Equipment Rental Rates

General
The LG may elect to use its own equipment or rent equipment when performing force account work. The LG must follow federal and state regulations in order to get reimbursed for the costs associated with the equipment and must use actual costs to determine extra work payments.
Under federal policy, the LG may specify the acceptable rate guides and equipment rate schedules in construction contracts. The federal cost principles applicable to rental rates for contractor furnished equipment are contained in
48 CFR Part 31
. The provisions in
2 CFR Part 200
apply when LG-owned equipment is used. Details related to the procedures to be used for determining equipment rental rates are contained in the
LGPM Guide
.
Federal Requirements
  1. FHWA Additional Guidance on 23 CFR §635A
    (formerly Federal-aid Policy Guide Non-Regulatory Supplement to 23 CFR §635A) – Equipment Rental Rates
    1. Requires actual costs be used for extra work payments.
    2. Allows predetermined rate guides to be used for equipment rates for contractor-owned equipment in lieu of actual cost. The Blue Book is an acceptable guide.
    3. Allows reimbursement of reasonable rental cost if the contractor leases equipment.
  2. 48 CFR Part 31
    – Sets forth the federal cost principles applicable to rental rates for contractor furnished equipment.
  3. 2 CFR Part 200
    – Sets forth regulations applicable when LG-owned equipment is used.
State Requirements
  1. 43 TAC §26.33(g)(1)
    – Requires specifications for projects administered by a RMA to conform to TxDOT standard specifications (including Article 9.7.1.4).
  2. 43 TAC §27.56(c)(3)(A)
    – Requires specifications for projects administered by a RTA must conform to TxDOT standard specifications (including Article 9.7.1.4) as a condition of state fund participation.
Required Practices
Equipment rental rates for all projects with federal or state funds must comply with TxDOT standard specifications. The required practices and responsibilities of both the LG and TxDOT are included in the
LGPM Guide
.