U.S. Department of Homeland Security 
Washington, DC 20472 


Grant Programs Directorate 
Information Bulletin No. 348 
September 27, 2010 
TO: All State Administrative Agency Heads 
All State Administrative Agency Points of Contact 
All Urban Areas Security Initiative Points of Contact 
All State Homeland Security Directors 
All State Emergency Management Agency Directors 
All Tribal Nation Points of Contact 
All Eligible Regional Transit Agencies 
All Private Sector Transportation Security Partners 
All Public and Private Sector Port Security Partners 
All State Department of Motor Vehicle Points of Contact 
FROM: Elizabeth M. Harman 
Assistant Administrator 
Grant Programs Directorate 
Federal Emergency Management Agency 
SUBJECT: Clarification of Supplanting Prohibitions in Information Bulletin (IB) #336 

On November 20, 2009, the Grant Programs Directorate (GPD) issued IB #336 regarding 
maintenance costs. IB #336 states, in part: 

“Grantees are reminded to be sensitive to supplanting issues. Maintenance contracts, warranties, 
repair or replacement costs, upgrades, and user fees previously purchased with State and or local 
funds cannot be replaced with Federal grant funding.” 

As a result of numerous stakeholder requests, the following clarification is provided: 

. 
Maintenance contracts and warranties, repair and replacement costs, upgrades, and/or user 
fees for equipment that was not originally purchased with preparedness grant funding (or 
provided by DHS components listed in IB #336) may not be subsequently paid for with 
preparedness grant funding. The only exception is the Port Security Grant Program (PSGP), 
in which the Repair and Replacement Section of IB # 293 remains in effect. 

. 
Maintenance contracts and warranties, repair and replacement costs, upgrades, and/or user 
fees for equipment that was purchased with preparedness grant funding (or provided by 
DHS components) may be subsequently paid for with preparedness grant funding. This 
policy is in effect even for maintenance contracts, warranties, repair and replacement costs, 
upgrades, and/or user fees that had previously been purchased with state or local funding. 

www.fema.gov 


The only exception is in cases where current year State or local funds are appropriated 
for 
such purposes. 

Questions related to this Information Bulletin may be directed to your FEMA Program Analyst 
or the Centralized Scheduling and Information Desk at askcsid@dhs.gov or 1-800-368-6498.