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Second Appeal Summary
PA ID# 037-91085; City of Los Angeles, Department of General Services
DSR ID# 48292 ; Emergency Water Draining
Citation: Appeal Brief; Second Appeal; City of Los Angeles; Department of General Services; FEMA-1008-DR-CA; PA #037-91085
Cross-Reference: DSR 48292; Force Account Labor; Category B
Summary: Following the Northridge Earthquake of 1994 in the City of Los Angeles (City), California, FEMA prepared DSR 48292 for $3,249 to remove water from pools to protect the health and safety of the public. The DSR covered the costs of overtime and benefits for force account labor from the City's Department of General Services (GSD), but did not include straight-time force account labor costs. The State forwarded the City's non-concurrence with FEMA's determination not to fund straight-time force account labor costs for DSR 48292 on July 13, 1996. Since this non-concurrence was received after the approval of the DSR, FEMA considered it a first appeal. The City contended that the crew performing the work was diverted from its regular work, therefore the associated straight-time force account labor costs should be eligible for FEMA funding. FEMA denied the first appeal citing 44 CFR 206.228 (a)(4), which states that the straight-time or regular-time salaries and benefits of a subgrantee's permanently employed personnel are not eligible in calculating the cost of eligible work under sections 403 and 407 of the Stafford Act. The State forwarded the second appeal on August 20, 1997. In the second appeal the City is requesting $4,965 for 190 hours of straight-time labor costs for GSD personnel to remove water from nine pools. The basis of this appeal is that GSD acted as the City's Department of Building and Safety's contractor of choice and that it was the City's understanding that straight-time labor costs resulting from emergency activities, which divert work crews from their regular work, are eligible. The State considers the subject work ineligible and does not support the second appeal.
Issue: Are straight-time force account labor costs eligible for FEMA funding when the force account labor (permanent employees) performs emergency work?
Findings: No. The straight-time force account labor costs for employees performing emergency work are not eligible for reimbursement.
Rationale: 44 CFR 206.228 (a)(4) establishes eligibility criteria for force account labor costs.