Stafford Act § 406, as implemented by 44 C.F.R. § 206.226, authorizes FEMA to reimburse the costs to replace a damaged facility to its predisaster design, function, and capacity in accordance with applicable codes and standards. Per the PA Guide, replacement costs include costs for all work needed to provide a new facility of the same size or design capacity and function as the damaged facility in accordance with current codes or standards. The functions at issue existed prior to the disaster, do not constitute improvements and are eligible for PA funding. As a consequence, proportional costs for general conditions, project supervision, profit and overhead costs are likewise eligible for funding.

Stafford Act § 406. 44 C.F.R. § 206.226. PA Guide, at 29 (1999).