Pursuant to 2 C.F.R. 200.338; FEMA has discretionary authority that it may exercise on a case-by-case basis to remedy an applicant non-compliance with Federal statutes; regulations or the terms; and conditions of a Federal award; including Public Assistance (PA) program eligibility requirements found in the Stafford Act; the PAPPG; and all other applicable federal laws and regulations such as the Federal procurement and contracting standards at 2 C.F.R. Part 200.FEMA acted within its discretionary authority to disallow all costs in PWs 502 and 508 as a remedy for the Applicant non-compliance with PA program eligibility requirements and Federal procurement and contracting standards because the Applicant did not: (1) monitor its contracted debris removal work; (2) provide documentation substantiating its claimed debris amounts and costs for force account labor and equipment; (3) justify its use of T&M contracts; its verbal contract with the subcontractor; its unscheduled rates; and the subcontractor hourly labor rate; (4) demonstrate it complied with its own procurement procedures; nor did it (5) establish that its costs were reasonable.

PAPPG; at 21–22; 30; 56–57. HeadnotesPursuant to 2 C.F.R. § 200.338; FEMA has discretionary authority that it may exercise on a case-by-case basis to remedy an applicant’s non-compliance with Federal statutes; regulations or the terms; and conditions of a Federal award; including Public Assistance (PA) program eligibility requirements found in the Stafford Act; the PAPPG; and all other applicable federal laws and regulations such as the Federal procurement and contracting standards at 2 C.F.R. Part 200.FEMA acted within its discretionary authority to disallow all costs in PWs 502 and 508 as a remedy for the Applicant’s non-compliance with PA program eligibility requirements and Federal procurement and contracting standards because the Applicant did not: (1) monitor its contracted debris removal work; (2) provide documentation substantiating its claimed debris amounts and costs for force account labor and equipment; (3) justify its use of T&M contracts; its verbal contract with the subcontractor; its unscheduled rates; and the subcontractor’s hourly labor rate; (4) demonstrate it complied with its own procurement procedures; nor did it (5) establish that its costs were reasonable.