DAP 9525.9, Section 324 Management Costs and Direct Administrative Costs states that FEMA will reimburse direct administrative costs incurred by grantees and subgrantees that are properly documented and directly chargeable on a PW for a specific project. OMB Circular A-87 requires that grant costs must be allowable and allocable.A cost is allowable if it is necessary and reasonable for proper and efficient performance and administration of Federal awards.A cost is allocable if it is chargeable or assignable to a grant. The PA Guide states that generally, costs that can be directly tied to the performance of eligible work are eligible.Such costs must be reasonable and necessary to accomplish the work. FEMA has determined that it is necessary and reasonable for DAC costs to be directly tied to the performance of eligible work to be eligible.

: The DAC incurred by the Grantee to conduct site visits and gather information to prepare PWs 81, 82, 83, and 84, as documented in category Z PWs 86, 87, 88, and 89, is eligible because FEMA determined the associated work to be eligible.

OMB Circular A-87. DAP 9525.9, Section 324 Management Costs and Direct Administrative Costs, at 2. PA Guide, at 40. City of Cedar Rapids, FEMA-1763-DR-IA, at 3. Central Bradford Progress Authority, FEMA-4030-DR-PA, at 5.