Common use of Allowable Cost Clause in Contracts

Allowable Cost. Applicable Office of Management and Budget (OMB) cost principles, FTA program regulations, and the terms of the FTA master agreement and grant agreements will be followed in determining the reasonableness, allowability, and allocability of costs. (2 C.F.R. 200) provides guidance on allowable costs for nonprofit organizations. Expenses such as indirect costs or payments to a self- insurance fund must be documented appropriately. Advertising and public relations is permitted for “specific purposes necessary to meet the requirements of the federal award.” Transit marketing and promotion are allowable project costs under these provisions, since transit ridership is the ultimate purpose of the federal grant.

Allowable Cost. Applicable Office of Management and Budget (OMB) cost principles, FTA program regulations, and the terms of the FTA master agreement and grant agreements will be followed in determining the reasonableness, allowability, and allocability of costs. (2 C.F.R. 200) CFR 200 provides guidance on allowable costs for nonprofit organizations. Expenses such as indirect costs or payments to a self- self-insurance fund must be documented appropriately. Advertising and public relations is permitted for “specific purposes necessary to meet the requirements of the federal award.” Transit marketing and promotion are allowable project costs under these provisions, provisions since transit ridership is the ultimate purpose of the federal grant.