ($50,000.00); plus

lll percent (lll%) 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 Ownerfurnished 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-ofway 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
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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 lll

(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 lll dollars ($lll) per

mile of existing buried plant Project lines to

be modified; plus

2. The sum of lll dollars ($lll) per

mile of new buried plant Project lines; plus

3. The sum of lll dollars ($lll) per

mile of underground cable to be installed in

ducts; plus

4. The sum of lll dollars ($lll) per

mile of new aerial Project lines; plus

5. The sum of lll dollars ($lll) per

mile of existing aerial Project lines to be

modified; plus

6. The sum of lll dollars ($lll) per

mile of new joint use or joint occupancy

Project lines; plus

7. The sum of lll dollars ($lll) per

mile of existing Project lines to be removed

where no construction or modification work

is to be performed; plus

8. The sum of lll dollars ($lll) 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 lll dollars ($lll) 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;
7148 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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 pairgain 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 nonstandard 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
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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 lll dollars ($lll) or

when the outside plant is divided into

sections for construction purposes requiring

separate plans and specifications for each

section; a sum of lll dollars ($lll) for

each such section for which complete plans

and specifications are prepared; plus,

2. The sum of lll dollars ($lll) for

each approved amendment to the contract;

plus

3. The sum of lll dollars ($lll) 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 lll dollars ($lll) 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.
7150 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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. lll (lll) Resident(s);

b. lll (lll) 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:

Description of Test or Measurements

Test or Measurements Will perform or participate in

performing tests

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
Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations 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 lll

(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 lll dollars ($lll)

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 lll dollars ($lll) for

each service entrance to be installed,

replaced or modified during the construction

of the Project; plus

2. The sum of lll dollars ($lll); or

when the Project is divided into sections for

which separate outside plant plans and

specifications are prepared, the sum of

lll dollars ($lll) for each section

requiring final documents; plus the sum of

lll dollars ($lll) 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
7152 Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Rules and Regulations

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 96–CE–48–AD; Amendment 39–

9935; AD 97–04–11]

RIN 2120–AA64

Airworthiness Directives; Air Tractor,

Inc. Models AT–802 and AT–802A

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that

applies to certain Air Tractor, Inc. (Air

Tractor) Models AT–802 and AT–802A

airplanes. This action requires revising

the Airworthiness Limitations section of

the applicable maintenance manual to

change the life limit of the tail landing

gear spring. This action results from

analysis of the life limits of both the tail

landing gear and main landing gear after

a fatigue failure of the main landing gear

on one of the affected airplanes. This

analysis revealed that the life limit of

the tail landing gear spring should be

3,000 hours time-in-service (TIS)

instead of 3,500 hours TIS to be

consistent with the main landing gear

spring. The actions specified by this AD

are intended to prevent fatigue failure of

a tail landing gear spring before the life

limit of the part is achieved, which

could result in loss of control of the

airplane.

EFFECTIVE DATE: April 4, 1997.

ADDRESSES: Service information that

applies to this AD may be obtained from

Air Tractor Inc., P. O. Box 485, Olney,

Texas 76374; telephone (817) 564–5616;

facsimile (817) 564–2348. This

information may also be examined at

the Federal Aviation Administration

(FAA), Central Region, Office of the

Assistant Chief Counsel, Attention:

Rules Docket 96–CE–48–AD, Room

1558, 601 E. 12th Street, Kansas City,

Missouri 64106; or at the Office of the

Federal Register, 800 North Capitol

Street, NW., Suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Bob

May, Aerospace Engineer, FAA,

Airplane Certification Office, 2601

Meacham Boulevard, Fort Worth, Texas

76193–0150; telephone (817) 222–5155;

facsimile (817) 222–5960.

SUPPLEMENTARY INFORMATION:

Events Leading to the Issuance of This

AD

A proposal to amend part 39 of the

Federal Aviation Regulations (14 CFR

part 39) to include an AD that would

apply to Air Tractor Models AT–802

and AT–802A airplanes was published

in the Federal Register as a notice of

proposed rulemaking (NPRM) on

October 18, 1996 (61 FR 54370). The

action proposed to require revising the

Airworthiness Limitations section of the

applicable maintenance manual to

change the life limit of the tail landing

gear spring. The proposed action as

specified in the NPRM would be

accomplished by incorporating the

revision (dated May 24, 1996) to Section

6, Airworthiness Limitations, of the Air

Tractor AT 802/802A Maintenance

Manual.

The NPRM resulted from analysis of

the life limits of both the tail landing

gear and main landing gear after a

fatigue failure of the main landing gear

on one of the affected airplanes. This

analysis revealed that the life limit of

the tail landing gear spring should be

3,000 hours time-in-service (TIS)

instead of 3,500 hours TIS to be

consistent with the main landing gear

spring.

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were received on the

proposed rule or the FAA’s

determination of the cost to the public.

The FAA’s Determination

After careful review of all available

information related to the subject

presented above, the FAA has

determined that air safety and the

public interest require the adoption of

the rule as proposed except for minor

editorial corrections. The FAA has

determined that these minor corrections

will not change the meaning of the AD

and will not add any additional burden

upon the public than was already

proposed.

Cost Impact

The FAA estimates that 37 airplanes

in the U.S. registry will be affected by

this AD. An owner/operator of one of

the affected airplanes holding at least a

private pilot certificate is allowed to

incorporate the manual revision as

authorized by § 43.7 of the Federal

Aviation Regulations (14 CFR 43.7).

However, the change in the life limit

would require owners/operators of the

affected airplanes to have the tail

landing gear spring replaced every 3,000

hours TIS instead of every 3,500 hours

TIS. The owners/operators of the

affected airplanes will be required to

have this part replaced 500 hours TIS

sooner than already required. The FAA

has no way of determining the total

hours TIS each owner/operator would

accumulate over the life of the affected

airplanes and, therefore, cannot

calculate the number of additional tail

landing gear springs each owner/

operator would need to have replaced.

Regulatory Impact

The regulations adopted herein will

not have substantial direct effects on the

States, on the relationship between the

national government and the States, or

on the distribution of power and

responsibilities among the various

levels of government. Therefore, in

accordance with Executive Order 12612,

it is determined that this final rule does

not have sufficient federalism

implications to warrant the preparation

of a Federalism Assessment.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not

a‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3)

will not have a significant economic

impact, positive or negative, on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A copy of the final

evaluation prepared for this action is

contained in the Rules Docket. A copy

of it may be obtained by contacting the

Rules Docket at the location provided

under the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (14 CFR

part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 USC 106(g), 40113, 44701.