FEMA PA APPEAL SHORT SUMMARY & LINKS TO FEMA PA APPEAL WEBSITE

This is in response to a letter from your office dated April 3, 2018, which transmitted the referenced second appeal on behalf of Bayshore Housing Corporation, Blackwater Housing Corporation, Cordova Community Facilities Corporation, Emerald Coast Housing I, Emerald Coast Housing II, and Perdido Housing Corporation (Applicants). The Applicants are appealing FEMA’s deobligation and disallowance of costs pertaining to construction and project and construction management due to noncompliance with procurement regulations, insurance reductions, and untimely cost overrun appeals. As explained in the enclosed analysis, I have determined that the Applicants did not comply with federal procurement regulations, in that their contracts with its project and construction management company and contractor were not procured in a manner providing free and open competition. In addition, the payment arrangements with Progressive Management of America reflect a cost-plus-a-percentage-of-cost method of contracting prohibited by federal regulations and the contracts demonstrate impermissible conflicts of interest. Moreover, the Applicants have not demonstrated that they submitted their small project appeals within the 60 day regulatory timeframe. FEMA’s deobligations for insurance proceeds were also properly taken. Finally, FEMA is not prohibited from deobligating costs previously awarded to the Applicants, as § 705(c) of the Stafford Act does not apply to Private Nonprofits. Accordingly, I am denying this appeal. Please inform the Applicants of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.