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§ 140.907 - Overhead and indirect construction costs.

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A State may elect to reimburse the railroad company for its overhead and indirect construction costs.

The FHWA will participate in these costs provided that:

The costs are distributed to all applicable work orders and other functions on an equitable and uniform basis in accordance with generally accepted accounting principles;

The costs included in the distribution are limited to costs actually incurred by the railroad;

The costs are eligible in accordance with the Federal Acquisition Regulation (48 CFR), part 31, Contract Cost Principles and Procedures, relating to contracts with commercial organizations;

The costs are considered reasonable;

Records are readily available at a single location which adequately support the costs included in the distribution, the method used for distributing the costs, and the basis for determining additive rates;

The rates are adjusted at least annually taking into consideration any overrecovery or underrecovery of costs; and

The railroad maintains written procedures which assure proper control and distribution of the overhead and indirect construction costs.

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§ 140.906 - Labor costs.
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§ 140.908 - Materials and supplies.