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Second Appeal Summary
PA ID# 037-91033; Los Angeles County USC Medical Center
DSR ID# DSRs 98123 and 60546; Parking Structure 12
FEMA-1008-DR-CA, Los Angeles County USC Medical Center,
DSRs 98123 and 60546, Parking Structure 12. Cross-reference:
Following the 1994 Northridge earthquake, Los Angeles County USC Medical Center (Applicant) accepted a Public Assistance Grant Acceleration Program (GAP) initial offer for $447,536 to repair Parking Structure 12 under DSR 98123 in September 1999. At closeout, FEMA determined final project costs totaled $1,095,854. FEMA deducted $19,768 from the total project costs because the Applicant did not repair 360 linear feet in cracks. However, FEMA determined that an additional $9,873 was eligible for structural evaluation. Therefore, the total eligible project cost was $1,085,959. GAP program guidelines allowed Applicants to transfer underruns from other GAP projects to cover overruns on others. FEMA subsequently obligated $658,213 ($1,095,854 less $437,641) under DSR 60546 on January 10, 2006, to cover the eligible project overrun.
The Applicant appealed FEMAs closeout decision on February 13, 2006, requesting a total of $21,940. It stated that these costs should be considered hard costs, which are allowed under the GAP guidelines. FEMA denied the appeal on August 8, 2007, in accordance to guidance from the CEF Guide
, Part H.1 Owners Overhead and Soft Costs
, which defines soft costs to include managing the A&E contracts for final design and construction administration, and Part H.3 Project Management - Construction Phase
, which defines soft costs to include quality assurance and daily inspection. FEMA also determined that the approved scope of work was not completed.
On October 23, 2007, the Applicant filed its second appeal requesting an additional $59,213: $51,046 in hard costs, plus $8,167, the 16% allowable mark up for project management soft costs attributable to the newly eligible hard costs. Issues:
Are the requested costs considered soft costs, thus eligible for reimbursement? Findings:
44 CFR §206.206 (a); Instructional Guide for Cost Estimation Format (CEF)