Management costs means any indirect costs, administrative expenses, and any other expenses not directly chargeable to a specific project that are reasonably incurred by a grantee or subgrantee in administering and managing a PA grant award. Blended rates, a labor rate plus a percentage of overall travel expenses, are not eligible as DAC, as labor and travel expenses must be tracked separately and shown to be directly related to a specific project. The Grantee’s deployed rate is a blended rate as the criterion for the rate change is the contractor travelling from its primary business location. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, then the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. The proportions allocated cannot reasonably be determined due to the interrelationship of the costs claimed and therefore are not DAC in the Grantee’s circumstances. The PAPPG at 39, states that if incurred administrative costs are tracked, charged, and accounted for directly to a specific eligible project, the costs are eligible as DAC. This includes travel expenses. Mileage costs were tracked, charged and accounted for directly to specific eligible projects by the Grantee, and are eligible as DAC in this case.

This appeal is denied in part and granted in part. The $48,587.50 in claimed DAC for deployed labor is a blended rate and is ineligible as DAC. A total of $46,709.72 in mileage costs were indirect costs and is denied. The remaining $7,458.42 for the claimed mileage costs that were directly specific to an eligible project is eligible for funding.

Stafford Act § 324. 2 C.F.R. § 200.405. 44 C.F.R. § 207.2, 207.6(b). PAPPG, at 38, 39, 40.