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Second Appeal Brief
PA ID# 000-UQ004-00; Oklahoma Electric Cooperative, Inc.
PW ID# 722; Debris Removal
Citation: FEMA-1735-DR-OK, Oklahoma Electric Cooperative, Inc., PW 722Summary:
On March 19, 2008, FEMA prepared PW 722 to cover the cost of vegetative debris removal at several locations on Oklahoma Electric Cooperatives (Applicant) owned and maintained right-of-ways (ROW). The Applicant requested $51,493 in direct administrative costs associated with identifying eligible vegetative debris. The expense was for a software program, ROWKeeper, provided by Davey Resource Group. The assessment done by Davey Resource Group was for all ROW vegetative interference, not just for disaster-related ROW debris. FEMA wrote a version to the PW that included $5,149 (10%) for this administrative cost.
On May 1, 2008, the Applicant submitted their first appeal asserting that the Applicant was not involved in writing the scope of work and that FEMA officials had approved the use of Davey Resource Group to assist with debris damage assessment.
The Regional Administrator denied the appeal on July 2, 2008, stating that the debris assessment cost was an eligible expense, but it was not a reasonable cost. FEMA determined that the assessment cost was equal to 34.7 percent of the total debris removal cost, and was therefore, unreasonable. Eligible debris was
10 percent of the total debris removed applied to the total assessment cost resulted in an eligible assessment cost of $5,149.
The Applicant submitted its second appeal on September 5, 2008. The Applicant did not submit any additional information with this appeal. The State supports the Applicants appeal. Issues:
1. Was the ROW assessment only for disaster-related debris?
2. Did the cost of the ROW assessment meet the test of reasonableness?Findings:
44 Code of Federal Regulations §13.22 Allowable costs
; OMB Circular A-122, Cost Principles for Non-Profit Organizations,