[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: 7CFR1726.176]

[Page 256-257]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                        Subpart F--General Plant
 
Sec. 1726.176  Communications and control facilities.

    This section covers the purchase of microwave and power line carrier 
communications systems, load control, and supervisory control and data 
acquisition (SCADA) systems. Mobile radio systems are covered as general 
plant materials in Sec. 1726.175.
    (a) Power line carrier systems. Power line carrier equipment will 
frequently be purchased as part of a substation and will be included in 
the complete substation plans and specifications. When purchased in this 
manner, the requirements of subpart C of this part, Substation and 
Transmission Facilities, will apply. If obtained under a contract for 
only a power line carrier system, the requirements of paragraph (b) of 
this section apply.

[[Page 257]]

    (b) Load control systems, communications systems, and SCADA systems-
-(1) Contract forms. The borrower must use RUS Form 786, Electric System 
Communication and Control Equipment Contract. This form may be modified 
to be a ``purchase only'' contract form.
    (2) Procurement procedures. (i) It is the responsibility of each 
borrower to determine the procurement method that best meets its needs 
to award contracts not requiring RUS approval in amounts of up to a 
cumulative total of $250,000 or one percent of NUP (not to exceed 
$2,000,000), whichever is greater, per calendar year of communications 
and control facilities construction (including minor modifications or 
improvements.), exclusive of the cost of owner furnished materials and 
equipment.
    (ii) The borrower must use multiparty negotiation for all other 
communications and control facilities contract construction, including 
all contracts requiring RUS approval. The amount of contracts bid using 
the multiparty negotiation procedure do not apply to the cumulative 
total stipulated in paragraph (b)(2)(i) of this section.
    (iii) An amendment which increases the scope by adding a project is 
not considered competitively bid, therefore, the amount of that 
amendment does apply to the cumulative total stipulated in paragraph 
(b)(2)(i) of this section.
    (3) Contract approval. Individual contracts in amounts of $250,000 
or more or one percent of NUP (not to exceed $500,000 for distribution 
borrowers or $1,500,000 for power supply borrowers), whichever is 
greater, exclusive of the cost of owner furnished materials and 
equipment, are subject to RUS approval.