This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

38503

Vol. 63, No. 137

Friday, July 17, 1998

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1753

RIN 0572–AB34

Telecommunications System

Construction Policies and Procedures

AGENCY: Rural Utilities Service, USDA.

ACTION: Proposed rule.

SUMMARY: The Rural Utilities Service

(RUS) proposes to revise its regulations

on telecommunications system

construction policies and procedures.

This revision includes empowering the

telecommunications borrowers by

reducing oversight by RUS with respect

to preparation of plans and

specifications, bid approvals, and final

document approvals. In addition to

reducing the requirements for facilities

construction, RUS will also make

technical corrections and clarifications,

and minor technical changes.

DATES: Public comments must be

received by RUS or bear a postmark or

equivalent, no later than September 15,

1998.

ADDRESSES: Written comments should

be sent to Orren E. Cameron, III,

Director, Telecommunications

Standards Division, Rural Utilities

Service, U.S. Department of Agriculture,

1400 Independence Ave., SW., Room

2835–S, STOP 1598, Washington, DC

20250–1598. Telephone: (202) 720–

8663. RUS requires a signed original

and three copies of all comments (7 CFR

1700.4). Comments will be available for

public inspection during regular

business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT:

Orren E. Cameron III, Director,

Telecommunications Standards

Division, Rural Utilities Service, U.S.

Department of Agriculture, 1400

Independence Avenue, SW, Room

2835–S, Stop 1598, Washington, DC

20250–1598. Telephone (202) 720–8663.

E-Mail: ecameron@rus.usda.gov.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule has been

determined to be not significant for

purposes of Executive Order 12866 and

therefore has not been reviewed by

OMB.

Executive Order 12778

This proposed rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. RUS has determined

that this proposed rule meets the

applicable standards provided in Sec. 3.

of the Executive Order.

Regulatory Flexibility Act Certification

RUS had determined that this

proposed rule will not have a significant

economic impact on a substantial

number of small entities, as defined in

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.). The RUS

telecommunications program provides

loans to borrowers at interest rates and

terms that are more favorable than those

generally available from the private

sector. RUS borrowers, as a result of

obtaining federal financing, receive

economic benefits which exceed any

direct economic costs associated with

complying with RUS regulations and

requirements. Moreover, this action

liberalizes certain contract requirements

by changing contract limits thereby

reducing RUS oversight requirements

and further offsetting economic costs.

Information Collection and

Recordkeeping Requirements

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C.

Chapter 35, as amended) RUS is

requesting comments on the information

collection incorporated in this proposed

rule.

Comments on this information

collection must be received by

September 15, 1998.

Comments are invited in: (a) whether

the proposed collection of information

is necessary for the proper performance

of the functions of the agency, including

whether the information will have

practical utility; (b) the accuracy of the

agency’s estimate of the burden of the

proposed collection of information; (c)

ways to enhance the quality, utility and

clarity of the information to be

collected; and (d) ways to minimize the

burden of the collection of information

on respondents, including through the

use of automated collection techniques

of other forms of information

technology.

For further information contact Orren

E. Cameron III, Director,

Telecommunications Standards

Division, Rural Utilities Service, U.S.

Department of Agriculture, 1400

Independence Ave., SW., Stop 1598,

Washington, DC 20250–1598.

Telephone: (202) 720–8663. FAX: (202)

720–4099. E-Mail:

ecameron@rus.usda.gov.

Title: Telecommunications Standards/

Specifications Acceptance,

Telecommunications Field Trials, and

Telecommunications Contract Forms.

OMB Number: 0572–0059.

Type of Request: Amendment.

Abstract: The Rural Utilities Service

(RUS) proposes to revise its regulations

on telecommunications system

construction policies and procedures.

This revision includes empowering the

telecommunications borrowers by

reducing oversight by RUS with respect

to preparation of plans and

specifications, bid approvals, and final

document approvals and transferring

those approval authorities to borrowers

and their consulting engineers. In

addition, this revision updates the

regulation to include headquarters

building financing which was

reauthorized under certain loan

programs in the Rural Electrification

Loan Restructuring Act of 1993, and

clarifies the manner in which RUS

waives postloan engineering and

construction requirements.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 1 hour per

response.

Respondents: Business or other for

profit and non-profit institutions.

Estimated Number of Respondents:

212.

Estimated Number of Responses per

Respondents: 25.

Estimated Total Annual Burden on

Respondents: 3,356 hours.

Copies of this information collection

can be obtained from Dawn Wolfgang,

Program Development and Regulatory

Analysis, Rural Utilities Service.

Telephone: (202) 720–0812.

Send comments regarding this

information collection requirement to F.

Lamont Heppe, Jr., Director, Program

Development and Regulatory Analysis,

USDA, Rural Utilities Service, 1400

Independence Ave., SW., Room 4034,
38504 Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules

Stop 1522, Washington, DC 20250–

1522.

Comments are best assured of having

full effect if OMB receives them within

30 days of publication in the Federal

Register. All comments will become a

matter of public record.

National Environmental Policy Act

Certification

RUS has determined that this

proposed rule will not significantly

affect the quality of the human

environment as defined by the National

Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.). Therefore, this

action does not require an

environmental impact statement or

assessment.

Catalog of Federal Domestic Assistance

The program described by this

proposed rule is listed in the Catalog of

Federal Domestic Assistance Programs

under No. 10.851, Rural Telephone

Loans and Loan Guarantees, and No.

10.852, Rural Telephone Bank Loans.

This catalog is available on a

subscription basis from the

Superintendent of Documents, United

States Government Printing Office,

Washington, DC 20402–9325.

Executive Order 12372

This proposed rule is excluded from

the scope of Executive Order 12372,

Intergovernmental Consultation. A

Notice of Proposed Rule entitled

Department Programs and Activities

Excluded from Executive Order 12372

(50 FR 47034) exempts RUS and RTB

loans and loan guarantees to

governmental and nongovernmental

entities from coverage under this Order.

Unfunded Mandates

This rule contains no Federal

Mandates (under the regulatory

provision of Title II of the Unfunded

Mandate Reform Act) for State, local,

and tribal governments of the private

sector. Thus today’s rule is not subject

to the requirements of section 202 and

205 of the Unfunded Mandate Reform

Act.

Background

RUS has undertaken a strategic review

of all policies and procedures covering

its preloan and postloan requirements of

borrowers. This review was part of RUS

efforts in governmental streamlining

and empowering the recipients of the

loans provided under the Rural

Electrification Act (RE Act) of 1936,

(U.S.C. 901 et seq.), as amended. As a

result of this review, several procedures

and policies were deemed no longer

necessary. Other policies and

procedures have been streamlined and

RUS proposes to place more

responsibility with the borrowers to

insure a more cost effective review

process while maintaining the required

loan security. In view of this increased

reliance upon borrowers and their

consultants, certain provisions have

been added to reduce the government’s

vulnerability to conflicts of interest.

Provisions have also been added for

construction of headquarters facilities

pursuant to the Rural Electrification

Loan Restructuring Act of 1993 (107

Stat. 1356).

RUS further proposes to make

technical corrections to final regulations

which were reorganized and

redesignated on September 27, 1990, at

55 FR 39393. In particular, certain

regulations contained cross references

which inadvertently had not been

updated. This action is simply a

correction to these regulations with no

change to substance. Changes to

regulatory text are merely to update

cross references. As currently

published, the final regulations may

prove to be misleading.

List of Subjects in 7 CFR Part 1753

Communications equipment, Loan

programs—communications, Reporting

and recordkeeping requirements, Rural

areas, Telecommunication, Telephone.

For reasons set forth in the preamble,

7 CFR chapter XVII is amended as

follows:

PART 1753—TELECOMMUNICATION

SYSTEM CONSTRUCTION POLICIES

AND PROCEDURES

1. The authority citation for part 1753

continues to read as follows:

Authority: 7 U.S.C. 901 et seq.; 7 U.S.C.

1921 et seq.; Pub. L. 103–354, 108 Stat. 3178

(7 U.S.C. 6941 et seq.).

2. In § 1753.1, paragraph (a) is revised

to read as follows:

§ 1753.1 General

(a) The standard RUS

Telecommunications Loan Documents

contain provisions regarding

procurement of materials and

equipment and construction of

telecommunications facilities by

telecommunications borrowers. This

part 1753 implements certain of the

provisions by setting forth requirements

and procedures. Borrowers shall follow

these requirements and procedures

whenever using loan funds to purchase

materials and equipment or perform

construction, unless they have received

the Administrator’s written approval to

do otherwise.

* * * * *

3. In § 1753.2, a new definition of

‘‘loan purposes’’ is added, and the

definitions of ‘‘major construction’’,

‘‘minor construction’’ and

‘‘modernization plan’’ are revised, to

read as follows:

§ 1753.2 Definitions.

* * * * *

Loan purposes—The high level

objectives of the loan which is funding

the construction. These purposes are

first stated in the characteristics letter

described in 7 CFR 1737.80, which is

sent to the applicant to offer a loan after

RUS has completed its preloan studies.

These purposes are restated in the loan

contract.

Major construction—A

telecommunications plant project

estimated to cost more than $250,000,

including all labor and materials.

Minor construction—A

telecommunications plant project

estimated to cost $250,000 or less,

including all labor and materials.

* * * * *

Modernization plan—A State plan,

which has been approved by RUS, for

improving the telecommunications

network of those Telecommunications

Providers covered by the plan. A

Modernization Plan must conform to the

provisions of 7 CFR part 1751, subpart

B.

* * * * *

4. The first word of § 1753.3(a) is

revised from ‘‘prior’’ to read ‘‘advance’’.

5. In § 1753.5, paragraph (b)(1) is

revised, paragraph (b)(2) is redesignated

(b)(3), and a new paragraph (b)(2) is

added, to read as follows:

§ 1753.5 Methods of major construction.

* * * * *

(b) Contract construction. (1) RUS

approval of the borrower’s award of the

contract is not required if the contractor

is selected through sealed competitive

bidding, the bid amount is $500,000 or

less and the contractor is not a company

or organization affiliated with the

borrower. This does not relieve the

borrower of the requirements for

bidding or bid evaluation set forth in

this part.

(2) RUS approval of the borrower’s

award of the contract is required for all

other competitively-bid and for

negotiated major construction contracts.

* * * * *

6. In § 1753.6, paragraph (e) is added

to read as follows:

§1753.6 Standards, specifications, and

general requirements.

* * * * *

(e) All software, software systems, and

firmware financed with loan funds must
Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules 38505

be year 2000 compliant, as defined in 7

CFR 1732.22(e).

7. In § 1753.7, paragraphs (c) and (e)

are revised to read as follows:

§ 1753.7 Plans and specifications (P&S).

* * * * *

(c) The appropriate standards and

specifications listed in 7 CFR part 1755

shall be included in the P&S. When RUS

has not prepared standards and

specifications, the borrower shall use

general engineering requirements and

specifications prepared by the

borrower’s engineer. The specifications

prepared by the borrower’s engineer and

based on general engineering

requirements shall be subject to review

and approval by RUS for all major

construction, including major projects

which would be exempted from RUS

approval under § 1753.7(e).

* * * * *

(e) RUS approval of the P&S is

required for construction that is

estimated to cost over $500,000 or 25%

of the total loan, whichever is less, and

for all building construction. P&S for all

other construction are exempt from RUS

review and approval except that, at the

time of contract approval, RUS will

examine the plans and specifications for

conformity with the loan purposes and

to determine that they comply with

other requirements of this part.

* * * * *

8. In § 1753.8, paragraphs (a)(1),

(a)(11)(i), (a)(11)(ii) introductory text,

(a)(11)(iii) introductory text, and

(a)(12)(i) are revised, and a new

paragraph (a)(11)(iv) is added, to read as

follows:

§ 1753.8 Contract construction

procedures.

(a) Sealed, competitive bidding—(1)

Bid opening date: The borrower is

responsible for scheduling the bid

opening date. If RUS review of the P&S

is required by § 1753.7, the borrower

shall wait until approval has been

received before setting the date. In

setting the date, sufficient time should

be allowed for the bidders to examine

the project site and prepare their bids.

The borrower shall notify the GFR of the

bid date and invite the GFR to attend.

* * * * *

(11) Award of contract: (i) The

borrower shall obtain from the engineer

the determination of the lowest

responsive bid, a tabulation of all bids

and the engineer’s recommendation for

award of the contract. Contract award is

subject to RUS approval if either the

cost of the project is over $500,000 or

the contract is with an organization

affiliated with the borrower. Contract

award of all other projects is not subject

to RUS approval.

(ii) If an award is made, the borrower

shall award the contract to the lowest

responsive bidder. The borrower may

award the contract immediately upon

determination of the lowest responsive

bidder if the following conditions are

met:

* * * * *

(iii) If RUS approval of the award of

contract is required under this

paragraph (a)(11), the borrower shall

send to RUS for consideration of

approval of the award:

* * * * *

(iv) If RUS approval of the award of

contract is not required under this

paragraph (a)(11), the borrower shall

keep a file available for inspection by

RUS. The file shall be kept for at least

two years and shall include: (A) One copy of all received bids.

(B) The engineer’s recommendation

and tabulation of all bids including

‘‘Buy American’’ evaluations, if any,

and all other evaluations required by

law.

(C) Evidence of acceptance of the low

bid by the borrower, such as a copy of

the board resolution certified by the

Secretary of the board. (12) Execution of contract: (i) The

borrower shall submit to RUS three

original counterparts of the contract

executed by the contractor and

borrower.

* * * * *

9. In § 1753.11, paragraphs (a)(3), (b)

and (d) are revised to read as follows:

§ 1753.11 Contract amendments.

(a) * * *

(3) The amendment causes an

unbonded contract to require a

contractor’s performance bond. This

would occur when a contract that is

executed in an amount below that

requiring a performance bond in 7 CFR

part 1788, subpart C, is amended to an

amount above that amount.

(b) Advance RUS approval to execute

other contract amendments is not

required. These amendments may be

submitted to RUS at any time prior to

closeout. If a borrower wishes to receive

an advance of funds based on an

amended contract amount (i.e.,

amendments that increase a contract by

less than 20%), the borrower may

initiate an increase in the amount

approved for advance by submitting

three copies of the amendment to RUS

for approval.

* * * * *

(d) Upon execution of any

amendment that causes the amended

contract amount to exceed the original

contract amount by 20% or more, three

copies of the amendment shall be

submitted to RUS for approval.

* * * * *

10. In § 1753.15, paragraphs (a)(1),

(a)(4)(i) and (a)(4)(ii) are revised, and a

new paragraph (a)(2) is added,

paragraphs (a)(2) through (a)(5) are

redesignated (a)(3) through (a)(6)

respectively, and a new paragraph (a)(2)

is added, to read as follows:

§ 1753.15 General.

(a)(1) The standard RUS Loan

Documents contain provisions regarding

engineering and architectural services

performed by or for RUS telephone

borrowers. This part implements certain

of the provisions by setting forth the

requirements and procedures to be

followed by borrowers in selecting

architects and engineers and obtaining

architectural and engineering services

by contract or by force account.

(2) Borrowers shall obtain

architectural and engineering services

only from persons or firms which are

not affiliated with, and have not

represented, a contractor, vendor or

manufacturer who may provide labor,

materials, or equipment to the borrower

under any current loan.

* * * * *

(5)(i) For major construction, services

provided by architects and engineers

not on the borrower’s staff must be

provided under Form 220, Architectural

Service Contract, or Form 217, Postloan

Engineering Service Contract—

Telecommunications. These contracts

require RUS approval.

(ii) For minor construction, borrowers

may use the contracts in paragraph

(a)(5)(i) of this section for postloan

architectural or engineering services or

any other form of contract, such as Form

245, Engineering Service Contract,

Special Services-Telephone. RUS

approval of contracts for postloan

architectural or engineering services

associated with minor construction,

except for buildings covered in

paragraph (a)(6) of this section, is not

required.

* * * * *

11. In § 1753.16, paragraphs (b)(1)

through (b)(4) are revised, to read as

follows:

§ 1753.16 Architectural services.

(a) * * *

(b)(1) The borrower shall use Form

220 when contracting for architectural

services for major construction, except

that the borrower may use either Form

220 or Form 217 if the building is an

unattended central office building.

(2) The borrower and the architect

negotiate the fees for services under the

Form 220 contract.
38506 Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules

(3) Reasonable modifications or

additions to the terms and provisions in

Form 220 may be made, subject to RUS

approval, to obtain the specific services

needed for a building.

(4)(i) Three copies of Form 220,

executed by the borrower and the

architect, shall be sent to the GFR to be

forwarded to RUS for approval. RUS

will review the contract terms and

conditions. RUS will not approve the

contract if, in RUS’s judgement:

(A) Unacceptable modifications have

been made to the contract form.

(B) The contract will not accomplish

loan purposes.

(C) The architectural service fees are

unreasonable.

(D) The contract presents

unacceptable loan security risk to RUS.

(ii) If RUS approves the contract, RUS

will send one copy to the architect and

one copy to the borrower.

* * * * *

12. In § 1753.17(b)(1)(ii)(D), remove

‘‘(See 7 CFR part 1758)’’. Paragraph

(b)(1)(ii)(E), is added, and paragraphs

(c)(1)(i)(C) and (c)(2)(i)(A) are revised, to

read as follows:

§ 1753.17 Engineering services.

* * * * *

(b) * * *

(1) * * *

(ii) * * *

(E) The consulting engineering firm is

affiliated with or has represented a

contractor, vendor, or manufacturer who

may provide labor, materials, or

equipment to the borrower under any

current loan.

* * * * *

(c) * * *

(1) * * *

(i) * * *

(C) The names, qualifications, and

responsibilities of other principal

employees who will be associated with

providing the engineering services.

* * * * *

(2) * * *

(i) * * *

(A) A copy of the employee’s

qualifications and experience record,

unless previously submitted. RUS

requires a minimum of four years of

construction and inspection experience.

The employee cannot be engaged in the

actual construction.

* * * * *

13. A new § 1753.18 is added to read

as follows:

§ 1753.18 Engineer/Architect contract

closeout certifications.

A certification of completion and

inspection of construction, required

elsewhere in this part, signed by the

borrower and countersigned in

accordance with accepted professional

engineering and architectural practice,

by the engineer or architect, shall be

prepared as evidence of completion of a

major construction project. This

certification shall make reference to the

contract number and contract amount,

and shall include the following:

(a) A statement that the construction

is complete and was done in accordance

with the RUS approved system design

or layout or subsequent RUS approved

changes.

(b) A statement that the construction

was for loan purposes.

(c) A statement that construction used

RUS-accepted materials and was in

accordance with specifications

published by RUS covering the

construction which were in effect when

the contract was executed, or in the

absence of such specifications, that it

meets other applicable specifications

and standards (specify), and that it

meets all applicable national and local

code requirements as to strength and

safety.

(d) A statement that the construction

complies with the ‘‘Buy American’’

provision (7 U.S.C. 903 note) of the

Rural Electrification Act of 1936, as

amended (7 U.S.C. 901 et seq).

(e) A statement that all necessary

approvals have been obtained from

regulatory bodies and other entities with

jurisdiction over the project.

(f) A statement that all closeout

documents required in this part have

been examined and found complete

such that the Contractor has fulfilled all

obligations under the contract except for

warranty coverage.

(g) A statement that the engineer or

architect is not affiliated with and does

not represent the contractor, vendor, or

manufacturer who is a participant in the

contract.

14. In § 1753.25, paragraphs (a), (c)

and (d) are revised as follows:

§ 1753.25 General

(a) This subpart implements and

explains the provisions of the Loan

Documents setting forth the

requirements and the procedures to be

followed by borrowers in constructing

headquarters, commercial office, central

office, warehouse, and garage buildings

with loan funds.

* * * * *

(c) All plans and specifications for

buildings to be constructed with loan

funds are subject to the approval of

RUS. In addition, preliminary plans and

specifications for headquarters and

commercial office buildings to be

constructed with loan funds are subject

to RUS approval.

(d) RUS Form 257, Contract to

Construct Buildings, shall be used for

the construction of all headquarters,

commercial office, central office,

warehouse, and garage buildings with

loan funds. Refer to § 1753.26 for further

instructions.

* * * * *

15. In § 1753.26, paragraphs (a)

through (d) are redesignated (b) through

(e) respectively, redesignated paragraph

(b)(1 is revised, and a new paragraph (a)

is added, to read as follows:

§ 1753.26 Plans and specifications (P&S).

(a) For headquarters and commercial

office buildings only, the borrower shall

prepare preliminary P&S showing the

floor plan and general architectural

details of the building to be constructed

using loan funds. In particular, the

preliminary P&S shall address the

requirements of § 1753.25(f) and the

Uniform Relocation Assistance and Real

Property Acquisition Policies Act of

1970 (42 U.S.C. 4601 et seq.). These P&S

shall be submitted to the GFR and are

subject to RUS approval.

(b)* * *

(1) RUS Contract Form 257, Contract

to Construct Buildings, completed to the

extent explained in paragraph (c) of this

section.

* * * * *

16. In § 1753.30, paragraphs (b), (c)(2),

(c)(3) and (d) are revised to read as

follows:

§ 1753.30 Closeout procedures.

* * * * *

(b) RUS Form 257 Contract. (1)

Whenever changes were made in the

plans and specifications which did not

require immediate submission to RUS of

an amendment under § 1753.11, a final

contract amendment showing the

changes shall be prepared.

(2) Upon completion of the project,

the borrower shall obtain certifications

from the licensed architect or engineer

that the project and all required

documentation are satisfactory and

complete. The requirements for this

certification are set forth in § 1753.18.

(3) The engineer’s or architect’s

contract closeout certification and the

final amendment shall be submitted to

RUS as a basis for the final advance of

funds for the contract.

(c) * * *

(2) Complete, with the assistance of

its architect or engineer, the documents

listed in the following table that are

required for the closeout of force

account construction.
Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules 38507

DOCUMENTS REQUIRED TO CLOSEOUT CONSTRUCTION OF BUILDINGS

RUS form No. Description

Use with No. of copies prepared by Distribution

Contract Force

account. Contractor Architect/engineer Borrower Contractor

238 .................... Construction or Equipment Contract

Amendment (If not previously submitted, send to RUS for approval.).

X (3) .................... .................... (to RUS)

181 .................... Certificate of Completion (Contract

Construction) 1.

X .................... .................... 2 1 1

231 .................... Certificate of Contractor ..................... X .................... 1 .................... 1 ....................

224 .................... Waiver and Release of Lien from

each Supplier.

X .................... 1 .................... 1 ....................

213 .................... Certificate (Buy American) ................. X .................... 1 .................... 1 ....................

None 2 ............... ‘‘As Built’’ Plans and Specifications ... X X .................... 1 1 ....................

None ................. Guarantees, Warranties, Bonds, Operating or Maintenance Instructions, et certera.X .................... 1 .................... 1 ....................

None ................. Architect/Engineer seismic safety certification.X X .................... 2 1 1

1 Cost of materials and services furnished by borrower are not to be included in Total Cost on RUS Form 181.

2When only minor changes were made during construction, two copies of a statement to that effect from the Architect will be accepted instead

of the ‘‘as built’’ Plans and Specifications.

(3) Make distribution of the

completed documents as indicated in

the table in this section.

(d) After all required RUS approvals

are obtained, final payment is made in

accordance with Article III of RUS Form

257 once the borrower has received the

architect’s or engineer’s certifications

regarding satisfactory completion of the

project.

17. In § 1753.37, paragraph (c) is

revised to read as follows:

§ 1753.37 Plans and specifications (P&S).

* * * * *

(c) RUS review of P&S is required for

construction estimated to cost over

$500,000 total or estimated to cost more

than 25% of the total loan.

(1) If RUS review is required, the

borrower shall submit one copy of the

P&S to the GFR for RUS review.

(2) RUS will review the P&S and

notify the borrower in writing of

approval or disapproval.

18. In § 1753.38, paragraphs (a)(1)(i),

(a)(1)(v), (a)(2)(i), (a)(2)(v), (b)(1), (b)(3),

(b)(5), (e)(2), and (e)(3) are revised, to

read as follows:

§ 1753.38 Procurement procedures.

(a) * * *

(1) Solicitation of bids. (i) After RUS

approval of the specifications and

equipment requirements (required only

for projects exceeding $500,000 or 25%

of the loan), the borrower shall send

‘‘Notice and Instructions to Bidders’’ to

suppliers with central office equipment

included in the current Informational

Publication (I.P.) 300–4, ‘‘List of

Materials Acceptable for Use on

Telecommunications Systems of RUS

Borrowers.’’ I.P. 300–4 is a subscription

item available from the Superintendent

of Documents, U.S. Government

Printing Office, P.O. Box 371954,

Pittsburgh, PA 15250–7954. This

‘‘Notice’’ may also be sent to suppliers

of non-domestic equipment currently

accepted by RUS as meeting RUS

technical standards. The ‘‘Notice’’ may

also be sent to suppliers of central office

equipment accepted for field trial.

* * * * *

(v) At the request of an invited

supplier, the borrower shall provide two

copies of the P&S.

(2) Technical sessions. (i) The

borrower shall schedule individual

technical sessions by the suppliers,

notify each supplier of its scheduled

date and time, notify the GFR of all

scheduled dates and times, and request

the following be available at the

technical session:

* * * * *

(v) After evaluation of the technical

proposals and RUS approval of the

changes to the P&S (required only for

projects that exceed $500,000 or 25% of

the loan), sealed bids shall be solicited

from only those bidders whose technical

proposals meet the P&S requirements.

When fewer than three bidders are

adjudged qualified by the borrower to

bid, RUS approval must be obtained to

proceed. Generally, RUS will grant such

approval only if the borrower can

demonstrate to the satisfaction of RUS

that a good faith effort was made to

obtain at least three competitive bids.

This would be demonstrated if all

suppliers currently listed in I.P. 300–4

were invited to submit technical

proposals. This could not be

demonstrated if a listed supplier of

central office equipment was not

invited.

* * * * *

(b) * * *

(1) After RUS approval of the P&S and

equipment requirements (required only

for contracts expected to exceed

$500,000 or 25% of the loan), the

borrower shall send two complete

copies of the approved P&S to the

supplier and request that a proposal be

submitted.

* * * * *

(3) If the contract is expected to

exceed $500,000 or 25% of the loan,

changes in the P&S resulting from the

technical session shall be subject to RUS

review and approval.

* * * * *

(5) The borrower shall obtain an

award recommendation from its

engineer.

* * * * *

(e) * * *

(2) The borrower shall prepare a plan

containing an outline of the proposed

use of the equipment, the proposal from

the supplier and an estimate of the

installation cost. If the total cost exceeds

$500,000, RUS approval of the award of

contract is required. The borrower shall

in this case submit its plan and the

supplier’s proposal to the GFR. If the

cost does not exceed $500,000, the

borrower’s award of contract is not

subject to RUS approval.

(3) If RUS approval was required in

paragraph (e)(2) of this section, upon

RUS approval the purchase may be

made using RUS Contract Form 525 or

545, or when applicable, the procedures

contained in subpart I of this part.

* * * * *
38508 Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules

19. In § 1753.39, paragraphs (a), (e)(1),

(e)(2), (f), (f)(1)(ii)(A), (f)(1)(iii), (f)(1)(iv)

and (g) are revised, paragraph (e)(3) is

deleted, and paragraph (h) is added, to

read as follows:

§ 1753.39 Closeout documents.

* * * * *

(a) Contract amendments.

Amendments that must be submitted to

RUS for approval, as required by

§ 1753.11, shall be submitted promptly.

All other amendments may be

submitted to RUS with the engineer’s

contract closeout certification.

* * * * *

(e) * * *

(1) Obtain from the engineer a

certification of partial closeout.

(2) Submit one copy of the summary

to RUS with an FRS.

(f) Final contract closeout procedure.

The documents required for the final

closeout of the central office equipment

contracts, RUS Contract Forms 525 and

545, are listed in the following table,

which also indicates the number of

copies and their distribution. The

procedure to be followed is outlined as

follows:

DOCUMENTS REQUIRED TO CLOSEOUT CENTRAL OFFICE EQUIPMENT CONTRACT

RUS form No. Description

Use with Prepared by Distribution

RUS form

525

RUS form

545 Contractor Engineer Borrower Contractor

238 .................... Construction or Equipment Contract

Amendment (If not previously submitted, send to RUS for approval).

X X .................... (3) (to RUS)

754 .................... Certificate of Completion and Certificate of Contractor and Indemnity

Agreement (if submitted, Form 744

is not required).

X .................... 3 3 2 1

517 .................... Results of Acceptance Tests (Prepare and distribute copies immediately upon completion of the acceptance tests of each central office).X .................... .................... 2 1 1

752a .................. Certificate of Completion—Not Including Installation..................... X .................... 2 1 1

224 .................... Waiver and Release of Lien (from

each supplier).

X .................... 1 .................... 1

231 .................... Certificate of Contractor ..................... X .................... 1 .................... 1

213 .................... Certificate (Buy American) ................. X X 1 .................... 1

None ................. Switching Diagram, as installed ........ X X 2 .................... 2

None ................. Set of Drawings (Each set to include

all the drawings required under the

Specification, RUS Form 522).

X X 2 .................... 2

(1) * * *

(ii) * * *

(A) Prepare and assemble the

documents listed in the table in this

section, Documents Required to Close

Out Central Office Equipment Contracts.

* * * * *

(iii) Make the documents listed in the

table available for GFR review on the

date of final inspection.

(iv) Distribute the documents as

indicated in the table, including

submission to the GFR of all documents

required by RUS.

* * * * *

(g) Once RUS approval has been

obtained for any required amendments,

the borrower shall obtain certifications

from the licensed engineer that the

project and all required documentation

are satisfactory and complete. The

requirements for the final contract

certification are set forth in § 1753.18.

(h) Once these certifications have

been received, final payment shall be

made according to the payment terms of

the contract. Copies of the certifications

shall be submitted with the FRS,

requesting the remaining funds on the

contract.

20. In § 1753.46, paragraphs (c)(2) and

(c)(3) are revised to read as follows:

§ 1753.46 General.

* * * * *

(c) * * *

(2) Contract Form 515, which is for

less than $250,000, may, at the

borrower’s option, be negotiated. See

§ 1753.48(b).

(3) Form 773 may be used for minor

outside plant projects which are not

competitively bid because they cannot

be designed and staked at the time of

contract execution. Projects of this

nature include routine line extensions

and placement of subscriber drops. See

Subpart I of this part.

21. In § 1753.47, paragraph (c) is

revised to read as follows:

§ 1753.47 Plans and specifications (P&S).

* * * * *

(c) Submission of plans and

specifications to RUS. (1) If the project

does not exceed $500,000 or 25% of the

loan, the borrower shall furnish the GFR

one set of the P&S and one copy of the

‘‘Checklist for Review of Plans and

Specifications,’’ RUS Form 553, signed

by the engineer. The borrower may then

proceed with procurement in

accordance with § 1753.48.

(2) If the project exceeds $500,000 or

25% of the loan, RUS approval of the

P&S is required. Two (2) sets of the P&S

and one copy of the ‘‘Check List for

Review and Plans and Specifications,’’

RUS Form 553, signed by the borrower’s

engineer, shall be furnished to the GFR.

RUS will return one set to the borrower

upon notice of approval. The borrower

may then proceed with procurement in

accordance with § 1753.48.

22. In § 1753.48, paragraphs (a)(4) and

(b)(1) are revised to read as follows:

§ 1753.48 Procurement procedures.

(a) * * *

(4) Bid openings. (i) Bid openings and

award of the contract shall be conducted

in accordance with § 1753.5(b)(1) and

§ 1753.8(a).

(ii) If § 1753.8 requires RUS approval

of award of the bid, the borrower shall

submit to RUS two copies of the
Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules 38509

assembly unit sections of the apparent

lowest responsive bid accepted by the

borrower.

(b) Negotiated procurement. (1)

Competitive bids are not required for

outside plant construction that is

estimated to cost less than $250,000

labor and materials. If the contract

exceeds $500,000 or 25% of the loan,

the borrower shall obtain RUS approval

of the plans and specifications before it

begins negotiating with a contractor.

* * * * *

23. In § 1753.49, paragraphs (b), (c)(2)

and (c)(3) are revised, to read as follows:

§ 1753.49 Closeout documents.

* * * * *

(b) Documents required. The

following table lists the documents

required to closeout the Form 515

construction contract.

DOCUMENTS REQUIRED TO CLOSEOUT CONSTRUCTION CONTRACT RUS FORM 515

RUS Form No. Description

No. of copies prepared by Distribution

Contractor Engineer Borrower Contractor

724 .................... Final Inventory—Certificate of Completion ....................................... .................... 2 1 1

724a .................. Final Inventory—Assembly Units ...................................................... .................... 2 1 1

None ................. Contractor’s Bond Extension (Send to RUS when required.) .......... (3) .................... (to RUS)

281 .................... Tabulation of Materials Furnished by Borrower ............................... 2 .................... 1 1

213 .................... Certificate—‘‘Buy American’’ ............................................................. 1 .................... 1 ....................

None ................. Listing of Construction Change Orders ............................................ .................... 1 1 ....................

224 .................... Waiver and Release of Lien (from each supplier) ............................ 1 .................... 1 ....................

231 .................... Certificate of Contractor .................................................................... 1 .................... 1 ....................

527 .................... Final Statement of Construction ....................................................... .................... 2 1 1

None ................. Reports on Results of Acceptance Tests ......................................... .................... 1 1 1

None ................. Set of Final Staking Sheets .............................................................. .................... 1 1 ....................

None ................. Tabulation of Staking Sheets ............................................................ .................... 1 1 ....................

None ................. Correction Summary (legible copy) .................................................. .................... 1 1 ....................

None ................. Treated Forest Products Inspection Reports or Certificates of

Compliance (prepared by inspection company or supplier).

.................... .................... 1 ....................

None ................. Final Key Map (when applicable) ..................................................... .................... 1 1 ....................

None ................. Final Central Office Area and Town Maps ....................................... .................... 1 1 ....................

(c) * * *

(2) Final inventory documents. (i) The

borrower shall obtain certifications from

the licensed engineer that the project

and all required documentation are

satisfactory and complete. Requirements

for these contract closeout certifications

are set forth in § 1753.18.

(ii) The borrower shall prepare and

distribute the final inventory documents

as indicated in the tables in this section.

The documents listed for RUS shall be

retained by the borrower for inspection

by RUS for at least two years from the

date of the engineer’s contract closeout

certification.

STEP-BY-STEP PROCEDURE FOR CLOSEOUT OF CONSTRUCTION CONTRACT RUS FORM 515

Sequence

By Procedure

Step No. When

1 ................... Upon completion of construction.Borrower’s Engineer ...... Prepares the following: a set of Detail Maps and a set (when applicable)

of Key Maps which show in red the work done under the 515 contract;

a Tabulation of Staking Sheets; and a tentative Final Inventory, RUS

Forms 724 and 724a.

2 ................... After acceptance tests

made.

Borrower’s Engineer ...... Forwards letter to the borrower with copies to the GFR stating that the

project is ready for final inspection. Schedules inspection date.

3 ................... Upon receipt of letter

from Borrower’s Engineer.

GFR ............................... Advises borrower whether attending the final inspection will be possible.

4 ................... By inspection date ......... Borrower’s Engineer ...... Obtains and makes available the following documents: a set of ‘‘as constructed’’ detail maps and (when applicable) ‘‘as built’’ key maps; a list

of construction change orders; the final staking sheets; the tabulation

staking sheets; the treated forest products inspection reports or certificates of compliance; the tentative final inventory, RUS Forms 724 and

724a; the tentative tabulation, RUS Form 231(if borrower furnished part

of material); and, a report of results of acceptance tests.

5 ................... During inspection .......... Borrower’s Engineer ...... Issues instructions to contractor covering corrections to be made in construction as a result of inspection.

6 ................... During inspection .......... Contractor ...................... Corrects construction on basis of instructions from the borrower’s engineer. The corrections should proceed closely behind the inspection in

order that the borrower’s engineer can check the corrections before

leaving the system.

7 ................... During inspection .......... Borrower’s Engineer ...... Inspects and approves corrected construction. Marks inspected areas on

the key map, if available, otherwise on the detail maps.

8 ................... Upon completion of inspection.Borrower’s Engineer ...... Prepares or obtains all the closeout documents listed in Table 3.
38510 Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules

STEP-BY-STEP PROCEDURE FOR CLOSEOUT OF CONSTRUCTION CONTRACT RUS FORM 515—Continued

Sequence

By Procedure

Step No. When

9 ................... After signing final inventory.Borrower ........................ Prepares and submits to RUS the engineer’s certifications of completion

and a Financial Requirement Statement, RUS Form 481, requesting

amount necessary to make final payment due under contract.

10 ................. On receipt of final advance.Borrower ........................ Promptly forwards check for final payment to contractor.

11 ................. During subsequent loan

fund audit review following final payment.

RUS Field Accountant ... Examines borrower’s construction records for compliance with the construction contract and Subpart F, and examines RUS Form 281 (Tabulation of Materials Furnished by Borrower) if any, for appropriate costs.

(iii) When the total inventory price

exceeds the maximum contract by more

than 20 percent, an extension to the

contractor’s bond is required.

(iv) The borrower shall submit the

engineer’s contract closeout certification

with the FRS for the final advance of

funds.

(3) Final payment shall be made

according to the payment provisions of

Article III of RUS Form 515, except that

certificates and other documents

required to be submitted to or approved

by the Administrator shall be submitted

to and approved by the Owner.

24. Section 1753.50 is removed and

reserved.

25. In § 1753.58, paragraphs (b), (c)(2)

and (c)(5) are revised to read as follows:

§ 1753.58 Closeout documents.

* * * * *

(b) Documents. The documents

required to close the FAP are listed in

the following table. The following is a

brief description of the closeout

documents:

DOCUMENTS REQUIRED TO CLOSEOUT

FORCE ACCOUNT OUTSIDE PLANT

CONSTRUCTION

RUS Form No. Description

817, 817a,

817b.

Final Inventory Force Account Construction and

Certificate of Engineer.

Submit one copy to RUS,

if required.1

213 ................ Certificate—‘‘Buy American’’

(as applicable from each

supplier).

None .............. Detail Maps.

None .............. Key map, if applicable.

None .............. Staking Sheets.

None .............. Tabulation of staking sheets.

DOCUMENTS REQUIRED TO CLOSEOUT

FORCE ACCOUNT OUTSIDE PLANT

CONSTRUCTION—Continued

RUS Form No. Description

None .............. Treated Forest Products Inspection Reports or Certificates of Compliance (prepared by inspection company or supplier).

1 RUS Forms 817, 817a, and 817b are to be

submitted to the GFR only if required in paragraph (c)(5) of this section. Otherwise, the

final inventory documents are to be assembled

and retained by the borrower for at least two

years.

(c) * * *

(2) The GFR shall be invited to make

the final inspection accompanied by the

engineer and the borrower.

* * * * *

(5) After inspection, the final

inventory documents shall be assembled

as indicated in the table in this section.

RUS Forms 817, 817a, and 817b are to

be submitted to the GFR only if the

amount of the closeout exceeds the

original force account proposal by 20%

or more. Otherwise, the final inventory

documents are to be assembled and

retained by the borrower for at least two

years.

* * * * *

26. In § 1753.68, paragraphs (b)(2)(i),

(b)(2)(ii), (b)(2)(iii), (b)(2)(iv), (b)(2)(v),

(b)(4)(i), (b)(4)(ii), (c)(2), and (d)(3) are

revised to read as follows:

§ 1753.68 Purchasing special equipment.

* * * * *

(b) * * *

(2) Initial equipment purchase. (i) The

borrower prepares the P&S and, for

projects estimated to exceed $500,000 or

25% of the loan, whichever is less,

sends two copies to the GFR for

approval.

(ii) For projects estimated to exceed

$500,000 or 25% of the loan, RUS will

either approve the P&S in writing or

notify the borrower of any reason for

withholding approval.

(iii) For projects estimated to cost less

than $500,000 or 25% of the loan, the

borrower may proceed with

procurement upon completion of the

P&S.

(iv) If the borrower has employed full

competitive bidding in the selection, a

contract may be executed with the

successful bidder and the borrower may

proceed to paragraph (b)(2)(vi) of this

section.

(v) If the borrower did not follow a

fully competitive bidding process as

described in § 1753.8, the selection,

along with a summary of all proposals

and an engineer’s recommendation,

shall be sent to RUS. RUS shall approve

the proposal selection in writing or

notify the borrower of any reason for

withholding approval.

* * * * *

(4) New system additions. (i) The

borrower prepares the P&S and, if the

project is estimated to exceed $500,000

or 25% of the loan, sends two copies to

the GFR for approval. The borrower may

request RUS approval to negotiate for

the purpose of standardization on a

system basis prior to preparing the P&S.

(ii) RUS notifies the borrower in

writing as to whether the borrower may

negotiate for specific equipment. If P&S

were required to be submitted to RUS

under paragraph (b)(4)(i) of this section,

RUS notifies the borrower in writing of

P&S approval (or notifies the borrower

of any reason for withholding approval).

* * * * *

(c) * * *

(2) The borrower shall prepare any

required amendments to the special

equipment contract, arrange for the

execution by all parties, and submit

these amendments to RUS in

accordance with § 1753.11(d). RUS

Form 238 , Construction or Equipment

Contract Amendment, shall be used for

this purpose.

* * * * *

(d) * * *

(3) Closeout documents. When the

acceptance tests have been completed
Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Proposed Rules 38511

and all deficiencies have been corrected,

the borrower:

(i) Assembles and distributes the

documents listed in the following table

that are required for the closeout of the

special equipment contract. The

documents listed for RUS shall be

retained by the borrower for inspection

by RUS for at least two years from the

date of the engineer’s contract closeout

certification.

DOCUMENTS REQUIRED TO CLOSEOUT SPECIAL EQUIPMENT CONTRACTS RUS FORMS 397 AND 398

RUS Form No. Description

No. of copies prepared by

Form 397 Form 398 Distribution

Contractor Engineer Contractor Engineer Borrower Contractor

238 .................... Construction or Equipment Contract

Amendment (If not previously submitted, send to RUS for approval.).

.................... (3) .................... (3) (to RUS)

396 .................... Certificate of Completion—Special

Equipment Contract (Including Installation).

.................... 2 .................... .................... 1 1

396a .................. Certificate of Completion—Special

Equipment Contract (Not Including

Installation).

.................... .................... .................... 2 1 1

744 .................... Certificate of Contractor and Indemnity Agreement.1 .................... .................... .................... 1 ....................

213 .................... Certificate (Buy American) ................. 1 .................... 1 .................... 1 ....................

None ................. Report in writing, including all measurements and other information required under Part II of the applicable specifications.1 .................... .................... 1 1 ....................

None ................. Set of maintenance recommendations for all equipment furnished

under the contract.

1 .................... 1 .................... 1 ....................

(ii) Obtains certifications from the

licensed engineer that the project and

all required documentation are

satisfactory and complete. Requirements

for this contract closeout certification

are set forth in § 1753.18.

(iii) Submits copies of the engineer’s

certifications to RUS with the FRS

requesting the remaining funds on the

contract.

(iv) Makes final payment in

accordance with the payment terms of

the contract.

27. In § 1753.76, paragraph (a) is

revised to read as follows:

§ 1753.76 General.

(a) This subpart implements and

explains the provisions of the Loan

Documents setting forth the

requirements and procedures to be

followed by borrowers for minor

construction of telecommunications

facilities using RUS loan funds. Terms

used in this subpart are defined in

§ 1753.2.

* * * * *

28. In § 1753.80, paragraph (b) is

revised to read as follows:

§ 1753.80 Minor construction procedure.

* * * * *

(b) RUS financing under Form 773

contracts dated in the same calendar

year is limited to the following amounts

for the following discrete categories of

minor construction. The date of the

Form 773 contract is the date the Form

773 contract is executed.

(1) For outside plant construction, the

limit is $500,000 or ten per cent (10%)

of the borrower’s previous calendar

year’s outside plant total construction,

whichever is greater.

(2) For central office equipment, the

limit is $500,000.

(3) For special equipment and

buildings, the limit is $250,000.

* * * * *

29. Appendices A through F are

removed.

Dated: July 8, 1998.

Jill Long Thompson,

Under Secretary, Rural Development.

[FR Doc. 98–18759 Filed 7–16–98; 8:45 am]

BILLING CODE 3410–15–P

NUCLEAR REGULATORY

COMMISSION

10 CFR Part 20

RIN 3150–AF81

Respiratory Protection and Controls

To Restrict Internal Exposures

AGENCY: Nuclear Regulatory

Commission.

ACTION: Proposed rule.

SUMMARY: The Nuclear Regulatory

Commission (NRC) is proposing to

amend its regulations regarding the use

of respiratory protection and other

controls to restrict internal exposure to

radioactive material. The proposed

amendments are intended to make these

regulations more consistent with the

philosophy of controlling the sum of

internal and external radiation

exposure, reflect current guidance on

respiratory protection from the

American National Standards Institute

(ANSI), and make the requirements less

prescriptive without reducing worker

protection. The proposed amendments

would provide greater assurance that

worker exposures will be maintained as

low as is reasonably achievable

(ALARA) and that recent technological

advances in respiratory protection

equipment and procedures are reflected

in NRC regulations and are thus clearly

approved for use by licensees.

DATES: Submit comments by September

30, 1998. Comments received after this

date will be considered if it is practical

to do so, but the Commission is able to

assure consideration only for comments

received on or before this date.

ADDRESSES: Send comments to:

Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555–

0001, Attention: Rulemakings and

Adjudications Staff.

The NRC staff specifically requests

comment on whether the technical

aspects of the rule should be addressed

through alternative approaches other

than the proposed rule, such as a simple