Section 705(c) of the Stafford Act bars FEMA from deobligating previously awarded funding if: (1) the payment was authorized by an approved agreement specifying the costs; (2) the costs were reasonable; and (3) the purpose of the grant was accomplished. The payment to the Applicant was authorized by an approved agreement specifying costs and Applicant supplies documentation to support that the purpose of the grant was accomplished, subject to reasonableness. OMB Circular A-87 provides a cost is reasonable if in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. FP 9525.7 Labor Costs – Emergency Work provides that it is not reasonable for a person to work more than 48 hours continuously without an extended rest period. FEMA will reimburse up to 24 hours for each of the first two days, and up to 16 hours for each of the following days for emergency work. The Applicant’s contractor employee’s hours for one employee are not reasonable according to FP 9525.7.

FEMA determines the Applicant’s documentation supports $140,105.94 of its $142,497.90 in contract costs relating to emergency protective measures, and the remaining $2,391.96 are unreasonable costs. The Applicant was previously awarded $4,895.60 in DAC, for a total allowable obligation of $291,072.02 in eligible costs. Any monies in excess of $291,072.02 paid to the Applicant shall be deobligated and recovered. Therefore, the Applicant’s appeal is partially granted in the amount of $140,105.94.

Stafford Act §§ 403(a)(3)(1), 705(c). 44 C.F.R. §§ 13.20(b)(6), 13.22(b), 206.225(a). OMB Circular A-87, at Attachment (C)(1)(j), (2). PA Guide, at 40; FP-205-081-2, at 4-7; FP 9525.7, at 3. Midwest Energy, Inc., FEMA-4063-DR-KS, at 6 (May 1, 2018).