44 C.F.R. 206.206 provides two levels of appeal for each determination. The Applicant first has the opportunity to appeal any eligibility determination to the Regional Administrator and then any first appeal decision to the Assistant Administrator for Recovery. The RA made a new determination on generator cost reasonableness on first appeal. This second appeal finds that procurement requirements were not properly considered. As such; those issues are remanded to the Region to address.Pursuant to 2 C.F.R. 215.41; procurement standards are intended to ensure that subgrantees “procure supplies and services in an effective manner; and in compliance with applicable Federal statutes and executive orders.” Cost plus percentage of cost (CPPC) contracts are expressly prohibited by 2 C.F.R. 215.44. FEMA considers any contract modification to constitute a new requirement which must be open to competition in a manner to “provide; to the maximum extent practical; open and free competition;” while also meeting the federal procurement standards located at 2 C.F.R. 215.40 through 48. The RA did not consider procurement requirements with regard to the disaster recovery work contracts.Appeal Letter

Headnotes44 C.F.R. 206.206 provides two levels of appeal for each determination. The Applicant first has the opportunity to appeal any eligibility determination to the Regional Administrator and then any first appeal decision to the Assistant Administrator for Recovery. The RA made a new determination on generator cost reasonableness on first appeal. This second appeal finds that procurement requirements were not properly considered. As such; those issues are remanded to the Region to address.Pursuant to 2 C.F.R. § 215.41; procurement standards are intended to ensure that subgrantees “procure supplies and services in an effective manner; and in compliance with applicable Federal statutes and executive orders.” Cost plus percentage of cost (CPPC) contracts are expressly prohibited by 2 C.F.R. § 215.44. FEMA considers any contract modification to constitute a new requirement which must be open to competition in a manner to “provide; to the maximum extent practical; open and free competition;” while also meeting the federal procurement standards located at 2 C.F.R. § 215.40 through 48. The RA did not consider procurement requirements with regard to the disaster recovery work contracts.Appeal Letter