This is in response to a letter from your office dated January 7, 2016, which transmitted the referenced second appeal on behalf of Jessamine County and the cities of Nicholasville and Wilmore (Applicants). The Applicants are appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of actual costs claimed for debris removal work performed under a unit cost contract with CMC, Inc. In addition, the Applicants seek additional Public Assistance funding for direct administrative costs (DAC). As explained in the enclosed analysis, I find that the Applicants did not comply with Federal procurement requirements pursuant to Title 44 Code of Federal Regulations (44 C.F.R.) § 13.36. Therefore, FEMA appropriately exercised its enforcement authority to award reasonable costs pursuant to 44 C.F.R. § 13.43. In addition, because the Applicants did not provide support documentation, the requested funding for DAC is ineligible pursuant to Disaster Assistance Policy DAP 9525.9, Section 324 Management Costs and Direct Administrative Costs. Accordingly, I am denying the appeal. Please inform the Applicants of my decision. This determination is the final Agency decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.