Overhead and indirect construction costs.

§ 140.907 Overhead and indirect construction costs. (a) A State may elect to reimburse the railroad company for its overhead and indirect construction costs. (b) The FHWA will participate in these costs provided that: (1) 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; (2) The costs included in the distribution are limited to costs actually incurred by the railroad; (3) 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; (4) The costs are considered reasonable; (5) 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; (6) The rates are adjusted at least annually taking into consideration any overrecovery or underrecovery of costs; and (7) The railroad maintains written procedures which assure proper control and distribution of the overhead and indirect construction costs. [53 FR 18276, May 23, 1988]