[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: 7CFR1726.77]

[Page 254-255]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1726--ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
            Subpart C--Substation and Transmission Facilities
 
Sec. 1726.77  Substation and transmission line construction.

    (a) Contract forms. (1) The borrower must use RUS Form 764, 
Substation Erection Contract, for construction of substations, except 
for minor modifications or improvements. The borrower must use RUS Form 
831, Electric Transmission Construction Contract for projects where 
substations are incidental to transmission line construction and are to 
be constructed under the same contract.
    (2) The borrower must use RUS Form 831, Electric Transmission 
Construction Contract, for construction of transmission lines (except 
for minor modifications or improvements).
    (3) The borrower must use RUS Form 203, Transmission System Right-
of-Way Clearing Contract, for new transmission line construction right-
of-way clearing when right-of-way clearing is performed separately from 
work performed under RUS Form 831.
    (b) Procurement procedures. (1) 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

[[Page 255]]

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 
substation and transmission line construction (including minor 
modifications or improvements), exclusive of the cost of owner furnished 
materials and equipment.
    (2) The borrower shall use formal competitive bidding for all other 
contract construction, including all contracts requiring RUS approval. 
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.
    (3) 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. 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.