Appeal Brief | Appeal Letter | Back

 

Citation:         FEMA-1771-DR-IL; Village of Gulfport (Applicant), PW 1012

 

Cross

Reference:     Reasonable Cost

 

Summary:      Many homes were destroyed or uninhabitable after heavy rains and flooding from June 1, 2008, through July 22, 2008, breached a levee south of the Village of Gulfport.  After evacuating the city, the Applicant entered into a non-competitively procured contract with Henry and Mamie’s Security Company (HMSC) to provide patrol service to restrict access to the area.  Pursuant to Title 44 Code of Federal Regulations (CFR) §13.36(f), Contract Cost and Price, FEMA conducted a cost analysis because adequate price competition was lacking.  FEMA used the State of Illinois’ Department of Labor’s prevailing wage rates and RS Means to develop an hourly rate of $23.90 for employee hours and a monthly rate of $1,500 for the patrol car.  On October 9, 2008, FEMA obligated 120,749 for 4864 employee hours and three month’s use of the patrol car.  According to the Applicant, it should be reimbursed $398,209 for the services provided by HMSC.  The Applicant claimed that it solicited bids from two to four companies that chose not to bid.  The Applicant did not provide documentation to support its claim.

                                       

Issue:              Are the Applicant’s costs reasonable?

Finding:          No

                       

Rationale:       44 CFR §13.36(f), Contract Cost and Price, and Office of Management and Budget Circulars A-21, A-87, Attachment A.X.2, and A-122.