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Third Appeal Summary
PA ID# 000-92003; Pennsylvania Department of Transportation
DSR ID# N/A; Fringe Benefits
PURPOSE: Respond to third appeal submitted by the Pennsylvania Department of Transportation (PennDOT) concerning eligible fringe benefit costs under FEMA-1138-DR-PA.
DISCUSSION: The Pennsylvania Department of Transportation used force account labor to perform disaster recovery work in declared disaster DR-1138. PennDOT was reimbursed for force account overtime (only) per FEMA regulation. PennDOT is requesting reimbursement for a payroll additive rate of 61.4287 percent, which they contend represents fringe benefit costs as a percentage of overtime labor costs. PennDOT's First and Second appeals were denied by FEMA Region III because the fringe benefit percentage did not reflect the applicant's actual additional fringe benefit costs for overtime labor. The applicant has incorrectly calculated an overtime fringe benefit rate as a percentage of payroll costs using total benefit costs and total payroll costs (regular and overtime) for an entire year. PennDOT has then applied this percentage to force account overtime labor costs and has requested reimbursement of this higher percentage for the overtime labor used in the snow disasters. In their third appeal, the County restates its second appeal arguments. A fringe rate of 22.5 percent reflects actual additional fringe benefit costs when overtime is worked. That is the rate to be used for the eligible overtime in this disaster.
RECOMMENDATION: Sign the letter denying the third appeal.