23 CFR § 140.907 - Overhead and indirect construction costs.
---
identifier: "/us/cfr/t23/s140.907"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "23 CFR § 140.907 - Overhead and indirect construction costs."
title_number: 23
title_name: "Highways"
section_number: "140.907"
section_name: "Overhead and indirect construction costs."
chapter_name: "FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
subchapter_number: "B"
subchapter_name: "PAYMENT PROCEDURES"
part_number: "140"
part_name: "REIMBURSEMENT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "23 U.S.C. 101(e), 106, 109(e), 114(a), 120(g), 121, 122, 130, and 315; and 49 CFR 1.48(b)."
cfr_part: "140"
---
# 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]