Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. We are exploring purchasing various software program projects that will probably require end user licenses. Can end user licenses be paid for with federal capital funds?

A. The cost of licensing software is an allowable cost under FTA grants. (Revised: May 2010)

Q. We had purchased scheduling software using capital funding. Is training related to using this software an allowable capital expenditure?

A. Initial training of agency personnel would normally be an expected part of any new software acquisition process, and thus an allowable capital expense. However, there is a distinction between initial training of agency personnel and follow-on training of new personnel over a period of time which could be construed as an operating expense and not eligible for capital funding. (Revised: May 2010)

Q. What are the requirements when purchasing computer software with Federal dollars?

A. There are no FTA-specific requirements associated with the purchase of software. FTA Circular 4220.1F general requirements apply to grantee procurements of computer software and hardware. (Revised: May 2010)