Procurement and Contracting Requirements

This section examines the eligibility of costs related to procurement and contracting.

FEMA provides Public Assistance funding for contract costs based on the terms of the contract if the Applicant meets Federal procurement and contracting requirements.

  • The Program Delivery Managers should remind Applicants of this requirement early in the process
  • FEMA Public Assistance staff coordinates with the Office of Chief Counsel when evaluating whether the Applicant complied with federal procurement requirements

In the case of noncompliance:

  • FEMA applies an appropriate remedy in accordance with its authorities
  • FEMA has determined an appropriate remedy under these circumstances is to either deny all costs associated with the contract or, if sufficient information is provided to substantiate a reasonable amount for the eligible work completed
  • FEMA may reimburse the portion of the costs it determines are reasonable and allowable based on all available information and documentation provided
  • In addition to monetary remedies, FEMA may also take non-monetary actions against the Applicant as authorized by 2 Code of Federal Regulations 200.207 and 200.338

FEMA's Procurement Guidance for Recipients and Subrecipients Under 2 C.F.R. Part 200 (Uniform Rules) provides additional details regarding Federal procurement and contracting requirements.