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a retirement will not impair the cooperative's financial condition.

8 101-33.302 Definitions.

As used in this subpart 101–33.3, the following terms shall have the meanings stated below.

agencies, or delegate the handling of the proceeding to the referring agencies, depending on which course of action is deemed to be in the best interest of the Government. Agencies delegated intervention authority shall be responsible for representing the interests of all Federal executive agencies in the utility's service jurisdiction, and shall give a diligent effort to identify those interests. To the extent that there is a divergence of interest between the agency receiving the delegation and other agencies served by the utility, the delegated agency shall promptly notify GSA of the situation. After completion of a case, the delegated agency shall provide a report that describes the results of the intervention effort; the report will include a copy of the Public Utility Commission's decision, a summary of the rates requested and approved by the Commission, an estimate of the impact on Federal executive agencies, and a discussion of the central issues of the case. The final report shall be provided to GSA within 90 days of the issuance of the Commission's decision.

g 101-33.302-1 Capital credits.

Capital credits are patronage dividends derived from amounts paid by patrons in excess of cost of services. Agencies are informed of their share of the capital credit, if any, by written notices of allocation issued by REA-financed cooperatives.

8 101-33.302–2 REA-financed coopera


An REA-financed cooperative is a nonprofit organization that furnishes electric or telephone services to customers, including Federal agencies.

§ 101–33.303 Responsibility for ban

dling capital credit notifications. Contracting and procurement officers and other employees of Federal agencies shall forward promptly any capital credit notifications to their finance officer or other accountable official. The accountable official shall retain the notification in the official files of the

(56 FR 21311, May 8, 1991)

Subpart 101-33.3-Capital Credits


SOURCE: 36 FR 13687, July 23, 1971, unless otherwise noted. Redesignated at 43 FR 27191, June 23, 1978.


g 101-33.304 Disposition

credit retirements.


When capital credits are (a) settled by payment to the Government or (b) offset on billings to the Government, the amount received shall be deposited in the Department of the Treasury as miscellaneous receipts, or treated as a cost reduction, as appropriate.

8 101-33.301 General.

Some Federal agencies procure public utility services from Rural Electrification Administration (REA)-financed cooperatives. Since REA-financed cooperatives are nonprofit organizations, any amount paid by participating agencies (also referred to as patrons) in excess of cost of services (usually referred to as operating margins) is treated as capital furnished by such patrons. Operating margins are determined annually on a patronage basis and credited to a capital account for each patron. The cooperative returns the share of the net income credited to agencies on a revolving basis by cash payments or deductions in current service bills when the cooperative's board of directors determines that such

§ 101-33.305 Cost-reimbursement type

contracts. Federal agencies having cost-reimbursement type contracts with contractors who purchase electric or telephone service from cooperatives shall include in their contracts arrangements for handling capital credits. The applicable portion of any capital credit retirement relating to any allowable cost received by or accruing to a costreimbursement type contractor shall be credited to the Government either

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EFFECTIVE DATE NOTE: At 61 FR 41003, Aug. 7, 1996, subchapter F, consisting of part 10135, was added, effective Aug. 8, 1996 through Aug. 8, 1998. At 63 FR 27682, May 20, 1998, the effective date was extended to Aug. 8, 1999.

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Subpart 101-35.2-Authorized Use of Long

Distance Telephone Services

101–35.200 Scope of subpart.
101-35.201 Authorized use of long distance

telephone services.
101-35.202 Collection for unauthorized use.

Subpart 101-35.3—The Mandatory FTS Long

Distance Network

101-35.300 Scope of subpart.
101-35.301 The mandatory FTS long distance

101-35.301-1 General.
101-35.301-2 Policies.
101-35.301-3 Procedures.

Subpart 101-35.4-Consolidated Local

Telecommunications Service

Consolidated local telecommunication service means local telecommunications service to all Federal agencies located in a building, complex, or geographical area.

Executive agency means any executive department or independent establishment in the executive branch of the Government, including any wholly owned Government corporation (see 40 U.S.C. 472(a)).

Federal Telecommunications System (FTS) means the umbrella of local and long distance telecommunications services, including FTS2000 long distance telecommunications services, provided, operated, managed, or maintained by GSA for the common use of all Federal agencies and other authorized users.

Interoperability means the ability of telecommunications resources to provide services to and accept services from other telecommunications resources and to use the services so exchanged to enable them to operate effectively together.

Long distance telephone service means any service or facility purchased with Government funds for completing telephone calls outside of the local service

101-35.400 Scope of subpart. 101-35.401 General. 101-35.402 Policies.

Subpart 101-35.5-National Security and

Emergency Preparedness (NSEP)

101-35.500 Scope of subpart.
101-35.501 General.
101-35.502 Policy.
101-35.503 Procedures.

Subpart 101-35.6-Delegation of GSA's

Multiyear Contracting Authority for
Telecommunications Resources

101-35.600 Scope of subpart. 101-35.601 General.


National security and emergency preparedness (NSEP) means those physical,

AUTHORITY: 40 U.S.C. 486(c) and 1424(b).

technical, and administrative charac- where the Government pays the cost of teristics of telecommunications sys- the long distance call, for other than tems that will ensure a prescribed level official business, except emergency of survivability in times of national or calls and calls the agency determines other emergency mission needs of the are necessary in the interest of the Government entities that use them.


(ii) Making an unauthorized long disSubpart 101-35.1-Use of

tance telephone call with the intent to Government Telephone Systems

later reimburse the Government.

(iii) Unauthorized use of telephone 8 101-35.100 Scope of subpart.

call detail data.

(d) Procedures. Official business calls This subpart discusses the policies

may include emergency calls and other and procedures for using long distance

calls the agency determines are nectelephone service.

essary in the interest of the Govern

ment. Subpart 101-35.2-Authorized Use

(1) Telephone calls may properly be of Long Distance Telephone authorized when theyServices

(i) Do not adversely affect the per

formance of official duties by the em8 101-35.200 Scope of subpart.

ployee or the employee's organization; This subpart discusses authorized use (ii) Are of reasonable duration and of telephone systems and facilities pro- frequency; and vided, paid for, or reimbursed by the (iii) Could not reasonably have been Federal Government.

made at another time; or

(iv) Are provided for in a collective 8 101-35.201 Authorized use of long bargaining agreement that is consistdistance telephone services.

ent with this part. (a) Scope. This section describes poli- (2) Personal long distance calls that cies and procedures for the use of Gov- must be made during working hours ernment-provided and commercial long may be made over the commercial long distance telephone service paid for by distance network if consistent with the the Government.

criteria in paragraph (d)(1) of this sec(b) General. Agencies should be famil- tion and are: iar with the Office of Management and (i) Charged to the employee's home Budget (OMB) “Guidance on the Pri- phone number or other non-Governvacy Act Implications of Call Detail ment number (third-number call); Programs to Manage Employees' Use of (ii) Made to an 800 toll-free number; the Government's Telecommunications (iii) Charged to the called party if a Systems" (52 FR 12990, April 20, 1987). non-Government number (collect call);

(c) Policy. (1) Telephone calls placed or over Government-provided and com- (iv) Charged to a personal telephone mercial long distance systems that will credit card. be paid for or reimbursed by the Gov- (3) Agencies shall issue directives on ernment, shall be used to conduct offi- using telephone facilities and services. cial business only.

Agencies' contractor-operated facili(2) To the maximum extent prac- ties shall be covered by these directicable, Federal employees shall place tives. The directives may provide furcalls on Government-provided long dis- ther definition of calls necessary in the tance telephone systems and services interest of the Government and shall instead of using commercial toll serv- include procedures for collection and ices.

reimbursement for unauthorized calls. (3) In accordance with 5 CFR 2635.704, the following practices are prohibited

8 101-35.202 Collection for unauthor

ized use. and a willful violation may result in criminal, civil, or administrative ac- (a) Agencies shall collect for any untion, including suspension or dismissal: authorized calls if it is cost-effective to

(i) Use of any Government system or do so. Reimbursing the Government for service, or any other telephone service, unauthorized calls does not exempt an

employee from appropriate administrative, civil, or criminal action.

(b) Agency collections shall include

(1) The value of the call, computed on the basis of commercial long distance rates rounded to the nearest dollar; and

(2) An additional amount rounded to the nearest dollar to cover the administrative costs of determining that the call was unauthorized and processing the collection.

Subpart 101-35.3-The Mandatory

FTS Long Distance Network

8 101-35.300 Scope of subpart.

This subpart describes the GSA FTS program and contracts that are mandatory-for-use by agencies.

8 101-35.301 The mandatory FTS long

distance network.

8 101-35.301-1 General.

(a) In accordance with section 629 of Public Law 104-52, (109 Stat. 468, 504, November 19, 1995), executive agencies must use the FTS long distance network.

(b) GSA will grant exceptions to the use of the FTS long distance network when:

(1) The agency's procurement requirements are unique and cannot be satisfied by the FTS long distance network; and

(2) The agency procurement would be cost-effective and would not adversely affect the cost-effectiveness of the FTS long distance network.

(c) The FTS long distance network provides Federal agencies modern upto-date intercity telecommunications services over the life of the program. GSA will enhance existing services and add features to the FTS long distance network to maintain technologically current services and to improve services to user agencies. GSA will make service improvements in accordance with agencies' needs, contract provisions, governing regulations and statutes.

(d) As used in this FPMR, the terms intercity and long distance have the same meaning.

§ 101-35.301-2 Policies.

(a) Executive agencies shall use the FTS long distance network to satisfy intercity telecommunications requirements within the United States, Guam, Puerto Rico, or the Virgin Islands for requirements which are within the scope of the FTS long distance network voice, data, and video services as such services become available unless:

(1) The agency requests and obtains from GSA an exception to the use of the FTS long distance network based on a GSA determination that:

(i) The agency's procurement requirements are unique and cannot be satisfied by the FTS long distance network; and

(ii) The agency procurement would be cost-effective and would not adversely affect the cost-effectiveness of the FTS long distance network;

(2) The agency requests and obtains from GSA an interim exception to the use of the FTS long distance network based on an established date for transition to the FTS long distance network; or

(3) An exception to the use of the FTS long distance network for the agency is otherwise provided by law.

(b) Unless any of the exceptions listed in paragraph (a) of this section apply to the procurement, and when overall procurement requirements include any agency long distance telecommunications requirements which are within the scope of FTS services, executive agencies shall require offerors in new awards to satisfy those requirements by using the Government furnished services of the FTS long distance network as such services become available.

(c) For ease of determining and evaluating Government costs, executive agencies also shall require offerors to unbundle FTS long distance services in their offers by separately describing and pricing the FTS services that satisfy Government requirements. However, the agency solicitation may prescribe an expected solution for the use of the FTS long distance network. Offerors would then be required to separately price the Government-furnished services of FTS only if their offers show a different use of FTS than the Government's expected solution.

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