44 C.F.R. § 13.36 requires that all procurement transactions be conducted in a manner that provides full and open competition, that awards be made to a responsible bidder with the ability to perform under the contract, and that an applicant perform a cost or price analysis where competition is lacking. The Applicant did not provide documentation showing that it solicited bids from multiple contractors nor a cost or price analysis. FEMA may enforce noncompliance by disallowing costs, pursuant to 44 C.F.R. § 13.43. OMB Circular A-87 notes that a cost is reasonable if it does not exceed that which a prudent person in the same situation would incur. FEMA properly exercised its enforcement discretion by awarding reasonable costs for the supported costs. 44 C.F.R. §206.206(a) states that an appeal must contain documented justification supporting an applicant’s position. The Applicant has not demonstrated eligibility for unsupported costs through the documentation provided on appeal. Stafford Act § 705(c) prohibits FEMA from deobligating funding where it was authorized by an approved agreement, the associated costs were reasonable, and the purpose of the grant was accomplished. Because the Applicant failed to comply with federal procurement laws, post-award grant conditions, and costs were not reasonable, Stafford Act § 705(c) does not prohibit FEMA from deobligating funding.

: FEMA correctly determined that the Applicant did not demonstrate that $8.6 million in costs associated with debris removal were eligible. Section 705(c) of the Stafford Act does not prohibit FEMA from deobligating funding because the Applicant failed to comply with federal procurement laws and post-award grant conditions.

Stafford Act § 705(c). 44 C.F.R. §§ 13.36, 13.43, 13.51, 206.206(a). PA Guide, at 2, 40-41. RP9525.7, at 2. FP-205-081-2, at 4-7. OMB Circular A-87. Village of Waterford, FEMA-4020-DR-NY, at 4.