[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: 7CFR1726.51]

[Page 253-254]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                   Subpart B--Distribution Facilities
 
Sec. 1726.51  Distribution line construction.

    (a) Contract forms. The borrower must use RUS Form 201, 790, 792, or 
830, as outlined in this paragraph (a), for distribution line 
construction, except for minor modifications or improvements.
    (1) The borrower may use RUS Form 790, Distribution Line Extension 
Construction Contract (Labor and Materials), or RUS Form 792, 
Distribution Line Extension Construction Contract (Labor only) under the 
following circumstances:
    (i) For contracts for which the borrower supplies all materials and 
equipment; or
    (ii) For non-site specific construction contracts accounted for 
under the work order procedure; or
    (iii) If neither paragraph (a)(1)(i) or (a)(1)(ii) of this section 
are applicable, the borrower may use RUS Form 790 or 792 for contracts, 
up to a cumulative total of $250,000 or one percent of NUP, whichever is 
greater, per calendar year of distribution line construction, exclusive 
of the cost of owner furnished materials and equipment
    (2) The borrower must use RUS Form 830, Electric System Construction 
Contract (Labor and Materials), for all other distribution line 
construction. Where distribution lines are being constructed incidental 
to transmission line construction, the borrower must use RUS Form 831, 
Electric Transmission Construction Contract.
    (3) The borrower must use RUS Form 201, Right-of-Way Clearing 
Contract, for new distribution line construction right-of-way clearing 
when done separately from work performed under RUS Form 830.
    (b) 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 up to a cumulative total of $250,000 or 
one percent of NUP, whichever is greater, per calendar year of 
distribution line construction (including minor modifications or 
improvements), exclusive of the cost of owner furnished materials and 
equipment.

[[Page 254]]

    (2) In addition to the cumulative total stipulated in paragraph 
(b)(1) of this section, a borrower may use Multiparty Unit Price 
Quotations to award contracts in amounts of up to a cumulative total of 
$350,000 or 1.5 percent of NUP, whichever is greater, per calendar year 
of distribution line construction (including minor modifications or 
improvements), exclusive of the cost of owner furnished materials and 
equipment.
    (3) The borrower shall use formal competitive bidding for all other 
distribution line contract construction. The amount of contracts bid 
using the formal competitive bidding procedure do not apply to the 
cumulative total stipulated in paragraph (b)(1) of this section.
    (4) An amendment which increases the scope of the contract 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)(1) of this section.
    (c) Contract approval. Contracts for distribution line construction 
are not subject to RUS approval and need not be submitted to RUS unless 
specifically requested by RUS on a case by case basis.