Section 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