[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR140.908]

[Page 17-18]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 140_REIMBURSEMENT--Table of Contents
 
                Subpart I_Reimbursement for Railroad Work
 
Sec. 140.908  Materials and supplies.

    (a) Procurement. Materials and supplies, if available, are to be 
furnished from company stock, except they may be obtained from other 
sources near the project site when available at less cost. Where not 
available from company stock, they may be purchased either under 
competitive bids or existing continuing contracts, under which the 
lowest available prices are developed. Minor quantities and proprietary 
products are excluded from these requirements. The company shall not be 
required to change its existing standards for materials used in 
permanent changes to its facilities.
    (b) Costs. (1) Materials and supplies furnished from company stock 
shall be billed at current stock price of such new or used material at 
time of issue.
    (2) Materials and supplies not furnished from company stock shall be 
billed at actual costs to the company delivered to the point of entry on 
the railroad company's line nearest the source of procurement.
    (3) A reasonable cost of plant inspection and testing may be 
included in the costs of materials and supplies where such expense has 
been incurred. The computation of actual costs of materials and supplies 
shall include the deduction of all offered discounts, rebates and 
allowances.
    (c) Materials recovered. (1) Materials recovered from temporary use 
and accepted for reuse by the company shall be credited to the project 
at prices charged to the job, less a consideration for loss in service 
life at 10 percent for

[[Page 18]]

rails, angle bars, tie plates and metal turnout materials and 15 percent 
for all other materials. Materials recovered from the permanent facility 
of the company that are accepted by the company for return to stock 
shall be credited to the project at current stock prices of such used 
material.
    (2) Materials recovered and not accepted for reuse by the company, 
if determined to have a net sale value, shall be sold by the State or 
railroad following an opportunity for State inspection and appropriate 
solicitation for bids, to the highest bidder; or if the company 
practices a system of periodic disposal by sale, credit to the project 
shall be at the going prices supported by the records of the company. 
Where applicable, credit for materials recovered from the permanent 
facility in length or quantities in excess of that being placed should 
be reduced to reflect any increased cost of railroad operation resulting 
from the adjustment.
    (d) Removal costs. Federal participation in the costs of removing, 
salvaging, transporting, and handling recovered materials will be 
limited to the value of materials recovered, except where FHWA approves 
additional measures for restoration of affected areas as required by the 
physical construction or by reason of safety or aesthetics.
    (e) Handling costs. The actual and direct costs of handling and 
loading out of materials and supplies at and from company stores or 
material yards and of unloading and handling of recovered materials 
accepted by the company at its stores or material yards, are 
reimbursable. At the option of the company, 5 percent of the amounts 
billed for the materials and supplies which are issued from company 
stores and material yards will be reimbursable in lieu of actual costs.
    (f) Credit losses. On projects where a company actually suffers loss 
by application of credits, the company shall have the opportunity of 
submitting a detailed statement of such loss as a basis for further 
adjustment.