Per 44 C.F.R. 13.36(b)(2); applicants and grantees must maintain a contract administration system to ensure that contractors adhere to the terms; conditions; and specifications of their contracts and purchase orders.The RA properly determined that the Applicant did not maintain its contract administration system properly; which led to its Contractor overbilling and unreasonable project costs.FEMA may grant exceptions to procurement requirements under 44 C.F.R. 13.6(c) on a case-by-case basis. Neither the Applicant nor the Grantee have demonstrated that FEMA should grant an exception in this case; where the Applicant did not monitor its contract appropriately; leading to deobligation of funding in an OIG audit.

44 C.F.R. §§ 13.6; 13.36; 13.52. HeadnotesPer 44 C.F.R. § 13.36(b)(2); applicants and grantees must maintain a contract administration system to ensure that contractors adhere to the terms; conditions; and specifications of their contracts and purchase orders.The RA properly determined that the Applicant did not maintain its contract administration system properly; which led to its Contractor’s overbilling and unreasonable project costs.FEMA may grant exceptions to procurement requirements under 44 C.F.R. § 13.6(c) on a case-by-case basis. Neither the Applicant nor the Grantee have demonstrated that FEMA should grant an exception in this case; where the Applicant did not monitor its contract appropriately; leading to deobligation of funding in an OIG audit.