Chapter 6: Cost Eligibility
This chapter provides information relating to PA cost eligibility. Not all costs arising from the incident are eligible for reimbursement through the PA Program. To be eligible, costs must meet the criteria described in this chapter. Additionally, applicants must retain cost, financial, procurement information, real property and equipment records, programmatic records, supporting documents, and all other records that are considered pertinent to the grant, for a period of three years from the date the final expenditure of funds is documented. In the case of litigation, an audit, or any other claim that would cause action is started before the 3-year period expires, the records must be retained until a resolution is reached and final action taken.
I. Eligibility Requirements
II. Reasonable Costs
A. Reasonable Cost Analysis
III. Applicant (Force Account) Labor
A. Labor Policies
B. Eligibility Criteria for Reimbursement of Employee Labor Costs
1. Reassigned Employees
2. Reassigned Employees Funded from an External Source
3. Backfill Employees
4. Essential Employees Called Back from Furlough
5. Supervisors
6. Other
7. Standby Time
IV. Applicant-Owned and Purchased Equipment
A. FEMA Rates
B. State, Tribal Nation, or Territorial Rates
C. Local Rates
D. Equipment with No Established Rate
E. Telecommunications Equipment Purchase
V. Rented or Leased Equipment
VI. Supplies
VII. Disposition of Equipment and Supplies
A. Disposition of Purchased Equipment
B. Disposition of Purchased Supplies
VIII. Disposition for Small Projects
IX. Disposition of Real Property
X. Procurement and Contracting Requirements
A. Procurement and Contracting Requirements for State and Territorial Government and Tribal Nation Entities
1. Procurement
2. Contracting
B. Procurement and Contracting Requirements for Local Government Agencies and Private Nonprofit Organizations
1. Pre-Procurement Considerations
2. General Federal Procurement Requirements
3. Procurement Methods
C. Noncompetitive Procurement
1. Contract Types
D. Time-and-Materials Contracts
1. Cost-Plus-Percentage-of-Cost or Percentage-of-Construction
2. Additional Contracting Considerations
E. Required Documentation and Information for Procurement and Contracting
XI. Mutual Aid
A. Post-Incident Agreements
B. Eligibility
C. Emergency Management Assistance Compact
D. Required Documentation and Information for Mutual Aid
XII. Prisoners
XIII. National Guard
XIV. Direct Federal Assistance
XV. Increased Federal Cost Share for a Limited Timeframe
XVI. Donated Resources
A. Offset Amounts
B. Required Documentation and Information for Donated Resources
XVII. Project Management and Design Services
XVIII. Grant Management and Administration
XIX. Surveys to Assess or Locate Damage or Debris Impacts
XX. Duplication of Benefits
A. Insurance Proceeds
B. Non-Federal Grants and Cash Donations
C. Third-Party Liability
D. Other Federal Awards
XXI. Duplication of Funding Between FEMA Programs
XXII. Interest on Loans
XXIII. Ineligible Costs
A. Loss of Revenue
B. Loss of Useful Service Life
C. Tax Assessments
D. Increased Operating Costs