Appeal Brief | Appeal Letter | Appeal Analysis | Back
Second Appeal Brief
PA ID# 037-52004-00; Nashville-Davidson County
PW ID# 2488, 5206, 5505, and 5576; Direct Administrative Costs
Citation: FEMA-1909-DR-TN, Nashville-Davidson County, Direct Administrative Costs, Project Worksheets (PWs) 2488, 5206, 5505, and 5576
Cross-Reference: Direct Administrative Cost, Project Management Costs, Reasonable Costs
Summary: In the aftermath of severe storms and flooding in Tennessee in April and May 2010, the Metropolitan Water Service (Applicant) in Nashville-Davison County completed repairs to damaged facilities and replaced flooded building contents. As part of the PWs prepared for the work, the Applicant included DAC. FEMA approved $1,723 in expenses in the four PWs as eligible DAC and excluded $4,508 as either indirect costs or excessive.
The Applicant submitted a first appeal covering seven PWs for $8,714 and submitted a separate first appeal for PW 5576 for $1,248. The Applicant requested that FEMA approve the full amount of DAC originally requested. The scope of work for the charges submitted included processing delivery orders, payment of vendors, procurement, site visits, PW development, and close-out activities. FEMA denied the appeal, stating that the additional DAC requested by the Applicant was for construction or project management activities, which are part of normal project completion and already included in the PWs.
In the second appeal, the Applicant submitted a revised request for an additional $4,766 in costs related to PW formulation for four PWs and $4,109 for the costs related to closeout activities. The second appeal contains a scope of work for the additional DAC and copies of memos and emails to and from FEMA that support the scope of work for the requested DAC.
Issue: 1. Did the work performed by the Applicant related to PW formulation and closeout activities meet the criteria for Direct Administrative Costs?
Finding: 1. Yes.
Rationale: Section 324 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; 44 CFR §207; Disaster Assistance Policy DAP9525.9 Section 324 Management Costs & Direct Administrative Costs