Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

SPR part II: Eligibility

Jack Jernigan

Office of Research, Development, and Technology (RD&T)Turner-Fairbank Highway Research Center (TFHRC)

McLean, VA

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

Eligibility Highlights: The Basics, Making a Determination

• 23 USC 505• 23 CRF 420• Cost Principles • OMB Circulars

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

1st Step: The Foundation

• 23 USC 505 State Planning & Research– (5) Research, development, and technology transfer activities

necessary in connection with the planning, design, construction, management, and maintenance of highway, public transportation, and intermodal transportation systems.

– (6) Study, research, and training on the engineering standards and construction materials for transportation systems described in paragraph (5), including the evaluation and accreditation of inspection and testing and the regulation and taxation of their use.

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

2nd Step: Regulatory Language: Highlights

• What costs are eligible? (23 CFR 420.113) – Necessary and reasonable for respective project

objectives

– Satisfy criteria for allowable costs found in cost principles (49 CFR 18.22)

– All other relevant criteria in 23 CFR 420

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

Applicable Cost Principles

• Set of Federal principles for determining allowable costs for each kind of organization

• Allowable costs determined by cost principles applicable to the organization incurring the costs.

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

3rd Step: Cost Principles(49 CFR 18.22)

For the costs of a— Use the principles in—

State, local or Indian tribal government OMB Circular A-87.

Private nonprofit organization other than an (1) institution of higher education, (2) hospital, or (3) organization named in OMB Circular A-122 as not subject to that circular

OMB Circular A-122.

Educational institutions. OMB Circular A-21.

For-profit organization other than a hospital and an organization named in OBM Circular A-122 as not subject to that circular

48 CFR part 31. Contract Cost Principles and Procedures, or uniform cost accounting standards that comply with cost principles acceptable to the Federal agency.

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

4th Step: OMB Circular A-87

• OMB Circular A-87: State, local or Indian tribal government

• Purpose: Establishes principles and standards for determining costs for Federal awards carried out through – grants, cost reimbursement contracts, and other

agreements with • State and local governments and federally-recognized Indian

tribal governments (governmental units).

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

Eligibility Example

• Is equipment cost an eligible use of SP&R funds?

– Step 1: Refer to 23 USC 505 (a)(5) and (6)

– Step 2: Refer to 23 CFR 420.113 • What costs are eligible from a regulatory standpoint?

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

Eligibility Example continued…

• Step 3: Refer to list of cost principles– OMB Circular A-87; OMB Circular A-122; OMB

Circular A-21; 48 CFR part 31

• Step 4:  Refer to attachments in respective Circular– General principles and selected items for costs

Office of Corporate Research, Technology, and Innovation Management

Federal Highway Administration

Thank You!Questions?