Distribution line construction.

CFR · 2024-01-01 · US · Title 7

(a) (1) The borrower may use RUS Form 790, Electric System Construction Contract—Non-Site Specific Construction, under the following circumstances: (i) For contracts for which the borrower supplies all materials and equipment; or (ii) For non-site specific construction contracts accounted for under the work order procedure; or (iii) If neither paragraph (a)(1)(i) or (a)(1)(ii) of this section are applicable, the borrower may use RUS Form 790 for contracts, up to a cumulative total of $500,000 or one percent of net utility plant (NUP), whichever is greater, per calendar year of distribution line construction, exclusive of the cost of owner furnished materials and equipment. (2) The borrower must use RUS Form 830, Electric System Construction Contract—Project Construction, for all other distribution line construction. (b) (2) The borrower shall use formal competitive bidding for all other distribution line contract construction unless the RUS specifically approves an alternative method. The dollar amounts 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 dollar amount of that amendment does apply to the cumulative total stipulated in paragraph (b)(1) of this section. (c)

official document · source cfr-2024 · id 7:§ 1726.51