RUS Telecommunications Infrastructure Loan Program

Engineering Updates

Peter Aimable, DirectorNorthern Division

Telecommunications Program, RUS

2012 ACE RUS School and Symposium

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

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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

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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

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Few Millions

Few hundreds

$250,000

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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?

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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

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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

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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

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Other issues

• Related party service (charges at cost or market value)

• Disallowance on post-loan engineering services

• List of materials

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Our Iceberg Is Melting

Changing and Succeeding Under Any Conditions

By John Kotter & Holger Rathgeber

Our Iceberg Is Melting

Telecom Infrastructure Loan Program Engineering Update

Q&As

Peter AimablePeter.aimable@wdc.usda.gov

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