Mold Remediation

Citation:         FEMA-1603-DR-LA, Jefferson Parish, Mold Remediation and Stabilization, Project Worksheets (PWs) 12242, 12470, 12491, 12609, 12725, 12874, 13308, 13375, 12474, 12487, 12586, 12660, 13001

Cross

Reference:      Documentation, Reasonable Costs

Summary:      Following Hurricane Katrina, the Applicant entered into verbal sole-source,

non-competitive, time and materials contracts for mold remediation and stabilization of 13 libraries impacted by water damage.  The Applicant completed work prior to FEMA’s inspection of the sites and requested $4,535,411.  The Applicant did not submit detailed scopes of work and support documentation.  Therefore, FEMA inspected the facilities and developed a Scope of Work (SOW) for each, and determined that the reasonable cost for mold remediation and stabilization efforts for the 13 facilities was $1,011,247.

The Applicant submitted its first appeals on March 6, 2007.  FEMA requested from the Applicant documentation that described damages that the Applicant claimed FEMA overlooked during its site visits or did not include in the approved SOW, as well as detailed SOWs.  The Applicant supplied contractors’ time sheets and work task sheets, but no documents to support the extent of the work beyond hours logged.  The Regional Administrator denied the first appeal on July 13, 2007, because the Applicant did not provide documentation containing an adequate scope of work to justify the large quantity of work hours used to perform eligible work and because the Applicant did not submit documents to support its claim that the contractors’ costs and fees were reasonable.  The Applicant submitted its second appeal on October 10, 2007, and reiterated its original claim stated in its first appeal.  The second appeal includes new documentation not previously submitted.

Issue:              Did the Applicant provide sufficient documentation to support its claim for reimbursement of actual costs incurred?   

Finding:          Yes.

Rationale:       Office of Management and Budget Circular A-87; 44 CFR §13.36(b)(9) Procurement, Procurement standards; 44 CFR § 206.206(a), Appeals, Format and Content