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Second Appeal Letter
PA ID# 071-99071-00; Henderson County
PW ID# 1524 v2; Emergency Levee Repairs and Dewatering
September 11, 2012
Jonathon E. Monken
Illinois Emergency Management Agency
1035 Outer Park Drive
Springfield, Illinois 62704
Re: Second Appeal–Henderson County, PA ID 071-99071-00, Emergency Levee Repairs and Dewatering, FEMA-1771-DR-IL, Project Worksheet (PW) 1524 v2
Dear Mr. Monken:
This is in response to a letter from your office dated April 8, 2011, which transmitted the referenced second appeal on behalf of Henderson County (Applicant). The Applicant is appealing the Department of Homeland Security’s (DHS) Federal Emergency Management Agency’s (FEMA) denial of $23,168,593 in additional funding for dewatering operations in Henderson County and the Village of Gulfport.
In June and July 2008, severe storms and flooding occurred along the Mississippi River. This caused a levee to breech in Henderson County, which resulted in flooding of the Village of Gulfport and surrounding areas. The Applicant entered into a non-competitive time and materials contract to conduct the work of dewatering the flooded areas. The Applicant requested a total of $25,890,305 for the work performed. FEMA approved $2,721,712 in PW 1524 v2 for the cost of emergency pumping.
The Applicant appealed the denial of additional funding for the work. On January 12, 2011, the Deputy Regional Administrator denied the Applicant’s first appeal, and the Applicant submitted a second appeal to the State in an undated letter and again requested additional funding for the cost of emergency pumping and dewatering operations. The second appeal was transmitted to FEMA by the State in a letter dated April 8, 2011.
While the second appeal was pending at FEMA Headquarters, the DHS Office of the Inspector General (OIG) issued audit finding and recommendations to FEMA Region V on September 27, 2011, regarding the funding provided to the Applicant in PW 1524 v2 ($2,721,712). On January 30, 2012, the Deputy Regional Administrator responded to the DHS OIG Audit Report (DD-11-22), FEMA Public Assistance Grant Funds Awarded to Henderson County, Illinois, and indicated that FEMA would de-obligate previously awarded funding under PW 1524 v2 pursuant to the OIG’s audit and recommendations. The Applicant appealed this determination, and FEMA Region V issued a response denying the first appeal on August 13, 2012.
The second appeal determination transmitted in this letter pertains to the additional funding requested by the Applicant ($23,168,593), beyond the initial funding in PW 1524 v2.
Applicants that seek reimbursement under the Public Assistance Program must comply with the Federal procurement requirements contained in 44 CFR §13.36, Procurement and in OMB Circular A-87. As explained in the enclosed analysis, I have determined that the additional costs submitted by the Applicant are not eligible, and that the Deputy Regional Administrator’s decision in the first appeal is consistent with Public Assistance regulations and policy. Accordingly, I am denying the second appeal for the requested additional funding.
Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 CFR §206.206, Appeals.
cc: Andrew Velasquez
FEMA Region V