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Second Appeal Brief
PA ID# 760-67000-00; City of Richmond
PW ID# Project Worksheets 1998 and 2296; Debris Removal
FEMA-1491-DR-VA; City of Richmond
Debris Removal, Hazardous Stumps
Heavy rains and high winds from Hurricane Isabel in September 2003 deposited debris on public and private property including downed trees and limbs posing threats to the health and safety of the citizens of the City of Richmond (Applicant). FEMA prepared 26 PWs for a total of $7,035,939.40 to fund eligible debris removal work. Specifically, PWs 1998 and 2296 included funding for the removal of eligible hazardous stumps. FEMA denied $125,098.50 in funding associated with PWs 1998 and 2296 for contract costs determined to be unreasonable and unit costs associated with removal of stumps less than 24 inches in diameter. The Applicant submitted its first appeal on February 10, 2006. FEMA Region III determined that the Applicant had not conducted a price analysis as required by 44 CFR § 13.36(f), and FEMAs price analysis concluded that the contract charges were not reasonable. The Applicants contract also did not distinguish between stump sizes for unit costs for stump removal. FEMA Region III determined that this was not consistent with FEMAs historical practice and policy which paid for removal of stumps measuring less than 24 inches on a cubic yard basis, using stump conversion factors. For these reasons, FEMA Region III denied the appeal on December 22, 2006. The Applicant submitted its second appeal on October 5, 2007.
1. Has the Applicant demonstrated that it acted in a prudent manner in during the contracting process and that its contract unit prices for removal of stumps over 24 inches are reasonable?
2. Is the Applicant eligible for unit cost reimbursement for removal of stumps measuring 24 inches and less?
2. No. FEMAs historical practice and policy is to reimburse stumps measuring less than 24 inches or less on a cubic yard basis. Stumps measuring 24 inches in diameter or less do not require special equipment for removal and therefore are reimbursed on the reasonable cost per cubic yard, using stump conversion factors.
Office of Management and Budget Circular A-87; 44 CFR § 13.36(f); FEMA 325 Debris Management Guide (April 1999), Appendix F