Section 151.41

14 CFR Ch. I (1-1-19 Edition)

takeoff of aircraft or is otherwise hazardous to the landing or takeoff of aircraft. For the purposes of paragraph
(b)(13) of this section, land acquisition
includes the acquiring of land that is
already developed as a private airport
and the structures, fixtures, and improvements that are a part of realty
(other than hangars, other ineligible
structures and parts thereof, fixtures,
and improvements).
(c) A project for acquiring land that
has been or will be donated to the sponsor is not eligible for inclusion in the
Federal-aid Airport Program, unless
the project also includes other items of
airport development that would require
a sponsor-s contribution equal to or
more than the United States share of
the value of the donated land as appraised by the Administrator.
[Doc. No. 1329, 27 FR 12351, Dec. 13, 1962, as
amended by Amdt. 151-8, 30 FR 8040, June 23,
1965; Amdt. 151-17, 31 FR 16524, Dec. 28, 1966;
Amdt. 151-37, 35 FR 5112, Mar. 26, 1970; Amdt.
151-39, 35 FR 5537, Apr. 3, 1970]

Section 151.41 Project costs.
(a) For the purposes of subparts B
and C, project costs consist of any
costs involved in accomplishing a
project, including those of - 
(1) Making field surveys;
(2) Preparing plans and specifications;
(3) Accomplishing or procuring the
accomplishing of the work;
(4) Supervising and inspecting construction work;
(5) Acquiring land, or an interest
therein, or any casement through or
other interest in airspace; and
(6) Administrative and other incidental costs incurred specifically in
connection
with
accomplishing
a
project, and that would not have otherwise been incurred.
(b) The costs described in paragraph
(a) of this section, including the value
of land, labor, materials, and equipment donated or loaned to the sponsor
and appropriated to the project by the
sponsor, are eligible for consideration
as to their allowability, except for - 
(1) That part of the cost of rehabilitation or repair for which funds have
been appropriated under section 17 of
the Federal Airport Act (49 U.S.C.
1116);

(2) That part of the cost of acquiring
an existing private airport that represents the cost of acquiring passenger
automobile parking facilities, buildings to be used as hangars, living quarters, or for nonairport purposes, at the
airport, and those buildings or parts of
buildings the construction of which is
not airport development within the
meaning of Section 151.35(a);
(3) The cost of materials and supplies
owned by the sponsor or furnished from
a source of supply owned by the sponsor if - 
(i) Those materials and supplies were
used for airport development before the
grant agreement was executed; or
(ii) The cost is not supported by proper evidence of quantity and value;
(4) The cost of nonexpendable machinery, tools, or equipment owned by
the sponsor and used under a project by
the sponsors force account, except to
the extent of the fair rental value of
that machinery, tools, or equipment
for the period it is used on the project;
(5) The costs of general area, urban,
or statewide planning of airports, as
distinguished from planning a specific
project;
(6) The value of any land, including
improvements, donated to the sponsor
by another public agency; and
(7) Any costs incurred in connection
with raising funds by the sponsor, including interest and premium charges
and administrative expenses involved
in conducting bond elections and in the
sale of bonds.
(c) To be an allowable project cost,
for the purposes of computing the
amount of a grant, an item that is paid
or incurred must, in the opinion of the
Administrator - 
(1) Have been necessary to accomplish airport development in conformity with the approved plans and
specifications for an approved project
and with the terms of the grant agreement for the project;
(2) Be reasonable in amount (or be
subject to partial disallowance under
section 13(a)(3) of the Federal Airport
Act (49 U.S.C. 1112(a)(3));
(3) Have been incurred after the date
the grant agreement was executed, except that costs of land acquisition,
field surveys, planning, preparing plans
and specifications, and administrative

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