FEMA handles fixed-cost offers forprojects by engaging qualified professionals to develop or review costestimates, transmitting the offers to applicants for consideration, consideringthe fixed-cost offer as an Alternative Procedures Project if accepted,obligating the fixed-cost amount, not adjusting the fixed amount for hiddendamage, adjusting the fixed estimate for insurance proceeds before projectclosure, and adjusting funding based on actual eligible costs at closeout. ​ During the Scoping and Costing phase,FEMA reviews applicant-provided information to develop or validate the Scope ofWork and cost estimate, ensuring compliance with requirements and determiningcost eligibility. ​ Additionally, FEMA works with applicants to agree ondisaster-related damage descriptions, emergency protective measures, and debrisimpacts before finalizing the Scope of Work. ​ If a project exceeds $1 million andfunds are not needed for more than 180 days, FEMA follows the Strategic FundsManagement process for fund obligation. ​

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