FEMA's reimbursement for procurement actions depends on the entity involved (state vs. non-state) and the circumstances (normal vs. emergency). Here's a breakdown of the key requirements for reimbursement:

General Requirements:

• Documentation: You need to maintain proper documentation for your procurement activities, including your procurement policy, solicitation documents, selection process records, and cost or price analysis (for contracts above a certain threshold).
• Federal Requirements:  All entities must comply with applicable federal procurement regulations (2 C.F.R. §§ 200.318-200.327) which cover aspects like:
  • Socioeconomic affirmative steps (e.g., encouraging participation from small businesses)
  • Domestic preferences for procurement (giving priority to American-made goods)
  • Procurement of recovered materials (using recycled or disaster-recovered materials when possible)
  • Prohibited expenditures (e.g., restrictions on telecommunication equipment/services)

Specific Requirements by Entity Type:

• States and Territorial Governments:
  • Follow their own procurement procedures in addition to the federal requirements mentioned above.
  • Pay close attention to specific regulations regarding recovered materials and contract provisions (2 C.F.R. §§ 200.317, 200.322, and 200.326).
• Local Governments, Tribal Governments, Nonprofits, and Other Non-State Entities:
  • During a declared Public Health Emergency (like COVID-19), these entities can use non-competitive procurement processes for new and existing contracts with proper justification (refer to David Bibo's March 17, 2020 memo for details).
  • State, Local, and Tribal governments (SLTTs) can contract with private medical providers (including for-profit hospitals) for eligible emergency medical care activities.

Additional Considerations:

• Full and Open Competition: This is generally preferred, but exceptions exist for emergencies or situations with a sole source provider.
• Cost or Price Analysis: This is crucial to demonstrate the reasonableness of the procurement costs.

Resources for More Information:

• FEMA Exigency and Emergency Circumstances Procurement: https://www.fema.gov/sites/default/files/documents/fema_procurement_during_ee_circumstances_factsheet-2022.pdf
• FEMA Public Assistance Program and Policy Guide (PAPPG):  Chapter 2: Public Assistance Policy, Section V Cost Eligibility  (https://www.fema.gov/sites/default/files/documents/fema_pappg-v4-updated-links_policy_6-1-2020.pdf)
• FEMA Procurement Guidance for Recipients and Subrecipients: https://www.fema.gov/grants/procurement
• Procurement Disaster Assistance Team (PDAT): https://www.fema.gov/grants/procurement

Remember, consulting FEMA's resources and staying updated on their specific requirements is vital to ensure your procurement actions qualify for reimbursement.

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