[Federal Register Volume 76, Number 103 (Friday, May 27, 2011)]
[Notices]
[Pages 30904-30905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13126]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Rural Utilities Service Telecommunications Loan and Loan
Guarantee Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of elimination of the List of Materials.
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SUMMARY: Rural Development's Rural Utilities Service (RUS) and its
predecessor, the Rural Electrification Administration, (REA) have
played a leading role in helping rural America gain access to advanced
telecommunications systems, equipment and services. The List of
Materials historically has been a very useful tool in assuring product
quality and reliability. However, Rural Development is taking a
fundamentally new approach to advancing state-of-the-art
telecommunications technologies, consistent with our commitment to high
quality rural service and the efficient use of taxpayer dollars.
DATES: Effective May 23, 2011, Rural Development will no longer accept
applications for equipment to be added to the List of Materials and
will cease publication of the List of Materials for Telecommunications,
RUS Information Publication 344-2.
ADDRESSES: An open letter from RUS Administrator Jonathan Adelstein is
available at http://www.rurdev.usda.gov/RUSTelecomPrograms.html. Any
further information regarding this subject will also be posted on this
Web site.
FOR FURTHER INFORMATION CONTACT: Mr. Gary B. Allan, Acting Director,
USDA-
[[Page 30905]]
RUS-ASD, 1400 Independence Ave., SW., STOP 1550, Room 2844, Washington,
DC 20250; Tel: 202-690-4493; Fax: 202-720-1051.
Background: Technology has changed dramatically since the start of
the agency's telecommunications program in 1949. The telecommunications
equipment supply sector is very different, and far more complex and
diverse, today than it was over 60 years ago. Product life cycles have
accelerated, innovations abound and new suppliers have entered the
market.
In this new technology environment, Rural Development must operate
efficiently and effectively under current budgetary constraints.
Maintaining the List of Materials, which includes a product by product
review, simply cannot be sustained under our current budget and with
our limited staff.
To protect our loan security and compliance with continuing Buy
America statutory mandates, we will transition from a listing process
to an approach which ensures that construction financed by RUS meets
applicable industry standards. This new approach will be incorporated
into our review of individual projects and the approval of loan
advances.
Although the agency is ending the publication of the list, it is
not ending its insistence that infrastructure financed by taxpayers
through our program conform to the highest technical standards. It is
also not altering its statutory Buy America obligations. In addition to
facilitating government efficiency, this new approach will give our
customers increased flexibility to find and deploy technology that
meets the specific needs of their customers. Our staff stands prepared
to work with applicants and borrowers to help them deploy effective
technology that meets the needs of the rural communities they serve.
In addition, RUS understands that many borrowers that have put
contracts out to bid requiring utilization of the List of Materials. In
these cases, borrowers have two choices. First, they can cancel the bid
solicitation or modify the solicitation to extend the bid date or
clarify the bidding terms based upon the List of Materials no longer
being available. Or two, they can require that bidders still follow the
List of Materials that was in effect on the date the contract was put
out to bid. In the event a potential bidder does not have a copy of the
List of Materials that was in effect on the date the contract was put
out to bid, the bidder may contact RUS staff for assistance in
determining whether certain equipment was on the approved list at the
time. RUS staff stand ready to assist all customers during this
transition period.
Dated: May 23, 2011.
Jonathan Adelstein,
Administrator, Rural Utilities Service.
[FR Doc. 2011-13126 Filed 5-26-11;8:45 am]
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