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Citation:          FEMA-1008-DR-CA, Los Angeles County University of Southern California

Medical Center, Outpatient Hospital Building, Damage Survey Report (DSR) 10922

 

Cross-

Reference:      Grant Acceleration Program

 

 

Summary:      Following the January 17, 1994 Northridge earthquake, the Los Angeles County University of Southern California Medical Center (Applicant) accepted a Public Assistance Grant Acceleration Program (GAP) offer to repair its outpatient hospital building.  FEMA funded final eligible costs at closeout under DSR 10922.  On

February 19, 2008, the Applicant appealed FEMA’s determination that $59,301 in costs for Architecture and Engineering (A&E) construction administration services are project management costs.  The Applicant argued that FEMA mischaracterized the expenses as project management part H costs when the costs were directly related to construction design and engineering services (part A).  To support its appeal, the Applicant submitted excerpts from the Instructional Guide for Cost Estimating Format (CEF), a copy of the A&E Services Agreement and a Subgrantee Summary of Expenditures, A&E Construction Administration.  FEMA denied the first appeal on July 29, 2008, because, consistent with the GAP guidelines and the documentation submitted, the costs associated with construction administration services is a project management part H cost, not a part A cost.  On August 29, 2008, the Applicant filed its second appeal, maintaining the $59,301 cost should not be categorized as project management part H costs, but treated as part A.

 

Issue:              Is the $59,301 in construction administration services a part A cost and therefore,

is the resulting $68,789 eligible for offset with GAP under-run funds?

 

Finding:          No.

 

Rationale:       Title 44 Code of Federal Regulations §206.206(a); Instructional Guide for Cost

                        Estimating Format (CEF)