Appeal Brief | Appeal Letter | Appeal Analysis | Back
Second Appeal Brief
PA ID# 113-12000-00; City of Cedar Rapids
PW ID# 462, 1768, 2119, 2306, 7785, 7857, 9049, 10202, 10280, 10331 and 10407; Direct Administrative Costs
Citation: FEMA-1763-DR-IA, City of Cedar Rapids, Direct Administrative Costs, Project Worksheets (PWs) 462, 1768, 2119, 2306, 7785, 7857, 9049, 10202, 10280, 10331 and 10407
Cross- Reference: Administrative Costs, Reasonable Cost
Summary: Heavy rainfall beginning in May 2008 resulted in severe flooding that caused extensive damage in the City of Cedar Rapids (Applicant). FEMA prepared the referenced eleven PWs for a combined total of $2,251,070 for costs to perform emergency and permanent work. Included in the project costs were $77,185 in Direct Administrative Costs (DAC). After the Iowa Homeland Security and Emergency Management Division (Grantee) reviewed the Applicant’s documentation of actual costs, FEMA closed out the eleven PWs and reduced the total eligible DAC to $69,178 based on the Grantee’s recommendation. The Applicant requested an additional $8,006 in DAC; however, FEMA determined that the Applicant’s documentation did not support the eligibility of $8,006 in DAC associated with a consultant’s hourly rate that exceeded $155. In the first appeals, the Applicant asserted that the DAC was eligible for reimbursement. In the appeals response, the Regional Administrator noted that the Applicant did not justify the hourly rate above $155 and determined that the claims for $8,006 were ineligible. In the second appeals, the Applicant reiterates that the DAC charged at an hourly rate above $155 is eligible because the protocol used to procure the contract established the rate as a reasonable cost and justified the rate as appropriate for a program manager’s skill level/expertise. The Applicant cites 44 CFR §13.36(b), Procurement, Procurement standards, and OMB Circular A-87, Attachment A, section C, and Attachment B paragraph 32 as supporting its claim regarding the reasonableness of the consultant’s hourly rate.
Issue: Has the Applicant provided sufficient documentation identifying specific administrative tasks that would enable FEMA to determine whether the claimed Direct Administrative Costs are eligible for reimbursement?
Rationale: 44 CFR §13.36 Procurement, Disaster Assistance Policy 9525.9, Section 324 Management Costs and Direct Administrative Costs