FTA Circular 4220

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Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. Since 1980 - how many revisions have there been to the FTA Circular 4220?

A. There have been five revisions to FTA Circular 4220 (1B, 1C, 1D, 1E and 1F). (Revised: July 29, 2009)

Q. Is there any estimated date for when the changes to third-party contracting proposed in Circular 4220.1F will become effective?

A. The new FTA Procurement Circular 4220.1F became effective on November 1, 2008. (Revised: July 29, 2009).

Q. Does the procurement of a grantee need to comply with federal requirements if the cost of the services procured gets reimbursed by the federal government INDIRECTLY, via grantee's FTA-approved indirect cost rate?

A. The current FTA Procurement Circular 4220.1F discusses its applicability to grantee third party contracts in Chapter II. The Circular is available online.

Paragraph 2.b. (2) on page II-5 deals with Operations Contracts and applies the Circular to all operations contracts when the operations are financed (in whole or in part) with FTA assistance. If, however, the grantee can segregate its operations contracts to distinguish those financed with and without FTA funds, then the Circular may be applied only to those financed with FTA funds. If the contracts are not segregated as to FTA financing, then the Circular must be applied to all operations contracts, including those whose costs are recovered as indirect costs. (Posted: December, 2014)

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