Applicants must comply with 44 C.F.R. 13.36 federal standards for costs of contract work to be reimbursable. Section 13.36(b)(10) requires T&M contracts to include a cost ceiling and 13.36(f)(4) prohibits use of a cost plus a percentage of cost method of contracting (CPPC). Additionally; 13.43(a) authorizes FEMA to take an enforcement action to remedy each instance of procurement noncompliance.For PW 594; the T&M contract under which all work was performed lacks a cost ceiling and incorporates a prohibited CPPC provision. Therefore; the RA had the authority to deny partial funding which was reasonable based on the circumstances. Additionally; the Applicant did not supply a cost analysis or other documentation describing the work and reasonableness of costs for FEMA to grant additional funding.

PA Guide; at 27; 29-33; 79; 96; 101; 125-126.FEMA Second Appeal Analyses: Cmty. Action Program Comm.; Inc.; FEMA-1551-DR-FL; at 4 (Feb. 27; 2018); Columbus Reg’l Hosp.; FEMA-1766-DR-IN; at 5 (Dec. 27; 2017); and Clarksville Gas & Water; FEMA-1909-DR-TN; at 6-7 (Nov. 20; 2017). HeadnotesApplicants must comply with 44 C.F.R. § 13.36’s federal standards for costs of contract work to be reimbursable.  Section 13.36(b)(10) requires T&M contracts to include a cost ceiling and § 13.36(f)(4) prohibits use of a cost plus a percentage of cost method of contracting (CPPC).  

Additionally; § 13.43(a) authorizes FEMA to take an enforcement action to remedy each instance of procurement noncompliance.For PW 594; the T&M contract under which all work was performed lacks a cost ceiling and incorporates a prohibited CPPC provision.  Therefore; the RA had the authority to deny partial funding which was reasonable based on the circumstances.  Additionally; the Applicant did not supply a cost analysis or other documentation describing the work and reasonableness of costs for FEMA to grant additional funding.