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FHWA Order 2-23

Order
Subject
Reimbursable Agreements
Classification Code Date Office of Primary Interest
2-23 March 8, 1973 HMS-1

FEDERAL HIGHWAY ADMINISTRATION ORDER

Transmittal 144
March 8, 1973
HMS-1


  1. MATERIAL TRANSMITTED

    Federal Highway Administration Order 2-23, Reimbursable Agreements.

  2. EXISTING ISSUANCES AFFECTED

    This is an original issuance.

  3. COMMENTS

    This order assigns responsibilities and establishes procedures for the processing of proposed reimbursable agreements, and amendments thereto, with other agencies and assures proper coordination, control and administration of such agreements.

/s/
R. R. Bartelsmeyer
Acting Federal Highway
Administrator

REIMBURSABLE AGREEMENTS

2-23
March 8, 1973

Par.

  1. Purpose

  2. Authority

  3. Definitions

  4. Applicability

  5. Policy

  6. Procedure

  7. Responsibilities

  1. PURPOSE

    To assign responsibilities and establish procedures for the processing of proposed reimbursable agreements, and amendments thereto, with other agencies and to assure proper coordination, control and administration of such agreements.

  2. AUTHORITY

    Services under reimbursable agreements are performed pursuant to 31 U.S.C. 686 or 23 U.S.C. 308.

  3. DEFINITIONS

    1. Reimbursable Agreement. A reimbursable agreement means any arrangement whereby the Federal Highway Administration (FHWA) agrees to provide goods or services to another agency in return for reimbursement of costs incurred or agrees to reimburse another agency for its costs in providing goods or services to FHWA. The following transactions are not considered reimbursable agreements for the purposes of this order:

        (1) Goods and services obtained in normal procurement practices through a central service agency such as the General Services Administration (GSA) or the Department of Transportation (DOT) Working Capital Fund. (This exclusion does not apply to transactions involving pro rata or other assessments which are considered reimbursable agreements.)

        (2) All agreements relating to foreign assistance programs. (See paragraph 6b for modified control procedure relative to foreign program agreements.)

        (3) Agreements between FHWA and a State or local government or other institution for details for personnel under 5 U.S.C. 3371 et seq.

        (4) Payments required by law to be made to another Federal agency.

        (5) Reimbursements between appropriations within FHWA.

        (6) Routine audit work specifically requested relative to contract administration when reimbursement will be at the rate established by the Interagency Procurement Committee or Defense Contract Audit Agency.

        (7) Purchase orders and contracts awarded by FHWA to other Federal agencies.

    2. Agency. As used in this order , the term agency means any Department, Bureau (or comparable organizational entity), or independent agency of the Federal Government. In transactions involving services performed by FHWA forState or local governments, private organizations, or individuals, the term agency as used in this order shall apply to such entities.

    3. Cognizant Office. This means the principal organizational unit within FHWA performing or receiving services under a reimbursable agreement or otherwise having a primary interest therein.

    4. Fiscal Transactions. From the standpoint of fiscal transactions, reimbursable agreements fall into one of three categories:

        (1) Transfer Appropriation Accounts. In this type of transaction, the reimbursing agency transfers obligating authority to the performing agency. For all practical purposes, transferred amounts become appropriations of the performing agency subject only to the submission of prescribed reports to the paying agency.

        (2) Reimbursements. In this transaction, the performing agency incurs obligations and makes payments from its own accounts subject to recovery from the paying agency of actual costs incurred. This is the most frequently used type of transaction.

        (3) Advances. This type of transaction differs from a reimbursement only in that the paying agency makes cash available to the performing agency prior to the incurring of expenses by that agency. This type is normally used only when the performing agency does not, for legal or other reasons, have the cash resources to make the payments and recover the funds after the fact.

  4. APPLICABILITY

    The provisions of this order apply to all reimbursable agreements, and amendments thereto, negotiated in the Washington Headquarters. It does not apply to local agreements negotiated in field offices or agreements with other agencies for direct construction projects.

  5. POLICY

    1. Reimbursable agreements cover a wide range of services and may involve one or more administrative actions such as contract negotiation, assignment of employed personnel, allocation of employment ceiling, allotment of funds, rental of space, allocation of computer time, and in some cases Office of Management and Budget (OMB) 2apportionments. It is therefore essential that all such agreements be reviewed for pertinent administrative as well as substantive program implications.

    2. Each reimbursable agreement will be documented by a written agreement. As a minimum, agreements shall set forth the scope of services to be performed, the period of time the agreement is in force, an estimate of the cost of such services, and the nature of the fiscal transaction, i.e., an allocation of obligating authority, an advance of funds, or reimbursement upon presentation of a claim.

    3. Each reimbursable agreement shall be coordinated in accordance with this order and other applicable directives prior to final approval.

    4. Reimbursable agreements will be approved and executed in accordance with appropriate delegations of authority set forth in FHWA Order 1-1, Federal Highway Administration Organization Manual.

  6. PROCEDURE

    To assure appropriate coordination and consistent documentation of proposed reimbursable agreements, the following procedures are prescribed:

    1. General

        (1) Requests Initiated by Other Agencies (FHWA to Be the Performing Agency. As soon as a requirement is known, the request, whether oral or written, for the FHWA to provide services subject to reimbursement, will be referred by the receiving office to the Contracts and Procurement Division on Form DOT 2300.1, Reimbursable Agreement (Attachment 1) or on Form FHWA-56, Requisition for Supplies, Services and shipments, (see the Administrative Manual, volume 35,Chapter III, Acquisition) in cases where the reimbursable agreement is related to action on a research contract.[SEE PRINTED COPY OF ORDER FOR A COPY OF THIS ATTACHMENT] The Form DOT 2300.1 will be completed to show appropriate information in blocks, 2, 3, and 4, and in block 6, a description of the purpose and scope of the services to be provided, the effective period of the agreements, and tentative funding arrangements. Blocks 1 and 5 may be left blank. When Form FHWA-56 is used, it will provide information for use in completing Form DOT 2300.1.

        (2) Requests Initiated in FHWA (FHWA to Be the Paying Agency). Any organizational unit within FHWA desiring to obtain services through another Federal agency will initiate action by submission of a requisition to the Contracts and Procurement Division, where a Form DOT 2300.1 will be prepared.

    2. Foreign Assistance Program Transactions. Transactions involving foreign governments are excluded from the definition of reimbursable agreements (paragraph 3a) and thus are exempt from the requirements of paragraphs 6a(1) and 6a(2), except that within 10 working days after execution of an agreement, in accordance with applicable delegations of authority, the cognizant office will complete Form DOT 2300.1 and forward it to the Contracts and Procurement Division as a record of the transaction. This form will be signed by an appropriate official of the cognizant office in block 7a or 7b, but the signature of the other party to the agreement will not be required on this form.

    3. Special Transactions. There are a number of one-time or continuing transactions which are included in the definition of reimbursable agreements but which require handling somewhat different from that prescribed under paragraphs 6a and 6b. Included in this category are such items as special assessments for sharing the costs of special projects initiated by the Office of the Secretary of Transportation (OST), "Flexible Funding" projects, and multi-agency grants. Any such transactions, or any other which cannot be appropriately handled under procedures prescribed in paragraphs 6a and 6b, will be referred to the Budget Division for handling, including whereappropriate, the completion of Form DOT 2300.1 for submission to the Contracts and Procurement Division.

    4. Emergency Requirements. Emergency requirements for reimbursable services may be met without full compliance with the detailed procedures of this order, provided:

        (1) There is written agreement.

        (2) The agreement is formalized by processing Form DOT 2300.1 through prescribed channels as soon as possible.

  7. RESPONSIBILITIES

    1. Cognizant Office. Prepare and submit Form DOT 2300.1 (or Form FHWA-56 when applicable) for recommended reimbursable agreements to the Contracts and Procurement Division.

    2. Contracts and Procurement Division

        (1) Review the contents of agreements initiated by other agencies for sufficiency.

        (2) Prepare Form DOT 2300.1 in accordance with the procedural requirements of this order and obtain the signature of the other party to the agreement, except in those cases where it is determined that the content and signature on the incoming request constitute a valid contractual agreement.

        (3) Coordinate proposed agreements with the cognizant FHWA program office for technical sufficiency, with the Office of Chief Counsel for legal sufficiency (as necessary), and with other offices and divisions under the jurisdiction of the Associate Administrator for Administration, including: Budget (all agreements); Finance (all agreements); Personnel and Training (any agreement involving the engagement of new employees of reassignment of current FHWA personnel); Computer Services (any agreement involving ADP services); and Administrative Services (any agreement involving the use of Government-owned or leased space).

        (4) Distribute copies of approved agreements as follows:

        Three copies to other party to agreement.

        Two copies to FHWA cognizant office (if other than those listed here).

        One copy to Budget Division.

        One copy to Finance Division.

        (5) Maintain official record copy of all reimbursable agreements processed in accordance with this order.

    3. Budget Division

        (1) Assure that resources are available for FHWA costs and the anticipated reimbursements are reflected in fund availability.

        (2) Make any necessary adjustment in allotments, ceiling allocations, or financial plans.

        (3) Verify estimate of costs involving staffing or miscellaneous other administrative expenses.

    4. Finance Division

        (1) Verify that billing and reimbursement arrangements are in compliance with accepted accounting principles and practices.

        (2) Maintain appropriate records of obligations, amounts receivable, and payments.

    5. Office of Chief Counsel. Review agreements referred by the Contracts and Procurement Division for legal sufficiency.

    6. All FHWA Offices. Provide advice and technical assistance to the extent required on any reimbursable agreement involving work or services in areas for which they have assigned program responsibilities or technical expertise.

/s/
R. R. Bartelsmeyer
Acting Federal
Highway Administrator

Attachment [SEE PRINTED COPY OF ORDER FOR A COPY OF THIS ATTACHMENT]


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