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Second Appeal Brief
PA ID# 091-99019-00; Brunswick County
PW ID# 2791; Debris Removal
Citation: FEMA-1292-DR-NC; Brunswick County; PW 2791 Debris removal
Cross Reference: Debris Removal; Time and Material 70-hour time limit; Reasonable Costs
Summary: Hurricane Floyd made landfall on September 16, 1999, leaving large amounts of debris across Brunswick County, NC. In response, the Applicant let five time and material debris removal contracts that were completed by December 11, 1999. FEMA obligated Project Worksheet (PW) 2791 for $406,602 to reimburse the Applicant for costs incurred for debris removal. FEMA de-obligated $308,367 from PW 2791 during final inspection for ineligible debris removal, which reduced the total obligated to $98,235. The de-obligation was based on actual costs incurred of $58,830 for debris removed and disposed prior to the 70-hour time limit and $31,974 for the amount of debris removed and disposed of after the 70-hour time limit (5,329 cubic yards x $6 per cubic yard). The Applicants first appeal request to re-obligate the $308,367 was denied because the contracts were verbal and had exceeded the 70-hour time limit. Additionally, because the contracts exceeded the time limit, FEMA considered the calculated $67.97 per cubic yard unit cost excessive. A second appeal submitted by the Applicant on August 5, 2002 asserted that total debris removal costs of $404,580 were reasonable and should be considered eligible. This brought its final claim to $416,161.
Issues: 1. Are the time and material contracts eligible?2. Is the conversion rate of 1 ton equals 16.5 cubic yards reasonable and eligible?3. Are the debris monitoring vehicle costs eligible?4. Is the $67.97 debris removal unit cost reasonable and eligible?
Findings: 1. Yes. The contracts are eligible for the first 100 hours.2. 3. No. The 1:16.5 conversion rate is higher than the traditional rate of 1:4 and is not eligible.4. 5. Yes. The costs associated with the vehicles used for debris monitoring are eligible.6. 7. No. The $67.97 per cubic yard unit cost is not reasonable and eligible. A reasonable cost is $18.50 per cubic yard.8.
Rationale: 44 CFR §206.228