[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: 7CFR1726.253]

[Page 264]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
         Subpart H--Modifications to RUS Standard Contract Forms
 
Sec. 1726.253  Prior approved contract modification related to alternative bid provision for payment to contractor for bulk purchase of materials.

    When construction is to be performed over an extended period of 
time, but large quantities of material are to be purchased by the 
contractor at the beginning of the project (e.g., cable for URD 
installations), the borrower may allow alternative bids providing for 
payment to the contractor of 90 percent of the cost of such materials 
within 30 days of delivery of those materials at the job site. The 
borrower will retain the right to award the contract with or without the 
alternative payment provision, however, the contract still must be 
awarded on the basis of the lowest evaluated responsive bid for the 
alternative accepted.