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.

44 C.F.R. § 206.223(a)(3)Procurement Disaster Assistance Team (PDAT) Field ManualHeadnotesAn 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.