The department shall have authority to advertise and receive bids for any project undertaken under the provisions of section seven hundred twelve of this act¹ and to make and carry out contracts and to do every other act necessary to carry out any project undertaken, and is hereby authorized to make the necessary surveys and prepare the necessary plans, specifications and estimates for such project and to furnish such employes as may be necessary to provide supervision, inspection and preparation of estimates for payment of the costs incident thereto to be paid out of moneys in the Motor License Fund. Whenever the Federal government has approved such project and has indicated that it will reimburse the Commonwealth in full for its expenditures therefor from Federal funds, other than Federal aid appropriations made to the Commonwealth for the construction of State highways and bridges, the department may also pay construction, replacement and repair costs out of the Motor License Fund in anticipation of such reimbursement by the Federal government.