Force Account Labor & Equipment Costs
Appeal Brief
| Disaster | 4473 |
| Applicant | Puerto Rico Public Housing Administration |
| Appeal Type | Second |
| PA ID# | 000-U94BL-00 |
| PW ID# | GMP 144849 |
| Date Signed | 2024-04-01T16:00:00 |
Summary Paragraph
Earthquakes and aftershocks caused severe damage in the Commonwealth of Puerto Rico from December 28, 2019 through July 3, 2020. The Puerto Rico Public Housing Administration (Applicant), a territorial agency, requested PA funding for costs associated with contract services retained to manage 34 emergency shelters. FEMA prepared Grants Manager Project 144849 to document the work and costs claimed. In a Determination Memorandum issued April 25, 2022, FEMA stated the Applicant did not provide adequate documentation to support the work and the claim was not eligible for funding. The Applicant appealed on June 24, 2022 for $1,123,041.27 and expanded the request to include FAL OT costs. The Applicant provided links to contractor invoices and proofs of payment and to employee timesheets and payroll data and explained that the contracts were executed to secure shelter services and its employees were engaged in shelter operation and administration. On March 20, 2023, the FEMA Region 2 Regional Administrator partially granted the appeal, validating contract costs totaling $905,334.53 but noting the Applicant failed to substantiate claimed FAL costs. The Applicant’s May 24, 2023 second appeal for $208,959.06 in FAL costs states the link it provided in its first appeal contained the information FEMA requested and provides a compressed file of documentation that substantiates the FAL claim. The Applicant also submitted a new vendor invoice for $370,331.41 which it paid during the first appeal process. As FEMA has not previously addressed the Applicant’s newly submitted vendor invoice, this claim is not ripe for second appeal adjudication and will not be substantively evaluated in this decision.
Authorities and Second Appeals
- Stafford Act § 403(a)(3)(J), 42 U.S.C. § 5170b(a)(3)(J).
- 44 C.F.R. § 206.223(a)(1).
- PAPPG, at 21, 24, 66-70, 139.
Headnotes
- FEMA is authorized to provide PA funding for costs related to emergency sheltering for disaster survivors, including eligible shelter services and shelter staff costs.
- On second appeal, the Applicant provides new documentation that includes timesheets, daily logs, and activity reports, which demonstrate that all the FAL overtime costs are directly tied to eligible sheltering services, such as interviewing refugee families to determine needs and processing housing applications for elderly survivors.
Conclusion
FEMA finds that the Applicant has provided documentation that directly ties its claim for $208,959.06 in FAL overtime costs to the performance of eligible work. Therefore, this appeal is granted.
Appeal Letter
SENT VIA EMAIL
Alejandro E. Salgado-Colón Administrator Puerto Rico Public Housing Administration P.O. Box 363188 San Juan, PR 00936-3188 |
Re: Second Appeal – Puerto Rico Public Housing Administration., PA ID: 000-U94BL-00,
FEMA-4473-DR-PR, Grants Manager Project 144849 – Force Account Labor & Equipment Costs
Dear Manuel Laboy and Alejandro E. Salgado-Colón:
This is in response to the Central Office for Recovery, Reconstruction, and Resiliency’s (Recipient) letter dated July 21, 2023, which transmitted the referenced second appeal on behalf of the Puerto Rico Public Housing Administration (Applicant). The Applicant is appealing the U.S. Department of Homeland Security’s Federal Emergency Management Agency’s denial of funding in the amount of $208,959.06 for force account labor (FAL) costs associated with operating 34 emergency shelters.
As explained in the enclosed analysis, I have determined that the Applicant has provided documentation that directly ties its claim for $208,959.06 in FAL overtime costs to the performance of eligible work. Therefore, this appeal is granted. By copy of this letter, I am requesting the Regional Administrator to take appropriate action to implement this determination. Additionally, because the Applicant’s appeal related to a newly submitted vendor invoice is not ripe for a second appeal determination at this time, I am requesting FEMA Region 2 issue a determination adjudicating the substantive merits of the additional requested $370,331.41.
This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.
Sincerely,
/S/
Robert Pesapane
Division Director
Public Assistance Division
Enclosure
cc: David Warrington
Regional Administrator
FEMA Region 2
Appeal Analysis
Background
Earthquakes and aftershocks caused severe damage in the Commonwealth of Puerto Rico from December 28, 2019 through July 3, 2020.[1] The Puerto Rico Public Housing Administration (Applicant), a territorial agency, requested Public Assistance (PA) funding for costs associated with contract services it retained to manage 34 emergency shelters for disaster survivors. FEMA prepared Grants Manager Project 144849 to document the work performed and costs claimed. The Applicant provided procurement documents, including emergency services management contracts. FEMA notified the Applicant in September and October 2020 that it needed to work with FEMA on Essential Elements of Information (EEI) questions to continue project development. On July 22, 2021 FEMA notified the Applicant that it must upload the required documentation to the Project EEI section in Grants Portal by August 23, 2021. The Applicant took no action regarding the EEI. FEMA informed the Applicant by Determination Memorandum (DM) dated April 25, 2022 that the Applicant did not provide FEMA with adequate documentation to support its claim.
The Applicant appealed on June 24, 2022 for $1,123,041.27 and expanded the request to include force account labor (FAL) overtime costs in addition to the previously requested contract costs. The Applicant provided links to contractor invoices and proofs of payment totaling $914,082.21, and to employee timesheets and payroll data totaling $208,959.06.
The Central Office for Recovery, Reconstruction and Resiliency (Recipient) submitted the appeal with its support on August 18, 2022. The Recipient noted the Applicant provided detailed Category B expenses which FEMA expected and which were required to support the claim. The Recipient recommended that the matter be remanded for review and eligibility determination.
On January 25, 2023, FEMA issued a Request for Information (RFI), seeking timesheets and payroll records to support FAL overtime costs, descriptions of the work performed with samples of daily logs and/or activity reports, and the labor policy in effect during the disaster. The Applicant responded on February 23, 2023 with the predisaster labor policy and the previously provided FAL summary.
On March 20, 2023, the FEMA Region 2 Regional Administrator partially granted the appeal, validating contract costs totaling $905,334.53,[2] but noting the Applicant did not substantiate its claimed FAL overtime costs by providing supporting documentation, such as timesheets, payroll records, or activity logs.
Second Appeal
The Applicant filed a second appeal, reiterating its request for $208,959.06 in FAL overtime costs.[3] The Applicant states that it included a link in its first appeal that contained the information FEMA requested on January 25, 2023, and that it intended, but then failed, to include the link in its RFI response. The Applicant provides a compressed file of documentation that it asserts substantiates the FAL overtime claim, including timesheets, daily logs, and activity reports. The Recipient transmitted the appeal to FEMA, expressing its support.
Discussion
FEMA is authorized to provide PA funding for costs related to emergency sheltering for disaster survivors, including eligible shelter services and shelter staff costs.[4] FAL overtime costs for budgeted employees performing emergency work may be eligible.[5] Documentation to support FAL costs includes a representative sample of timesheets and daily logs/activity reports.[6] To be eligible, costs must be directly tied to the performance of eligible work.[7]
Here, the Applicant requests FAL overtime costs, stating that the employees performed work related to its emergency sheltering. On second appeal, the Applicant provides new documentation that includes timesheets, daily logs, and activity reports. These documents demonstrate that all the FAL costs are overtime and that the costs are directly tied to the performance of eligible work such as interviewing sheltered families to determine needs and processing housing applications for elderly survivors.[8]
Conclusion
The Applicant has provided documentation that directly ties its claim for $208,959.06 in FAL overtime costs to the performance of eligible work. Therefore, this appeal is granted.
[1] The President issued a major disaster declaration on January 16, 2020.
[2] FEMA noted that four contract invoices were related to other disasters and one invoice was duplicated. The Applicant, in its second appeal letter, stated that it agreed with the modified amount approved for contact costs.
[3] The Applicant also requests funding for additional costs that it states it paid during the pendency of the first appeal. The Applicant provides an invoice for $370,331.41 for services and expenses related to sheltering operations, including force account labor. However, FEMA has not previously addressed the eligibility of this cost. Therefore, the claim is not yet ripe for second appeal adjudication and, thus will not be substantively evaluated in this decision.
[4] Robert T. Stafford Disaster Relief and Emergency Assistance Act § 403(a)(3)(J), Title 42, United States Code § 5170b(a)(3)(J) (2018); Public Assistance Program and Policy Guide, FP 104-009-02, at 66-70 (Apr. 1, 2018) [hereinafter PAPPG].
[5] Id. at 24. FEMA also sets forth certain requirements in the PAPPG that an applicant’s predisaster pay policy must meet, but as those requirements are not at issue in this appeal, they are not addressed in this decision.
[6] Id. at 139.
[7] Id. at 21.
[8] SeeId. at 69 (providing for shelter staff costs and shelter services such as shelter management and caring for survivors with disabilities or access and functional needs).