Telecommunications ProgramPostloan Engineering Service Contract

Federal RegisterDec 27, 1995

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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1755

Telecommunications Program--Postloan Engineering Service Contract

Agency: Rural Utilities Service, USDA.

Action: Proposed rule.

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SUMMARY: The Rural Utilities Service (RUS), successor to the Rural

Electrification Administration (REA), hereby proposes to amend its

contract for the procurement of postloan engineering services for

telecommunications systems. This action would codify the terms and

conditions of the agreement to be executed between RUS

telecommunications borrowers and consulting engineering firms hired to

design and oversee construction of telecommunications facilities

financed with RUS financing assistance. Several years have passed since

these regulations were last amended and changes in common contract

language have occurred. These amendments would allow contracts to be

more consistent with common practice.

DATES: Written comments must be received by RUS or carry a postmark or

equivalent by January 26, 1996.

ADDRESSES: Written comments should be addressed to Mr. Orren E.

Cameron, III, Director, Telecommunications Standards Division, Rural

Utilities Service, U.S. Department of Agriculture, Ag Box 1598, 14th

and Independence Ave., SW, Washington, DC 20250-1598. RUS requires a

signed original and 3 copies of all comments (7 CFR 1700.30 (e)).

Comments will be available for public inspection during regular

business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: Mr. Orren E. Cameron III, Director,

Telecommunications Standards Division, Rural Utilities Service, U.S.

Department of Agriculture, Ag Box 1598, Washington, DC 20250-1598,

telephone number (202) 720-8663.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule has been determined to be not significant for

purposes of Executive Order 12866 and therefore has not been reviewed

by OMB.

Executive Order 12778

This proposed rule has been reviewed under Executive Order 12778,

Civil Justice Reform. If adopted, this proposed rule will not: (1)

Preempt any State or local laws, regulations, or policies, unless they

present an irreconcilable conflict with this rule; (2) Have any

retroactive effect; and (3) Require administrative proceedings before

parties may file suit challenging the provisions of this rule.

Regulatory Flexibility Act Certification

The Administrator of RUS has determined that the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.) does not apply to this rule.

Information Collection and Recordkeeping Requirements

The reporting and recordkeeping requirements contained in the

proposed rule were approved by the Office of Management and Budget

(OMB) pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35, as amended) under control number 0572-0059.

Send questions or comments regarding this burden or any other

aspect of these collections of information, including suggestions for

reducing the burden, to F. Lamont Heppe, Jr., Deputy Director, Program

Support Staff, Rural Utilities Service, Ag Box 1522, Washington, DC

20250-1522.

National Environmental Policy Act Certification

RUS has determined that this proposed rule will not significantly

affect the quality of the human environment as defined by the National

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore,

this action does not require an environmental impact statement or

assessment.

Catalog of Federal Domestic Assistance

The program described by this proposed rule is listed in the

Catalog of Federal Domestic Assistance Programs under 10.851, Rural

Telephone Loans and Loan Guarantees. This catalog is available on a

subscription basis from the Superintendent of Documents, the United

States Government Printing Office, Washington, DC 20402-9325.

Executive Order 12372

This proposed rule is excluded from the scope of Executive Order

12372, Intergovernmental Consultation. A Notice of Final Rule entitled

Department Programs and Activities Excluded from Executive Order 12372

(50 FR 47034) exempts RUS loans and loan guarantees to governmental and

nongovernmental entities from coverage under this Order.

National Performance Review

This regulatory action is being taken as part of the National

Performance Review program to eliminate unnecessary regulations and

improve those that remain in force.

Background

Pursuant to 7 CFR part 1753, subpart B, RUS telecommunications

borrowers must use a contract to procure engineering services for

design and construction of facilities which qualify as ``major'' under

that part. The contract required is the RUS Form 217, Postloan

Engineering Services Contract.

The Form 217 contract was developed by REA (predecessor to RUS) to

meet the specific requirements of rural telecommunications borrowers,

and to meet the objectives of the RE Act. It contains provisions to

facilitate the use of RUS-required contract forms for the procurement

of outside plant, central office equipment, special transmission

equipment, and exchange switching equipment buildings. Most of the past

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revisions of the Form 217 contract have been triggered by major

revisions of these other RUS construction contracts. Prior to this

action, the RUS Form 217 contract has never been codified.

A major feature of the Form 217 contract is that engineering fees

are agreed to in a manner that makes it possible to estimate them

accurately in advance. This helps RUS ensure that funding set aside for

the construction and engineering of a project will be adequate.

On November 6, 1992, RUS published an advance notice of proposed

rulemaking (57 FR 53044) to invite comments for possible revisions to

the Form 217. Comments received were considered in developing this

proposed rule. The changes made in this proposed rule are evolutionary.

The duties and responsibilities of the contracting engineer, and its

named representatives, are specified in more detail. Design and

construction monitoring activities are more carefully defined. Many

terms used throughout the contract form are now defined. Details for

handling termination by the owner and the engineer are set forth. RUS

Form 506, used for estimating and closing the contract, is made a part

of the contract. A number of requirements of 7 CFR part 1753, subpart B

are brought in to the contract, including RUS's reduced progress

reporting requirements.

List of Subjects in 7 CFR Part 1755

Loan programs--communications, Reporting and recordkeeping

requirements, Rural areas, Telecommunications.

For reasons set out in the preamble, RUS proposes to amend Chapter

XVII of title 7 of the Code of Federal Regulations as follows:

PART 1755--TELECOMMUNICATIONS STANDARDS AND SPECIFICATIONS FOR

MATERIALS, EQUIPMENT AND CONSTRUCTION

1. The authority citation for part 1755 continues to read as

follows:

Authority: 7 U.S.C. 901 et seq., 1921 et seq.

2. Section 1755.217 is added to read as follows:

Sec. 1755.217 Postloan Engineering Service Contract, RUS Form 217.

Engineering services provided for major construction are to be

covered by the Postloan Engineering Services Contract, RUS Form 217.

The requirements and procedures for the use of this contract are

contained in 7 CFR 1753.17.

Postloan Engineering Services Contract--Telecommunications Systems

AGREEMENT made ________, ____, between ________ (hereinafter

called the ``Owner'') and ________ (hereinafter called the

``Engineer'').

In consideration of the mutual undertakings herein contained,

the parties hereto agree as follows:

Section 1. Definitions. For purposes of this Agreement the

following definitions shall be used:

Administrator. The Administrator of RUS or personnel delegated

authority to act for the Administrator.

Borrower's Environmental Report. An environmental study as

described in 7 CFR 1794. For the purposes of this contract, this is

the level of environmental review as described in 7 CFR 1794

required for the Project by RUS. In most cases of telecommunications

construction, this will be a Borrower's Environmental Report.

Contractor. A provider of goods or services for the Project,

other than the Engineer.

Construction Administration. The coordination of construction

activities.

Construction Drawings. The drawings developed through the

Staking used to guide the construction of outside plant facilities.

Cut Sheets. The complete and sequential plans for Cutover.

Cutover. The orderly integration of new facilities with existing

facilities.

Description of Project. The work and facilities listed by

principal subdivisions in Table 1.

Inspect. To monitor and examine the work of the Contractor,

compare the work to the contract, and note the details and

quantities of construction on records and progress reports.

Inspector. A representative of the Engineer who Inspects

construction and reports compliance or noncompliance to the Resident

Engineer.

Loan Design. Supplemental information which supports a loan

application, as described in 7 CFR 1737.32.

Marker. A physical indicator at the construction site to guide

the Contractor in construction of facilities.

Project. The telecommunications construction and procurements

financed by a particular RUS loan.

Resident Engineer. The representative of the Engineer who is

delegated full time ``on site'' engineering responsibilities for

Construction Administration.

Staking. The determination of the approximate location of the

facilities to be placed and creation of schematic drawings which

show the facilities located with respect to the physical terrain.

Work Sector. A localized portion of the Project.

Section 2. General.

2.01 Financing of the Project. All or part of the financing of

the Project, including costs of materials, construction,

installation, and engineering, shall be by a loan administrated by

RUS.

If the Project is financed in part by the Rural Telephone Bank,

an agency of the United States of America, the references in this

Agreement to ``The United States of America'' and the ``Government''

shall mean the ``Rural Telephone Bank'' as well, and the references

to the ``Administrator'' shall mean the ``Governor'' of the Rural

Telephone Bank as well. If the Project is financed wholly by the

Rural Telephone Bank, the references to ``The United States of

America'' and the ``Government'' shall mean the ``Rural Telephone

Bank'' and the references to the ``Administrator'' shall mean the

``Governor'' of the Rural Telephone Bank.

2.02 Compliance with Regulations. The objective of this

Agreement is for the Owner to obtain assistance in completing a

Project, while complying with RUS postloan construction regulations.

The Engineer shall, therefore, perform all services hereunder, and

render advice and assistance, so as to enable the Owner to comply

with 7 CFR Part 1753 and other applicable RUS regulations.

2.03 General Obligation. The Engineer shall, consistent with

sound professional practices, diligently and competently render the

engineering services required in this Agreement. These engineering

services shall be reasonably necessary or advisable for the

expeditious, economical, and sound design and construction of the

Project listed in Table 1 by means of the services described in this

agreement and its attachments. The Engineer shall also render other

preparatory work as is necessary to place such portion of the

Project in service, except where such duties are excluded from the

terms of this Agreement. The enumeration of specific duties and

obligations to be performed by the Engineer and included herewith,

shall not be construed to limit the foregoing general undertaking of

the Engineer, with reference to such portion of the Project.

2.04 Description of Project. The Project shall consist of the

subdivisions of the work and facilities listed by exchanges in Table

1 attached hereto.

Section 3. Miscellaneous.

3.01 Insurance. The Engineer shall take out and maintain

throughout the contract period the minimum insurance as required in

Subpart C of 7 CFR part 1788 in effect at the date of this

Agreement.

3.02 Project Schedule. The Engineer shall prepare in

collaboration with the Owner, a work and progress report schedule to

facilitate coordination of activities for Cutover of the Owner's

Project. The Engineer shall report construction progress to the

Owner monthly during all times when one or more contracts are open.

3.03 Plans and Specifications. Complete and detailed plans and

specifications, drawings, maps and other engineering documents as

required for the construction of the Project (all of the foregoing

being herein sometimes collectively called the ``plans and

specifications''), shall be prepared by the Engineer, pursuant to

the various attachments to this Agreement, and made a part hereof.

3.04 Scope of services. The Engineer shall not be obligated to

perform any services for the Project or any part thereof except to

the extent that the Project as defined in Table 1, (or the parts

thereof and the services related thereto) are delineated in (1) the

attachments to this Agreement and (2) the plans and specifications

approved by the Owner and the Administrator, as they may be amended

from time to time, prepared pursuant to this Agreement.

[[Page 66938]]

3.05 Standards. All maps, drawings, plans, specifications,

estimates, studies and other engineering documents required to be

prepared or submitted by the Engineer under this Agreement shall

conform to the applicable standard specifications and other forms

prescribed by the Administrator and in effect at the date of this

Agreement.

3.06 Termination by Owner. The Owner may at any time terminate

this Agreement by giving notice to the Engineer, in writing, to that

effect not less than thirty (30) days prior to the effective date of

termination specified in this notice. Such notice shall be deemed

given if delivered or mailed to the last known address of the

Engineer. From and after the effective date specified in such notice

this Agreement shall be terminated.

When termination is initiated by the owner, compensation for

services hereunder shall be computed as far as possible in

accordance with the provisions of the applicable attachment to this

Agreement. To the extent that the provisions of any such attachment

cannot be applied because construction is incomplete at the

effective date of such termination, then the Engineer shall be paid

for engineering services in respect to such incomplete construction,

a sum which shall bear the same ratio to the compensation which

would have been payable under the provisions of any such attachment

to this Agreement, if such construction had been completed. If

requested by the Owner, the Engineer shall submit to the Owner in

duplicate a certified statement of the Engineer's actual expenses in

respect of such incomplete construction. All compensation invoiced

by the Engineer and payable under this paragraph shall be due and

payable thirty (30) days after the approval by the Owner and the

Administrator of the amount due. In any case, compensation shall be

due 30 days after the date Project documentation is delivered to the

Owner under paragraph 3.08 of this Agreement.

3.07 Termination by the Engineer. The Engineer shall have the

right, by giving to the Owner not less than thirty (30) days notice

in writing, to terminate this Agreement if the Engineer shall have

been prevented by conditions beyond the control and without the

fault of the Engineer: (i) from commencing performance of this

Agreement for a period of twelve (12) months from the date of this

Agreement; or (ii) from proceeding with the completion of full

performance of any remaining services, required of the Engineer

pursuant to this Agreement, for a period of six (6) months from the

date of last performance by the Engineer of other services required

pursuant to this Agreement. From and after the effective date

specified in such notice this Agreement shall be terminated, except

that the Engineer shall be entitled to receive compensation for

services performed hereunder, computed and payable in the same

manner as set forth in paragraph 3.06.

3.08 Project Documents. Upon final payment by the Owner to the

Engineer in accordance with the Final Statement of Engineering Fee,

RUS Form 506, the following documents in final form become the

property of the Owner and may be used by the Owner for Project

operation and future development:

1. ``As built'' system maps, in master form (electronic or

original hard copy)

2. Cable schematics

3. Construction sheets

4. Cable assignment sheets

5. All contract documents including attached plans and

specifications and final inventories.

All other documents and engineering records, including

preliminary forms of the above documents, remain the property of the

Engineer.

Upon termination of this Agreement the Engineer shall deliver to

the Owner at a mutually agreeable place within 5 working days after

the date of termination all Project documents (electronic or

original hard copy) including records, map tracings, plans and

specifications, test data, and field notes.

If requested by the Owner upon completion of the Project, the

Engineer shall deliver to the Owner those documents which are the

Owner's property, at a mutually agreed upon place and time.

3.09 Employee's Qualifications. The obligations and duties to

be performed by the Engineer under this Agreement shall be performed

by persons qualified to perform such duties efficiently. The

Engineer, if the Owner shall so direct, shall promptly replace any

Resident Engineer or other person employed by the Engineer in

connection with the Project.

For information of the Owner and the Administrator, the Engineer

shall file with the Owner statements signed by the Engineer of the

qualifications, including resumes of specific experience, and the

duties to be assigned to each Resident Engineer, Inspector and such

other personnel assigned to the Project as may be requested by the

Owner and Administrator.

The term Resident Engineer and Inspector, as used in this

Agreement shall mean a person properly trained and experienced to

perform the services required under the terms of this Agreement, and

does not mean that the person performing those duties must be a

licensed or a registered professional engineer.

3.10 License. The Engineer shall comply with all applicable

statutes pertaining to engineering and warrants that ________ (Fill

in name of individual) who shall be in responsible charge of the

Project possesses license number ________ issued by the State of

________ on the ____ day of ________.

3.11 Payments of Engineer's Employees. For each invoice the

Engineer, if requested by the Owner, shall furnish to the Owner as a

prior condition to payment, a certificate to the effect that all

salaries or wages earned by the employees of the Engineer in

connection with the Project have been fully paid by the Engineer up

to and including a date not more than thirty (30) days prior to the

date of such invoice. Before final payment under this Agreement the

Engineer shall furnish to the Owner a certificate that all of the

employees of the Engineer have been paid for services rendered by

them in connection with the Project, and that all other obligations

which might become a lien upon the Project have been paid.

3.12 Engineer's Records. The Owner and the Administrator shall

have the right to Inspect and audit all payrolls, records, and

accounts of the Engineer relevant to the work performed for the

purposes of this Agreement and the Engineer agrees to provide all

reasonable facilities necessary for such inspection and audit.

3.13 Compensation. For the purpose of this Agreement,

compensation for each type of work covered by the attachments and

thereby made a part of this Agreement shall be as outlined in said

attachments except where compensation is listed as being a ``time

and expense'' basis, in which case the rates in Table 2 attached

hereto (or as subsequently modified by approved amendments to this

Agreement) shall apply.

3.14 Taxes. Any taxes or levies (excluding Federal, State, and

local income taxes) which may be assessed against the Engineer for

services performed or payments for services performed by the

Engineer per this Agreement shall be in addition to the compensation

set forth in the attachments to this Agreement. Such taxes or levies

when paid by the Engineer shall be stated separately on all invoices

and paid by the Owner.

3.15 Interest. Interest at the rate of ____ percent (____%) per

annum shall be paid by the Owner to the Engineer on any unpaid

balance due the Engineer, commencing thirty (30) days after the

receipt of the Engineer's invoice, provided that the delay in

payment beyond such time shall not have been caused by any

conditions within the control of the Engineer. Such compensation

shall be paid ten (10) days after the amount of interest has been

determined by the Engineer and the Owner. The start date of interest

accrual is irrespective of the date of the Owner's approval of the

invoice, but the interest computation shall be based on the invoice

approved by the Owner.

3.16 Non-Assignment. The obligations of the Engineer under this

Agreement shall not be assigned without the approval in writing of

the Owner and the Administrator.

3.17 Attachments. The following listed attachments, when

checked in appropriate boxes, are attached to and made a part of

this contract, by this reference:

____ RUS Form 217a--Project Design, Assistance and Coordination;

____ RUS Form 217b--Central Office Equipment Engineering

Services;

____ RUS Form 217c--Transmission Facilities Engineering

Services;

____ RUS Form 217d--Building Engineering Services;

____ RUS Form 217e--Outside Plant Staking Services;

____ RUS Form 217f--Outside Plant Contract Document Phase

Engineering Services; and

____ RUS Form 217g--Outside Plant Construction Phase Engineering

Services.

3.18 Service Addition. When a service listed in paragraph 3.17

above is added to this contract after execution, an amendment to the

Contract is required.

3.19 Engineering Fee. The Engineer shall provide an initial

estimate, monthly updates and a final statement of engineering fees

using RUS Form 506, Statement of

[[Page 66939]]

Engineering Fees, (Exhibit B) or a facsimile thereof. Where a fixed

amount or percentage is used in the attachments checked in section

3.17 above, the same fixed amount or percentage shall be used in the

statement of engineering fees.

3.20 Contract Amendment. When the total engineering fee exceeds

the initial contract estimate by 20% or more, an amendment to the

contract shall be required as set forth in 7 CFR Part 1753.

3.21 Compensation for Corrections. No compensation shall be due

or payable to the Engineer, pursuant to this Agreement, for any

engineering services performed by the Engineer in connection with

effecting of corrections to the design or construction of the

Project, when such corrections are required as a direct result of

failure by the Engineer to properly fulfill one or more of the

Engineer's obligations as set forth in this Agreement.

3.22 Force Majeure. The Engineer shall not be held responsible

for Project delays which are a result of Owner delays, Contractor

delays or acts of God. The Engineer shall not be entitled to

additional compensation unless the delays are the result of the

Owner's negligence.

3.23 Contract Beneficiaries. Nothing under this Agreement shall

be construed to give any rights or benefits in this Agreement to

anyone other than the Owner, the Engineer and the Administrator, and

all duties and responsibilities undertaken pursuant to this

Agreement shall be for the sole and exclusive benefit of the Owner,

Engineer and Administrator and not for the benefit of any other

party. This paragraph does not relieve the Engineer of any

obligation or responsibilities conferred upon licensed engineers

under State law.

3.24 Addenda. Any addenda required for this contract should be

placed before Table 1.

3.25 Contract Completion and Closeout. Upon completion of all

services covered by this Contract, the Engineer shall execute the

Final Statement of Engineering Fee, RUS Form 506, and submit copies

to the Owner as prescribed under 7 CFR 1753 Subpart B.

IN WITNESS WHEREOF, the parties hereto have caused this

Agreement to be duly executed.

________ Owner

By ________ President

ATTEST: ________ Secretary

________ Engineer

By ________ President, Partner (Strike out inapplicable

Designation--If partnership, all partners shall sign)

ATTEST: ________ Secretary

Table 1

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Description of project (Attach supplemental sheets, as required)

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____ EXCHANGE

MILEAGE OF OUTSIDE PLANT ____

EQUIPMENT BUILDING \1\ ____

CENTRAL OFFICE EQUIPMENT \1\ ____

ASSOCIATED FACILITIES \2\ ____

OTHER \3\ ____

EXCLUDED SERVICES \2\ ____

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\1\ Insert ``new'' or ``additional'' or ``none'' as appropriate.

\2\ Insert ``none'' or list as appropriate.

\3\ Describe.

Table 2

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Schedule of Time, Expense and Equipment Usage Rates, Dated ____

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1. Time Rates. Includes all costs associated with the employees except

for those itemized in Paragraph 2, below. Job Classification and

Employee Name, if Known ________ Hourly Billing Rate ____ (Attached

supplemental sheet, as required)

2. Expense Rates. These shall include subsistence expense, if any, paid

to (or on behalf of) employees; plus reasonable employee transportation

costs; plus the cost of printing (including mailing and transportation

expenses), telephone, facsimile, and other materials and equipment

related to the Project.

3. Test Equipment and Computer Usage Rates. Description of Equipment

________ Hourly Billing Rate ____ (Attached supplemental sheet, as

required)

4. Review of Rates. To the extent that the completion date of the

Agreement, to which this Table 2 applies, shall extend 12 months beyond

the date when this Agreement is originally executed; and on each

subsequent anniversary of such Agreement this schedule of rates shall

be verified or modified in writing by the Parties, to new rates

mutually agreeable to the Parties to such Agreement, until Completion

or Termination of such Agreement as provided therein.

5. Information for Owner. With each invoice for payment, the Engineer

shall furnish the Owner information of the type outlined in a jointly

approved format similar to that shown in Exhibit A.

6. Compensation Payment. Unless otherwise specified in this Agreement,

compensation payable pursuant to Table 2 shall be due and payable ten

(10) days after approval of the Owner of the service performed and the

invoice of the Engineer, including the detail breakdown of the cost by

the portion of the Project and section of the contract for which the

service was performed. The Engineer shall be notified, within ten (10)

days of receipt of invoices, of any discrepancies which require

correction or addition as precedent for payment of such invoices by the

Owner.

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EXHIBIT A

Suggested Information and Format for Time and Expense Billing

Certificate of Time, Expense and Equipment Usage Charges

Project Designation:---------------------------------------------------

Postloan Engineering Contract, RUS Form 217:---------------------------

Name:------------------------------------------------------------------

Dated:-----------------------------------------------------------------

Classification:--------------------------------------------------------

Invoice period ending:-------------------------------------------------

Date:------------------------------------------------------------------

Service Performed *-----------------------------------------------

\*\ Service performed to be included by description of activity

and by reference to paragraph number in RUS Form 217 Attachment.

Example: Pre-Bid Conference: 217c 3 refers to conducting Pre-Bid

Conference.

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Hourly Rate----------------------------------------------------------

Number of Hours------------------------------------------------------

Extended Costs-------------------------------------------------------

Miles Driven-----------------------------------------------------------

Cost Per Mile--------------------------------------------------------

Extended Costs-------------------------------------------------------

Other Transportation---------------------------------------------------

Air Travel-----------------------------------------------------------

Other (Explain)------------------------------------------------------

Extended Costs-------------------------------------------------------

Lodging----------------------------------------------------------------

Subsistence------------------------------------------------------------

[[Page 66940]]

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Computer---------------------------------------------------------------

Rate-----------------------------------------------------------------

Hours----------------------------------------------------------------

Extended Costs-------------------------------------------------------

Date:------------------------------------------------------------------

Equipment Rental:

COE Test Equipment-----------------------------------------------------

Hourly Rate----------------------------------------------------------

Number of Hours------------------------------------------------------

Extended Costs---------------------------------------------------------

O. P. Test Equipment---------------------------------------------------

Hourly Rate----------------------------------------------------------

Number of Hours------------------------------------------------------

Extended Costs-------------------------------------------------------

Transmission Testing---------------------------------------------------

Hourly Rate----------------------------------------------------------

Number of Hours------------------------------------------------------

Extended Costs-------------------------------------------------------

OTHER EXPENSES:

Telephone Charges------------------------------------------------------

Facsimile Charges------------------------------------------------------

Printing---------------------------------------------------------------

Construction Sheets--------------------------------------------------

Maps-----------------------------------------------------------------

SUBMITTED (by Engineer):-----------------------------------------------

Title------------------------------------------------------------------

Date-------------------------------------------------------------------

APPROVED (by Owner):---------------------------------------------------

Title------------------------------------------------------------------

Date-------------------------------------------------------------------

BILLING CODE 3410-15-P

[[Page 66941]]

[GRAPHIC][TIFF OMITTED]TP27DE95.000

[[Page 66942]]

[GRAPHIC][TIFF OMITTED]TP27DE95.001

BILLING CODE 3410-15-C

[[Page 66943]]

Attachment--RUS Form 217a

Project Design, Assistance and Coordination

Section 1. Project Design.

A. Design. The Project shall be constructed in accordance with

the current Loan Design and Borrower's Environmental Report. Such

Loan Design shall be based on the latest applicable criteria as

specified by the Owner and the Administrator.

When necessary for the preparation of plans and specifications,

the Engineer shall, upon request of the Owner and with the approval

of the Administrator: (1) Revise as necessary the Loan Design and

Borrower's Environmental Report; (2) prepare or revise as necessary

the outside plant design; (3) make measurements and analyses of

existing traffic; (4) make tests of existing cable, including the

determination of field locations for treatment of existing

facilities associated with installation of carrier equipment; and

(5) submit the resulting Loan Design and Borrower's Environmental

Report to the Owner in a format suitable for approval by the

Administrator.

B. Change in Design. If, after the approval of the Loan Design,

Borrower's Environmental Report, or plans and specifications by the

Owner and the Administrator, it shall be determined by the Owner

that any change is required, the Engineer shall prepare such

revisions in the Loan Design, Borrower's Environmental Report, and

plans and specifications, or any part thereof, as is necessitated by

the changes in requirements for service, design criteria, or other

reasons arising during the performance of services for the Project.

Section 2. Assistance To Owner. The Engineer, to the extent

requested by the Owner, shall assist the Owner with obtaining

agreements and authorizations required for the Project, including

without limitation the furnishing of engineering information and

drawings and participating in obtaining:

A. Toll, EAS, operator assistance, special services and other

connecting company commitments;

B. Joint use or joint occupancy agreements with other utilities;

C. Permits for crossing public roads, railroads, navigable

streams or bodies of water;

D. Right-of-way authorizations, easements, and other permits

necessary for encroachment on public or private lands;

E. Authorizations from regulatory bodies and franchises from

public bodies; and

F. Environmental studies and clearances.

Section 3. Coordination. The Engineer, to the extent requested

by the Owner, shall coordinate the work of others engaged in the

Project, including work performed or supervised by the Owner,

architect, and other engineers, to facilitate expeditious and

economical completion of the Project. Services pursuant to this

section shall be in addition to, and shall not include, services

required by other provisions of this Agreement.

Section 4. Plant Records. The Owner shall furnish to the

Engineer current and accurate plant records. If such records are not

available the Owner may direct the Engineer to update existing

records to current status. This may include conversion of existing

records to a new medium.

Section 5. Compensation. The Owner shall pay the Engineer for

services performed pursuant to this RUS Form 217a the ``time and

expense'' compensation as defined in Table 2 of this Agreement.

Section 6. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217a - Project Design, Assistance and

Coordination).

Attachment--Form 217b

Central Office Equipment Engineering Services

Section 1. Review of Requirements. Prior to the preparation of

plans and specifications, the Engineer shall review with the Owner

the current and future requirements of the Project, in respect to

central office equipment additions, replacements, modifications or

complete new offices. The Engineer, to the extent requested by the

Owner, shall prepare such studies as the Owner may require to

support the selection by the Owner of the final design plan.

Section 2. Plans and Specifications and Contracts.

A. Preparation of Plans and Specifications. Plans and

specifications shall be prepared by the Engineer in accordance with

standard RUS specifications and requirements for central office

equipment, and shall be submitted to the Owner in a format suitable

for approval by the Administrator.

B. Bidders Qualifications. The Engineer shall review with the

Owner all Bidder qualifications and shall prepare and furnish to the

qualified bidders the plans and specifications upon the conditions

provided in the applicable standard RUS contract forms and in

accordance with 7 CFR Part 1753.

C. Bid or Proposal. The Engineer shall be available to each

prospective bidder for consultation with respect to the details of

the plans and specifications and all other matters pertaining to the

preparation of the proposals for the supply of equipment or services

therefore. All changes to or clarifications of the plans and

specifications provided to one prospective bidder shall be provided

by the Engineer in writing to all other prospective bidders and to

the Owner.

The Engineer shall attend and supervise all technical prebid

review meetings and openings of quotes for the furnishing of

equipment or services therefor. Where additions to existing

equipment are proposed, a quote may be solicited from the original

supplier or separate materials and installation contracts may be

requested from several suppliers. The Engineer shall carefully check

all quotes received and shall render to the Owner assistance in

connection with the Owner's consideration of the quotes received so

that contracts may be prudently and properly awarded.

The Engineer shall submit in writing to the Owner

recommendations of first and second choice of bidders stating the

reasons therefor, or, if the analysis of quotes indicates that no

quote is satisfactory because of prices or other conditions, the

Engineer shall recommend to the Owner that all quotes be rejected,

giving reasons therefor. Unless otherwise directed by the Owner, the

Engineer shall proceed in respect to rebidding in the manner

provided for herein for the initial bidding.

D. Award of Contract. The Engineer shall prepare and furnish to

the Owner three (3) copies of a detailed tabulation of all the bids

or quotes and a tabulation showing the bidders' names and totals.

The Owner shall submit to the Administrator the bidding information

required for approval of the award of the contract by the

Administrator. Upon receipt of notice from the Owner of the

Administrator's approval of the award of the contract, the Engineer

shall prepare contracts in accordance with 7 CFR Part 1753.

E. Contract Amendments. If, after the equipment contract and the

installation contract have been approved by the Owner and the

Administrator, it shall be determined by the Owner that any change

or changes in the plans and specifications are advisable, the

Engineer shall prepare and submit a contract amendment in accordance

with 7 CFR Part 1753.

F. Customer Information and Engineering Meeting. If necessary,

the Engineer shall arrange, at a mutually agreeable time, a Customer

Information and Engineering Meeting with the Owner, Contractor and

Engineer to review the Contractor's proposal, equipment lists,

software, data requirements, translation requirements, etc. prior to

beginning of manufacture.

G. Compliance. The Engineer shall review all equipment lists,

manufacturer's drawings, and other data submitted by the Contractor,

to determine apparent compliance of such lists, drawings and other

data with the approved contract. This shall not relieve the

Contractor of its obligation to meet the performance specifications

of the contract.

H. Pre-Installation Meeting. The Engineer shall arrange at a

mutually agreeable time, a pre-installation meeting between the

Contractor, Owner and Engineer, after the installer has arrived at

the contract site, to clarify areas of responsibility, check

scheduling and to determine the Contractor's proposed compliance

with the plans and specifications.

I. Progress Reports. A competent representative of the Engineer

shall make periodic visits to the equipment installation site to

Inspect the progress and quality of the executed work and to

determine, in general, if the work is proceeding in accordance with

the contract. The Engineer shall report at least monthly to the

Owner in writing stating the results of Inspections. When the

Engineer observes any failure of the executed work or work in

progress to comply with the requirements of the contract, this shall

be reported to the Owner immediately. These reports shall include

suitable recommendations. If the engineer observes an unsafe

practice, his only responsibility shall be to consult immediately

with the Contractor and if his concerns are not satisfied, to notify

the Owner immediately.

Section 3. Tests. The Engineer shall conduct, or cause to be

conducted by the installer, such tests of all such equipment as

required by the Owner and the Administrator to determine that the

equipment meets the

[[Page 66944]]

performance requirements of the plans and specifications. The Engineer

shall make recommendations for the correction of performance or

operational difficulties. All cases of performance or operational

difficulties due to faulty installation or defective equipment shall

be reported to the Contractor, for correction. When the corrections

have been made, the Engineer shall retest the equipment. The

Engineer shall furnish test equipment, when required, for all

required tests or measurements performed by the Engineer.

The Owner and a representative of the Administrator will

normally conduct a final inspection of completed construction. When

requested by the Owner, a qualified representative of the Engineer

shall be present.

Section 4. Final Documents. The Engineer shall prepare or cause

to be prepared, and shall submit to the Owner for approval, in a

format suitable for approval by the Administrator, complete and

detailed final documents as specified in 7 CFR 1753 and a statement

showing the total amounts due the Contractor, pursuant to the terms

of the contract, including any amendments thereto. The final

documents shall be submitted for the Owner's approval within forty

(40) calendar days after the completion of construction based on the

date on the certificate of completion covered by each central office

equipment contract and each installation contract.

Section 5. Compensation.

A. Time and Expense. The Owner shall pay the Engineer ``time and

expense'' compensation as outlined in the current Table 2 of this

Agreement for: (1) All services performed pursuant to section 1; (2)

``rebidding'' pursuant to paragraph C of section 2; (3) all services

in connection with additions to, replacement of components in,

modifications of, or removal of, existing central office equipment;

(4) all services pursuant to paragraphs F, H, and I of section 2;

and (5) all services pursuant to section 3.

B. Percent of Cost. The Owner shall pay the Engineer for all

other services performed pursuant to this RUS Form 217b, including

final documents, for each central office equipment contract an

amount equal to: ______ percent (______%) of the first one hundred

thousand dollars ($100,000); plus ______ percent (______%) of the

next three hundred thousand dollars ($300,000); plus ______ percent

(______%) of the balance of the installed cost of such equipment for

each complete new central office equipment contract, and for each

installation contract an amount equal to ______% of such

installation contract. Ninety percent (90%) of such sums shall be

due and payable ten (10) days after approval by the Administrator of

each contract (or force account proposal) and the balance of the

compensation shall be due and payable ten (10) days after approval

by the Owner and the Administrator of a certificate of completion of

installation for each such equipment.

``Installed cost'' shall mean the total cost of labor and

materials of the central office equipment as shown on the final

inventory documents prepared by the Engineer and approved by the

Owner and the Administrator. For a materials only contract,

``installed cost'' shall mean the amount for materials shown on the

final inventory documents.

Section 6. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217b--Central Office Equipment Engineering

Services).

Attachment--RUS Form 217c

Transmission Facilities Engineering Services

Section 1. Review of Requirements. Prior to the preparation of

plans and specifications for transmission facilities the Engineer

shall review with the Owner the up-to-date requirements of the

Project, as related to transmission facilities.

Section 2. Plans and Specifications. The Engineer shall prepare,

and submit to the Owner in a format suitable for approval by the

Administrator, the plans and specifications for the purchase and

installation of such transmission facilities in sufficient time to

allow normal scheduled delivery and installation of such to

coordinate with the schedule of completion of the Project.

Section 3. Contracts.

A. Bid or Proposal. The Engineer shall be available to each

prospective bidder for consultation with respect to the details of

the plans and specifications and all other matters pertaining to the

preparation of the proposals for the supply of equipment or services

therefor. All changes to or clarifications of the plans and

specifications provided to one prospective bidder shall be provided

by the engineer in writing to all other prospective bidders and to

the Owner.

The Engineer shall attend and supervise all technical prebid

review meetings and openings of quotes for the furnishing of

equipment or services therefor. Where additions to existing

equipment are proposed, a quote may be solicited from the original

supplier or separate materials and installation contracts may be

requested from several suppliers. The Engineer shall carefully check

all quotes received and shall render to the Owner assistance in

connection with the Owner's consideration of the quotes received so

that contracts may be prudently and properly awarded.

The Engineer shall submit in writing to the Owner

recommendations of first and second choice of bidders stating the

reasons therefor, or, if the analysis of quotes indicates that no

quote is satisfactory because of prices or other conditions, the

Engineer shall recommend to the Owner that all quotes be rejected,

giving the reasons therefor. Unless otherwise directed by the Owner,

the Engineer shall proceed in respect to rebidding in the manner

provided for herein for the initial bidding.

B. Award of Contract. Upon receipt of notice from the Owner of

the Administrator's approval of the award of any contract, or bid

proposal, the Engineer shall prepare and submit contracts in

accordance with 7 CFR Part 1753.

C. Contract Amendments. If, after any such contract has been

approved by the Owner and the Administrator, it shall be determined

by the Owner that any change or changes in the plans and

specifications are advisable, the Engineer shall prepare and submit

a contract amendment in accordance with 7 CFR Part 1753.

D. Compliance. The Engineer shall review all equipment lists and

manufacturer's drawings, and other data submitted by the Contractor,

to determine apparent compliance of such lists, drawings and other

data with the approved contract. This shall not relieve the

Contractor of its obligation to meet the performance specifications

of the contract.

E. Pre-Installation Meeting. The Engineer shall arrange, when

requested by the Owner, at a mutually agreeable time, a pre-

installation meeting between the Contractor, Owner and Engineer to

clarify areas of responsibility, check delivery and completion

scheduling and to assure that the Contractor comply with the plans

and specifications.

F. Customer Information and Engineering Meeting. The Engineer

shall arrange, if necessary, at a mutually agreeable time a customer

information and engineering meeting with Owner, Contractor and

Engineer to review the Contractor's proposal, equipment lists,

software, data requirements, translation requirements, etc. prior to

beginning of manufacture.

G. Progress Reports. A competent representative of the Engineer

shall make periodic visits to the equipment installation site to

Inspect the progress and quality of the executed work and to

determine, in general, if the work is proceeding in accordance with

the contract. The Engineer shall report at least monthly to the

Owner in writing stating the results of Inspections. When the

Engineer observes any failure of the executed work or work in

progress to comply with the requirements of the contract, this shall

be reported to the Owner immediately. These reports shall include

suitable recommendations. If the engineer observes an unsafe

practice, his only responsibility shall be to consult immediately

with the Contractor and if his concerns are not satisfied, to notify

the Owner immediately.

Section 4. Tests. The Engineer shall conduct, or cause to be

conducted, such tests as required by the Owner and the Administrator

to determine that the equipment meets the performance requirements

of the plans and specifications. The Engineer shall make

recommendations for the correction of performance or operational

difficulties. All cases of performance or operational difficulties

due to faulty installation or defective equipment shall be reported

to the Contractor for correction. When the corrections have been

made, the Engineer shall retest the equipment. The Engineer shall

furnish test equipment, when required, for all required tests or

measurements performed by the Engineer.

The Owner and a representative of the Administrator will

normally conduct a final inspection of completed construction. When

requested by the Owner, a qualified representative of the Engineer

shall be present.

Section 5. Final Documents. The Engineer shall prepare or cause

to be prepared, and

[[Page 66945]]

shall submit to the Owner for approval, in a format suitable for

approval by the Administrator, complete and detailed final documents

as specified in 7 CFR 1753 and a statement showing the total amounts

due the Contractor, pursuant to the terms of the contract, including

any amendments thereto. The final documents shall be submitted for

the Owner's approval within forty (40) calendar days after the

completion of construction based on the date on the certificate of

completion covered by each transmission facilities contract and each

installation contract.

Section 6. Compensation.

A. Time and Expense. The Owner shall pay the Engineer ``time and

expense'' compensation as defined in the current Table 2 of this

Agreement for: (1) All services performed pursuant to section 1; (2)

all services in connection with additions to, replacement or removal

of components in, modifications of, relocation of existing systems

of transmission facilities; (3) ``rebidding'' pursuant to paragraph

A of section 3; (4) all services pursuant to paragraphs E, F, and G

of section 3; and (5) all services pursuant to section 4.

B. Percent of Cost. The Owner shall pay the Engineer for all

other services pursuant to this RUS Form 217c, including final

documents, for each contract or force account proposal for new

transmission facilities, an amount equal to: ______ percent

(______%) of the first fifty thousand dollars ($50,000.00); plus

______ percent (______%) of the next one hundred fifty thousand

dollars ($150,000.00); plus ______ percent (______%) of the balance

of the installed cost of each such document and for each

installation contract an amount equal to ______% of such document.

Ninety percent (90%) of such sums shall be due and payable ten (10)

days after approval by the Owner of the document for the purchase or

installation of such equipment. The balance of the compensation

shall be due and payable ten (10) days after approval by the Owner

and the Administrator of a certificate of completion of installation

for such equipment.

``Installed cost'' shall mean the total cost of labor and

materials of the transmission facilities as shown on the final

documents prepared by the Engineer and approved by the Owner and the

Administrator. For a material's only contract, ``installed cost''

shall mean the amount for materials shown on the final inventory

documents.

Section 7. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217c--Transmission Facilities Engineering

Services).

Attachment--RUS Form 217d

Building Engineering Services

Section 1. Review of Requirements. Prior to the preparation of

plans and specifications, the Engineer shall review with the Owner

the current and future requirements for buildings to be constructed

as a part of the Project.

Section 2. Plans and Specifications. The plans and

specifications for the construction of buildings shall be prepared

in sufficient time to allow normal completion of construction of the

buildings at least thirty (30) days prior to delivery of central

office equipment as specified in the central office equipment

contract. The plans and specifications shall, unless otherwise

directed by the Owner, be prepared in accordance with standard RUS

specifications and construction drawings relating thereto.

Additionally, the plans and specifications shall include such

details as the characteristics of the building site(s) may require,

including, without limitation, a plot plan and description of site

development work, if any. The plans and specifications shall be

submitted to the Owner in a format suitable for approval by the

Administrator.

Section 3. Contracts.

A. Bidder's Qualifications. After approval of the plans and

specifications by the Owner and Administrator, notices shall be sent

to prospective bidders in accordance with 7 CFR Part 1753. The names

of those so notified shall be forwarded to the Owner at the time

such notices are sent. The Engineer shall review with the Owner and

the Owner shall approve the qualifications of all prospective

bidders. The Engineer shall prepare and furnish to qualified

contractors requesting them, the plans and specifications upon the

conditions provided in the applicable standard RUS contract forms.

B. Proposals. The Engineer shall be available to each

prospective bidder for consultation with respect to the details of

the plans and specifications and all other matters pertaining to the

preparation of the proposals for the construction of the building(s)

or the supply of materials and equipment or services therefor. All

changes to or clarifications of the plans and specifications

provided to one prospective bidder shall be provided in writing to

all other prospective bidders and to the Owner.

The Owner shall return unopened the bids received from bidders

not specifically qualified to bid the plans and specifications.

The Engineer shall attend and supervise all openings of bids for

the construction of the building(s) or for the furnishing of

materials and equipment or services therefor. In the event that less

than three (3) bids are received from qualified bidders, the bids

shall remain unopened and the Engineer shall notify the

Administrator thereof immediately. Unless otherwise directed by the

Owner, the Engineer shall proceed, in respect of the rebidding, in

the manner provided for herein for the initial bidding. The Engineer

shall carefully check all bids received and shall render to the

Owner all such assistance as shall be required in connection with

consideration of the bids received so that contracts may be

prudently and properly awarded.

The Engineer shall submit in writing to the Owner

recommendations of first, second and third choice of bidders,

stating the reasons therefor, or if the analysis of bids indicates

that no bid is satisfactory because of prices or other conditions,

the engineer shall recommend to the Owner that all bids be rejected,

giving the reasons therefor.

C. Award of Contract. The Engineer shall prepare and furnish to

the Owner three (3) copies of a detailed tabulation of all the bids

and a tabulation showing the bidders' names and totals of all bids.

The Owner shall submit to the Administrator the bidding information

required for approval of the award of the contract by the

Administrator. Upon receipt of notice from the Owner of the

Administrator's approval of the award of the contract, the Engineer

shall prepare contracts in accordance with 7 CFR Part 1753.

D. Contract Amendments. If, after the contract has been approved

by the Administrator it shall be determined by the Owner that any

change or changes in the plans and specifications are advisable, the

Engineer shall prepare and submit a contract amendment in accordance

with 7 CFR Part 1753.

E. Compliance. The Engineer shall review all shop and

manufacturer's drawings, construction detail variations, and other

data submitted by the Contractor, to determine apparent compliance

of such lists, drawings and other data with the approved contract.

This shall not relieve the Contractor of its obligation to comply

with the plans and specifications.

F. Progress Reports. A competent representative of the Engineer

shall make periodic visits to the construction site to Inspect the

progress and quality of the executed work and to determine, in

general, if the work is proceeding in accordance with the contract.

The Engineer shall report at least monthly to the Owner in writing

stating the results of Inspections. When the Engineer observes any

failure of the executed work or work in progress to comply with the

requirements of the contract, this shall be reported to the Owner

immediately. These reports shall include suitable recommendations.

If the Engineer observes an unsafe practice, his only responsibility

shall be to consult immediately with the Contractor and if his

concerns are not satisfied, to notify the Owner immediately.

G. Final Inspection. The Owner and a representative of the

Administrator will normally conduct a final inspection of completed

construction. When requested by the Owner, a qualified

representative of the Engineer shall be present.

Section 4. Final Documents. The Engineer shall prepare, and

shall submit to the Owner in a format suitable for approval by the

Administrator, complete and detailed final documents as specified in

7 CFR 1753 and a statement showing the total amounts due the

Contractor pursuant to the terms of the construction contract,

including any approved amendments thereto. The final documents shall

be submitted for the Owner's approval within sixty (60) calendar

days after the completion of construction based on the date shown on

the certificate of completion covered by each contract.

Section 5. Compensation.

A. Time and Expense. The Owner shall pay the Engineer ``time and

expense'' compensation as defined in the current Table 2 of this

Agreement for: (1) All services performed pursuant to section 1; (2)

services performed for rebidding pursuant to paragraph B of section

3; (3) all services in connection with additions to or modifications

of existing buildings; and (4) inspection of construction pursuant

to paragraphs F and G of section 3.

B. Percent of Cost. The Owner shall pay the Engineer for all

other services performed

[[Page 66946]]

pursuant to this RUS Form 217d, including final documents, for each new

building contract included in the Project an amount equal to: ______

percent (______%) of the first fifty thousand dollars ($50,000.00);

plus ______ percent (______%) of the balance of the cost of

construction thereof, of which sums ninety percent (90%) shall be

due and payable ten (10) days after approval by the Administrator of

a contract (or force account proposal) for the construction of the

buildings; and the balance of the compensation shall be due and

payable ten (10) days after approval by the Owner and the

Administrator of a certificate of completion of construction for all

such buildings included in the Project (or in a completed section of

the Project).

``Cost of construction'' shall mean the total cost of labor and

materials (including Owner-furnished materials and labor) used in

the construction of such buildings as shown on the final documents

prepared by the Engineer and approved by the Owner and

Administrator.

Section 6. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217d--Building Plans and Specifications and

Contracts).

Attachment--RUS Form 217e

Outside Plant Staking Services

Section 1. Review of Requirements. Prior to the commencement of

Staking, the Engineer shall review with the Owner the current

requirements of the Project with respect to outside plant and

service entrance Staking. At this review, decisions shall be reached

concerning public and private rights-of-way, nominal width of

construction corridors, and design status.

Section 2. Staking Requirements.

A. General.

1. Staking for aerial plant shall include locating the proposed

line and marking all new pole and other locations as necessary to

construct the facilities.

2. Staking for buried plant shall include locating the proposed

facilities indicating all pertinent construction information

including details of the construction corridor.

3. Staking for underground plant shall include locating conduit

systems, construction corridors, marking manhole sites and detailing

all other pertinent information.

4. Staking for service entrances shall include locating

protectors on the structure, the routing of aerial or buried

entrances and the placement of markers, if required, to indicate

construction information.

B. Commencement. The Engineer, with the approval of the Owner,

shall determine when Staking of the Project shall begin. The

Engineer shall not commence Staking in any area of the Project until

the Owner has:

1. Either (a) stated in writing that right-of-way authorizations

and easements reasonably required therefor have been procured, or

(b) directed the Engineer in writing to perform right-of-way

procurement under section 2, paragraph D, of RUS Form 217a--Project

Design, Assistance, and Coordination;

2. Identified to the Engineer, by map locations, which line

segments shall be staked on public right-of-way and which line

segments shall be staked on privately owned right-of-way; and

3. Provided information to the Engineer pertaining to

limitations on width of construction corridors for each such line

segment.

The Owner shall review with the Engineer, and shall inform the

Engineer, which specific lines are to be staked. The Owner shall

furnish to the Engineer a current list of all existing and potential

subscribers by map location and grade of service for whom service is

to be furnished. When requested by the Engineer, the Owner shall

also furnish the telephone numbers of the existing subscribers. In

determining when to proceed with Staking, farming operations and

other relevant conditions shall be taken into consideration so as to

minimize the need for restaking. The Owner, when requested by the

Engineer, shall furnish a qualified person to accompany each Staking

crew for the purpose of negotiating with landowners or tenants with

respect to such right-of-way authorizations and easements, widths of

construction corridors, and locations of proposed facilities.

C. Changes.

1. If, during the progress of Staking by the Engineer, the Owner

shall change the routing or location of a particular line segment,

the Owner shall as early as practicable, notify the Engineer of such

changes. Upon such notice the Engineer shall duly note such change

and instruct the Staking crews accordingly. The same procedure shall

be followed for changes made in type or quantity of facilities

during the Staking phase of the Project.

2. If during the process of Staking, the Engineer determines

that the routing of facilities along the right-of-way designated by

the Owner would result in high costs of placement due to obstacles,

inadequate construction corridors, or other circumstances, the

Engineer shall notify the Owner and recommend alternative routing.

If alternative routing is approved by the Owner and right-of-way can

be obtained, the Engineer shall arrange to stake the facilities

along the alternate route.

D. Time of Staking.

1. The Engineer shall proceed diligently with Staking and

continue therewith in such a manner that, prior to the release of

plans and specifications to bidders, the Staking of all outside

plant facilities except service entrances shall be complete in order

that the plans and specifications shall be complete and accurate.

2. If service entrances are included in the construction

contract, Staking of the service entrances shall be completed prior

to beginning of construction in a Work Sector. If such Staking is

being performed by the Owner, the Engineer shall keep the Owner

advised of the status of construction and the Owner shall do the

Staking in a timely manner.

3. The Engineer shall perform all restaking made necessary by

changes discussed under paragraph C of section 2, above, as

necessary to minimize delays in construction.

E. Manner of Staking. The Staking shall be done in a thorough

and workmanlike manner such that construction can be completed in

accordance with the latest revision of the National Electrical

Safety Code, National Electric Code, local and State laws, rules,

regulations and orders of regulatory bodies having jurisdiction; and

the Loan Design, Borrower's Environmental Report, and specifications

approved by the Owner and the Administrator. The Engineer shall in

no case stake lines other than those shown in the approved Loan

Design except for minor re-routing and minor changes dictated by

field conditions, unless such change shall have been previously

approved by the Owner and the Administrator. The Engineer shall

replace all markers lost or removed prior to or during construction

of the Project. All costs, including costs of markers, equipment,

and other materials used in connection with the Staking, shall be

borne by the Engineer. All markers and existing poles shall be

properly identified with corresponding listing on the construction

sheets. Where it is probable that the Contractor or the Owner will

have difficulty in locating markers, the Engineer shall provide some

other suitable means to identify the location. When Staking service

entrances, the Engineer shall give due consideration to the location

of the station protector (or network interface device if it

incorporates a station protector) in relation to the availability of

adequate grounding and the length of the service drop and station

wiring.

F. Construction Sheets. The Engineer shall prepare or maintain

construction sheets in such standard form as the Owner shall require

(and as hereinafter described) to: serve as the means by which

directions are given for the construction of the Project; serve as

the permanent plant record by the Owner's facilities as built; and

identify adequately the geographical location of the facilities,

including non-standard construction corridors and cable placement

locations. The Engineer shall enter thereon all pertinent and useful

design, specifications and data governing the construction of the

Project, including, without limitations:

1. Detailed instructions on the point of attachment of the

Owner's facilities on existing pole lines employed in joint use with

others;

2. Non-standard depths for installing buried and underground

facilities;

3. The presence, but not location of, buried facilities of other

utilities when known;

4. The presence of rock when known;

5. Vegetation clearing requirements; and

6. Surface type and surface features of terrain if appropriate.

Copies of construction sheets shall be made available for sale

to all prospective bidders in advance of the pre-bid conference. For

contract construction five counterparts of the construction sheets

shall be supplied by the Engineer to the Contractor for construction

use and two copies shall be supplied to the Owner. For force account

construction three copies of the construction sheets shall be

supplied to the Owner. When revisions in Staking are necessary, the

Engineer shall issue copies of the revised construction sheets.

G. Resident Engineer. A competent Resident Engineer, with full

authority to act for the Engineer per this attachment shall be

[[Page 66947]]

maintained by the Engineer at the site of the Project at all times when

Staking or other services required under this attachment are being

performed at the site of this Project. The Resident Engineer may

also be engaged in Staking as well as in supervising the Staking

activities of other Staking crews of the Engineer. The Engineer

shall establish and maintain, in the proximity of the Project, a

field office with telephone service at all times when Staking or

other services required under this RUS Form 217e are in progress.

H. Reporting. The Engineer shall prepare, execute, and submit to

the Owner ____________________ (insert frequency of reporting--

minimal monthly) all estimates, certificates, reports and other

documents required to be executed by the Engineer pursuant to the

loan contract.

I. Joint Use or Joint Occupancy. In connection with Staking of

joint use or joint occupancy facilities the Engineer shall:

1. Prepare and submit to the Owner for approval, detailed

information on pole changes, additional poles, and other changes or

additions required in existing facilities of other parties to joint

use or joint occupancy agreements to accommodate the Owner's

facilities; and

2. Coordinate engineering activities under direction of the

Owner with other parties to joint use or joint occupancy agreements.

Section 3. Compensation. The Owner shall pay the Engineer for

services performed pursuant to this RUS Form 217e as follows:

A. Staking Fee. For all services in connection with the Staking

of the Project lines provided for in the approved Project design,

including lines which, pursuant to the direction of the Owner, with

the approval of the Administrator, shall not be constructed, and for

all other services outlined in this RUS Form 217e (except as

provided in paragraph C of section 3):

1. The sum of ______________ dollars ($______________) per mile

of existing buried plant Project lines to be modified; plus

2. The sum of ______________ dollars ($______________) per mile

of new buried plant Project lines; plus

3. The sum of ______________ dollars ($______________) per mile

of underground cable to be installed in ducts; plus

4. The sum of ______________ dollars ($______________) per mile

of new aerial Project lines; plus

5. The sum of ______________ dollars ($______________) per mile

of existing aerial Project lines to be modified; plus

6. The sum of ______________ dollars ($______________) per mile

of new joint use or joint occupancy Project lines; plus

7. The sum of ______________ dollars ($______________) per mile

of existing Project lines to be removed where no construction or

modification work is to be performed; plus

8. The sum of ______________ dollars ($______________) for each

new service entrance staked and for which a construction sheet is

prepared and each existing service drop to be modified as part of

the Project; plus

9. The sum of ______________ dollars ($______________) for each

subscriber shown on the construction sheets.

For purposes of this section ``modified'' means rearrangements,

additions, change of pair assignments, etc., which require

preparation of construction sheets to implement.

The length of the Project lines shall be determined by taking

the sum of all distances between terminal points for underground

cable and buried cable or conductor, and new service entrances added

as part of the Project and all distances between pole markers or

from center to center of poles carrying aerial conductor or cable,

including joint use or joint occupancy poles, plus the vertical

distances parallel to vertical cable runs for aerial cable

installations.

B. Time and Expenses. The Owner shall pay the Engineer ``time

and expense'' compensation as defined in the current Table 2 of this

Agreement for all services performed in this RUS Form 217e in

connection with: section 1; paragraph C of section 2; paragraph I of

section 2; and for the replacement of markers made necessary by

causes beyond the control of the Engineer.

C. Payments. Compensation under paragraph A of this section 3

shall be due and payable ten (10) days after delivery to the Owner,

on a monthly basis, a copy of the construction sheets representing

the Staking completed during that month and a recapitulation of the

mileage of the various types of line covered by such construction

sheets and by previous construction sheets for which compensation

has been requested.

The Staking shall be subject to review and inspection by the

Owner and the Administrator. The Engineer, when notified to do so by

the Owner or the Administrator, shall correct such Staking as the

review and inspection may indicate to be necessary. Such review and

payments shall not constitute unqualified approval of the Staking.

Where restaking is required for reasons within the control of the

Engineer, no additional compensation shall be payable.

The compensation payable for lines actually constructed, shall

be adjusted to the number of units actually constructed or actually

completed as part of the construction of the Project, as reflected

in the final documents. Compensation payable for lines which have

been staked, but which shall not be constructed, shall be determined

from the construction sheets as covered by line abandonment order.

D. Plant Retained in Place. Compensation under this section, for

Staking existing Project lines on which modification work is to be

performed, shall include compensation for the designation of

assembly units of existing plant to be retained in place, and shown

on the construction sheets.

Section 4. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217e--Outside Plant Staking Services).

Attachment--RUS Form 217f

Outside Plant Contract Document Phase Engineering Services

Section 1. Review of Requirements

The Engineer shall use the Loan Design and other information

furnished by the Owner under this Agreement as the basis for the

preparation of the plans and specifications. Prior to the beginning

of the preparation of the plans and specifications, the Engineer

shall review with the Owner all data furnished to determine the most

recent requirements for facilities to be included in the plans and

specifications.

Section 2. Map Tracings and Other Data

Prior to and during the preparation of the plans and

specifications by the Engineer, the Owner, if it has not previously

done so by other provisions of this Agreement, shall furnish any of

the following items needed by the Engineer:

A. Up-to-date tracings of the detail and town maps of the area

of the proposed system on which the Loan Design was based and which

show the existing system, and a tracing of the key map when a key

map is required by the Owner;

B. Up-to-date cable schematics (cable plant layout), and

construction sheets showing the existing system construction;

C. Up-to-date line and station data on existing subscribers;

D. The Loan Design and Borrower's Environmental Report on which

the loan was based;

E. Current information as to the location and extent of electric

and other lines available for joint use, together with conformed

copies of all existing joint use or joint occupancy agreements

covering such lines;

F. Current listing of existing, signed, and potential

subscribers by map location and grade of service to be considered in

the preparation of the plans and specifications. The list of

existing subscribers shall be properly referenced to the line and

station data;

G. Detailed lists of materials on hand, or on order, which are

to be furnished by the Owner in the construction of the Project,

together with the quantity and value of each item of such materials;

and

H. A written statement setting forth the scope of plans and

specifications and the sequence in which the construction shall be

performed and whether service entrances are to be included in the

plans and specifications.

The map tracings, schematics, and construction sheets are to be

of suitable material capable of allowing corrections to be made of

the information shown thereon and capable of being reproduced.

Section 3. Schematics, Assignments, and Cut Sheets.

A. Cable Schematics. The Engineer shall prepare cable schematics

in such form as the Owner shall require to: (a) serve as a means by

which directions are given for connecting feeder cable and

distribution cable pairs, cross-connection terminals, connecting

load coils, and such other directions as may be necessary for

properly splicing the feeder cables, distribution cables and other

facilities being installed; (b) serve as the permanent circuit

assignment record of the Owner's cable and wire facilities; and (c)

adequately identify the physical location of all equipment, devices

and connections other than services, associated with the pairs of

[[Page 66948]]

such feeder cable and distribution cable facilities.

B. Circuit and Number Assignments. If requested by the Owner,

the Engineer shall prepare telephone number assignments and shall

identify the circuit to which the service is to be connected for

station installations, including without limitation such information

with respect to central office equipment connections as may be

required.

C. Cut Sheets. Where modification of existing lines is to be

performed, the Engineer shall furnish in such form as the Owner

shall require complete and detailed information, collectively known

as ``Cut Sheets'' for: (a) making such changes in circuit

connections in the existing outside plant as may be required,

including without limitation all associated devices such as load

coils, terminals, and temporary connections; (b) making such changes

in telephone number assignments and service connections as may be

required, including without limitations, the corresponding

connection changes required at the central office end; and (c)

designating the sequence to be followed in making such changes.

Section 4. Outside Plant Plans and Specifications and Contracts.

A. Plans and Specifications. The Engineer shall, to the extent

not previously prepared under other provisions of this Agreement,

prepare and review with the Owner complete and detailed plans and

specifications, drawings, maps and other documents required for the

construction of the outside plant facilities to be included as a

part of the Project. During the preparation of the plans and

specifications, the Engineer shall make such changes in the plans

and specifications as may be reasonably required by the Owner as a

condition of approval by the Owner and Administrator.

B. Content of Plans and Specifications. The plans and

specifications for outside plant shall be prepared in sufficient

time to allow normal completion of construction of the outside plant

to coincide with the established service dates and shall include the

following:

1. One copy of the key map of the system, when a tracing is

furnished by the Owner.

2. One copy (or more if necessary for clarity) of the central

office area detail maps (sometimes referred to as exchange detail

maps) and town maps of the system, on which there shall be indicated

the following:

a. Location of lines to be constructed, indicating joint use or

joint occupancy lines;

b. Location of switching centers and pair-gain devices;

c. Location of existing lines included as part of the proposed

system and modification of such lines;

d. Location of existing lines to be retired;

e. Locations other than service entrances, where right-of-way

has not been obtained;

f. Work Sectors indicating sequence of construction;

3. Complete drawings of each type of non-standard RUS unit

covering the construction and the materials to be used.

4. An estimate of quantities of the various units of

construction.

5. A complete cable plant layout and cable schematics, when

applicable, for each central office area as prepared pursuant to

paragraph A of section 3.

6. If the Project contains requirements for installation of

underground conduit, manholes and associated appurtenances, the

Engineer, during the preparation of the plans and specifications,

shall secure field data necessary for the proper design of such

facilities (including plan and profile data, if required, and detail

construction drawings, including cable to be installed), and shall

proceed with the preparation of detailed plans and specifications

for the construction of such facilities. Such drawings and

specifications, when completed, shall be added to, and made a part

of, the construction plans and specifications.

7. An itemized list of materials on hand or on order to be

furnished by the Owner, showing the locations of delivery points and

delivery schedules of such materials, the quantity, unit price and

extended price.

8. The form of the contract to be entered into between a

Contractor and the Owner for the construction of the outside plant,

including forms of notice and instructions to bidders, Contractor's

proposal, materials and construction specifications, Contractor's

bond, description of assembly units and construction drawings.

Note: Plans and specifications for outside plant facilities to

be constructed under a force account proposal do not require Items 7

and 8, above.

C. Contracts.

1. Upon receipt of notice by the Engineer from the Owner of the

Administrator's approval of the plans and specifications, the

Engineer shall, unless otherwise instructed by the Owner, with the

approval of the Administrator, proceed to take all usual and

customary actions, including compliance with the procedures set

forth herein and in 7 CFR Part 1753, to facilitate full, free, and

competitive bidding for the award of contracts.

2. Notices to Bidders shall be sent in accordance with Subpart F

of 7 CFR Part 1753. The Engineer shall then review with the Owner

and the Owner shall approve the qualifications of bidders who

replied to the notice, as a condition of release of bid documents to

any such bidder. The Engineer shall prepare and furnish to such

qualified bidders the appropriate bid documents including

construction sheets, and the plans and specifications upon the

conditions provided in the applicable standard RUS contract forms.

The construction sheets shall be furnished upon payment of

reasonable charges. The Engineer shall also prepare and furnish,

upon payment of reasonable charges, to material suppliers requesting

them, copies of the Contractor's proposal sheets for outside plant

together with any special drawings or material specifications

pertaining thereto and a list of materials to be furnished by the

Owner.

3. The Engineer shall conduct a Pre-Bid Conference in accordance

with Subpart F of 7 CFR Part 1753 and shall be available to each

prospective bidder for consultation with respect to the details of

the plans and specifications and all other matters pertaining to the

preparation of the proposals for the construction, or the supply of

materials and equipment or services therefor. All changes to or

clarifications of the plans and specifications provided to one

prospective bidder shall be provided in writing to all other

prospective bidders and to the Owner.

4. The Engineer shall attend and supervise all openings of bids

for the construction, or for the furnishing of materials and

equipment or services therefor. The Owner shall return unopened bids

received from Bidders not previously qualified under paragraph C2 of

this section. In the event that bids are received from less than

three (3) qualified bidders, the bids shall remain unopened and the

Owner shall notify the Administrator thereof immediately. If

directed by the Owner, the Engineer shall proceed in respect of the

rebidding, in the manner provided for herein for the initial

bidding. The Engineer shall check the assembly unit prices and

summarize of all bids received. The Engineer shall render to the

Owner assistance in connection with the Owner's consideration of the

bids received so that contracts may be prudently and properly

awarded. The Engineer shall submit to the Owner a written

recommendation for award of the contract or rejection of all bids

stating the reasons therefor.

5. The Engineer shall prepare and furnish to the Owner three (3)

copies of the detailed proposal sheets or a detailed tabulation of

the low bid, and a tabulation showing the names and totals of all

bids. The Owner shall submit to the Administrator the bidding

information for approval by the Administrator of the award of the

contract. Upon receipt of notice from the Owner of the

Administrator's approval of the award of the contract, the Engineer

shall prepare three (3) counterparts of the construction contract to

be executed by the Owner and the successful bidder and the Owner

shall forward such executed counterparts to the Administrator for

approval.

6. If, after the construction contract has been approved by the

Owner and the Administrator, it shall be determined by the Owner

that any changes in the plans and specifications are advisable, the

Engineer shall prepare and submit a contract amendment in accordance

with 7 CFR Part 1753.

D. Force Account.

1. If all or a portion of the Project, shall be constructed by

force account, the Engineer shall prepare a force account proposal

in accordance with Subpart G of 7 CFR Part 1753.

a. When requested by the Owner, the Engineer shall prepare an

itemized list of the total quantities of all items of materials

required for the construction showing in addition the quantity of

each item of materials the Owner has on hand based on the list

furnished by the Owner pursuant to paragraph G of section 2.

b. The force account proposal shall include an estimate,

prepared in collaboration with the Owner, of the unit construction

costs in substantially the same form as the Contractor's proposal in

the standard contract form, and a summary of the total estimated

cost of construction, setting forth the following:

[[Page 66949]]

(1) The total Cost of labor and other;

(2) The total Cost of materials; and

(3) The number of calendar days required for the construction.

2. After receipt of notice by the Engineer from the Owner of

approval by the Administrator of the force account proposal, the

Engineer, in collaboration with the Owner, shall fix a date for the

commencement of construction. In the determination of this date,

consideration shall be given to the status of material deliveries,

Staking, easements, and the availability of competent construction

personnel and adequate equipment to facilitate continuous

construction in an efficient and expeditious manner. Such date as

agreed upon shall be submitted to the Administrator by the Owner and

the date thus established shall be the ``Commencement Date'' for the

construction. The Engineer shall be available to the Owner for

consultation with respect to the details of the plans and

specifications and all other matters pertaining to the construction

of the Project.

3. If, after the force account proposal has been approved by the

Owner and the Administrator, it shall be determined by the Owner

that any change or changes in the force account proposal are

advisable, the Engineer shall prepare and submit to the Owner all

necessary details in connection with the change or changes, and upon

approval thereof by the Owner, the proposed change or changes shall

be submitted by the Owner to the Administrator. To the extent that

the Administrator approves such proposed change or changes they

shall be included as part of the force account proposal, and the

Engineer shall immediately proceed in respect of any additional

Staking, construction, and material contracts or amendments required

thereby in like manner as though such Staking, construction, and

material contracts or amendments were originally included as part of

the force account proposal.

Section 5. Compensation

A. The Owner shall pay the Engineer for services performed

pursuant to this RUS Form 217f (except as provided in paragraph B of

this section) as follows:

1. The sum of __ dollars ($__) or when the outside plant is

divided into sections for construction purposes requiring separate

plans and specifications for each section; a sum of __ dollars ($__)

for each such section for which complete plans and specifications

are prepared; plus,

2. The sum of __ dollars ($__) for each approved amendment to

the contract; plus

3. The sum of __ dollars ($__) per mile for each mile of Project

line facilities (1) included in the plans and specifications, and

(2) added or deleted by approved amendments to the plans and

specifications; plus

4. The sum of __ dollars ($__) for each approved force account

proposal. The compensation payable under paragraph A of this section

shall be due and payable ten (10) days after the approval of the

plans and specifications or approved amendments by the Owner and the

Administrator.

B. The Owner shall pay the Engineer ``time and expense''

compensation as defined in the current Table 2 of this Agreement for

services: (1) as requested by the Owner, in connection with

corrections to, or the furnishing of, items required to be furnished

by the Owner per section 2; (2) required under section 3; (3) in

connection with underground conduits, paragraph B6 of section 4; (4)

for changes in force account plans and specifications, paragraph D3

of section 4; and (5) in connection with the conducting of the Pre-

Bid Conference, and for rebidding, paragraph C3 of section 4.

Section 6. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment (RUS Form 217f--Outside Plant Plans and Specifications

and Contracts).

Attachment--RUS Form 217g

Outside Plant Construction Phase Engineering Services

Section 1. Construction Phase.

A. General. As engineering representative of the Owner, and in

accordance with sound and accepted engineering practices, the

Engineer: (1) shall provide Construction Administration and

Inspection services; (2) shall assist the Owner in obtaining the

expeditious and economical construction of the Project in accordance

with the approved plans and specifications, the terms of the

construction contract or force account proposal, and 7 CFR Part

1753; and (3) shall have and exercise sole responsibility for the

issuance of supplemental directives to the Contractor regarding the

Contractor's performance in accordance with the terms of the

construction contract as approved by the Owner and the

Administrator. The Engineer's undertaking hereunder shall not

relieve the Contractor of the Contractor's obligation to perform the

work in conformity with the plans and specifications and in a

workmanlike manner and shall not impose upon the Engineer any

obligation to see that the work is performed in a safe manner. The

Engineer shall not be responsible for the failure of the Contractor

to perform the work in accordance with the contract or to perform

the work in a safe workmanlike manner. In fulfilling the above

responsibility, the Engineer shall as necessary:

1. Interpret the plans and specifications and convey such

interpretation to the Contractor;

2. Inspect the progress of and quality of construction, in

sufficient detail to provide reasonable assurance to the Owner of

the adequacy of such progress and quality of construction, pursuant

to the requirements of the plans and specifications and contract;

3. Confirm the acceptability of materials and equipment proposed

by the Contractor to be utilized in the construction prior to the

use of such materials or equipment on the Project and promptly

reject materials and equipment not in compliance with the plans and

specifications; and

4. Inspect the manner of incorporation of the materials and

equipment into the Project, and the workmanship with which such

materials and equipment are incorporated and reject materials,

equipment and workmanship which the Engineer determines will not be

in compliance with the plans and specifications. Such Inspection

shall be deemed to be adequate if a reasonable percentage of all

routine construction units (other than units requiring detailed

inspection) are observed at the time of installation and found free

of error.

The above enumeration of specific requirements shall not limit

the general undertakings of the Engineer to perform services set

forth in the first sentence of paragraph A of this section. The

obligations of the Engineer hereunder are for the benefit of only

the Owner and the Administrator, and shall not relieve the

Contractor of any of its own responsibilities under its contract

with the Owner.

B. Resident Engineers and Inspectors.

1. A competent Resident Engineer with full authority to act for

the Engineer shall be maintained by the Engineer at the site of the

Project at all times during the entire period of scheduled

construction (including times when the Resident Engineer is

available and through no fault of the Engineer scheduled

construction is not performed, and including times when corrective

work is being performed) unless specifically directed otherwise by

the Owner with the approval of the Administrator. A Resident

Engineer shall be necessary for each outside plant construction

contract.

2. If, at any time during construction, a Resident Engineer, or

Inspector, is not required at the Project site, or such personnel

are not available because of other responsibilities on the Project,

the Engineer shall assign a Resident Engineer and/or Inspector on an

intermittent basis, to effect necessary observations of construction

during any critical phase of such construction.

3. If the Engineer determines that particular components of the

work or particular circumstances during construction require the

presence of a specialized representative of the Engineer, such as an

architect, structural engineer, design engineer or other specialist

for the purpose of interpreting contract requirements, or performing

special inspections or tests to facilitate compliance by the

Contractor with the plans and specifications and terms of the

construction contract, the Engineer with prior approval of the Owner

shall assign such personnel to the Project site.

4. The Engineer shall maintain at the site of the Project and

under the direct supervision of the Resident Engineer a sufficient

number of qualified inspectors, to fully discharge the

responsibility of the Engineer pursuant to paragraph A of this

section (including times when such assigned inspectors are available

and through no fault of the Engineer scheduled construction is not

performed). The number of inspectors so required will vary with the

size of the Project, the number of construction crews, and the speed

of construction.

5. The number of resident engineers and inspectors required by

the Engineer for a routine construction schedule for this Project to

effect completion within the allowed number of scheduled ``working

days'' is as follows:

a. ________ (________) resident engineers(s);

[[Page 66950]]

b. ________ (________) inspectors(s);

6. In the event conditions should arise, through no fault of and

beyond control of the Engineer, which would require the placement by

the Engineer of additional inspectors (or resident engineers) on the

Project, to accommodate special needs of the Owner (or Contractor,

with approval of the Owner), then, with the approval of the Owner

prior to their assignment to the Project, the Engineer shall assign

such additional qualified personnel to the Project for the limited

time of such requirements.

C. Pre-Construction Conference. A competent representative from

the office of the Engineer, and the Resident Engineer (or resident

engineers) to be assigned to the Project, shall conduct the outside

plant pre-construction conference. The detailed notes taken by the

Engineer on items discussed shall be furnished to all parties. Such

notes shall be used by the Resident Engineer, as applicable, in

interpreting the plans and specifications pursuant to paragraph A1

of this section.

D. Project Office. The Engineer shall establish and maintain a

field office, with telephone service, in the proximity of the

Project when construction is in progress and shall notify the Owner

of the address and telephone number of such field office. Any

notices, instructions or communications delivered to such field

office shall be deemed to have been delivered to the Engineer.

E. Defective Construction. If the construction is by contract,

the Engineer shall notify the Contractor in writing of all observed

or otherwise determined defects in workmanship or materials in

accordance with the terms of the construction contract. If the

construction is by force account, the Engineer shall advise the

Owner relative to the correction of such defects.

F. Joint Use or Joint Occupancy. In connection with all joint

use or joint occupancy construction, the Engineer shall:

1. Coordinate construction activities for the Owner with the

designated representative of other parties to joint use or joint

occupancy agreements;

2. Review for the Owner all changes proposed by other parties to

joint use or joint occupancy agreements for changes in and additions

to their existing pole lines under such agreements and submit to the

Owner recommendations thereon.

G. Tests. The Engineer shall conduct, or cause to be conducted,

such tests of circuits and equipment as required by the Owner and

the Administrator to determine compliance with the performance

requirements of the plans and specifications. The Engineer shall

make recommendations in writing for the correction of defective

materials, workmanship, or equipment. All cases of transmission or

operational difficulties due to faulty construction or defective

materials or equipment in the Project shall be reported in writing

to the Contractor for correction if the construction is by contract

or to the Owner if construction is by force account. When the

corrections have been made, the circuits and equipment shall again

be tested. The Engineer shall furnish test equipment as required for

performing all required tests or measurements.

The outside plant tests to be made on this Project are noted in

the table below:

----------------------------------------------------------------------------------------------------------------

Test or measurements Will perform or

---------------------------- participate in performing

Description of test or measurements tests

Subscriber Trunk plant ---------------------------

loop plant Owner Engineer

----------------------------------------------------------------------------------------------------------------

C.O. Ground Measurement................................. ............ ............ ............ X

Copper Shield or Shield/Armor Continuity................ X X ............ X

Conductor Continuity.................................... X X ............ X

Shield or Armor Ground Resistance....................... X X ............ X

Conductor Insulation Resistance......................... X X ............ X

DC Loop Resistance...................................... ............ ............ ............ ............

DC Loop Resistance Unbalance............................ ............ ............ ............ ............

VF Insertion Loss....................................... ............ ............ ............ ............

Loop Measurements (Loop Checking)....................... ............ ............ ............ ............

Two Person Structural Return Loss....................... ............ ............ ............ ............

One-Person Open Circuit Measurements.................... ............ ............ ............ ............

Cable Insertion Loss at Carrier Frequency............... ............ ............ ............ ............

Fiber Armor Continuity.................................. X X ............ X

Fiber Optic Splice Loss--Field.......................... X X ............ X

Fiber Optic Splice Loss--C. O........................... X X ............ X

End-to End Attenuation.................................. X X ............ X

End-to End Fiber Signature.............................. X X ............ ............

----------------------------------------------------------------------------------------------------------------

As appropriate, complete the table using these symbols:

X--These are standard tests and measurements required on facilities as desired by the owner or required by the

Administrator.

*--These tests will not be required if the distribution pairs are not cross-connected to feeder pairs at the

time of acceptance testing.

N/A--Not Applicable.

H. Connecting Companies. The Engineer shall coordinate all

engineering and construction activities with connecting companies

and shall notify the Owner when the Project, or a section thereof,

shall be ready to be placed in service. After giving such notice,

the Engineer shall, when directed to do so by the Owner, cause the

Project, or such section thereof as may be ready, to be placed in

service.

I. Reporting. The Engineers shall prepare, execute and submit to

the Owner ________ (insert frequency of reporting--minimal monthly)

all estimates, certificates, reports, and other documents required

to be executed by the Engineer pursuant to a construction contract,

a force account proposal, or the 7 CFR Part 1753. The Engineer shall

review and, if satisfactory, recommend for approval each periodic

estimate submitted by contractors prior to approval and payment by

the Owner. Such recommendations shall include a statement by the

Engineer based on the Engineer's Inspection of executed work and the

progress of the work and subject to evaluation and testing of the

work as a completed Project, that all construction for which payment

is requested has been completed and cleaned up in accordance with

the terms of the construction contract and that all defective

construction of which the Contractor shall have received fifteen

(15) or more days written notice, has been corrected.

The Engineer shall maintain a cumulative inventory of all units

of construction incorporated in the Project, showing unit prices and

extended totals, for all such units of construction. When it appears

that the previously approved contract total is likely to be

exceeded, the Engineer shall immediately notify the Owner in a

format suitable for notifying the Administrator. When requested by

the Owner or when the ``Overrun'' results in 20% above the contract

total, the Engineer shall prepare a contract amendment in accordance

with 7 CFR Part 1753 for execution by the Parties to the

construction contract, to cover the additions or changes in

construction units that are resulting in such ``Overrun''.

J. Final Inspection. The Owner and a representative of the

Administrator will normally conduct a final inspection of completed

construction. When requested by the Owner, a qualified

representative of the Engineer shall be present.

Section 2. Final Documents.

A. Contract Construction. If the Project or any portion thereof

shall be constructed

[[Page 66951]]

pursuant to a construction contract, the Engineer shall prepare and

submit to the Owner complete and detailed final documents as

specified in 7 CFR 1753 and a statement of all amounts payable by

the Owner under the construction contract. The final documents shall

be in a format suitable for approval by the Owner and subsequent

submission to the Administrator for approval. These final documents

shall be submitted to the Owner within forty-five (45) calendar days

after the completion of construction based on the date shown on the

certificate of completion covered by each contract.

B. Force Account Construction. If the Project or any portion

thereof shall be constructed by force account:

1. Within thirty (30) calendar days after completion of

construction of the Project, the Owner shall furnish to the Engineer

the following data:

a. The cost of all materials used in construction of the

Project;

b. Cost of right-of-way clearing (direct labor costs);

c. All direct labor costs chargeable to construction exclusive

of the right-of-way clearing; and

d. A list of all items of overhead cost applicable to the

construction of the Project, but excluding the cost of engineering,

legal, accounting and other professional services, interest during

construction and preliminary survey charges.

2. Within forty-five (45) calendar days after the completion of

construction of the Project, the engineer shall prepare and submit

to the Owner for approval complete and detailed final documents in

such form as the Administrator may prescribe, including without

limitation, a final inventory of construction and a final inventory

of retirements. The final documents shall contain the labor and

material unit costs based on data supplied by the Owner.

C. Number of Copies. Copies of final documents shall be

furnished in accordance with 7 CFR Part 1753.

Section 3. Plant Records.

A. Prior to Cutover. If the Owner shall have notified the

Engineer not later than ten (10) days prior to of the start of

construction in a central office area that the Owner elects to

assign to the Engineer the preparation of any of the following plant

records, the Engineer shall prepare and deliver these records to the

Owner, not later than fifteen (15) calendar days prior to the start

of Cutover of each central office area included as a part of the

Project. These records cover the Cutover work on facilities

completed as of the date of delivery of such records for each such

area. The following records shall be in such form as the Owner, with

the approval of the Administrator, may prescribe:

1. Cable schematics, corrected to show ``as constructed''

conditions of that portion of the Project as of such date;

2. Cable records data, for completed line segments as of such

date;

3. Line and station data for completed line segments as of such

date; and

4. Terminal assignment records.

B. After Cutover. The Engineer shall deliver to the Owner,

within thirty (30) calendar days after Cutover of facilities in any

completed exchange area or completed section of the Project, the

record drawings of the following plant records covering such Project

area (excluding any of such records that the Owner has previously

elected to prepare with its own forces):

1. Cable schematics, corrected to show ``as constructed''

conditions of such Project area;

2. Cable record data, for all construction completed in such

Project area;

3. Line and station records for all lines completed in such

Project area as a part of the Project;

4. Final maps, showing record drawings facilities completed in

such Project area; and

5. Final complete and detailed construction sheets, showing

facilities completed in such Project area, including the designation

of assembly units of existing plant retained in place along existing

plant lines segments on which modification work was performed as a

part of the Project.

Section 4. Inventory and Appraisal. When requested by the Owner,

the Engineer shall prepare within thirty (30) calendar days after

completion of construction of the Project and submit to the Owner an

inventory and appraisal of all existing telephone plant retained as

part of the Owner's system. The inventory and appraisal shall be in

such form and provide such data as the Owner, with the approval of

the Administrator, may prescribe.

Section 5. Compensation.

A. For Services Under sections 1, 3 and 4. The Owner shall pay

the Engineer ``time and expense'' compensation, as defined and

detailed in current Table 2 of this Agreement for all services

performed under sections 1, 3 and 4. Compensation under this section

shall not exceed ________ dollars ($________) unless said amount has

been increased by a contract amendment approved by the Owner and the

Administrator. Appropriate documentation justifying the increase

shall accompany the contract amendment.

Compensation under paragraph A of this section shall be due and

payable as follows:

1. Ninety-five Percent (95%) thereof shall be due and payable

ten (10) days after delivery each month of the invoice of the

Engineer;

2. The balance of such compensation shall be due and payable ten

(10) days after delivery of a statement by the Engineer to the Owner

certifying that all final documents prepared by the Engineer, for

execution by the Contractor, have been mailed or delivered to the

Contractor for execution.

B. For Services Under section 2. The Owner shall pay the

Engineer for all services performed under section 2 as follows:

1. The sum of ________ dollars ($________) for each service

entrance to be installed, replaced or modified during the

construction of the Project; plus

2. The sum of ________ dollars ($________); or when the Project

is divided into sections for which separate outside plant plans and

specifications are prepared, the sum of ________ dollars ($________)

for each section requiring final documents; plus the sum of ________

dollars ($________) for each mile of Project line facilities

included in the final documents. Ninety-five (95%) percent of the

compensation under this paragraph shall be due and payable ten (10)

days after approval by the Owner and the Administrator of the

respective final documents and the balance of the compensation under

this paragraph shall be due and payable ten (10) days after

completion of the Project as defined in the Table 1.

C. Bi-weekly Statement. For compensation covered by paragraph A

this section, the Engineer shall submit to the Owner a biweekly

statement showing the names of the resident engineers and

inspectors, and the actual time spent on the Project by each

Resident Engineer and each Inspector during the preceding period.

The statement should be prepared and submitted to the Owner in a

format similar to that shown in RUS Form 217, Exhibit A.

Section 6. Section Reference. Unless otherwise specified or

indicated, any reference to ``section'' shall mean within this

attachment RUS Form 217g--Outside Plant Construction-Project

Direction, Inspection, Testing and Contract Closeout.

[End of clause]

Dated: December 12, 1995.

Jill Long Thompson,

Under Secretary, Rural Economic and Community Development.

[FR Doc. 95-31096 Filed 12-26-95; 8:45 am]

BILLING CODE 3410-15-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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