Owner Furnished Materials

Q. Regarding owner furnished materials, where in the BPPM can I find guidance, and requirements if applicable, for these type purchases? Our design/build project solicitation has language allowing us to make owner direct purchases. We plan on making many of these purchases to save money.

A. The BPPM has no coverage of this specific issue; however, there is no problem with your agency purchasing materials and furnishing them to the contractor in order to save money, such as state sales taxes, contractor overhead and profit, etc. FTA requires that these purchases comply with FTA Circular 4220.1F. Keep in mind that your agency will assume responsibility for the suitability of the materials as well as the timeliness of their delivery to the contractor. Failure in either of these responsibilities may entitle the contractor to a price adjustment for owner caused delays. (Posted: January, 2012)