Rental Rate Policy
In order to accurately charge projects for the usage of Department of Transportation equipment, it is the policy of the Department that rental rates will be established based on the actual costs to operate and maintain all equipment in the class plus an amount to recoup depreciation costs for all equipment. The amount to recoup depreciation cost will be based on the expected life of a class rather than on the useful life used in depreciation calculations. See the Rental Rate Chart located in Chapter 4 of MAP. These rental rates will be used to redistribute costs to operate and maintain the fleet from the FC000005000000 (Fleet Clearing) project to the projects that used the equipment during the month. Redistribution will be done pro rata based on the amount of usage incurred, calculated as number of units of usage (miles or hours) times the rate for the class of equipment used. See the Usage Policy for more information.
Responsibility for the evaluation of rental rates resides in the Cost Accounting unit of General Support with final review and approval by the State Equipment Management Administrator and by the Director of the Division of Administration. Evaluations are to be performed annually, in May, based on costs incurred from the previous May through April. New rates will take effect with the usage incurred during June. Rates will remain in effect until the next evaluation unless the Office of Equipment Management requests a review.
Establishing Rate for New Equipment Types
Rental rates for new equipment types, as defined by the three-digit equipment type prefix, will be established based on existing rates for similar types of equipment. The Office of Equipment Management will establish this rate, which will be in effect until actual costs and recorded usage are available to accurately determine the rental rate.
The procedure for reviewing rental rates may be read in the 
Manual of Administrative Procedures.
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