The Schedule of Equipment Rates, which provides rates for applicant-owned equipment, includes parts and labor for normal maintenance and periodic equipment overhaul. It is expected that these rates would cover most damage to equipment used under emergency conditions. However, there are circumstances when equipment is used during an emergency in severe conditions such as high water or very rough terrain and damage occurs to the equipment or extraordinary maintenance is required during and/or after the emergency work. When damages cannot be reasonably avoided, funding may be eligible.
This policy is archived and has been superseded by the policy currently in effect.
Date Signed: August 17, 1999
Response and Recovery Policy Number: 9525.8
Title: Damage to Applicant-Owned Equipment
Purpose: This policy is to provide guidance in determining the eligibility of damage and extraordinary maintenance to applicant-owned equipment performing emergency work under severe conditions.
Scope and Audience: This policy is applicable to all major disasters and emergencies declared on or after the publication date of this policy. This policy is intended for Federal Emergency Management Agency (FEMA) personnel in making eligibility determinations for the Public Assistance Program.
Background: The Schedule of Equipment Rates, which provides rates for applicant-owned equipment, includes parts and labor for normal maintenance and periodic equipment overhaul. It is expected that these rates would cover most damage to equipment used under emergency conditions. However, there are circumstances when equipment is used during an emergency in severe conditions such as high water or very rough terrain and damage occurs to the equipment or extraordinary maintenance is required during and/or after the emergency work. When damages cannot be reasonably avoided, funding may be eligible.
Equipment that is damaged or requires maintenance due to routine use under normal working conditions for which it was designed is not eligible for any costs other than those designated in the FEMA Schedule of Equipment Rates or other FEMA-approved rates.
Damage that was reasonably avoidable is not eligible.
Extraordinary expenses for repairs and maintenance beyond normal for equipment operating under severe conditions in disaster operations may be eligible for reimbursement. Any request for reimbursement must meet the criteria of this policy.
Severe operating conditions and certain other disaster-related damages are not taken into account in the FEMA Schedule of Equipment Rates or other FEMA-approved rates. Extraordinary costs from these causes may warrant additional disaster funding.
Severe conditions include operation in high water, deep sand, fire, very rough terrain, salt water, severe snowfall or in environments with widespead and massive amounts of wind-generated debris. The conditions usually occur during emergency operations and are not encountered in situations for which the equipment was designed.
Eligible Costs. Examples of items that could be eligible during or after operations in severe conditions include:
Damage caused by hitting submerged objects,
Damage that is caused by the disaster as a result of accomplishing emergency work, such as equipment that gets washed away when working on a breached levee or dam,
Cleaning of moving parts to remove foreign material that would cause damage in the equipment,
Fluid changes for equipment when high water operation was required,
Repairing or replacing tires and repairing undercarriage damage after operating in severe debris conditions left by high winds and floods when the damaged equipment is not designed to work in that environment,
Damage to equipment from civil unrest or terrorist activity occurring during disasters or emergencies declared by the President for reasons of civil unrest or terrorist activity, and
Replacement of fire hoses that were used to pump raw sewage or other contaminated liquids when the cleaning of the hoses is not possible.
Ineligible Costs. Equipment damaged or destroyed during use for other than its intended design and function is ineligible unless it was the only equipment available to save lives or protect property from imminent threat of harm. Examples of specific costs that are not eligible for reimbursement include:
Changing of fluids, except when required by other eligible damage or as provided in 7.D.4., and
Damage to equipment that is not related to performing eligible work, e.g., damages due to traffic accidents (even though en route to perform eligible emergency work), damage as the result of operator error, or vandalism.
Repetitive Damage. Generally, applicants operating in a high-risk environment who have failed to maintain their equipment for that environment, will not be eligible for maintenance costs that would have been avoidable under a more rigorous maintenance program.
Supersession: Memorandum from Dennis H. Kwiatkowski to Stephen Kempf, Jr. dated April 22, 1993, Subject: Damage to Applicant-Owned Equipment due to Coastal Environment and other relevant provisions of previous policy documents
Authorities: 44CFR 206.228(a)(1)
Originating Office: Infrastructure Division, Response and Recovery Directorate
Review Date: Two years from date of publication
Lacy E. Suiter
Executive Associate Director
Response and Recovery Directorate
Distribution: Regional Directors, Regional and Headquarters R&R Division Directors