23 CFR §140.907

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