Pursuant to 2 C.F.R. § 215.40-48, a Private Non-Profit Applicant must follow certain procurement requirements. The Applicant did not establish through its appeal that it complied with procurement requirements.

Hurricane Katrina made landfall on August 28 and 29, 2005, impacting campus buildings at St. Mary’s Academy. FEMA subsequently prepared multiple Project Worksheets (PWs) to obligate Public Assistance (PA) funding for the replacement of those buildings. FEMA prepared PWs 15985 and 18994 to reimburse the Applicant’s installation of temporary classroom facilities, which were needed until campus buildings were replaced. Those PWs obligated $13,306,832.44 in PA funding—$8,704,967.26 (PW 15985) and $4,601,865.18 (PW 18994). In 2011, the Department of Homeland Security Office of Inspector General (OIG) audited the project, issued audit report DD-11-15, found that the Applicant did not comply with procurement standards and recommended disallowing $12,033,827.00 in PA funding. FEMA’s Louisiana Recovery Office (LRO) concurred with the OIG’s finding. The LRO performed a reasonable cost analysis using the FEMA Cost Estimating Format (CEF), determining $11,257,545.67 in costs were reasonable. FEMA then deobligated all funding in PW 18994 and obligated $11,257,545.60 through PW 18995. While the Applicant did not challenge the use of the CEF, on March 17, it submitted a first appeal contending the reasonable cost analysis inadvertently omitted work, applied incorrect quantities and costs, and made an inaccurate account of all necessary temporary facility components. The RA granted an additional $422,528.00 in funding for items omitted from the CEF as well as $33,126.00 in design fees. The RA urged the Grantee to actively pursue closeout of this project, noting that additional documentation would be considered. In a letter dated January 21, 2016, the Applicant submitted its second appeal requesting an additional $1,536,695.09. The submission included additional documentation, intended to establish certain work was completed and costs were incurred.

2 C.F.R. §§ 215.62(a) & (a)(2), 215.40-48. 44 C.F.R. § 206.206(d)(3). OMB Circular A-122 Att. A § A(3). PA Guide, at 34.