U.S. Department of Transportation
Federal Highway Administration
|Subject:||Utility and Railroad Work - Contract Requirements||Date:||September 18, 1985|
|From:||Associate Administrator for Engineering and Operations||Refer To:||HNG-l2|
|To:||Regional Federal Highway Administrators, Regions 1-10
Direct Federal Program Administrator
In light of Chief Counsel's recent decision on the nonapplicability of wage rate and EEO requirements to utility and railroad let contracts, a region has raised the issue of the application of other FHWA contract requirements in this situation. Our position follows: For reimburseable utility and railroad work on Federal-aid projects, if the work is to be accomplished by a contract (including a continuing contract) let by a utility or railroad, the MBE provisions of 49 CFR 23 and the required contract provisions of 23 CFR 633 do not apply to these contracts.
Additionally, requirements of other Federal laws, such as the Clean Air Act, which cover recipients of Federal financial assistance, do not have to be applied to utility or railroad let contracts. However, this should not be construed to relieve a utility or railroad or its contractor from complying with any aspects of these other Federal laws which would apply regardless of whether Federal assistance is involved.
The above positions have been concurred in by the Office of Chief Counsel.
\s\ E. Dean Carlson for
Rex C. Leathers