Pursuant to 44 C.F.R. § 206.223(a), an eligible item of work must be required as a direct result of the disaster. FEMA reimburses costs that can be directly tied to the performance of eligible work. The Applicant’s costs of contractor overheads costs were incurred as a result of the Applicant deciding to exercise a Federally mandated procurement clause within an industry standard American Institute of Architects’ (AIA) contract for eligible work. The Applicant’s costs of overhead costs are allowable costs under 44 C.F.R. § 13.22.

The Applicant’s work is required as a result of the disaster and therefore eligible. The Applicant’s costs of contractor overheads costs are allowable costs under 44 C.F.R. § 13.22 and incurred as a result of the Applicant prudently deciding to exercise a federally mandated procurement clause within an industry standard American Institute of Architects contract for eligible work.

Stafford Act § 406 44 C.F.R. §§ 206.223(a); 13.22(a)(1); 13.36(i)(2) PA Guide (1999), at 23, 33-34. OMB Circular A-122