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Second Appeal Brief
PA ID# 071-UBAAP-00; Downtown Development District
PW ID# 12490; OIG Audit Report
Citation: FEMA-1603-DR-LA, Downtown Development District, OIG Audit Report Findings, Project Worksheet 12490
Reference: Reasonable Cost, OIG Audit Report
Summary: The Downtown Development District (Applicant) had a sidewalk cleaning maintenance contract in place prior to Hurricane Katrina. There was little to no work being performed and the contract was about to be cancelled. Following Hurricane Katrina, the Applicant re-scoped the contract to allow OneSource to additionally perform debris removal activities. FEMA prepared PW 12490 for the cost associated with debris removal from the Applicant’s district.
The Central Regional Office, Office of Emergency Management Oversight, DHSOffice of the Inspector General (OIG) issued Audit Report DD-09-09 on May 29, 2009. The OIG determined that the Applicant did not comply with Federal regulations and guidelines and recommended de-obligation of $149,020 in unreasonable debris removal cost. The agreed upon rate for debris removal of $85 per cubic yard (CY) was based on FEMA’s established reasonable cost matrix for Hurricane Katrina related debris operations in Louisiana.
January 14, 2010, FEMA de-obligated $149,020 from PW 12490.
The Applicant submitted its first appeal June 2, 2010, requesting the re-obligation of $149,020 to PW 12490. On September 10, 2010, the Regional Administrator denied the first appeal agreeing with the OIG audit findings. In its second appeal dated November 10, 2010, the Applicant reiterated its original argument and did not provide any additional documentation to substantiate its claim.
Issues: 1. Did the Applicant comply with Federal procurement standards?
2. Has the Applicant provided sufficient documentation to justify its debris removal costs?
Findings: 1. No.
Rationale: OMB Circular A-87; 44 CFR § 13.36(f), Procurement, Contract cost and price; Public Assistance Policy Digest (FEMA 321) dated October 2001, page 101.