Follow FEMA:
Contract Labor
Main Content
Appeal Brief | Appeal Letter | Back
Project Worksheets (PWs) 7633, 8113, and 8247
Cross-reference: Labor Costs
Summary: Following Hurricane Katrina, the Applicant used labor from the Public Works Department to perform emergency repairs and debris removal operations. The Public Works Department was comprised of employees from Operations Technologies, Inc. (Optech), a company to which the Applicant outsourced operations in 2003. FEMA determined that Optech employees were the functional equivalent of force account labor. Accordingly, funding was reduced by a total of $238,035 on PWs 7633, 8113, and 8247, to account for the cost of regular time salaries and benefits for emergency work performed by Optech employees. In its first appeal, the Applicant claimed that a FEMA Project Officer stated that regular time wages of Optech employees are eligible because they were not employees of the City. The Regional Administrator denied the appeal stating that the Applicant regularly budgeted for the costs of contract labor from Optech prior to the disaster and the costs incurred were the equivalent of force account labor. In its second appeal, the Applicant asserted that FEMA established a precedent under FEMA-1550-DR-MS by obligating PWs that funded regular time costs for emergency work performed by Optech employees. For the purposes of the Public Assistance Program, Optechs employees are contract labor. Therefore, the straight-time pay of Optech employees who performed emergency work is eligible for reimbursement.
Issues: Are straight time hourly wages for outsourced contract labor performing eligible emergency work compensable?
Findings: Yes.
Rationale: Response and Recovery Policy 9525.7, Labor Costs Emergency Work
Second Appeal Letter
FEMA-1603-DR
PA ID# 059-55360-00; City of Pascagoula
PW ID# PWs 7633, 8113, 8247; Contract Labor
04/21/2009
Citation: FEMA-1604-DR-MS, City of Pascagoula, Contract Labor, PA ID# 059-55360-00; City of Pascagoula
PW ID# PWs 7633, 8113, 8247; Contract Labor
04/21/2009
Project Worksheets (PWs) 7633, 8113, and 8247
Cross-reference: Labor Costs
Summary: Following Hurricane Katrina, the Applicant used labor from the Public Works Department to perform emergency repairs and debris removal operations. The Public Works Department was comprised of employees from Operations Technologies, Inc. (Optech), a company to which the Applicant outsourced operations in 2003. FEMA determined that Optech employees were the functional equivalent of force account labor. Accordingly, funding was reduced by a total of $238,035 on PWs 7633, 8113, and 8247, to account for the cost of regular time salaries and benefits for emergency work performed by Optech employees. In its first appeal, the Applicant claimed that a FEMA Project Officer stated that regular time wages of Optech employees are eligible because they were not employees of the City. The Regional Administrator denied the appeal stating that the Applicant regularly budgeted for the costs of contract labor from Optech prior to the disaster and the costs incurred were the equivalent of force account labor. In its second appeal, the Applicant asserted that FEMA established a precedent under FEMA-1550-DR-MS by obligating PWs that funded regular time costs for emergency work performed by Optech employees. For the purposes of the Public Assistance Program, Optechs employees are contract labor. Therefore, the straight-time pay of Optech employees who performed emergency work is eligible for reimbursement.
Issues: Are straight time hourly wages for outsourced contract labor performing eligible emergency work compensable?
Findings: Yes.
Rationale: Response and Recovery Policy 9525.7, Labor Costs Emergency Work