11/9/2015

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APWA – WA Chapter CASC Workshop

• Intro to PA Program and SRIA

• PA Contracting and Procurement Okanogan County – August 2015

Overview• Introduction to the Public Assistance (PA)

Program• Sandy Recovery

Improvement Act

• Contracting andProcurementEssentials

North Central Washington – August 2015

Public Assistance (PA) Grant Program

Assistance to Governments and Certain PNPs

To provide assistance to State, Tribal and local governments, and certain types of Private Nonprofit organizations so that communities can quickly respond to and recover from major disasters or emergencies declared by the President.

Response and Recovery activities as a direct result of an emergency or disaster event

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Federal Authority

Authorized by the Robert T. Stafford Disaster Relief and

Emergency Assistance Act, as amended

Sandy Recovery Improvement Act

(SRIA) of 2013

Public Assistance Process

Subgrantee

PDADisasterEvent

Governor’sRequest

Declaration

Applicants’Briefing

Submissionof Request

Kick-offMeeting

Formulationof Projects

ProjectReview

Grantee

Approval

FundingClose Out

General Program Eligibility

• Criteria for Eligibility – Eligibility Pyramid

▫ Cost▫ Work▫ Facility▫ Applicant

Twisp River Fire – August 2015

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Who’s Eligible to Apply?

• Cities and Towns• Counties• State Agencies• Federally-recognized Indian Tribes• Special Purpose Districts• Private Non Profit (PNP) Organizations▫ Debris Removal and Emergency Work - All▫ Permanent Work – PNPs Providing Essential

Governmental Service

Critical Private Non-Profit Entities

• Fire• Emergency• Medical• Utilities• Educational• Custodial Care

Other Private Non-Profits

• Must first apply to Small Business Administration (SBA) for Permanent Repairs▫ Museums▫ Performing Arts Centers▫ Community Centers▫ Homeless Shelters▫ Zoos▫ Assisted Living▫ Food Programs

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Facilities• Damaged as the result of a declared event• Located within a declared county• In active use at the time of the event• Not under the authority

of another federal agency

North Central Washington – Aug 2015

Work Eligibility• Be disaster related

• Conducted in the designated

disaster area

• Be applicant’s legal responsibility

• Not funded by another

federal agency

SCL Penstock wooden support – Aug 2015

Types of Work

Emergency Work• A - Debris Removal• B - Emergency Protective

Measures

Permanent Work• C - Road Systems• D - Water Control

Facilities• E - Public Buildings &

Equipment• F - Public Utility

Systems• G - Parks and Other

Facilities

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Eligible Items – Emergency Work• Eligible activity must be essential to meeting an immediate

threat to life or property during or resulting from the declared event.▫ Category A - Regular & Overtime for Regular Employees to

include benefits. ▫ Category B - Overtime only to include benefits.▫ All Hours (Regular & Overtime) for Temporary Hires including

benefits▫ All Equipment Hours – Lower of FEMA or Applicant Rates▫ Rental Equipment▫ Engineering and Design Services▫ Materials▫ Contracts

Eligible Items – Permanent Work

• Repair, restore or replace damaged facilities to pre-disaster design, capacity and condition• Regular and Overtime (Including Benefits) of all employees• Equipment Costs - Lower of FEMA or Applicant Rates• Rental Equipment• Engineering and Design Services• Materials• Contracts

• Adopted Construction Codes and Standards• Cost Effective Hazard Mitigation (Damaged Element)• Federally-required Environmental Conditions

Cost Eligibility

• Reasonable and necessary cost to accomplish eligible work

• Complies with federal, state, and local laws and regulations – FEMA funds creates federal nexus

• Credits - Insurance proceeds, salvage value, purchase discounts – no duplication of benefits

• PWs must be a minimum of $3,050 (FFY-16)

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PA Program - starting point…

Preliminary Damage Assessments (PDAs)

Joint FEMA/State/Applicant teams

• A PDA identifies the initial cost estimate of damages for governmental agencies, private non-profits, and tribal governments.

• Damages are identified on PDA forms• Damage estimates are consolidated by county to

determine if federally mandated indicators for each County have been reached

• In addition to County indicator, a Statewide indicator must also be met to be considered for disaster aid

• Process pushes very hard – from end of the disaster event to Governor’s request to FEMA is 30 days

PDA Damage / Cost Indicators

As of October 1, 2015:

• State of Washington $9,481,602▫ $1.41 per capita based on 2010 Census

• County▫ $3.56 per capita based on 2010 Census

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Presidential Declaration !!!Now what?

Joint Field OfficeApplicant Briefing

Request for Public Assistance Kick-off Meeting

Project FormulationRecovery

Key PA/PDA Milestones

• Request a disaster – State has 30 days from the end of the incident period to submit to FEMA

• Request Public Assistance (RPA) – Jurisdictions have 30 days from date of declaration to submit

• Report all damages to FEMA/State PACs–within 60 days from the Kick-off meeting

• Complete Category A & B emergency work – 6 months from date of declaration

• Complete Category C-G permanent repairs – 18 months from date of declaration

Project Worksheet Formulation

Capturing the costs for debris removal, emergency measures, and permanent work

This is where the documentation begins

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Project Worksheet Formulation

• The main elements for a Project Worksheet:▫ Facility or activity information – name, location,

facility▫ Damage Descriptions & Dimensions▫ Scope of work ▫ Cost Summary Force Account (Labor, Equipment, Materials) Contract (Purchases, Construction, Consultant) Mutual Aid Agreement

Project Worksheet Formulation

• Prioritized list of projects• Timelines for completion• Site visits – to be schedule at Kick Off• Damage Descriptions & Dimensions• Scope of work – What will it take to put it back?• Project Cost Estimates (Work to be Completed)

– Applicant Historical costs, Quotes, FA costs• Forms• Supporting documentation, photos, permits

Small and Large Projects

• Small Project• Minimum of $3,050 & equal to/less than $121,800• Payment made upon obligation

• Large Project• Greater than $121,800• Progress payment – Reimbursement less retainage

• Many considerations are looked at in determining dividing or combining projects – emergency or permanent work• EHP, Insurance, Mitigation reviews

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Reimbursements

• Projects▫ 75% Federal Share▫ 25% Non-Federal Share▫ State Participation Determined by State Legislature

• Direct Administrative Costs▫ Your cost for doing business with FEMA and State Project Specific Billable hours Auditable

PW Review Process

• PWs submitted for review▫ Public Assistance Coordinators▫ QA/QC▫ Environmental▫ Historical▫ Floodplain▫ Insurance▫ Mitigation▫ Final – FEMA & State

Kittitas County – January 2009

Sandy Recovery Improvement Act (SRIA) of 2013

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Sandy Recovery Improvement Act (SRIA) of 2013

Two New Pilot Programs in place:• Alternative Procedures for Debris Removal• Alternative Procedures for Permanent WorkSpecific Goals

Reduce costs to the Federal Government for providing PA

Increase flexibility Expedite Assistance Provide incentive/disincentive for timely, cost-

effective completion of projects

PA Alternative Procedures (PAAP) Pilot Program - Debris Removal

• Federal Share Sliding Scale• Recycling Revenues• Regular Time Reimbursement• Debris Management Plan

PA Alternative Procedures (PAAP) Pilot Program - Debris Removal

• Voluntary• Applies to large and small projects as well• Does not change review or final inspection requirements• To participate in the sliding scale procedure, debris

removal projects must include all debris for which a jurisdiction will be requesting FEMA assistance.

• Pilot program extended until July 2016

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Sliding Scale – Increased Federal Share

• Increased Federal share is for debris collection, hauling, processing and disposal when debris work is completed within a specified time frame.

• To participate in this procedure, debris removal projects must include all debris for which a jurisdiction will be requesting FEMA assistance.

• The PW will reflect actual costs for the quantity of debris removal completed from the incident’s start date until the ending time frame.

• Applies to large or small projects

Sliding Scale – Increased Federal Share

Regular Time - Reimbursable

• Jurisdictions need to track labor and equipment hours for each employee and additional temporary staff.

• Jurisdictions need to keep accurate hourly records for each employee and additional staff assigned to debris activities.

• This alternative procedure can be used with any other alternative procedure or on its own.

• Can be applied to both large and small projects for jurisdictions participating in the pilot.

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Debris Management Plans

• When a jurisdiction has a FEMA-reviewed debris management plan before the date of the disaster declaration incident period, FEMA will provide a one-time incentive of a 2 percent cost share adjustment applied to debris removal work completed within 90 days.

• This one-time incentive will not be available to the same jurisdiction again during the course of the pilot. This procedure can be used with any of the other pilot procedures or on its own.

• Must have at least one or more pre-qualified debris contractors and must comply with Federal procurement requirements

PA Alternative Procedures (PAAP) Pilot Program - Permanent Work

• Fixed Estimates (required)• Consolidated projects• Excess funds• Cost Estimates• Independent Expert Panel

PA Alternative Procedures (PAAP) Pilot Program - Permanent Work

• Voluntary. • Alternative procedures are only for large projects, on a

project by project basis.• To participate, jurisdictions must agree to participate in

the grants based on fixed estimates procedure before having access to other alternative procedures.

• FEMA does not require all features to be selected to participate in the pilot program.

• Eliminates the mandatory Federal cost share reduction for alternate projects

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MAP 21 – FHWA & FEMA• MAP 21 agreement applies only to debris removal

from Federal-aid roads• MAP 21 will not fund permanent repair of federal-

aid roads• FHWA ER program will not fund debris removal

when the county is declared for PA Program• Jurisdictions still need to track;

• Location and quantity of debris• Temporary staging areas• Final disposal locations

Procurement & ContractingMaintaining Eligibility for FEMA Funding

Naches Landslide - October 2009

Costs & Reasonable Reimbursement

• Normal procedures must not be altered because of the potential for reimbursement from Federal funds

• Reasonableness Criteria▫ Must be fair and equitable▫ Applicable to type of work▫ “Prudent” person decision ▫ Is cost ordinary and necessary for facility and type of work?▫ Were actions taken in prudent manner?

• Reasonable costs can be established through▫ Applicant’s historical documentation for similar work▫ Average costs for similar work in the area▫ Published unit costs (RS Means/CostWorks)▫ FEMA cost codes (national composite averages)

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Accepted Procurement Methods

• Micro-purchase procedures• Small purchase procedures• Sealed bids• Competitive proposals• Non-competitive

proposals

• Super Circular applies2 CFR 200.318-326

Nisqually Earthquake - March 2001

Small Purchase Procedures

• Small purchase procurement is an informal method for securing services or supplies that do not cost more than $150,000 by obtaining several price quotes from different sources

Always use the most restrictive limit in effect for your jurisdiction

Sealed Bids

• This is a formal contracting method where:▫ The bids are publicly advertised and solicited▫ Cost analysis is required▫ The contract is awarded to the lowest responsible

bidder and lowest price▫ This method is the preferred method for procuring

construction contracts

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Competitive Proposals

• Similar to sealed bid procurement • Cost analysis is required• Contracts are awarded on the basis of contractor

qualifications instead of on price• This method is generally used for procuring

architectural or engineering professional services

Note: Consultant agreements and Personal Services contracts fall into this category

Non-Competitive Proposals

• A proposal is received from only one source• Document why you chose this type of contract• Cost-analysis is required• Only use when the award of a contract is not feasible

under small purchase procedures, sealed bids, or competitive proposals, and one of the following circumstances applies:▫ The item is available only from a single source▫ There is an emergency requirement that will not permit delay▫ FEMA may authorize noncompetitive proposals▫ Solicitation from a number of sources has been attempted, and

competition is determined to be inadequate.

Emergency Contracting• Emergency Proclamation must waive the

competitive bid process and be in place prior to signing any emergency contracts

• Document all contract procurement actions• Ensure Cost Analysis is performed• Get your contracting office involved ahead of time• Follow up within a short period with open,

competitive process

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Acceptable Contracts

• Lump Sum Contracts• Unit Price Contracts• Cost Plus a Fixed

Fee Contracts

Lewis County - December 2007

Lump Sum Contracts

• Competitive process• Can be either sealed or competitive negotiation▫ Sealed Bid: Contractors bid a firm fixed price bid

including all labor, equipment, materials, overhead, & profit

▫ Competitive: Contractors submit proposals based on pre-stated factors

• Well defined & reasonable scope of work• Amendments or Change Orders are by exception• Except for rare amendments, contract price will

not change

Unit Price Contracts• Often used when quantities needed to do the

work are not known in advance• Units of work determined in advance by unit of

measure; i.e. CY, LF• Competitive process• Bid price is “in place” cost including labor,

materials, equipment, overhead, & profit• Bid price is all-inclusive - not broken out• Often awarded on an annual basis to multiple

firms to insure availability & price competition• Prices must be deemed reasonable

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Cost Plus a Fixed Fee

• Used when full extent of scope cannot be fully predicted in advance

• Contractor is reimbursed for reasonable, with-in scope costs

• Contractor bids a fixed fee for the contract to include overhead & profit

Generally Unacceptable Contracts

• Time & Materials Contracts• Time & Equipment Contracts• Piggyback Contracts• Intra-agency charges

FEMA strongly discourages these types of contracts

Time & Materials Contracts

• Local & State procurement guidelines must be followed• Accepted only in very limited situations• Generally not more than 70 hours for work that is necessary

immediately after a disaster when a clear scope of work cannot be developed

• Requirements▫ Must have a written scope▫ Must have a cost ceiling or “not to exceed” provision▫ Strict monitoring & documentation of expenses▫ Cost must be reasonable & work must be approved and within scope ▫ Prescribed duration for emergency work only

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Time & Materials Contracts

• Cost structure for labor to include overhead & profit▫ Overhead and profit must not be broken out

separately• Use FEMA approved equipment rates• Competition still a requirement unless emergency

occurs that requires immediate response or there is no available competition

• Check on debarred/suspended status

Piggyback Contracts

• A concept of expanding a previously awarded contract.

• Does not meet the requirements of 2 CFR 200 ▫ it is non-competitive ▫ may have an inappropriate price structure

• This type of contract is not eligible. ▫ However, FEMA may separately evaluate and

reimburse costs it finds fair and reasonable. This is extremely rare!

▫ Limited dollar amount

Unacceptable Contracts

• Costs plus a percentage of Cost▫ Specifically disallowed under 2 CFR 200.323(d)

• Contingency Contracts▫ Specifically disallowed under federal procurement

guidelines▫ There is never an advance assumption of federal

reimbursement• Verbal Contracts

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Verbal Contracts• No verbal contracts• Specifically prohibited under federal procurement

regulations• On an emergency basis, an agency may grant an on-

site, verbal authorization of a contract. This must be followed up immediately (within 3 days) by a written contract that meets all federal procurement regulations.

• Occurs frequently during emergency activities▫ Take positive actions to put in place procedures to

transition verbal contracts to written contracts

Consultant Contracts

• Applicants utilizing consultant agreements administered and paid with a cost plus percentage of cost methodology ▫ Cost plus percentage contracts are not eligible for

reimbursement▫ The OIG has questioned these contracts and

issued audit findings▫ Use of these types of contracts jeopardizes the

eligibility of the contracted consultant engineering services and the entire project

Consultant Contracts (cont)

• It is acceptable to utilize consultant engineering services on projects funded with monies from FEMA’s Public Assistance Program for:▫ Special engineering services (such as surveying or

geotechnical studies)▫ Design & construction inspection▫ Project management in the design or construction

phases of a project• FEMA’s regulations for procurement of consultant

engineering services are established in 2 CFR 200

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Consultant Contracts (cont)• Contract arrangement - Cost plus fixed fee

Correct Methodology:Estimated consultant contract cost is $500,000, with a negotiated 25% fixed fee. This means the fee is $100,000 and the cost for work is $400,000 since profit and overhead are built in. The fee stays static regardless of final actual costs.

Unacceptable Methodology: For the same scope of work, the costs for the work comes in at $500,000. The consultant bills the jurisdiction $125,000 for the fixed fee. This is not a fixed fee. This is a cost plus percentage of cost contract.

Consultant Contracts (cont)

• Applicants may use competitive proposals for qualifications-based procurement of architectural & engineering professional services:▫ Applicants must perform a cost or price analysis ▫ Types of contracts allowed Fixed-price or lump sum Cost reimbursement - unit price or cost plus a fixed fee Fixed fees are to be negotiated as a separate element of

the price▫ Cost plus a percentage of cost and/or percentage of

cost methods of contracting are not allowed

Force Account (FA) Contracts• Other federal agencies administering other grants may

have allowed FA line items with this structure: Labor plus a set percentage for profit Equipment plus a set percentage for profit Materials plus a set a percentage for profit

• Avoid adding Force Account as a line item to contracts• Some jurisdictions have greatly expanded this line item

structure and applied this structure to the entire contract making it a FA Contract▫ FEMA views this as a Cost Plus Percentage of Cost

contract – prohibited by 2 CFR 200.323(d)