PA ID# 063-53682-00; City of North Tonawanda
DSR ID# Project Worksheet 274; Debris Removal Contract Costs
Citation: FEMA-1665-DR-NY, City of North Tonawanda, Project Worksheet 274
Following snow storms in October 2006 the Applicant solicited bids for a comprehensive debris removal, management, and disposal contract. The contract included removal, reduction and disposal of rights-of-way vegetative debris, hazardous tree limbs (greater than 2”) and leaning/hazardous trees. The Applicant received bids from eight qualified contractors and chose the lowest bidder in all rate categories. The awarded contract included removal of 1,000 hazardous tree limbs at the unit price of $21.42 per limb.
The contractor removed a total of 70,132 hazardous tree limbs. FEMA used debris-monitoring data to determine that a unit cost of $21.42 per limb equated to a unit cost of $356.21 per tree. The data sample included 41,095 hazardous tree limbs removed from approximately 2,471 trees. FEMA compared the unit cost of $356.21 per tree to contracts entered into in contiguous/neighboring communities that used a per tree unit price for the performance of similar contract work and determined that the unit cost of $356.21 per tree was not reasonable. FEMA approved payment of the first 1,000 hazardous tree limbs at the contract rate of $21.42 per limb and payment of the remaining work at $145 per tree. The Regional Administrator sustained this determination on first appeal.
Is the Applicant’s contract unit cost of $21.42 per limb reasonable?
Yes. The Applicant competitively bid and properly procured the lowest bid.
44 CFR §13.22(b); 44 CFR §13.20(b) (5); OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments