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Second Appeal Brief
PA ID# 000-UK9YJ-00; Louisiana Department of Wildlife & Fisheries (Applicant)
PW ID# Project Worksheet 2137; Disposition of Equipment and Supplies
FEMA-1603-DR-LA, Louisiana Department of Wildlife & Fisheries (Applicant)
Disposal of Equipment and Supplies
In response to Hurricane Katrina, the Applicant purchased 250 rifles, 750 ammunition magazines and five laptop computers. The Applicant considered these materials necessary for an effective response and for the safety of its employees during search and rescue efforts following the disaster. PW 2137 was prepared for $291,097 for these materials. Anticipated salvage value of $145,549 was deducted from the eligible costs pursuant to 44 Code of Federal Regulations (CFR) §13.33(b).
The Applicant submitted its first appeal on March 28, 2006. The State argued that the rifles, ammunition magazines, and laptop computers were equipment and that 44 CFR §13.32(b) dictates that equipment is to be disposed of in accordance with state law. FEMA determined that the items were supplies, not equipment, based on the definition of those terms in 44 CFR §13.3. FEMA further determined that Recovery Policy 9525.12, Disposition of Equipment, Supplies, and Salvaged Materials,
required the Applicant to compensate FEMA for the fair market residual value of used and unused supplies with an aggregate value exceeding $5,000, when they are no longer needed for disaster work. The Regional Administrator denied the appeal in a letter dated June 5, 2007.
In its second appeal, July 12, 2007, the Applicant again requested that FEMA remove the deduction for salvage value thereby increasing the value of PW 2137 to $291,097. The appeal centers on these arguments:
1. The Applicant is a component of the state government, and therefore, is permitted by 44 CFR §13.3 to establish its own definition of equipment.
2. Pursuant to 44 CFR §13.32, the Applicant can dispose of equipment in accordance with state law, and it can retain, without any obligation for repayment, items of equipment with a fair market value of less than $5,000.
4. The items in dispute are needed for, and are being used in support of other federally-funded programs.
Are the items in dispute being used in support of other federally-funded programs?
44 CFR §§13.32(c)(1) and 13.33(b).