Change in Scope of Work, Procurement & Contracting Requirements, Allowable Costs & Reasonable Costs

Allowable & Reasonable Costs

HEADNOTES

Applicants must comply with a variety of grant administrative requirements to receive PA grants. The work completed must be within the approved scope of work. The requested work performed by the Creel Brothers is outside the approved SOW and, therefore, ineligible for reimbursement under PA. Some form of cost or price analysis shall be made to determine reasonableness. A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person. The Applicant has demonstrated that its claimed contract rates for Scobee Powerline were reasonable. For Pike Electric, the supporting documentation submitted, contract, equipment rates, invoices and timesheets, support the requested cost. The eligible cost for Ellis Electric Contract should be the ones in the contract effective at the time of the disaster not the ones on an amendment made 11 years.

CONCLUSION

FEMA finds that contract costs of $182,210.46 are eligible for PA reimbursement. However, the Applicant has not demonstrated that the remaining $76,029.00 in contract costs are eligible. Therefore, this appeal is partially granted.

AUTHORITIES

2 C.F.R. §§ 215.1, § 215.45, 215.62, 230, App. A. 44 C.F.R. §§ 206.205(b); 206.206(a). PA Guide, at 40-41, 95-96, 109, 113, 140. Port of Galveston, FEMA-1791-DR-TX, at 5, Dixie Elec. Membership Corp., FEMA-1786-DR-LA, at 4.

44 C.F.R. §§ 206.205(b); 206.206(a)
Change in Scope of Work, Procurement & Contracting Requirements, Allowable Costs & Reasonable Costs