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.
- 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.
- 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".