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Citation:         FEMA-1603-DR-LA, City of Slidell, Project Worksheet 15510

Cross

Reference:     Reasonable cost

 

Summary:      The City of Slidell (Applicant) solicited contracts to remove disaster-related sediment from its storm drainage system.  Only one responsible bidder, its existing standby contractor, responded.  The Applicant amended its contract to allow for the work.  The Applicant requested reimbursement of $5,372,406 from FEMA.  FEMA evaluated the reasonableness of cost because there was only one responsible bidder and determined that the Applicant used a cost-plus-percentage-of-cost contract, which is prohibited by 44 CFR Part 13.  FEMA initially obligated $3,129,117.  In response to the first appeal, the Regional Administrator determined that all unit costs except for the open ditch cleaning of $5.95 per linear foot were reasonable.  The Regional Administrator approved the cost of open ditch cleaning at the FEMA cost code rate of $3.40 per linear foot for an additional $1,100,436.  The Applicant submitted a second appeal requesting the full amount of the claim (an additional $1,142,752) and provided supporting documentation.

 

Issue:              Has the Applicant provided documentation demonstrating that its costs for cleaning storm drains are reasonable?

 

Finding:          Yes.

 

Rationale:       44 CFR §13.36