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SOAAEOE Index Update

The Schedule of Average Annual Equipment Ownership Expense (SOAAEOE) booklet was last published by the Illinois Department of Transportation’s (IDOT) Bureau of Construction on January 1, 2004. IDOT currently uses Equipment Watch for all force account work according to Construction Memorandum 08-09.

Local highway agencies may use rates from the SOAAEOE or Equipment Watch for force account work on their projects, equipment rental on motor fuel tax funded day labor work, federal disaster reimbursements, or intergovernmental agreements. An index is being applied to the SOAAEOE, which will account for the significant increase in equipment costs since 2004. The index is based on the United States Department of Labor, Bureau of Labor Statistics, Producer Price Index for Construction Machinery Manufacturing (PPI-CMM).

The PPI-CCM for January 2004 was 180.0. The preliminary PPI-CCM for January 2016 is 247.9. An index factor of 1.377 should be used for 2017.

To learn more, click Circular Letter CL 2017-04.