[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1726.125]

[Page 255-256]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                    Subpart D--Generation Facilities
 
Sec. 1726.125  Generating plant facilities.


    This section covers the construction of all portions of a generating 
plant, including plant buildings and the generator step-up transformer. 
Generally, the transmission switchyard will be covered under this 
section during initial construction of the plant. Subpart C of this part 
covers subsequent modifications to transmission switchyards. Warehouses 
and equipment service type buildings are covered under subpart E of this 
part.
    (a) Contract forms. (1) The borrower must use RUS Form 198, 
Equipment Contract, for the purchase of generating plant equipment in 
the amount of $1,500,000 or more and for any generating plant equipment 
contract requiring RUS approval.
    (2) The borrower must use RUS Form 200, Construction Contract--
Generating, for generating project construction contracts in the amount 
of $1,500,000 or more and for any generating project construction 
contract requiring RUS approval.
    (3) The borrower may, in its discretion, use other contract or 
written purchase order forms for those contracts in amounts of less than 
$1,500,000 and that do not require RUS approval.
    (b) Plans and specifications. The borrower shall obtain RUS approval 
of the plans and specifications for generating plant equipment prior to 
issuing invitations to bid for any contract subject to RUS approval as 
determined under this subpart and for any contract for generating plant 
equipment or construction which will cost $1,500,000 or more. Plans and 
specifications for other equipment and construction contracts do not 
require RUS approval and need not be submitted to RUS unless 
specifically requested by RUS on a case by case basis.
    (c) Procurement procedures. (1) It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
to award contracts in amounts of less than $1,500,000 each.
    (2) If the amount of the contract is $1,500,000 or more or if the 
contract requires RUS approval, the borrower must use formal or informal 
competitive bidding to award the contract.
    (3) Where formal or informal competitive bidding is not applicable, 
or does not result in a responsive bid, multiparty negotiation may be 
used only after RUS approval is obtained.
    (d) Contract approval. During the early stages of generating plant 
design or project design, RUS will, in consultation with the borrower 
and its consulting engineer, identify the specific contracts which 
require RUS approval based on information supplied in the plant design 
manual. The following are typical contracts for each type of generating 
project which will require RUS approval. Although engineering services 
are not covered by this part, they are listed in this paragraph (d) to 
emphasize that RUS approval is required for all major generating station

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engineering service contracts in accordance with applicable RUS rules. 
For types of projects not shown, such as nuclear and alternate energy 
projects, RUS will identify the specific contracts which will require 
RUS approval on a case by case basis.
    (1) Fossil generating stations. Engineering services, steam 
generator, turbine generator, flue gas desulfurization system, 
particulate removal system, electric wiring and control systems, 
mechanical equipment installation (including turbine installation and 
plant piping), power plant building (foundation and superstructure), 
site preparation, coal unloading and handling facilities, main step-up 
substation, cooling towers, and dams or reservoirs.
    (2) Diesel and combustion turbine plants. Engineering services, 
prime mover and generator, building (foundation and superstructure), and 
electrical control systems.
    (3) Hydro installations. Engineering services, turbine/generator, 
civil works and powerhouse construction, electrical control system, and 
mechanical installation.