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A TRUE COPY <br />CERTIFICATION ON LAST PAGE <br />J.R. SMITH, CLERK <br />FEMA <br />3. The total fixed -cost amount is established based on the aggregate of: <br />a. The estimated cost to restore disaster damaged facilities to pre -disaster design (size <br />and capacity) and function in accordance with eligible codes and standards; and <br />b. The estimated cost for cost-effective hazard mitigation measures associated with the <br />actual restoration SOW to be implemented. <br />4. If the Applicant accepts the fixed -cost offer for a Large Project, it is considered a Pilot <br />Project and the Applicant will: <br />a. Not be required to rebuild the facilities back to what existed prior to the disaster. <br />b. Be allowed to share funds across all of its Pilot Projects. <br />c. Not be required to track costs to specific work items. <br />d. Not be required to track costs or work to specific Pilot Projects since funds can be <br />shared across all of its Pilot Projects. <br />e. Be allowed to retain and use excess funds to reduce risk and improve future disaster <br />operations (subject to timely closeout). <br />f. Be eligible for cost-effective hazard mitigation on replacement projects. <br />B. DEADLINES <br />Outcome: Increase speed of recovery through timely agreement on fixed -cost offers. <br />1. Applicants have no more than 18 months from the disaster declaration date to: <br />a. Determine the actual SOW and hazard mitigation measures to be implemented; and <br />b. Accept a fixed -cost offer for each project (also subject to 30 -day deadline from receipt, <br />see B.2). <br />2. Each time FEMA transmits a fixed -cost offer, the Recipient and Applicant will have a <br />combined total of 30 calendar days from the date of FEMA's transmittal of the fixed -cost <br />offer to accept the offer (not to exceed the 18 -month deadline). Any projects without <br />accepted fixed -cost offers by the 30 -day and 18 -month deadlines will be processed using <br />standard PA policies and procedures and funded in accordance with Title 44 Code of <br />Federal Regulations §206.205. <br />3. Time extensions to accept fixed -cost offers must be approved by FEMA's Assistant <br />Administrator for Recovery. <br />C. HAZARD MITIGATION <br />Outcome: Promote resiliency through inclusion of hazard mitigation. <br />1. When the Applicant is restoring a facility to pre -disaster function, size, capacity, and <br />location, FEMA evaluates the proposed hazard mitigation SOW and cost-effectiveness <br />based on the criteria in Chapter 2.VII.0 of the PAPPG. <br />2. When the Applicant is restoring the function, but changing the pre -disaster capacity of a <br />facility (Improved Project), the proposed hazard mitigation SOW is developed based onthe <br />actual SOW to be implemented; however, the cost-effectiveness is evaluated based on the <br />fixed -cost amount accepted for the pre -disaster restoration SOW. If the capacity is <br />Page 2 of 8 FEMA Recovery Policy FP 104-009-7 <br />40 <br />