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Citation:         FEMA-1785-DR-FL, Town of Lantana, Concrete sidewalk and dune crossover repair, Project Worksheet (PW) 1839.                      

Cross-

Reference:     Concrete sidewalk and dune crossover repair

Summary:      The Town of Lantana (Applicant) received funding to repair damages to the concrete sidewalk and dune crossover as a result of Tropical Storm Fay.  FEMA prepared Project Worksheet (PW) 1839 to document damages and estimate the costs incurred by proposed repairs to the sidewalk and dune crossover.  The Applicant submitted proposed repair costs in the amount of $117,265 based on a vendor estimate and their direct administrative costs.  FEMA reviewed the proposed costs using FEMA’s Cost Estimating Format (CEF) and reduced the eligible amount to $48,985.  In its First appeal, January 29, 1010, the Applicant asserts that repair cost estimates to the sidewalk and crossover are reasonable.  FEMA denied the appeal stating that Applicant did not provide documentation detailing proposed costs. Therefore, FEMA did not consider the cost estimate to be reasonable.  In its second appeal, the Applicant asserts that two bidders responded to the published bid advertisement for the repair of a concrete sidewalk and dune crossovers. . The lowest bidder did not meet stated licensing requirements, as a result the higher bidder was accepted.  In addition, the Applicant provided documentation that the work had been completed, including direct administrative costs.  The project exceeds the FY 2008 threshold for $60,900 for large projects. Large project funding is based on documented actual costs. Costs must still be reasonable for the work performed.  Therefore, a final inspection and reconciliation should be conducted to determine the actual eligible costs.   

Issues:            1.  Is the cost estimate proposed by the Applicant reasonable?

                        2.  Did the Applicant provide documentation that supported its position?

Findings:        1.  Yes

                        2.  Yes

Rationale:       44 Code of Federal Regulations (CFR) §206.205(b), Large projects; §13.20(a)(5) and (6), Standards for financial management systems; and Public Assistance Guide, FEMA 322, dated June 2007.