If the reference is to what I think it is; it is not charged by the federal government, at least not directly. In any California public agency, it is typically charged at 30-35% of the expected purchase or construction contract price, plus 30-35% of all associated in-house labor costs as well. You can't buy a roll of toilet paper without incurring these "administrative costs". Any project manager or purchasing agent must include these costs in his budget proposal, because he/she will be charged for them - like it or not.

In my forty year career, I never could find anybody that could explain where that money went, who's salary was being paid by it, or what benefits were provided in return; except that it was just an accepted "overhead cost of doing business", supposedly paying for the administrative cost of compliance to state and federal laws, regulations, and unfunded federal and state procedural mandates.

But that still does not explain $18 million per mile for ordinary un-embellished railroad track on an existing grade; by many times over. Suffice it to say, if it's a municipality or special district in California, saddled with all sorts of special legal requirements and limitations (that private corporations do not have), the contractor will see them coming - every single time, and charge accordingly.