[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: 7CFR1726.402]

[Page 270-271]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                      Subpart J--Contract Closeout
 
Sec. 1726.402  Equipment contract closeout.

    This section is applicable to contracts executed on RUS Form 198.
    (a) Final inspection and testing of equipment. The borrower (acting 
through its engineer, if applicable) will perform the final inspection 
and testing of equipment as appropriate for the specific equipment. The 
borrower (acting through its engineer, if applicable) will schedule such 
inspection and testing at a time mutually agreeable to the borrower, 
engineer, and the supplier or manufacturer. Within thirty (30) days 
after completion of the inspection and testing, the borrower (acting 
through

[[Page 271]]

its engineer, if applicable) will prepare a report of the inspection and 
testing, obtain a copy of the report from the engineer, and submit a 
copy to the supplier or manufacturer. This report must include a 
detailed description of the methods of conducting the test(s), observed 
data, comparison of guaranteed and actual performance, and 
recommendations concerning acceptance. The borrower will obtain from the 
engineer a written certification stating that the equipment has been 
installed, placed in satisfactory operation and tested, and meets the 
contract requirements. Where more than one-hundred and eighty (180) days 
have elapsed since the delivery of the equipment and the equipment has 
not been installed or tested, the contract may be closed out upon 
certification by the engineer that the equipment has been inspected and 
appears to be in accordance with the contract requirements.
    (b) Closeout documents. (1) The borrower (acting through its 
engineer, if applicable) will obtain the following executed documents:
    (i) Certification by the project engineer in accordance with 
paragraph (a) of this section.
    (ii) All guarantees or warranties.
    (iii) A ``Buy American'' certificate, RUS Form 213, from the 
supplier or manufacturer.
    (2) Closeout documents for materials contracts need not be submitted 
to RUS unless specifically requested by RUS.
    (c) Final payment. Upon completion of the actions required under 
paragraphs (a) and (b) of this section, the borrower will make final 
payment to the supplier or manufacturer in accordance with the 
provisions of the equipment contract.