[Federal Register: August 25, 2000 (Volume 65, Number 166)]
[Rules and Regulations]
[Page 51749-51750]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25au00-2]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1755
RIN 0572-AB35
RUS Form 397, Special Equipment Contract (Including Installation)
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS) is amending its regulation
on RUS Telecommunications Standards and Specifications for Material,
Equipment and Construction to revise RUS Form 397, Special Equipment
Contract (including installation). This contract incorporates
amendments currently attached to the RUS Form 397, Special Equipment
Contract, and updates contract terms and format.
EFFECTIVE DATE: September 25, 2000.
FOR FURTHER INFORMATION CONTACT: John J. Schell, Chief, Inside Plant
Branch, Telecommunications Standards Division, Rural Utilities Service,
U.S. Department of Agriculture, STOP 1598, 1400 Independence Ave., SW,
Washington, DC 20250-1598, telephone number (202) 720-0671.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866 and therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12372
This final rule is excluded from the scope of Executive Order
12372, Intergovernmental Consultation, which may require a consultation
with State and local officials. See the final rule related notice
entitled, ``Department Programs and Activities Excluded from Executive
Order 12372'' (50 FR 47034).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. RUS has determined that this rule meets the
applicable standards provided in section 3 of the Executive Order. In
accordance with the Executive Order and the rule: (1) All state and
local laws and regulations that are in conflict with this rule will be
preempted; (2) no retroactive effort will be given to this rule; and,
(3) in accordance with Sec. 212(c) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6912(c)), administrative appeal
procedures, if any, must be exhausted prior to initiating litigaton
against the Department or its agencies.
Regulatory Flexibility Act Certification
RUS has determined that this final rule will not have a significant
economic impact on a substantial number of small entities, as defined
by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The RUS
telecommunications program provides loans to borrowers at interest
rates and terms that are more favorable than those generally available
from the private sector. RUS borrowers, as a result of obtaining
federal financing, receive economic benefits that exceed any direct
economic costs associated with complying with RUS regulations and
requirements.
Information Collection and Recordkeeping Requirements
This rule contains no new reporting or recordkeeping burdens under
OMB control number 0572-0059 that would require approval under the
Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35).
National Environmental Policy Act Certification
RUS has determined that this final rule will not significantly
affect the quality of the human environment as defined by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore,
this action does not require an environmental impact statement or
assessment.
Catalog of Federal Domestic Assistance
The program described by this proposed rule is listed in the
Catalog of Federal Domestic Assistance programs under number 10.851,
Rural Telephone Loans and Loan Guarantees, and number 10.852, Rural
Telephone Bank Loans. This catalog is available on a subscription basis
from the Superintendent of Documents, the United States Government
Printing Office, Washington, DC 20402. Telephone: (202) 512-1800.
Unfunded Mandates
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995) for
State, local, and tribal governments for the private sector. Thus, this
rule is not
[[Page 51750]]
subject to the requirements of section 202 and 205 of the Unfunded
Mandates Reform Act of 1995.
Background
The last revision to the RUS Form 397 was December 1967. Since that
date, divestiture, competition, legislation and regulation have changed
business practices in the telecommunications industry. Contract terms
and obligations in RUS Form 397 have been modified and updated to
reflect present business practices as well as changes in technology,
services and equipment. Notable advances in fiber optics, digital
subscriber line (DSL) and radio technology have made many new services
available. Consequently, significant changes have been made in the way
business is conducted in the telecommunications industry.
The RUS Form 397 incorporates those changes into the Special
Equipment Contract. The main changes to the contract include but are
not limited to the following: (1) Format for listing bid prices and
alternatives; (2) delivery and installation requirements; (3) payments
and releases of lien requirements; (4) particular undertakings of the
bidder requirements; (5) Equal Employment requirements; (6) payments to
the contractor; (7) insurance; (8) liquidated damages; and (9)
completion of the project. The above actions will make it possible for
RUS telecommunications borrowers to continue to provide their
subscribers with the most modern and efficient telecommunications
service.
A proposed rule was issued in the Federal Register on February 20,
1998, at 63 FR 8582, requesting comments on these changes. The comment
period closed April 21, 1998. Public comments were received from Hart
Engineers, Martin and Associates, Hicks & Ragland Engineering Company
and Associated Communications & Research Services. The comments with
responses are presented as follows:
Although not a requirement in the current RUS Form 397, Special
Equipment Contract, competitive bidding procedures with sealed bid
requirements were added to the proposed contract. All four commenters
stated the competitive bidding process would increase the time and
costs associated with the purchase of transmission equipment. As part
of RUS efforts in governmental streamlining and empowering the
recipients of RUS loans, RUS will place more responsibility with the
borrowers to ensure a more cost effective review process while
maintaining the required loan security. Hence, the procurement of
special equipment will follow the procedures outlined in 7 CFR Part
1753, Telecommunication Systems Construction Policies and Procedures,
Sec. 1753.68, giving the borrower the option to use the full
competitive bidding process.
The proposed contract added the requirement that a contract
amendment needed to be prepared and approved by RUS to revise delivery
or completion of project scheduled dates. A commenter stated this
change would increase the time and engineering costs associated with
granting the manufacturer a time extension. RUS will remove the added
requirement and continue using the procedure whereby the owner can
grant a time extension by letter to the vendor without issuing a
contract amendment.
List of Subjects in 7 CFR Part 1755
Loan programs-communications, Reporting and recordkeeping
requirements, Rural areas, Telephone.
For the reasons set forth in the preamble, Chapter XVII of Title 7
of the Code of Federal Regulations is amended as follows:
PART 1755--TELECOMMUNICATIONS STANDARDS AND SPECIFICATIONS FOR
MATERIALS, EQUIPMENT AND CONSTRUCTION
1. The authority citation for part 1755 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 7941 et seq.
2. Section 1755.30(c)(27) is revised to read as follows:
Sec. 1755.30 List of telecommunications standard contract forms.
* * * * *
(c) * * *
(27) RUS Form 397, issued September 25, 2000, Special Equipment
Contract (Including Installation).
* * * * *
Dated: August 17, 2000.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 00-21774 Filed 8-24-00; 8:45 am]
BILLING CODE 3410-15-P
This archive was generated by hypermail 2b29 : 2000/08/25 EST