Office of Operations
21st Century Operations Using 21st Century Technologies

INFORMATION: Guidance on Federal-aid Eligibility of
Operating Costs for Transportation Management Systems
January 3, 2000
Reply to: HOTM-1

Christine M. Johnson /s/Christine M. Johnson
Program Manager, Operations
Director, ITS Joint Program Office

Resource Center Directors
Division Administrators
Federal Lands Highway Division Engineers

The attached guidance is provided for your use in assisting our partners in determining applicability of Federal-Aid Funding for the operating costs of traffic monitoring, management, and control systems, such as integrated traffic control systems, incident management programs, and traffic control centers. This incorporates and updates information provided in information fliers discussing reimbursement of startup and operating costs for traffic control management projects provided in January 1998 and again in January 1999 by the Office of Traffic Management and Intelligent Transportation Systems Applications.

This program guidance is intended to help clarify some issues that have been brought to our attention, and in particular questions about what may constitute reasonable operating costs for computer and other electronic systems. In order to assure continuous operation, costs associated with maintaining these systems are necessary operating expenses so that traffic monitoring, management, and control facilities or programs provide their intended functions. Examples of these maintenance costs include system maintenance activities to assure peak performance (preventive computer maintenance) and replacement of defective or damaged computer components and other traffic management system hardware (including street-side hardware). As with other Federal-aid funding decisions, specific eligibility determinations related to traffic control operational costs and maintenance expenses are the discretion of the FHWA Division Offices.

If you have any questions concerning this guidance, please contact Mr. Robert Rupert at 202-366-2194.


Office of Operations