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RUS Telecommunications Infrastructure Loan Program Engineering Updates

RUS Telecommunications Infrastructure Loan Program Engineering Updates. Peter Aimable, Director Northern Division Telecommunications Program, RUS. 2012 ACE RUS School and Symposium. Engineering Updates. Contract negotiations Delays on fiber delivery Contract rider

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RUS Telecommunications Infrastructure Loan Program Engineering Updates

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  1. RUS Telecommunications Infrastructure Loan Program Engineering Updates Peter Aimable, Director Northern Division Telecommunications Program, RUS 2012 ACE RUS School and Symposium

  2. Engineering Updates • Contract negotiations • Delays on fiber delivery • Contract rider • Time extensions on loans • Requesting advance of loan funds • Other issues • Q&As 2

  3. Negotiations of Outside Plant Contracts • Negotiation – any form of purchasing or contracting other than sealed competitive bidding. Any contract awarded without using the sealed competitive bidding procedure is a negotiated contract • Sealed competitive bidding is the Norm • No competitive bids are required for OSP projects of $250,000 or less including labor and materials 3

  4. Conditions for negotiating Outside Plant Contracts • Overall lack of contractors in geographic area • Short notice of completion of project (time element) • Evidence of poor bidding experience for small-dollar projects in the area • Availability of materials is critical, wherein only certain contractors have access to fiber materials on the necessary schedule • Lack of experienced contractors for specific types of project 4

  5. Few Millions Few hundreds $250,000 5

  6. Delays on fiber delivery • Proper planning – increase planning cycle • Negotiations –written RUS approval required • Supplement “A” method of providing fiber • RUS written approval is required • How will the purchase of the cables be funded initial? 6

  7. Contract Rider • Required in all new contracts, contract amendments and subcontracts submitted to RUS for approval • Intended for clarification • Rider does not change or alter any existing legal rights or obligations in RUS standard contracts • Located on RUS website at www.rurdev.usda.gov/UP_ETPW_Forms.html 7

  8. Issues with time extensions on loans • Long period of construction inactivity • No extensions on FFB guaranteed funds • One or two year extension may still be possible on some loans for extenuating circumstances but extensions are going away in the future • Extensions should be requested through Division Director with reasons and proposed draw down timeframe 8

  9. How to receive an advance of loan funds quicker • File financial report requirements promptly • Submit completed Form 481 (FRS) • Use the latest instructions for completing form • Signed by an authorized official • Include invoices for Pre-loan Engineering and Operating Equipment (vehicle, work & test equip, etc.) • Include work order summary (Form 771/771a) with proper descriptions, signatures, and GFR initials 9

  10. Other issues • Related party service (charges at cost or market value) • Disallowance on post-loan engineering services • List of materials 10

  11. Our Iceberg Is Melting Our Iceberg Is Melting Changing and Succeeding Under Any Conditions By John Kotter & HolgerRathgeber

  12. Telecom Infrastructure Loan Program Engineering Update Q&As Peter Aimable Peter.aimable@wdc.usda.gov 12

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