PA ID# 101-53380-00; City of Minot
PW ID# 4694; Sewer Lift Station Repairs
CConclusion: The contracted electrical repair work was necessary to restore the City of Minot’s (Applicant) lift station and the Applicant’s bid cost was rrreasonable. However, the Applicant failed to demonstrate that its hazard mitigation proposal was cost-effective and did not substantiate that the cclaimed costs for engineering and design services were tied to the approved scope of work.
The Applicant’s Roosevelt Lift Station was damaged during a 2011 flood event. FEMA prepared PW 4694 for $14,421 for the permanent repairs and a hazard mitigation proposal (HMP). The Applicant submitted a first appeal, stating that the funding approved was for emergency repair and did not include the cost of permanent repairs ($119,300). The Applicant also requested $27,000 for the proposed HMP and $17,054 for engineering and design. FEMA partially approved the appeal, providing an additional $25,820 for the estimated cost of permanent repair, the HMP, and engineering and design services, but denied the Applicant’s request for additional hazard mitigation funding because the Applicant did not break down the HMP lump-sum cost estimate. The Applicant’s second appeal asserted that the plans provided to FEMA included a detailed description of the permanent electrical repairs and that the PW did not encompass all of the necessary repair work. The Applicant also asserted that FEMA underestimated project costs; the HMP is cost effective and the bid cost appropriate; and that its design engineer evenly divided actual costs for work performed for multiple facilities at each impacted ones.
Cost Estimating Format (CEF) for Large Projects Instructional Guide V2.1, September 2009
The contracted electrical repair work was necessary to restore the Roosevelt Lift Station and the bid cost was reasonable.
A technical specialist reviewed the documented damage description and the repair work detailed in the bid documents and determined that the electrical work detailed in the plans and specifications was necessary to repair the lift station and that the $119,300 bid cost for that work was reasonable. Therefore, the electrical repair work is eligible and reasonable, actual costs to perform that work are eligible for funding.
Under FEMA Recovery Policy RP9526.1,Hazard Mitigation Funding Under Section 406 (Stafford Act), HMPs must be cost effective to be eligible.
The Applicant failed to provide a benefit-cost analysis supporting its claim the HMP was cost-effective.
Cost Estimating Format (CEF) for Large Projects Instructional Guide V2.1, September 2009.
CEF considers additional factors for services than just those covered by the Engineering and Design Services graph (Curves A and B) and is a more accurate method of estimating costs for such services than the graph alone.
The Applicant failed to demonstrate its claimed costs for engineering and design services were directly tied to the approved scope of work.