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Second Appeal Brief
PA ID# 071-10275-00; City of Cape Coral
PW ID# 5961, 6180, 6183; Debris Removal
Citation: FEMA-1539-DR-FL, City of Cape Coral, Debris RemovalCross-reference:
The City of Cape Coral (Applicant) appealed the disallowance of some of the costs incurred by the Applicant under a time-and-materials contract for debris removal.
The Applicant used an existing time-and-materials contract to clear and mulch debris generated by Hurricane Charley in 2004. The contract was competitively bid prior to the storm, and the Applicant modified that contract to allow for storm-related debris removal. FEMA disallowed a portion of the costs due to the Applicants having used a time-and-materials contract well beyond the 70-hour limitation (3 months), the Applicants failure to re-bid the contract after the 70-hour limit, the Applicants failure to monitor the work performed under the contract, and the lack of verification of the reasonableness of the costs. FEMA also disallowed costs for ineligible facilities. In addition, FEMA used its estimated number of damaged trees (a smaller number than the Applicants) and debris collected and chipped at a golf course to derive eligible reasonable costs.
The major issue in these appeals is the Applicants use of an unmonitored time-and-materials contract for a prolonged period and the Applicants failure to produce documentation establishing the quantities of collected debris and eligible costs. The Applicant did provide additional documentation and invoices but did not establish quantities and eligibility of debris. Having established legal responsibility for three rental properties, the Applicant was entitled to $3,050 in additional eligible costs. And the Applicant is eligible for $24,143 in additional costs for remaining debris from the water reclamation plant. Additional documentation was not provided and as such the other properties remain ineligible. The prolonged and unmonitored use of the time-and-materials contract in unacceptable. While noncompliance with contracting requirements could have led to ineligibility of all the costs, the field decision to allow some funding for debris removal from the hurricane was not unreasonable.Issues:
Do unmonitored, undocumented, and long-term (in excess of 3 months) time-and-materials contracts meet Federal requirements?Findings:
44 CFR Par 13; 44 CFR §206.223; 44 CFR §206.201 (c) Public Assistance Debris Management Guide
, FEMA 325, dated April 1999; Public Assistance Guide
, FEMA 322, dated October 1999