[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: 7CFR1753.7]

[Page 376-377]
 
                          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. 1753.7  Plans and specifications (P&S).

    (a) The P&S consist of an RUS contract form, the appropriate RUS 
specifications, and such additional information and documents needed to 
provide a clear, accurate, and complete understanding of what is 
included in the construction.
    (b) 7 CFR 1755.93 provides a list of the RUS forms of 
telecommunications contracts for use in purchasing telephone materials 
and equipment and for constructing telephone facilities with loan funds. 
Also listed is the source where copies may be obtained.
    (c) The appropriate standards and specifications listed in 7 CFR 
part 1755 shall be included in the P&S. When RUS has not prepared 
standards and specifications, the borrower shall use general engineering 
requirements and specifications prepared by the borrower's engineer. The 
specifications prepared by the borrower's engineer and based on general 
engineering requirements shall be subject to review and approval by RUS 
for all major construction, including major projects which would be 
exempted from RUS approval under paragraph (e) of this section.

[[Page 377]]

    (d) The P&S shall be based on the LD approved by RUS. Section 1753.3 
presents the requirements and procedures for obtaining RUS approval for 
construction that does not conform to the LD approved by RUS.
    (e) RUS approval of P&S is required for construction that is 
estimated to cost over $500,000 or 25% of the total loan, whichever is 
less, and for all building construction. P&S for all other construction 
are exempt from RUS review and approval except that, at the time of 
contract approval, RUS will examine the plans and specifications for 
conformity with the loan purposes and to determine that they comply with 
other requirements of this part.
    (f) RUS will approve only contracts that will provide for at least 
the following requirements.
    (1) Equal employment opportunity provision. If this provision is not 
already in the contract, RUS Contract Form 270, Equal Opportunity 
Addendum, shall be attached and made a part of the contract.
    (2) Liquidated damages provision. (i) If not covered by the 
contract, an appropriate liquidated damages provision, in a form 
prescribed by RUS, shall be included and made a part of the contract
    (ii) The liquidated damages must be based upon the borrower's best 
estimate of the damages it would incur as a result of the contractor's 
default.
    (3) Insurance and bond requirements. (i) The insurance provision 
shall provide coverage as required by 7 CFR 1788.
    (ii) A contractor's bond shall be furnished as required by 7 CFR 
part 1788.
    (iii) The borrower is responsible for ensuring that its contractor 
complies with the insurance and bond requirements.
    (4) Telecommunications software license provision. If the borrower 
is required to enter into a software license agreement in order to use 
the equipment, the contract must contain the RUS prepared Software 
License Agreement as an Addendum.

[54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39396, Sept. 27, 
1990, and amended at 59 FR 17679, Apr. 14, 1994; 64 FR 16605, Apr. 6, 
1999]