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Second Appeal Brief
PA ID# 083-99083-00; Santa Barbara County
PW ID# Multiple PWs; OIG Audit Report DS-11-04
Citation: FEMA-1577-DR-CA, Santa Barbara County, Road Work, Multiple Project Worksheets (PW)
Cross-Reference: Procurement, Office of the Inspector General (OIG) Audit, Scope of Work
Summary: Severe storms with flooding and mudflows that occurred from December 27, 2004, through January 11, 2005, caused sloughing of saturated hillsides, filling of debris basins, washout of local roads, and various other damages to the Applicant’s public infrastructure. FEMA approved 150 PWs, totaling $14.6 million, to fund debris removal, emergency protective measures, and the permanent repair of facilities damaged by the event. On January 13, 2011, the Office of Inspector General (OIG) Western Regional Office issued Audit Report Number DS-11-04. The OIG reviewed 18 of the Applicant’s projects, totaling $6.9 million, and recommended that FEMA deobligate a total of $1,916,663 from 17 PWs based on six findings (Findings A-F). Finding A was that the Applicant used “a prohibited non-competitive time and materials contract without documentation describing the work completed or the composition of rates charged.”
On September 9, 2011, FEMA responded to the OIG’s Audit Report with a determination that $1,734,042 of costs questioned by the OIG warranted deobligation. Related to Finding A, FEMA deobligated the recommended amount of $1,243,850 from eleven PWs. In its second appeal, the Applicant requested reobligation of $1,063,952 related to Finding A.
Issues: 1. Did the Applicant’s procurement practices comply with Federal procurement regulations?
2. Is FEMA able to evaluate the claimed costs for reasonableness?
Findings: 1. No.
Rationale: 44 CFR §13.36(b)(10); 44 CFR §13.43; Office of Management and Budget Circular A-87, Attachment A.C.2; FEMA 322, Public Assistance Guide, June 2007, page 53.