Appendix G › III. Fixed Cost Offer; Fixed Cost Offer Deadlines

How does the fixed cost offer work, and what are the deadlines?

FEMA term

Fixed cost offer; fixed cost offer deadlines

Short answer

FEMA sends the estimate as a fixed cost offer in Grants Portal. You and the recipient have 30 days combined to accept it, and the agreement must be reached within 18 months of the declaration. Once accepted, the project can’t go back to standard procedures, overruns aren’t funded, and any savings become excess funds you can use.

What FEMA requires

FEMA works with engineers, architects, cost estimators and construction managers to develop or validate the estimate, then transmits it as a fixed cost offer through Grants Portal.
If accepted, the project is an alternative procedures project. Obligation is FEMA’s acceptance of the fixed amount.
FEMA treats the fixed amount as reasonable and eligible if there is no fraud and you comply with grant conditions, including procurement. Insurance proceeds and salvage values are credited.
After agreement there are no further adjustments except for insurance and approved hazard mitigation scope changes. FEMA’s cost estimating format includes contingencies for hidden damage, unforeseen environmental and permitting requirements, and other unknowns.
If you need only architecture and engineering first, you must define the actual scope of work before a fixed cost offer is sent.

<table class="pt-table"><thead><tr><th>Step</th><th>Deadline or rule</th></tr></thead><tbody><tr><td>Reach a fixed cost agreement</td><td>Within 18 months of the declaration date</td></tr><tr><td>Accept a fixed cost offer</td><td>Recipient and applicant combined: 30 days from FEMA’s transmittal</td></tr><tr><td>Not accepted in time</td><td>Processed under standard procedures on actual costs</td></tr><tr><td>Extension to accept</td><td>Approved by FEMA’s Assistant Administrator for Recovery before the deadline</td></tr><tr><td>Once accepted</td><td>Cannot revert to standard procedures</td></tr><tr><td>Costs over the fixed amount</td><td>Not funded</td></tr><tr><td>Costs under the fixed amount</td><td>Excess funds may be used for eligible purposes</td></tr></tbody></table>

Documentation

FEMA’s fixed cost offer and its transmittal date; your and the recipient’s acceptance within 30 days; and any extension approved by FEMA’s Assistant Administrator for Recovery before the deadline.

Watch out · Govstar practitioner advice

The 30 days is shared between you and the recipient, so agree internally how many days each side needs. Settle every dispute over damage, scope and cost before accepting, because accepted alternative procedures projects generally can’t be appealed.

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.