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A TRUE COPY <br />CERTIFICATION ON LAST PAGE <br />FEMA J.R. SMITH, CLERK <br />F. ENVIRONMENTAL AND HISTORIC PRESERVATION <br />Outcome: Ensure all projects are compliant with environmental and historic preservation <br />(EHP) laws, regulations, and executive orders. <br />1. FEMA will conduct EHP compliance reviews on the actual SOW to be implemented. EHP <br />review needs to occur prior to FEMA approval and prior to the Applicant starting anywork <br />that has potential to impact the environment, historic properties, or archaeological <br />resources. This includes, but is not limited to, demolition, site preparation, and ground <br />disturbing activities. <br />2. The Applicant must comply with all applicable EHP laws, regulations, and Executive Orders <br />in accordance with the FEMA Directive 108-1, Environmental Planning and Historic <br />Preservation Responsibilities and Program Requirements, and accompanying Instruction. <br />Non-compliance with EHP conditions and requirements may result in the deobligation of <br />funds. <br />G. COST ESTIMATES <br />Outcome: Develop fixed -costs based on accurate cost estimates. <br />1. FEMA or the Applicant may develop cost estimates as follows: <br />a. FEMA will prepare its estimates using the Cost Estimating Format (CEF) andwill <br />include the CEF contingency factor "Applicant Reserve for Change Orders." <br />b. Applicant -submitted estimates must comply with Chapter 3.II.D of the PAPPG. FEMA <br />will evaluate Applicant -submitted estimates using the Public Assistance: Reasonable <br />Cost Evaluation Job Aid. This Job Aid includes a checklist in Appendix A: Validation of <br />Applicant -Provided Cost Estimates, which FEMA will use to review and validate cost <br />estimates. <br />c. The estimate must be based on the current phase of design or construction inclusive of <br />any known costs. <br />d. If eligible work has been completed at the time the cost estimate is developed that <br />portion of the fixed amount will be based on the actual cost. <br />e. The cost estimate must include a reduction to account for any anticipated insurance <br />proceeds based on the Applicant's insurance policy, or if known, the actual insurance <br />proceeds. <br />2. A FEMA -funded, independent panel of cost estimating experts may review project <br />estimates. The review will be limited to issues pertaining to the estimated cost and the <br />panel will not make decisions related to the eligibility of work. However, it may make <br />determinations about whether cost elements are requiredto execute the SOW. The panel <br />may review cost documentation for completed work, if necessary. <br />a. FEMA may request the independent panel review for any cost estimate. <br />b. Applicants may request the panel review the estimate for any project with anestimated <br />Federal share of at least $5 million. <br />c. All project estimates with an estimated Federal share of $25 million or greater will be <br />reviewed by the independent panel. <br />Page 5 of 8 FEMA Recovery Policy FP 104-009-7 <br />43 <br />