U.S. Department of Transportation
Federal Highway Administration
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Washington, DC 20590
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Construction

 

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

Laws
  • 23 USC 302 State transportation department (2012) 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.
Regulations
  • 2 CFR 200 Subpart A (10/01/2012) provides the USDOT's definitions of project related "supplies" and "equipment".
  • 2 CFR 200.313 Equipment (10/1/2012) 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".

Policy

Guidance

General Information
Training
PDF files can be viewed with the Acrobat® Reader®
Updated: 04/28/2016
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000