Staying "In the Know" with FEMA's Public Assistance Alternative Procedures

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• ...or owner or operator of the private nonprofit facility as a single project based upon estimates adopted under the procedures.
• • Allows for the Administrator to permit a recipient or sub-recipient to use all or part of the excess funds for cost-effective activities that reduce the risk of future damage, hardship, or suffering from a major disaster and other activities to improve future Public Assistance operations or planning.
• • Requires the Administrator to make available an independent expert panel to validate the estimated eligible cost if requested by a sub-recipient, and where the Administrator or the certified cost estimate prepared by the applicant’s professionally licensed engineers has estimated an eligible Federal share for a project of at least $5 million.
• • Requires the Administrator, at a sub- recipient’s request, to consider properly- conducted and certified cost estimates prepared by professional licensed engineers (mutually agreed upon by the Administrator and the applicant). 5

Similar to the alternative procedures for debris removal, if sub-recipients elect to use any of these alternative procedures options, FEMA will require them to sign an acknowledgement form regarding these procedures. Additionally, once an agreement between the sub-recipient and FEMA is reached on the cost of a fixed estimate, both the recipient and the sub- recipient are required to sign a fixed cost estimate agreement letter which FEMA will attach to the Project Worksheet.

Likewise, it is important for sub-recipients to reference the appropriate version that applies to their specific disaster, as FEMA currently has three versions that apply to disasters declared during specific timeframes. It is important to note that FEMA allows these alternative procedures to be applied retroactively to permanent work projects resulting from major disasters declared prior to date of issuance of the first version of the Alternative Procedures provisions, if construction has not begun.

Although the program outlines six provisions to the alternate procedures for permanent work, a sub-recipient must agree to a fixed estimate/capped grant before having access to other alternative procedures (see figure below).

ALTERNATIVE PROCEDURES SUB-AWARD

Required: Grants Based on Fixed Estimates

Optional features:

• Elimination of Alternate Project Penalty
• Consolidated Sub-Grants (PWs)
• Use of Excess Funds
• Referral of Cost Estimates to Expert Panel
• Acceptance of Sub-Recipient Cost Estimates

Requirement for Permanent Work Alternative Procedures and Optional Features