FEMA determines reasonableness by evaluating whether (continued):

• Cost escalation was the result of:
• Shortages in equipment, materials, supplies, labor, or contractors. If due to shortages, FEMA considers whether the Applicant's work continued beyond the period of shortages and if the opportunity to obtain more reasonable pricing existed
• Project-specific complexities, including: environmental or historic issues, remote access or location, provision of a unique service with few providers, or elements requiring an extraordinary level of effort
• The Applicant deviated from its established practices
• Exigent circumstances existed.  If so, FEMA evaluates the length of time the circumstances existed compared to the length of time costs were incurred
• The Applicant participated in ethical business practices, ensuring parties to a transaction are independent of each other, without familial ties or shared interests and on equal footing without one party having control of the other
• The Applicant complied with procurement requirements