This rule is being repealed and reenacted. Several subsections are reordered and renumbered. The catchline of this rule changes from "Incorporation and Use of Federal Acquisition Regulations on Federal-Aid and State-Financed Transportation Projects" to "Procurement of Consultant Services, Procedures and Contract Administration". The substance of the reenacted rule replaces similar provisions of administrative rules under Title R33 and applies only to the Department to authorize procuring design professional, engineering, and engineering-related services. The reenacted rule accommodates how the Department functions better than similar provisions of Title R33 does. This proposed change to Rule R907-66 includes references to the Department's Consultant Services Manual of Instruction, project-specific solicitations, and other guidance from the Consultant Services Division. Title R33 (Division of Purchasing and General Services) is generic and intended to apply to all state agencies and political subdivisions and does not work well with many of the Department's specialized procurement functions and processes. Title R33 also does not incorporate the federal regulations the Department must follow on projects for which federal aid funding requirements apply. This rule reenactment changes the purpose of this rule from adopting federal cost principles to qualifications-based consultant selection for design, engineering and engineering-related services and moves the cost principle adoption to subsequent sections and updates federal cost principle references to 2 CFR 200 Subpart E Grants and Agreements, Cost Principles; and adds several definitions, including a definition that incorporates the federal definition of engineering and design related services, which requires the services to result in a construction project and the state definition of design professional services, which do not require the services result in a construction project. The Department will perform qualifications-based selection for services that fall under either definition following both state and federal qualifications-based selection processes. A section is added to define what services fall within the state's definition of other professional services as may be necessary to the planning, progress, and completion of any engineering services. This definition adds grant writing, asset management, transportation research, prototype development, technology transfer, project-related public involvement, right of way acquisition services, or other services as deemed necessary by the Department to coverage of this rule. Revises the Small Purchase Cap Section: This section aligns the Department's small purchase cap with the federal simplified acquisition threshold, which is set at $250,000 by federal regulation. Sections are added to the Small Purchase Cap regarding the Department establishment of pools of qualified consultants. A deadline is added to the requirement for consultants to submit updated Financial Screening Applications.