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Second Appeal Summary
PA ID# 037-70000; City of Santa Monica
DSR ID# 97881; Main Library
Citation: FEMA-1008-DR-CA; City of Santa Monica; PW 97881, Main Library
Cross-reference: Identification of Damages; Eligible Work; Reasonable Costs; Category E
Summary: During the Northridge Earthquake on January 17, 1994, the Main Library of the City of Santa Monica sustained damages. Four DSRs totaling $336,696 were approved to cover the costs necessary for the repair of the Main Library. During the project closeout process, the Applicant claimed $573,296 in actual project costs. Some of the additional costs ($150,414) were approved in DSR 97881; the other work was determined to be beyond the approved DSR scope of work. In its first appeal, the Applicant claimed $33,893 for the additional patch and paint and stone veneer work included in their Change Order No. 1, plus some additional force account costs. The first appeal granted the force account costs but disallowed the additional patch and paint and stone veneer work on the basis that the Applicant could not establish that the additional work was approved prior to completion of the work or that the additional work was eligible. The Applicants second appeal again requests the additional $33,893 be funded. The Applicant provided additional contract documentation, correspondence and the claim that they had previously requested a supplemental DSR but was told by FEMA that supplements would be prepared at closeout. The Applicant also asserts that it acted in a prudent and reasonable manner while incurring the additional costs.
Issues: 1. Did the Applicant receive approval prior to incurring the costs associated with Change Order No. 1?2. Is the additional work eligible? 3. Are the costs associated with the additional work reasonable?
Findings: 1. No, however, it is reasonable to believe that the Applicant may have misconstrued FEMAs correspondence regarding the preparation of DSR supplements at the time of project closeout.2. 3. Yes, the Applicants construction management controls and documentation adequately demonstrate that the additional work was reasonable in nature and in scale with a project of this size and complexity4. Yes, the applied unit costs are reasonable.
Rationale: 44 CFR §206.226 and §206.228