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Appendix G › II. Fixed Cost Estimate

How is the fixed cost estimate for an alternative procedures project built?

FEMA term
Fixed cost estimate; expert panel cost estimate review
Short answer

First FEMA, the recipient and you agree on the damage, the scope of work and any hazard mitigation. The estimate then covers restoring the facility to pre-disaster design and function under eligible codes, plus cost-effective mitigation tied to the work you will actually do. It can include design, environmental review, permitting and construction management costs.

What FEMA requires

  • FEMA, the recipient and the applicant must agree on the damage description and dimensions, scope of work and hazard mitigation before the fixed cost estimate is developed, by FEMA or by you.
  • Funding is capped at the federal share of the estimated cost to restore to pre-disaster design and function under eligible codes and standards, plus cost-effective mitigation tied to the restoration work actually performed.
  • Allowable costs: architectural, engineering, environmental review and design fees; construction and other restoration costs, including permitting fees, project or construction management, and required codes, consensus-based codes and approved industry standards.
  • Expert panel: a FEMA-funded independent panel of cost experts may review estimates. It addresses cost only, not eligibility, and is not used for appeals. FEMA may request it for any estimate; you may request it for projects with an estimated federal share of at least $5 million.
  • Hazard mitigation: mitigation is a separate fixed amount in the subaward tied to the actual work planned. If capacity is increased, mitigation is limited to protecting the original capacity. If the approved mitigation isn’t completed, FEMA reduces the fixed amount by that portion.

Documentation

The agreed damage description and dimensions, scope of work and hazard mitigation proposal; design, permitting and construction management cost information; and code and standard requirements.

Watch out · Govstar practitioner advice

Everything must be agreed before the estimate is built, so negotiate the damage description and scope hard up front. For projects with a federal share of at least $5 million, you can ask for the independent expert panel to review the estimate.

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.