PA ID# 113-12000-00; City of Cedar Rapids
PW ID# 10300; Ellis Pool Complex Repair
Conclusion: The Applicant sufficiently demonstrated that costs claimed for two contractors were associated with work within the approved scope of work to restore a pool complex and could be separated from ineligible costs associated with upgrades. As to a third contractor’s costs, the work performed was neither project management nor engineering services. The work was not directly related to the performance of eligible work and, therefore, the costs associated with that work, if eligible, would constitute DAC. The documentation provided was not sufficient to support reimbursement as DAC.
Flooding damaged the City of Cedar Rapids (Applicant) Ellis Pool complex. FEMA prepared Project Worksheet (PW) 10300 for $551,198, including $3,750 in direct administrative costs (DAC), to fund repairs. The Applicant restored the pool to its pre-disaster design but also completed enhancements and upgrades. At project closeout, the Applicant requested reimbursement for $726,603, a cost overrun of $175,405. FEMA determined that the Applicant failed to provide sufficient documentation allowing for eligible costs associated with work within the approved scope of work to be separated from ineligible costs associated with upgrades. FEMA closed out the project at the originally obligated amount. The Applicant’s first appeal included documentation it asserted separated costs of upgrades from costs associated with work within the approved scope of work. FEMA denied the first appeal, concluding that the documentation provided was insufficient. The Applicant submitted a second appeal and provided additional documentation it contended allowed for a bifurcation of costs.
Robert T. Stafford Disaster Relief and Emergency Assistance Act, § 406(e)(1), 42 U.S.C. § 5172(e)(1)
44 C.F.R. § 206.203(d)(1)
Under 42 U.S.C. § 5172(e)(1), FEMA is authorized to reimburse the cost of repairing, restoring, reconstructing, or replacing an eligible facility “on the basis of the design of such facility as it existed immediately prior to the major disaster.”
Under 44 C.F.R. § 206.203(d)(1), Public Assistance applicants may elect to make improvements to facilities being repaired or restored to its pre-disaster function; if an applicant elects to make improvements, “the Grantee’s approval must be obtained” and “Federal funding for such improved projects shall be limited to the Federal share of the approved estimate of eligible costs.”
The Applicant provided sufficient documentation with respect to two contractors demonstrating the bifurcation of costs associated with work within the approved scope of work from ineligible costs associated with upgrades.