This is in response to a letter from your office dated December 5, 2016, which transmitted the referenced second appeal. Your office appealed the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of $233,332.31 in funding for contractor labor and mileage costs claimed as direct administrative costs (DAC). As explained in the enclosed analysis, I have determined that the Grantee’s claimed travel costs constitute indirect costs incurred for the benefit of multiple PWs and are therefore ineligible for reimbursement as DAC. Accordingly, I am denying this appeal. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.