In recent news reports,
FEMA has been criticized
for delayed payments to
contractors for their
work in assisting
Louisiana recover,
specifically in parishes
in and around the city
of New Orleans.
FEMA does not pay
contractors directly.
Instead, local parishes
are the entities that
hire and ultimately pay
contractors for their
work. Local governments
that hire contractors
and are seeking federal
funds must follow all
federal, state and local
procurement practices.
FEMA obligates funding
to the Louisiana
Governor’s Office of
Homeland Security and
Emergency Preparedness (GOHSEP).
In turn, local parishes
must work with GOHSEP to
ensure that
documentation meets the
state’s requirements to
draw down the available
funds or receive
advancements of already
obligated funds from
GOHSEP.
One news article credits
local officials saying a
“big” reason for payment
delay is FEMA
underestimating cleanup
costs. FEMA funds all
fair and reasonable
costs associated with
public assistance
projects which includes
debris and demolition
removal activities. The
project worksheets that
capture the scope of
work are living
documents that are
constantly revised to
reflect all actual and
eligible costs.
Slow payments often stem
from incomplete
documentation of work
submitted by the
parishes to GOHSEP.
Whenever possible, FEMA
coordinates with local
and state officials to
ensure proper
documentation is
maintained to expedite
the reimbursement
process. Administrative
fees obligated by FEMA
are available to local
government agencies to
hire staff to ensure
documentation
requirements are being
met.
In St. Bernard Parish
alone, FEMA has
obligated more than $272
million for demolition
and debris cleanup. It
must also be noted that,
as of June 28, 2007, the
parish had only drawn
down $126 million of
this obligated funding
to St. Bernard.
FEMA coordinates the
federal government’s
role in preparing for,
preventing, mitigating
the effects of,
responding to, and
recovering from all
domestic disasters,
whether natural or
man-made, including acts
of terror.
