Citation:      FEMA-1577-DR-CA, San Bernardino County, Improved Projects, Project Worksheets (PWs) 1859, 2059, and 2217

Cross-
Reference:   Improved Project, Net Small Project Overrun (NSPO)

Summary:     FEMA prepared PWs 1859, 2059, and 2217 for damage to the Applicant’s roads, including culverts and embankments, following severe storms from December 27, 2004, to January 11, 2005.   The Applicant submitted its NSPO request September 7, 2007.  In a letter dated July 9, 2008, FEMA denied the NSPO, stating that the Applicant had a net underrun of $59,189.  FEMA also reclassified five projects as Improved Projects, including PWs 1859, 2059, and 2217.   The Applicant stated it did not receive the July 9, 2008, letter and was unaware of this status until FEMA notified the Applicant with a letter dated December 18, 2008.  The Applicant appealed this decision in a letter dated February 13, 2009.  The Applicant requests additional funding under each PW, arguing that both the Applicant and FEMA underestimated the full scope of damages.  The California Emergency Management Agency forwarded the second appeal on April 17, 2009.  The additional work performed under PWs 1859 and 2059 is not eligible for reimbursement.  The Applicant provided documentation to justify that it is eligible for an additional $11,240 under PW 2217 for repair work for a culvert and portion of an embankment.  However, because the Applicant’s NSPO resulted in an underrun greater than the eligible amount for PW 2217, the appeal should be denied.

Issues:        Has the Applicant demonstrated that it is eligible for reimbursement for the additional repair work performed under PWs 1859, 2059, and 2217?

Findings:     Partially.  The Applicant has demonstrated that it is eligible for an additional $11,240 under PW 2217 only. However, because the Applicant’s NSPO resulted in an underrun of $59,189, the appeal is denied.

Rationale:     44 CFR §206.203(d)(1), Improved projects; 44 CFR §206.204(e), Cost Overruns.