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Second Appeal Brief
PA ID# 143-67790-00; City of Sikeston
PW ID# 625; Reasonable Costs
Citation: FEMA-1822-DR-MO, City of Sikeston, Labor, Material, and Equipment Costs, Project Worksheet (PW) 625
Reference: Reasonable Cost, Documentation
Summary: A severe ice storm between January 26 and January 29, 2009, damaged the Applicant’s electrical distribution system. On June 3, 2009, FEMA prepared PW 625 in the amount of $1,068,693 for force account and contract support to repair the damaged electrical distribution system. In a letter dated October 14, 2009, the Applicant appealed PW 625, providing additional documentation to support disallowed contractor costs. FEMA conducted a reasonable cost analysis to determine eligible contract labor and force account labor costs allowing up to 16 hours per day per person or crew and adjusted equipment hours to match labor hours. FEMA determined that an additional $520,317 of the labor, material, and equipment cost was eligible resulting in a total eligible project cost of $1,589,010. The Regional Administrator partially approved the Applicant’s appeal on December 10, 2010.
The Applicant submitted its second appeal in a letter dated February 11, 2011. The Applicant contends that there are discrepancies between FEMA’s analysis of eligible costs based on a 16-hour work day and the State’s analysis of eligible costs based on a 16-hour work day, and requests that FEMA increase the approved total project amount to$2,837,067. This includes $349,686 for force account labor costs, and material costs in the amount of $375,359. The Applicant has submitted additional cost documentation to demonstrate that a portion of the costs incurred were eligible and reasonable.
Issue: Has the Applicant provided documentation demonstrating that its costs for labor, material, and equipment costs are eligible?
Finding: Yes, the Applicant has provided documentation demonstrating that an additional portion of its claimed costs are eligible.
Rationale: Office of Management and Budget Circulars A-21, A-87, Attachment A.C.2, and A-122; FEMA 322, Public Assistance Guide, June 2007, page 53, and 44 CFR §206.228(a)(2).