(a) This subpart implements and explains the provisions of the Loan Documents setting forth the requirements and the procedures to be followed by borrowers in purchasing and installing central office equipment financed with loan funds.
(b) Terms used in this subpart are defined in Sec. 1753.2 and RUS Contract Forms 525 and 545.
(c) Borrowers shall use RUS Contract Form 525, Central Office Equipment Contract (Including Installation), when the firm supplying the equipment will install it and RUS Contract Form 545, Central Office Equipment Contract (Not Including Installation) when the supplier of the equipment will not be installing it. In either case the appropriate specifications shall be included in the contract.
(d) Alternates, if any, specified in the P&S; shall be kept to a minimum.
(e) The borrower shall take sealed competitive bids for all central office equipment to be purchased under RUS Contract Form 525 or 545 using the procedure set forth in Sec. 1753.38(a), unless RUS approval to negotiate is obtained.
(f) The borrower may request permission to negotiate with a single supplier for additional central offices to standardize equipment on a system basis. RUS approval to negotiate must be obtained before release of the plans and specifications to the supplier. Except for remote switching terminals associated with an existing central office, RUS will not approve negotiation with a non-domestic manufacturer for the purpose of standardization because such a purchase does not meet the RE Act ``Buy American'' provisions.
(g) Materials and equipment must meet the standards and general specifications approved by RUS. Materials and equipment included in I.P. 300-4, ``List of Materials Acceptable for Use on Telecommunications Systems of RUS Borrowers'', have been accepted as meeting these requirements. If the equipment is not included in the ``List of Materials'' but has been approved for field trial installation, the borrower must in each instance obtain field trial approval from RUS prior to entering into any agreement with a supplier.
(h) Only new equipment shall be purchased unless otherwise approved by RUS.
(i) All purchases of materials and equipment are subject to the ``Buy American'' requirements.
(j) If the sealed competitive bid procedure is followed, negotiation after bid opening will not be permitted. [54 FR 39267, Sept. 25, 1989. Redesignated at 55 FR 39397, Sept. 27, 1990, as amended at 64 FR 16607, Apr. 6, 1999]