After authorization, can we change the reimbursement ratio on our federally funded project?
FHWA allows us (currently) to make a cost adjustment shortly before or after contract award. We can adjust the reimbursement ratio either up or down depending on the bid results. If you have cost overruns and need to add funding to the project, we can add the funding approved by the MPO. We CAN raise your reimbursement rate at this time (award) since funding is programmed and being added. However, this is the only time. If your project remains underfunded and you have cost overruns after the award adjustment, we can add funds but only at the authorized reimbursement ratio we set at award (i.e. we can’t just add funds by swapping federal funds for local funds).
