Lump sum — A contract for work within a prescribed boundary with a clearly defined scope of work and total price. Unit price — A contract for work done on an item-by-item basis with cost determined per unit. Cost plus a fixed fee — These contracts are either lump sum or unit priced with a fixed contractor fee added into the price. Time and materials contracts should be avoided, although FEMA may allow this type of contract for work that is necessary immediately after a disaster — when a clear scope of work cannot be developed. There may be instances when an immediate emergency contract must be awarded to stabilize a facility to prevent an imminent threat to the life, health, or safety of the community, or reduce the threat of significant damage to improved public 5 or private property. This type of contract is normally allowed if reasonable, has a not-to-exceed or ceiling price, and extensive oversight is maintained. Once the threat has been eliminated and more time is needed to complete all disaster-related repairs, the remaining work must be put out to bid to comply with PA Program requirements. All work should stop until a new contract can be awarded. Cost-plus- percentage-of-cost contracts are not eligible. Specific guidance on contracts can be found in FEMA’s Field Manual — Procurement Guidance For Recipients And Sub-recipients Under C.F.R. Part 200 (Uniform Rules) Supplement To The Public
Assistance Procurement Disaster Assistance Team (PDAT).
Establishing a Benchmark A prerequisite for identifying and quantifying disaster-related damages is establishing a benchmark based on the condition, capacity and function of the facility before the event occurred. Remember that the fundamental goal of the Public Assistance Program is to return the facility to its pre-disaster condition, capacity and function — including adherence to applicable codes and standards in place prior to the event. This requires vigilantly keeping and updating maintenance records. Eligible items that should be monitored, and not limited to, include buildings; equipment that is non-expendable, costs $5,000 or more and has a life expectancy of more than a year; vehicles; bridges; culverts; road systems, including drainage ditches and road surface maintenance; water control facilities; utilities; and recreational facilities.
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