[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: 7CFR1753.36]

[Page 387]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND PROCEDURES--Table of Contents
 
    Subpart E--Purchase and Installation of Central Office Equipment
 
Sec. 1753.36  General.

    Source: 54 FR 39267, Sept. 25, 1989, unless otherwise noted. 
Redesignated at 55 FR 39397, Sept. 27, 1990.


    (a) This subpart implements and explains the provisions of the Loan 
Documents setting forth the requirements and the procedures to be 
followed by borrowers in purchasing and installing central office 
equipment financed with loan funds.
    (b) Terms used in this subpart are defined in Sec. 1753.2 and RUS 
Contract Forms 525 and 545.
    (c) Borrowers shall use RUS Contract Form 525, Central Office 
Equipment Contract (Including Installation), when the firm supplying the 
equipment will install it and RUS Contract Form 545, Central Office 
Equipment Contract (Not Including Installation) when the supplier of the 
equipment will not be installing it. In either case the appropriate 
specifications shall be included in the contract.
    (d) Alternates, if any, specified in the P&S shall be kept to a 
minimum.
    (e) The borrower shall take sealed competitive bids for all central 
office equipment to be purchased under RUS Contract Form 525 or 545 
using the procedure set forth in Sec. 1753.38(a), unless RUS approval to 
negotiate is obtained.
    (f) The borrower may request permission to negotiate with a single 
supplier for additional central offices to standardize equipment on a 
system basis. RUS approval to negotiate must be obtained before release 
of the plans and specifications to the supplier. Except for remote 
switching terminals associated with an existing central office, RUS will 
not approve negotiation with a non-domestic manufacturer for the purpose 
of standardization because such a purchase does not meet the RE Act 
``Buy American'' provisions.
    (g) Materials and equipment must meet the standards and general 
specifications approved by RUS. Materials and equipment included in I.P. 
300-4, ``List of Materials Acceptable for Use on Telecommunications 
Systems of RUS Borrowers'', have been accepted as meeting these 
requirements. If the equipment is not included in the ``List of 
Materials'' but has been approved for field trial installation, the 
borrower must in each instance obtain field trial approval from RUS 
prior to entering into any agreement with a supplier.
    (h) Only new equipment shall be purchased unless otherwise approved 
by RUS.
    (i) All purchases of materials and equipment are subject to the 
``Buy American'' requirements.
    (j) If the sealed competitive bid procedure is followed, negotiation 
after bid opening will not be permitted.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39397, Sept. 27, 
1990, as amended at 64 FR 16607, Apr. 6, 1999]