Purchase of Equipment

General
Equipment, as defined in
2 CFR §200.1
, means tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or greater per unit. All other tangible personal property is considered to be “supply.” A LG may need to purchase equipment to adequately meet the construction engineering requirements of a project. Costs may be eligible for state and federal-aid reimbursement using the procedures described in the
LGPM Guide
.
Federal Requirement
  1. 23 U.S.C. §302
    – Requires states (and other governmental agencies) to be suitably equipped to discharge their duties.
  2. 23 CFR Part 140
    – Allows for reimbursement to states (and other governmental agencies) for eligible construction engineering costs, railroad and audit work.
  3. FHWA issued the
    Equipment Purchases for State Construction Engineering Use policy memorandum on May 5, 1993
    (now referenced in
    FHWA Contract Administration Core Curriculum Manual October 2014, page 103
    ) clarifying federal participation in equipment purchased by the contractor for the LG to discharge its construction engineering responsibilities.
State Requirement
  1. No comparable statute.