Pursuant to 2 C.F.R. § 200.338, FEMA has discretionary authority that it may exercise on a case-by-case basis to remedy an applicant’s non-compliance with Federal statutes, regulations or the terms, and conditions of a Federal award, including Public Assistance (PA) program eligibility requirements found in the Stafford Act, the PAPPG, and all other applicable federal laws and regulations such as the Federal procurement and contracting standards at 2 C.F.R. Part 200. FEMA acted within its discretionary authority to disallow all costs in PWs 502 and 508 as a remedy for the Applicant’s non-compliance with PA program eligibility requirements and Federal procurement and contracting standards because the Applicant did not: (1) monitor its contracted debris removal work; (2) provide documentation substantiating its claimed debris amounts and costs for force account labor and equipment; (3) justify its use of T&M contracts, its verbal contract with the subcontractor, its unscheduled rates, and the subcontractor’s hourly labor rate; (4) demonstrate it complied with its own procurement procedures; nor did it (5) establish that its costs were reasonable. Conclusion FEMA appropriately exercised its discretionary authority to disallow all costs claimed in PWs 502 and 508 as a remedy for the Applicant’s noncompliance with PA program eligibility requirements and Federal procurement and contracting standards. Thus, the second appeal is denied.

Stafford Act § 428. 2 C.F.R. §§ 200.317, 200.318(j) 200.404, 200.338. PAPPG, at 21–22, 30, 56–57.