---
kind: "section"
citation: "14 C.F.R. § 152.203"
title: "14"
number: "152.203"
heading: "Allowable project costs."
url: "https://uscodex.org/cfr/14/152.203"
---

# §152.203. Allowable project costs.

- (a) **Airport development.** To be an allowable project cost, for the purposes of computing the amount of an airport development grant, an item that is paid or incurred must, in the opinion of the Administrator—
  - (1) **Have been necessary to accomplish airport development in conformity with—**
    - (i) The approved plans and specifications for an approved project; and
    - (ii) The terms of the grant agreement for the project;
  - (2) Be reasonable in amount (subject to partial disallowance to the extent the Administrator determines it is unreasonable);
  - (3) Have been incurred after the date the grant agreement was executed, except that project formulation costs may be allowed even though they were incurred before that date;
  - (4) Be supported by satisfactory evidence;
  - (5) Have not been included in an airport planning grant; and
  - (6) Be a cost determined in accordance with the cost principles for State and local governments in Federal Management Circular 74-4 (39 FR 27133; 43 FR 50977).
- (b) **Airport Planning.** To be an allowable project cost, for the purposes of computing the amount of an airport planning grant, an item that is paid or incurred must, in the opinion of the Administrator—
  - (1) Have been necessary to accomplish airport planning in comformity with an approved project and the terms of the grant agreement for the project;
  - (2) Be reasonable in amount;
  - (3) Have been incurred after the date the grant agreement was entered into, except for substantiated and reasonable costs incurred in designing the study effort;
  - (4) Be supported by satisfactory evidence; and
  - (5) **Be figured in accordance with Federal Management Circular 74-4 (39 FR 27133; 43 FR 50977).**

## Notes

### Source

Source: Docket 19430, 45 FR 34789, May 22, 1980, unless otherwise noted.

### Authority

Authority: 49 U.S.C. 106(g), 47106, 47127.

### Source

Source: Docket 19430, 45 FR 34784, May 22, 1980, unless otherwise noted.