An applicant must comply with federal procurement standards when procuring goods and services under a FEMA award. When determining whether federal procurement standards apply, FEMA analyzes the relationship between the parties to determine whether it resulted in a contract and contractor relationship. The relationship between the Applicant and Medxcel did not result in a contract for the exchange of goods or services and was not a contractor relationship, so federal procurement standards do not apply to their arrangement. Medxcel purchased on behalf of the Applicant in line with its defined duties for disaster response to perform debris removal. Medxcel is acting like a purchasing agent on behalf of the Applicant for the procurement of disaster response services. A purchasing agent is an agent of a non-federal entity that assists with the procurement of goods and services. FEMA is authorized to provide PA funding for the cost of removing debris resulting from a major disaster. To be eligible for financial assistance, an item of work must be the legal responsibility of an eligible applicant. The Applicant has demonstrated that it was legally responsible for the costs of debris removal and provided documentation demonstrating that it reimbursed Medxcel for the costs.

FEMA finds that the Applicant’s use of Medxcel did not violate federal procurement requirements. Additionally, the Applicant has demonstrated that it incurred all costs associated with the debris removal. As a result, this appeal is granted in the amount of $31,517.02.

Stafford Act §§ 403(a)(3)(A), 407 2 C.F.R. §§ 200.22, 23, 330 44 C.F.R. § 206.223(a)(3) Procurement Disaster Assistance Team (PDAT) Field Manual