From April 14 to 16, 2012, severe weather damaged a system of electrical transmission lines (Facility). The Applicant used contract labor to make repairs to the Facility. FEMA prepared Project Worksheets (PWs) 96 and 100 to document the repairs, and obligated $1,326,278.14 and $635,002.44 in estimated costs, respectively. At closeout, FEMA determined the Applicant had incurred costs for contracted hourly labor and equipment, the former at double time rates, which were neither reasonable nor cost-effective. FEMA deobligated $77,774.14 across both PWs, and recalculated some eligible labor using a standard hourly rate. The Applicant appealed on December 29, 2014, and argued its costs were reasonable and necessary. The Applicant also noted calculations in the initial determination, whereby FEMA excluded $29,868.01 in overtime labor the Applicant maintained was eligible. On February 1, 2016, the FEMA Region VII Regional Administrator (RA) partially granted the appeal for $1,608.10 resulting from a recalculation of costs under PW 100. However, the RA determined the Applicant failed to comply with Federal procurement standards in obtaining its contract, and had not demonstrated the costs on appeal were reasonable. Consequently, $77,774.12 for contract labor and equipment, and $29,868.01 for overtime labor, remained ineligible. In a letter dated March 28, 2016, the Applicant appeals the RA’s determinations.

2 C.F.R. §§ 215.1, 215.40-48, 215.62(a). 2 C.F.R. Part 230. RP 9525.7, Labor Costs, Emergency Work, at 3. Nishnabotna Valley Rural Electical Cooperative, FEMA-1880-DR-IA, at 4. Chambers Cty., FEMA-1791-DR-TX, at 6. St. Mary’s Academy, FEMA-1603-DR-LA, at 3. Headnotes