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Federal Register / Vol. 86, No. 129 / Friday, July 9, 2021 / Rules and Regulations
submit to RUS, one copy of each contract amendment which is subject to RUS approval under 1726.24b. Each contract amendment submittal to RUS
must be accompanied by a bond extension, where necessary.

Subpart BDistribution Facilities 22. Amend 1726.51 by revising paragraph b to read as follows:

1726.51

Distribution line construction.

b Procurement procedures. 1 It is the responsibility of each borrower to determine the procurement method that best meets its needs to award contracts in amounts of up to a cumulative total of $750,000 or three percent of NUP not to exceed $6,000,000, whichever is greater, per calendar year of distribution line construction including minor modifications or improvements, exclusive of the cost of owner furnished materials and equipment. Borrowers may award Cost-Plus/Hourly contracts as part of these borrower responsibility limits up to a cumulative total of $250,000 or one percent of NUP not to exceed $2,000,000, whichever is greater, per calendar year of distribution line construction including minor modifications or improvements, exclusive of the cost of owner furnished materials and equipment.
2 The borrower shall use formal competitive bidding for all other distribution line contract construction unless the RUS specifically approves an alternative method. The dollar amounts of contracts bid using the formal competitive bidding procedure do not apply to the cumulative total stipulated in paragraph b1 of this section.
3 An amendment which increases the scope of the contract by adding a project is not considered competitively bid, therefore, the dollar amount of that amendment does apply to the cumulative total stipulated in paragraph b1 of this section.

Subpart CSubstation and Transmission Facilities 23. Amend 1726.77 by revising paragraphs b and c to read as follows:

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1726.77 Substation and transmission line construction.

b Procurement procedures. 1 It is the responsibility of each borrower to determine the procurement method that best meets its needs to award contracts in amounts of up to a cumulative total of $750,000 or three percent of NUP not
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to exceed $6,000,000, whichever is greater, per calendar year of substation and transmission line construction including minor modifications or improvements, exclusive of the cost of owner furnished materials and equipment. Borrowers may award CostPlus/Hourly contracts as part of these borrower responsibility limits up to a cumulative total of $250,000 or one percent of NUP not to exceed $2,000,000, whichever is greater, per calendar year of substation and transmission line construction including minor modifications or improvements, exclusive of the cost of owner furnished materials and equipment.
2 The borrower shall use formal competitive bidding for all other contract construction unless RUS
specifically approves an alternative method. The dollar amount of contracts bid using the formal competitive bidding procedure do not apply to the cumulative total stipulated in paragraph b1 of this section.
3 An amendment which increases the scope of the contract by adding a project is not considered competitively bid, therefore, the dollar amount of that amendment does apply to the cumulative total stipulated in paragraph b1 of this section.
c Contract approval. Individual contracts in the amount of $750,000 or more or three percent of NUP not to exceed $6,000,000, whichever is greater, exclusive of the cost of owner furnished materials and equipment, are subject to RUS approval.

1726.176
facilities.

Subpart EBuildings

24. Amend 1726.150 by revising paragraph b to read as follows:

1726.150

Headquarters buildings.

b Procurement procedures. A
borrower may use Multiparty Lump Sum Quotations to award contracts in amounts of up to a cumulative total of $1,500,000 or three percent of NUP not to exceed $10,000,000, whichever is greater, per calendar year of headquarters construction including minor modifications or improvements.
The borrower shall use formal competitive bidding for all other headquarters contract construction unless RUS specifically approves an alternative method.

Subpart FGeneral Plant
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This section covers the purchase of microwave, fiber, power line carrier, and other communications technologies or systems, including load control and supervisory control and data acquisition SCADA systems, automated meter reading/automated metering infrastructure AMR/AMI, or other smart grid technologies. Mobile radio systems are covered as general plant materials in 1726.175.

b
3 Contract approval. Individual contracts in amounts of $750,000 or more or one percent of NUP not to exceed $5,000,000 for all borrowers, whichever is greater, exclusive of the cost of owner furnished materials and equipment, are subject to RUS approval.
Subpart JContract Closeout 26. Amend 1726.403 by revising paragraph c2ii introductory text to read as follows:

1726.403
closeout.

Project construction contract

c
2
ii For contracts subject to RUS
approval, the borrower will submit either a certification or the following closeout documents for RUS approval:

PART 1730ELECTRIC SYSTEM
OPERATIONS AND MAINTENANCE
27. The authority citation for part 1730 continues to read as follows:

Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.

Subpart BOperations and Maintenance Requirements 28. Revise 1730.23 to read as follows:

1730.23 Review rating summary, RUS
Form 300.

The RUS Form 300 is available from RUS and shall be used when required by this part.
Appendix A to Subpart B Removed

29. Remove appendix A to subpart B.

PART 1767ACCOUNTING
REQUIREMENTS FOR RUS ELECTRIC
BORROWERS
30. The authority citation for part 1767 continues to read as follows:

25. Amend 1726.176 by revising the introductory text and paragraph b3 to read as follows:

Communications and control
Authority: 7 U.S.C. 901 et seq., 1921 et seq., 6941 et seq.

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