Construction Program Guide

Contractor Furnished Equipment / Supplies

FHWA policy allows for participation in the Federal-aid share of the costs associated with contractor furnished equipment and/or supplies for the construction, inspection or administration of Federal-aid projects. Participation in such costs may be requested as:

• direct project related costs that are attributable to a specific Federal-aid project (subject to the limitations described below), or
• indirect costs provided the contracting agency properly develops a cost allocation plan in accordance with Mr. Wright's September 24, 1998 memorandum.

Authority/Legal Basis

1. Laws

   • Title 23 U.S.C. 302 indicates that States shall be "suitably equipped and organized" to administer Federal-aid contracts; however, this provision does not limit the types of indirect costs that are eligible for Federal-aid participation.

2. Regulations

   • Title 49 C.F.R. 18.3 provides the USDOT's definitions of project related "supplies" and "equipment".
   • Title 49 C.F.R. 18.32 lists the USDOT's guidance for equipment use and disposition, however, Federal-aid participation in the initial equipment purchase cost is guided Mr. Willett's May 5, 1993 memo titled: "Equipment Purchases for State Construction Engineering Use".

3. Orders

   • None

4. Policy

   • The FHWA Contract Administration Core Curriculum Manual summarizes the FHWA's policies and provides general guidance for bid analysis and the award of contract.
   • Policy Memoranda
     • Mr. Willett's May 5, 1993 memo titled: "Equipment Purchases for State Construction Engineering Use".

Guidance

1. General Information

   • FHWA Contract Administration Core Curriculum Manual

2. Training

   • FHWA Contract Administration Core Curriculum (Course Description)