{"data":{"id":"us/7-cfr-1726.14","jurisdiction":"us","citation":"7 CFR 1726.14","heading":"Definitions.","body":"Terms used in this part have the meanings set forth in 7 CFR 1710.2. References to specific RUS forms and other RUS documents, and to specific sections or lines of such forms and documents, shall include the corresponding forms, documents, sections and lines in any subsequent revisions of these forms and documents. In addition to the terms defined in 7 CFR 1710.2, the following terms have the following meanings for the purposes of this part:\nApproval of proposed construction means RUS approval of a construction work plan or other appropriate engineering study and RUS approval, for purposes of system financing, of the completion of all appropriate environmental review requirements in accordance with 7 CFR part 1970.\nArchitect means a registered or licensed person employed by the borrower to provide architectural services for a project and duly authorized assistants and representatives.\nBona fide bid means a bid which is submitted by a contractor on the borrower's list of qualified bidders for the specific contract, prior to bid opening.\n“Buy American” certificate means a certification that the contractor has complied with the “Buy American” requirement (see § 1726.15).\nCompetitive procurement means procurement of goods or services based on lowest evaluated bid for similar products or services when three or more bids are received.\nConstruction unit means a specifically defined portion of a construction project containing materials, labor, or both, for purposes of bidding and payment.\nContracting committee means the committee consisting of three to five members representing the borrower's management and board of directors and the engineer. The contracting committee represents the borrower during contract clarifying discussions or negotiations under informal competitive bidding or multiparty negotiation, respectively.\nEncumbrance means the process of approval for advance of loans funds by RUS.\nEngineer means a registered or licensed person, who may be a staff employee or an outside consultant, to provide engineering services and duly authorized assistants and representatives.\nEquipment means a major component of an electric system, e.g., a substation transformer, heat exchanger or a transmission structure.\nForce account construction means construction performed by the borrower's employees.\nFormal competitive bidding means the competitive procurement procedure wherein bidders submit sealed proposals for furnishing the goods or services stipulated in the specification. Bids are publicly opened and read at a predetermined time and place. If a contract is awarded, it must be to the lowest evaluated responsive bidder (see § 1726.201).\nGoods or services means materials, equipment, or construction, or any combination thereof.\nInformal competitive bidding means the competitive procurement procedure which provides for private opening of bids and allows clarifying discussions between the contracting committee and the bidders. During the clarifying discussions any exceptions to the bid documents must be eliminated, or the bid rejected, so that the contract is awarded to the lowest evaluated responsive bidder (see § 1726.202).\nMaterial means miscellaneous hardware which is combined with equipment to form an electric system, e.g., poles, insulators, or conductors.\nMinor error or irregularity means a defect or variation in a bid that is a matter of form and not of substance. Errors or irregularities are “minor” if they can be corrected or waived without being prejudicial to other bidders and when they do not affect the price, quantity, quality, or timeliness of construction. A minor error or irregularity is not an exception for purposes of determining whether a bid is responsive.\nMinor modification or improvement means a project the cost of which is $250,000 or less, exclusive of the cost of owner furnished materials.\nMultiparty lump sum quotations means the procurement of goods or services on a lump sum basis, based on the lowest evaluated offering, when three or more offers are received. (See § 1726.205).\nMultiparty negotiation means the procurement procedure where three or more bids are received and provides for negotiations between the contracting committee and each bidder to determine the bid which is in the borrower's best interest (see § 1726.203).\nNet utility plant (NUP) means Part C, Line 5 of RUS Form 7 for distribution borrowers or Section B, Line 5 of RUS Form 12a for power supply borrowers for the immediately preceding calendar year.\nProcurement method means a procedure, including, but not limited to, those in subpart G of this part, that a borrower uses to obtain goods and services.\nOwner furnished materials means materials or equipment or both supplied by the borrower for installation by the contractor.\nResponsive bid means a bid with no exceptions or non-minor errors or irregularities on any technical requirement or in the contract terms and conditions.\nRUS approval means written approval by the Administrator or a representative with delegated authority. RUS approval must be in writing, except in emergency situations where RUS approval may be given over the telephone followed by a confirming letter.\nUnit prices means individual prices for specific construction units defined in accordance with RUS approved units specified in RUS standard contract forms.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XVII—RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE","PART 1726—ELECTRIC SYSTEM CONSTRUCTION POLICIES AND PROCEDURES","Subpart A—General"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"1fc82c33f840c4324864634113246ecbb9af0bf1245b9287414fd847b77af0db","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-1726.13","next":"us/7-cfr-1726.15"},"notice":"GroundRules: Original legal text. Not legal advice."}