Reasonable Costs
Reasonable Costs - Engineering and Design Services
City of Bay St. Louis
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The Stafford Act 406(a)(1)(A) authorizes FEMA to make contributions to a local government for the reconstruction of a public facility destroyed by a major disaster.The basic engineering and design services normally performed by an architectural-engineering firm on construction projects are eligible for reimbursement.OMB Circular A-87 defines a cost reasonable if it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time.The engineering fees are unreasonable because the contract should have been amended when project became less complex.

Project Management and Design Services
2016

OMB Circular A-87.PA Guide at 75-76; 78.HeadnotesThe Stafford Act § 406(a)(1)(A) authorizes FEMA to make contributions to a local government for the reconstruction of a public facility destroyed by a major disaster.The basic engineering and design services normally performed by an architectural-engineering firm on construction projects are eligible for reimbursement.OMB Circular A-87 defines a cost reasonable if it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time.The engineering fees are unreasonable because the contract should have been amended when project became less complex.

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