Immediate Threat

Appeal Brief

Summary Paragraph

The coronavirus (COVID-19) pandemic resulted in a major disaster declaration for Texas on March 25, 2020, with an incident period of January 20, 2020, to May 11, 2023. Harris County (Applicant) sought $1,190,770.07 in Public Assistance (PA) funding for information technology (IT) supplies to assist in their COVID-19 response. FEMA found the costs were ineligible due to insufficient documentation to substantiate the expenses as eligible emergency protective measures, instead representing an increased operating cost. The Applicant appealed, claiming the IT supplies purchases were tied to eligible work at emergency operations centers (EOCs) and vaccination and testing sites and proposing a methodology to calculate costs for supplies assigned to individuals performing eligible work, while excluding those costs allocated to individuals performing ineligible contact tracing. The FEMA Region 6 Regional Administrator partially granted the appeal, approving some supplies used at vaccination sites, as they supported emergency protective measures, but denied all costs associated with computers because FEMA rejected the Applicant’s methodology for distinguishing the supplies related to ineligible contact tracing. The Applicant submits a second appeal, reiterating previously raised arguments and requesting reimbursement for the least expensive IT supplies purchased. The Applicant asserts that its revised claim represents the minimum amount directly attributable to eligible emergency response efforts. 

Authorities

• Stafford Act §§ 403, 502.
• 2 C.F.R. § 200.403.
• 44 C.F.R. §§ 206.223(a), 206.225(a)(3).
• PAPPG, at 19, 21, 57-58, 62.
• FP 104-009-19, at 3.
• FEMA Fact Sheet: Eligible Emergency Protective Measures, at 3.
• Medical Care Policy, at 5, 6-8.

Headnotes 

• Response activities conducted at EOCs are eligible, provided they are associated with eligible work. Cost associated with operating EOCs are also eligible, including but not limited to supply costs. FEMA may provide assistance for the following vaccination-related medical care activities and associated costs: such as community vaccination centers; IT equipment and systems when reasonable and necessary, for patient registration and tracking, vaccine-related inventory management, and/or analytics and reporting needs.
  • The Applicant has tied the claimed costs for IT supplies at EOCs and vaccination and testing sites to eligible work, including necessary EOC operations, and essential functions at vaccination and testing sites, such as patient registration, vaccine inventory management and data reporting.

Conclusion

FEMA finds that the costs for IT supplies at EOCs and vaccination and testing sites are tied to the performance of eligible work in response to COVID-19.

Appeal Letter

Appeal Analysis

Background

The coronavirus (COVID-19) pandemic resulted in a major disaster declaration for Texas on March 25, 2020, with an incident period of January 20, 2020, through May 11, 2023. Harris County (Applicant) sought $1,190,770.07 in Public Assistance (PA) funding for costs incurred between March 10, 2020, and November 5, 2021, for information technology (IT) supplies (including computers, laptops, printers, scanners, batteries and chargers, network switches, associated items, and communications software) to assist in its COVID-19 response. FEMA prepared Grants Manager Project 698842 to document the claimed costs.

On November 13, 2023, FEMA asked the Applicant for a list of the staff who utilized the IT supplies, the eligible emergency work performed, and dates of use for all claimed costs. On November 28, 2023, the Applicant responded and submitted a document noting that the IT supplies were used through the duration of Harris County’s COVID-19 testing and response efforts, which started in March of 2020.[1]

On February 15, 2024, FEMA issued a Determination Memorandum denying the requested funding because the Applicant did not provide sufficient documentation to substantiate that the IT supplies were used for eligible emergency protective measures.

First Appeal

On April 12, 2024, the Applicant appealed, requesting $799,571.66 related to IT expenditures for emergency operation centers (EOCs) and vaccination and testing sites. Specifically, the Applicant sought $498,759.46 to purchase computers and $300,812.20 to purchase other IT supplies.

The Applicant stated that it established EOCs in multiple locations to address the COVID-19 pandemic response and significantly expanded emergency response staffing. Additionally, the Applicant set up temporary community vaccination and testing sites, previously documented and approved for PA funding under a separate project. It stated it purchased all supplies to support the increased staffing needs at those sites, enabling the performance of eligible emergency protective measures. The Applicant explained that EOC staff used the IT supplies to establish temporary medical care facilities, including vaccination sites; coordinate food distribution efforts; and oversee communication to disseminate COVID-19 health and safety messaging. The Applicant also stated that staff at the vaccination and testing sites used the IT supplies to maintain records of appointments, intake sensitive patient information, ensure patients received proper information and safety instructions, and report out testing and vaccination data in compliance with the Centers for Disease Control and Prevention (CDC) requirements. 

The Applicant purchased 1,224 new computers for personnel working on COVID-19 emergency response efforts related to EOCs, vaccination and testing sites, and contact tracing. Recognizing that FEMA has not reimbursed contact tracing costs for COVID-19, the Applicant noted on appeal that it was not requesting funding for 536 of the 1,224 computers it purchased, as 536 personnel (including employees and contractors) had worked on contact tracing. Thus, it withdrew an associated estimated cost of $391,198.41 for those 536 computers from its request, and sought reimbursement for the remaining 688 computers, at an estimated cost of $498,759.46. 

In explaining its methodology for determining the computer costs associated with eligible and ineligible activities, the Applicant conceded that it did not create a comprehensive list of IT supplies identifying the COVID-19 emergency response personnel assigned to them or the tasks performed on each one. Instead, the Applicant limited its request to 56.2 percent of the total purchase price for all 1,224 computers, as that was the minimum percentage of those computers not assigned to contact tracing personnel. 

The Texas Division of Emergency Management (Recipient) expressed its support for the Applicant’s appeal in a letter dated May 4, 2024, transmitted to FEMA via email on May 13, 2024.

On August 27, 2024, the FEMA Region 6 Regional Administrator partially granted the Applicant’s appeal, approving $294,316.30 of the $300,812.20 claimed for non-computer IT supplies (including tablets, barcode scanners, remote computer connectivity devices, headsets, and battery chargers), which were shared and distributed at testing and vaccination sites. However, FEMA identified a flaw in the Applicant’s methodology for estimating the cost of the 688 computers purchased totaling $498,759.46. FEMA stated that by claiming a percentage of the total costs for all computers purchased, the Applicant’s methodology assumed all 1,224 computers were purchased at the same price point, even though the Applicant bought various models at different price points. Therefore, FEMA denied the requested $498,759.46 for computer purchases, finding the costs unsupported.[2] 

Second Appeal

In a second appeal letter dated October 25, 2024, the Applicant reiterates its previous arguments, but acknowledges FEMA’s issues with the cost methodology presented on first appeal for computer purchases. Therefore, the Applicant now requests reimbursement only for the 386 least expensive computers, totaling $302,766.08.[3]The Applicant asserts that it used the FEMA policy that was in effect during the pandemic to guide its documentation processes. Additionally, the Applicant states that there was no specific FEMA policy requirement for this type of documentation as it relates to supplies. In addition, the Applicant asserts that FEMA policy requires receipts or invoices for supplies purchased, and it has submitted comprehensive computer invoices. In a letter dated November 4, 2024, the Recipient forwarded the Applicant’s second appeal to FEMA with its support.

Discussion

FEMA is authorized to provide assistance for emergency protective measures to save lives and protect public health and safety.[4] For emergency protective measures to be eligible, the applicant is responsible for showing that the work is required due to an immediate threat resulting from the declared incident.[5] FEMA may provide assistance for operation of EOCs to direct and coordinate resources and response activities for COVID-19.[6] Response activities conducted at EOCs are eligible, provided they are associated with eligible work.[7] Costs associated with operating EOCs are also eligible, including supply costs.[8] In response to COVID-19, FEMA may also provide assistance for the following eligible medical care activities and associated costs: operating costs, including equipment and supplies, for temporary and expanded medical facilities, such as community based testing sites; and IT equipment and systems related to vaccination, when reasonable and necessary, for patient registration and tracking, vaccine-related inventory management, and/or analytics and reporting needs.[9] To be eligible, costs must be necessary and reasonable, directly tied to the performance of eligible work, and adequately documented.[10]

FEMA previously found that the Applicant performed eligible work at vaccination and testing sites. The Applicant also demonstrated that it performed eligible work at the EOCs, explaining that the EOCs served as central coordination points for emergency response activities, including establishing and managing vaccination sites, overseeing public health communications, facilitating patient registration and data reporting in compliance with CDC requirements, and supporting logistical efforts such as food distribution and coordinating emergency response efforts. 

As part of operating EOCs and temporary medical facilities, necessary supply costs, including IT supplies such as computers, are eligible. The Applicant presented a reasonable methodology on second appeal, claiming costs only for the least expensive computers provided to the minimum number of staff performing eligible work. The claimed costs are supported by documentation, including computer purchase invoices and lists of all contract tracers whose computers were excluded from the Applicant’s total. FEMA finds that the methodology was consistent with FEMA policies in effect during the pandemic. Therefore, the Applicant has tied the claimed costs for IT supplies used at EOCs and vaccination and testing sites to the performance of eligible work in response to the COVID-19 pandemic.

Conclusion

FEMA finds that $302,766.08 in costs for IT supplies at EOCs and vaccination and testing sites are tied to the performance of eligible work in response to COVID-19. Therefore, this appeal is granted.