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Time and materials contracts. Applicants should avoid using time and materials contracts in their procurement actions. This contract type creates the risk that costs could go beyond what the parties anticipated, so applicants should only use it when no other contract type is suitable. In light of this risk, time and materials contracts must include a ceiling amount on the price of the contract.13Including a ceiling shifts the risk to the contractor for any overages. For Public Assistance, such contracts should be limited for work that is necessary immediately after a disaster and should not exceed 70 hours.14
"Piggyback" contracts. "Piggybacking" occurs when an applicant has disaster-related work performed by another jurisdiction' s contractor.15 Because the competitive process for the existing contract could not have included the full scope of the new work, the new work has not been competitively bid. The resulting costs may therefore be higher than if the work had been bid out separately. FEMA therefore discourages such contracts and will use the reasonableness of eligible work as a basis to determine reimbursable costs.
This website is intended as a national source of information about the delivery of financial recovery services. It includes resources on eligibility, procurement, grant management delivery, and issues related to various Federal Programs currently supporting FEMA Public Assistance program financial recovery for governments and non-profits. This website is not affiliated or endorsed or sponsored by FEMA or any other Federal grant program. The information provided in various webpage documents is derived largely from Federal published materials. In general, under section 105 of the Copyright Act, such works are not entitled to domestic copyright protection under U.S. law and are therefore in the public domain. The goal is to help navigate the various Federal websites and summarize grant information and requirements. It does not constitute legal advice or grant management advise and is provided for general informational purposes only. Only the Federal Agency responsible for grants can make determinations on eligibility and grant amounts. You should consult with your professional services advisors and State and Federal Grant Coordinators for more detailed guidance on specific FEMA Public Assistance financial recovery issues.
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