The Appeals Manual states that on first appeal, if FEMA identifies a new eligibility issue, it must issue a Request for Information (RFI) and in it, must inform the applicant that a new eligibility issue was identified, frame the new issue and inform the applicant that it has 60 days from receipt to respond. FEMA issued a RFI, informed the Applicant that new eligibility issues were identified, framed the new issues and provided the Applicant time to respond. It was a harmless error that the RFI only provided the Applicant with 30 days to respond, as the Applicant filed its response within that timeframe, stating it believed the administrative record was complete and had nothing further to add. FEMA’s PA Guide provides that only costs that can be directly tied to the performance of eligible work are eligible. The Applicant could not distinguish costs for make-safe demolition and general cleanup performed at the two eligible buildings on campus, from the rest of the 35 acre campus. Accordingly, the costs are ineligible.

The RA’s decision regarding the newly identified issue in the second Final RFI was proper. In addition, the Applicant has not demonstrated that the costs associated with the make-safe demolition and general cleanup services were necessary and reasonable for eligible work or adequately documented. As the project management services and direct administrative services derived eligibility from the underlying work, they are also ineligible.

Stafford Act § 403(a). 44 C.F.R. §§ 206.224, 206.225(a)(3). 2 C.F.R. pt. 215. PA Policy Digest, FEMA 321, at 100. PA Guide, FEMA 322, at 40, 68, 137. Appeals Manual, Version 4, at 13-15. FEMA Second Appeal Analysis, Miami-Dade County, FEMA-1345-DR-FL, at 2.