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Administrative Costs

Appeal Brief Appeal Letter

Appeal Brief

DisasterFEMA-1665-DR
ApplicantCity of North Tonowanda
Appeal TypeSecond
PA ID#063-53682-00
PW ID#Project Worksheets 421 and 428
Date Signed2008-08-27T04:00:00

Citation:

FEMA-1665-DR-NY, City of North Tonawanda, PWs 421 and 428

Cross-reference:

Administrative Costs

Summary:

As a result of the severe storms of October 12, 2006, the Applicant contracted with Beck Disaster Recovery, Inc. (BDR) to monitor the vegetative debris and hazardous limb and tree removal activities of SRS, Inc. FEMA prepared PWs 421 and 428 for debris removal activities. FEMA determined that $26,110 was part of the Applicant’s administrative costs and should be reimbursed as part of the administrative cost as stated in 44 CFR 206.228(a)(2)(ii).
In its first appeal of PW 428 and PW 421, the Applicant stated that the BDR Administrative Assistants, employed by BDR, should have been included as a portion of the contractor’s eligible expenses of the contract to monitor and document the contractor’s activities as required by FEMA and not be included as part of FEMA’s administrative allowance described in 44 CFR §206.228(a)(2)(ii). In a letter dated March 12, 2007, the Regional Director denied the appeal for PW 428 and in a letter dated April 3, 2007, the Regional Administrator denied the appeal for PW 421 because the Applicant had not provided any new or additional information that indicated that these costs were not costs covered under the administrative allowance.
In its second appeal dated March 17, 2008, the Applicant reiterated that these contractor costs were direct project-related administrative costs rather than administrative costs covered by the subgrantee’s administrative allowance. The Applicant provided a description of duties for the personnel in question. However, the Applicant submitted a second appeal dated March 17, 2007, 12 months after FEMA denied the first appeal. By regulation (44 CFR §206.206(c)(1)), appellants must file appeals within 60 days after receipt of a notice of the action that is being appealed.

Issues:

1. Are the full contract costs for BDR Administrative Assistants project-related
costs?
2. Did the Applicant submit its appeal within the regulatory time frame?

Findings:

1. Yes. The BDR Administrative Assistants performed eligible debris
monitoring activities.
2. No.

Rationale:

44 CFR §206.206(c); 44 CFR §206.228(a)(2)(ii); Public Assistance Guide, FEMA 322.

Appeal Letter

August 28, 2008

John A. Agostino
Alternate Governor’s Authorized Representative
New York State Emergency Management Office
1220 Washington Avenue
Building 22, Suite 101
Albany, NY 12226-2251

Re: Second Appeal–City of North Tonawanda, PA ID 063-53682-00, Administrative Costs
FEMA-1665-DR-NY, Project Worksheets (PWs) 421 and 428

Dear Mr. Agostino:

This letter is in response to your letter dated March 25, 2008, which transmitted the referenced second appeal on behalf of the City of North Tonawanda (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s (FEMA) denial of contract costs funding for PWs 421 and 428 for monitoring and documenting the contractor’s activities.
As a result of the severe storms of October 12, 2006, the Applicant contracted with Beck Disaster Recovery, Inc. (BDR) to monitor the vegetative debris and hazardous limb and tree removal activities of SRS, Inc. FEMA prepared PWs 421 and 428 for debris removal activities. FEMA determined that $26,110 was part of the Applicant’s administrative costs and should be reimbursed as part of the administrative allowance described in 44 CFR §206.228(a)(2)(ii).
In its first appeal of PW 428 and PW 421, the Applicant requested $20,580 and $5,530, respectively, for its sub-contractor, BDR Administrative Assistants. The Applicant stated that the BDR Administrative Assistants should have been included as a portion of the contractor’s eligible expenses of the contract to monitor and document the contractor’s activities as required by FEMA and not be included as part of FEMA’s administrative allowance described in 44 CFR §206.228(a)(2)(ii). In a letter dated March 12, 2007, the Regional Director denied the appeal for PW 428 and in a letter dated April 3, 2007, the Regional Administrator denied the appeal for PW 421 because the Applicant had not provided any new or additional information that indicated that these costs were excluded from the administrative allowance.

The Applicant submitted a second appeal, dated March 17, 2008, challenging the first appeal determination. However, the Applicant submitted its second appeal for both PWs, 2008, 12 months after FEMA denied the first appeal. By regulation (44 CFR §206.206(c)(1)), appellants must file appeals within 60 days after receipt of a notice of the action that is being appealed. For the above stated reason, I am denying this appeal.

Please inform the Applicant of my decision. My determination constitutes the final decision on this matter pursuant to 44 CFR §206.206.

Sincerely,
/s/
Carlos J. Castillo
Assistant Administrator
Disaster Assistance Directorate

cc: Stephen Kemp, Jr.

Regional Administrator
FEMA Region II

Last updated February 4, 2020