80 FR 59080 - New Equipment Contract for Telecommunications and Broadband Borrowers

DEPARTMENT OF AGRICULTURE
Rural Utilities Service

Federal Register Volume 80, Issue 190 (October 1, 2015)

The Rural Utilities Service (RUS), a Rural Development agency of the United States Department of Agriculture (USDA), is requesting public comments on streamlining the Agency's contractual process for equipment procurement by replacing type-specific Equipment Contracts, RUS Forms 397, 398, 525, 545, and the associated documents (Forms 231, 396, 396a, 397b, 397c, 397d, 397f, 397g, 397h, 517, 525a, 744, 752a, 754, and addenda) with a new, unified Equipment Contract, RUS Form 395 and the associated close-out documents (Forms 395a, 395b, 395c and 395d).

[Federal Register Volume 80, Number 190 (Thursday, October 1, 2015)]
[Proposed Rules]
[Pages 59080-59081]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-25045]


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

DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Parts 1753 and 1755

RIN 0572-AC29


New Equipment Contract for Telecommunications and Broadband 
Borrowers

AGENCY: Rural Utilities Service, USDA.

ACTION: Request for comments.

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

SUMMARY: The Rural Utilities Service (RUS), a Rural Development agency 
of the United States Department of Agriculture (USDA), is requesting 
public comments on streamlining the Agency's contractual process for 
equipment procurement by replacing type-specific Equipment Contracts, 
RUS Forms 397, 398, 525, 545, and the associated documents (Forms 231, 
396, 396a, 397b, 397c, 397d, 397f, 397g, 397h, 517, 525a, 744, 752a, 
754, and addenda) with a new, unified Equipment Contract, RUS Form 395 
and the associated close-out documents (Forms 395a, 395b, 395c and 
395d).

DATES: Comments, electronic and/or paper, must be received by November 
30, 2015 to be assured consideration. Late comments will not be 
considered.

ADDRESSES: Comments may be submitted by one of the following methods:
     Federal Rulemaking Portal at http://www.regulations.gov. 
Follow the on-line instructions for submitting comments on this final 
rule with request or comments.
     Postal Mail/Commercial Delivery: Please send your comments 
addressed to Thomas P. Dickson, Acting Director, Program Development 
and Regulatory Analysis, Rural Utilities Service, U.S. Department of 
Agriculture, 1400 Independence Avenue, STOP 1522, Room 5164, 
Washington, DC 20250-1522.
    All comments submitted in response to this document will be 
included in the record and will be made available to the public. RUS 
will make the comments publicly available online at: http://www.regulations.gov. Additional

[[Page 59081]]

information about Rural Development and its programs is available on 
the Internet at http://www.rd.usda.gov.
    How to Obtain a Copy: To obtain a copy of the proposed new RUS Form 
395, Equipment Contract, use one of the following methods:
     Internet at the following Web site: http://www.rd.usda.gov/files/UTP_form_395.pdf.
     Email/Postal: By contacting the individual listed in the 
FOR FURTHER INFORMATION CONTACT section of this document.

FOR FURTHER INFORMATION CONTACT: Aylene Mafnas, Chief, Engineering 
Branch, Policy and Outreach Division, Rural Utilities Service, 
Telecommunications Program, U.S. Department of Agriculture, STOP 1599, 
1400 Independence Ave. SW., Washington, DC 20250-1550, Telephone 
number: (202) 690-4673.

SUPPLEMENTARY INFORMATION: 

Background

    Rural Development is a mission area within the U.S. Department of 
Agriculture comprising the Rural Utilities Service, Rural Housing 
Service and Rural Business/Cooperative Service. Rural Development's 
mission is to increase economic opportunity and improve the quality of 
life for all rural Americans. Rural Development meets its mission by 
providing loans, loan guarantees, grants and technical assistance 
through more than 40 programs aimed at creating and improving housing, 
businesses and infrastructure throughout rural America.
    The Rural Utilities Service (RUS) loan, loan guarantee and grant 
programs act as a catalyst for economic and community development. By 
financing improvements to rural electric, water and waste, and telecom 
and broadband infrastructure, RUS also plays a big role in improving 
other measures of quality of life in rural America, including public 
health and safety, environmental protection, conservation and cultural 
and historic preservation.
    In order to continue to facilitate the programmatic interest of the 
Rural Electrification Act of 1936 (the ``RE Act''), as amended (7 
U.S.C. 901 et seq.), that loans and loans guaranteed by RUS are 
adequately secured, RUS has established the use of certain standardized 
forms for materials, equipment, and construction of electric and 
telecommunications systems. The use of standard forms, construction 
contracts, and procurement procedures help to assure that appropriate 
standards and specifications are maintained by the borrower in order to 
not adversely affect RUS's loan security, and ensure that loan and loan 
guarantee funds are effectively used for the intended purpose(s).
    RUS may, from time to time, promulgate new contract forms or revise 
or eliminate existing contract forms. In so doing, RUS is required by 7 
CFR 1755.29, to publish a notice of rulemaking in the Federal Register 
announcing, as appropriate, a revision in, or a proposal to amend Sec.  
1755.30(c), List of telecommunications standard contract forms. On 
February 12, 2014, RUS published a proposed rule in the Federal 
Register, (79 FR 8327) to establish a New Equipment Contract and 
associated Policies for Telecommunications and Broadband Borrowers, RUS 
Form 395 under 7 CFR parts 1753 and 1755. RUS Form 395, reflects 
present business and RUS practices, as well as changes in technology, 
services and equipment. It has come to the attention of the Agency that 
the proposed rule published in the Federal Register was not clear on 
how or where to obtain a copy of the proposed new Equipment Contract, 
RUS Form 395. RUS is issuing this Request for comments to provide an 
opportunity for interested persons to obtain a copy of the new RUS Form 
395 for their review and comment. The information collection and 
recordkeeping requirements associated with the new RUS Form 395 and its 
associated forms were submitted to OMB on February 12, 2014 and filed 
with comment.
    The purpose of this undertaking is to improve the customer service 
provided by RUS's rural telecommunications and broadband borrowers. 
Changes in competition, legislation, technologies, and regulation have 
resulted in changes to business practices in the communications 
industry. In response to these changes RUS has undertaken a 
comprehensive review of its Telecommunications and Broadband Programs' 
contracts and contracting procedures.
    The new Equipment Contract, RUS Form 395 and the associated close-
out documents (Forms 395a, 395b, 395c and 395d) will replace the 
current Equipment Specific Contracts, RUS Forms 397, 398, 525, 545, and 
the associated close-out documents (Forms 231, 396, 396a, 517, 744, 
752, 752a, and 754). The contract terms and obligations included in the 
new RUS Form 395, Equipment Contract, reflect current RUS and private 
sector industry practices, as well as changes in technology, services 
and equipment. The intent here is to streamline the contractual process 
for RUS borrowers and expedite the process of approving equipment 
procurement during RUS funded construction projects.

    Dated: July 29, 2015.
Brandon McBride,
Administrator, Rural Utilities Service.
[FR Doc. 2015-25045 Filed 9-30-15; 8:45 am]
BILLING CODE 3410-15-P