Appendix G › V. Other Considerations: Insurance; Appeals; Office of Inspector General

Can we appeal an alternative procedures project, and do insurance and audit rules still apply?

FEMA term

Obtain and maintain insurance; appeals for alternative procedures projects; OIG

Short answer

Generally no appeals. FEMA only hears appeals of cost adjustments made after you accept the offer, such as for insurance, noncompliance or audits, and not appeals of denied extensions to accept an offer. The obtain-and-maintain insurance requirement still applies, and the DHS Inspector General can audit any alternative procedures project.

What FEMA requires

Insurance: applicants receiving permanent work funding must obtain and maintain insurance on insurable facilities and property (buildings, contents, equipment, vehicles), including those funded through alternative procedures (see FP 206-086-1).
Appeals: FEMA does not grant appeals on alternative procedures projects, except for cost adjustments after the offer is accepted (such as insurance, noncompliance or audits). Disagreements over damage, scope or cost must be resolved before accepting. Denied extensions to accept an offer can’t be appealed.
Inspector General: the DHS OIG can audit any project, including alternative procedures projects.

Documentation

Proof that you obtained and maintain insurance on facilities funded through alternative procedures, and full procurement and cost records, since the OIG can audit these projects.

Watch out · Govstar practitioner advice

Accepting the fixed cost offer effectively ends your ability to dispute damage, scope or cost. Treat the acceptance decision like a settlement and have your engineer and cost estimator sign off first.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.