Demystifying Force Account Costs: A Breakdown for FEMA Reimbursement

The Public Assistance program reimburses applicants for eligible costs incurred during disaster response and recovery.  A key concept is understanding "force account" costs, which fall into two categories:

1. Force Account Labor

• Who:  Labor costs associated with the applicant's own personnel involved in disaster response and recovery projects.
• Eligible Costs: Calculated by combining:
  • Actual Hourly Rates: The base pay of your employees.
  • Fringe Benefits: Additional employer costs like health insurance, retirement contributions, and social security.
• Documentation Required:
  • Timesheets: Documenting hours worked.
  • Employee Information: Verifying employee status.
  • Labor Policies: Demonstrating how pay and benefits are determined.

2. Force Account Equipment and Materials

• Equipment: The applicant's own equipment used for disaster response and recovery (generators, backhoes, etc.).
• Materials: Supplies used during the response or recovery (sandbags, tarps, etc.).
• Documentation Required:
  • Equipment Details: Type, attachments, size/capacity.
  • Usage Logs: Recording location, hours used, and operator name.
  • Equipment Rates: Demonstrating they are comparable to market prices.
    • If exceeding FEMA's threshold, provide justification for the higher rate.
  • Material Descriptions: Type and quantity of materials used.

Benefits of Categorization:

By separating force account costs into these two groups, FEMA can efficiently calculate eligible reimbursement for:

• Force Account Labor (wages and fringe benefits)
• Force Account Equipment and Materials (equipment usage and materials cost)

Understanding this breakdown helps applicants ensure proper documentation and accurate reimbursement calculations for their force account costs.

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