[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: 7CFR1753.5]

[Page 375-376]
 
                          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. 1753.5  Methods of major construction.

    (a) All major construction projects financed by loan funds shall be 
performed pursuant to a contract approved by RUS and awarded through 
sealed competitive bidding unless
    (1) A specific exception is granted in subparts D, E, F, G, or H, or
    (2) Written RUS approval is obtained.

[[Page 376]]

    (b) Contract construction. (1) RUS approval of the borrower's award 
of the contract is not required if the contractor is selected through 
sealed competitive bidding, the bid amount is $500,000 or less and the 
contractor is not a company or organization affiliated with the 
borrower. This does not relieve the borrower of the requirements of 
bidding or bid evaluation set contained in this part.
    (2) RUS approval of the borrower's award of the contract is required 
for all other competitively-bid and for negotiated major construction 
contracts.
    (3) The requirements and procedures for sealed competitive bidding 
are presented in Sec. 1753.8(a). The requirements and procedures for 
negotiation are presented in Sec. 1753.8(b).
    (c) Force account construction. To obtain RUS approval of the force 
account method for major construction the borrower must demonstrate its 
ability to perform major construction based on past force account 
construction which fully met RUS construction standards and was as cost-
effective as contract construction in the area. If the borrower has no 
record of past performance to support its request, but has adequate 
equipment and experienced personnel to perform the proposed 
construction, RUS may approve a small trial project. The requirements 
and procedures for force account construction are presented in subparts 
D, E, G, and H.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 
1990, and amended at 59 FR 43716, Aug. 25, 1994; 64 FR 16604, Apr. 6, 
1999]