[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: 7CFR1753.1]

[Page 372-373]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
                           Subpart A--General
 
Sec. 1753.1  General.

    Source: 54 FR 39267, Sept. 25, 1989, unless otherwise noted. 
Redesignated at 55 FR 39396, Sept. 27, 1990.


    (a) The standard RUS Telecommunications Loan Documents contain 
provisions regarding procurement of materials and equipment and 
construction of telecommunications facilities by telecommunications 
borrowers. This part implements certain of the provisions by setting 
forth requirements and procedures. Borrowers shall follow these 
requirements and procedures whenever using loan funds to purchase 
materials and equipment or perform construction, unless they have 
received the Administrator's written approval to do otherwise.
    (b) The typical procedure followed in constructing a project 
financed by an RUS loan begins with the prospective borrower obtaining 
the necessary preloan engineering and developing a complete loan 
application, including an LD (See 7 CFR part 1737). If a loan

[[Page 373]]

is approved and all prerequisites to advance of funds are satisfied, the 
borrower may proceed with the purchase and installation of materials and 
equipment and the construction of telephone facilities pursuant to this 
part 1753. Subpart A describes
    (1) RUS's general requirements with respect to steps to be taken 
after the loan is approved and before construction begins (See 
Sec. 1753.3),
    (2) RUS requirements with respect to methods of construction (See 
Secs. 1753.5 and 1753.6),
    (3) RUS requirements regarding sealed competitive bidding and 
negotiated bidding of construction contracts (See Secs. 1753.6 and 
1753.9),
    (4) RUS standards for materials, equipment, and construction 
financed with loan funds (See Sec. 1753.7), and
    (5) RUS requirements for subcontracts and contract amendments 
covering construction financed with loan funds (See Secs. 1753.10 and 
1753.12).
    (c) Each borrower is responsible for the construction of its 
facilities and for the procurement of materials and equipment that are 
best suited to its needs.
    (d) If contracts, P&S, or other methods of procurement are subject 
to RUS approval pursuant to the provisions of the loan contract, as 
implemented by this part, RUS will review the documents or proposals 
submitted and notify the borrower in writing of approval or disapproval. 
RUS may withhold approval if, in RUS's judgment:
    (1) The P&S or contract will not accomplish loan purposes.
    (2) Provisions of the P&S or contract will add unnecessary expense 
to the project.
    (3) The proposal, method of procurement, or P&S do not conform to 
RUS engineering criteria or construction standards, or if they present 
unacceptable loan security risks to RUS.
    (4) The P&S or contract have been modified.
    (e) The requirements and procedures covering procurement of 
architectural and engineering services are described in subpart B of 
this part.
    (f) Single copies of RUS forms cited in this part are available from 
Administrative Services Division, Rural Utilities Service, United States 
Department of Agriculture, Washington, DC 20250-1500. These RUS forms 
may be reproduced.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 
1990, as amended at 64 FR 16604, Apr. 6, 1999]