Appeal Brief | Appeal Letter | Appeal Analysis | Back
Second Appeal Brief
PA ID# 103-03027-00; University of Iowa
PW ID# 3702; Reasonable Costs
Conclusion: The building contents are eligible for funding because they are necessary to make the temporary facility functional. The parking lot repair is maintenance and such repairs are not eligible for funding. Although the additional plumbing work was outside of the scope of the work of the contract, if it is eligible under the Public Assistance program, FEMA may fund reasonable costs for the work.
From May 25 through August 13, 2008, severe storms caused flooding at two buildings on the University of Iowa (Applicant) campus. The Applicant had to lease a temporary facility while it completed the repairs to the two buildings. The Applicant made improvements to the leased facility and purchased items for art instruction. The Applicant submitted a request for cost overruns. FEMA found some items related to the improvements ineligible, indicating that certain costs were related to maintenance, captured on more than one invoice, and costs that are normally considered part of general contractor overhead and profit. The Applicant submitted a first appeal for some of the funding found ineligible, and the FEMA Region VII Regional Administrator partially approved the first appeal. In its second appeal, the Applicant argues that costs associated with three items should be found eligible: (1) building contents; (2) parking lot repair; and (3) additional plumbing contract work.
Authorities and Second Appeals
- 44 C.F.R. §13.43(a)(3).
- OMB Circular A-87, 2 C.F.R. § 225.
- DAP 9523.3, Provision of Temporary Relocation Facilities at 2-5.
- Disaster Assistance Policy 9523.3, Provision of Temporary Relocation Facilities states that reasonable alterations of the temporary facility are allowable costs, if they are required to make the space functional and meet the pre-disaster needs of the applicant; and FEMA will not fund utilities (power, water, heat, etc.), maintenance, or operating costs at temporary facilities.
- The building contents were necessary to make the facility functional.
- The parking lot repair was maintenance and is ineligible.
- 44 C.F.R. §13.43(a)(3) and OMB Circular A-87 allow FEMA to look at the reasonableness of costs and make an eligibility determination even when an applicant fails to follow procurement procedures.
- With regard to the additional plumbing work, although the additional work was outside of the scope of the work of the contract, if the work itself is eligible under the Public Assistance program, FEMA can fund reasonable costs for the work.