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Reimbursement for Equipment Used on Federal-Aid Projects

(No CFR paragraph reference)

Formerly Federal-aid Policy Guide Non-Regulatory Supplement 23 CFR 140B,
August 31, 1994, Transmittal 11
See Order 1321.1C FHWA Directives Management

  1. Equipment, as defined in 2 CFR 200.33, means tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial statement purposes, or $5,000. A State or other non-Federal entity may use its own definition of equipment provided that such definition would at least include all equipment as defined above. All other tangible personal property other than "equipment," as defined above, shall be treated as supplies.
  2. Except as may be approved pursuant to specific legislative authority, reimbursement for costs of State owned equipment used on Federal-aid projects shall be as follows:
    1. Construction Engineering Equipment. The method by which a State acquires equipment to adequately meet the construction engineering requirements of a Federal-aid project (e.g., purchase by the State directly or through a construction contract with ownership transferred to the State) is irrelevant to Federal-aid participation. Federal funds will not participate directly in the purchase of the equipment. Rather, the equipment's cost will be amortized over its useful life. Federal-aid reimbursement, accounted for as a construction equipment expenditure, will be made only for that portion of the amortized cost attributable to the time the equipment is used on a specific Federal-aid project(s).
    2. Other Construction Equipment. The reimbursement procedure described above for construction engineering equipment will also be followed for other construction equipment items, acquired by the State, for use on Federal-aid construction projects by either the State or contractor. Examples include: variable message signs, temporary bridges (e.g., bailey bridge), construction barrier systems, etc.
Updated: 06/27/2017
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