---
kind: "section"
citation: "23 C.F.R. § 140.907"
title: "23"
number: "140.907"
heading: "Overhead and indirect construction costs."
url: "https://uscodex.org/cfr/23/140.907"
---

# §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](/cfr/48.md)), [part 31](/cfr/23/part31.md), 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.

## Notes

### Amendments

[53 FR 18276, May 23, 1988]

### Source

Source: 40 FR 16057, Apr. 9, 1975, unless otherwise noted.

### Authority

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).

### Amendments

[53 FR 18276, May 23, 1988]