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<br /> IBSGP Appendix | February 2021 Page E-8
<br />Unallowable Costs
<br />Specific unallowable costs include:
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<br />• Grant funds must comply with IB 426 and may not be used for the purchase of the following
<br />equipment: firearms, ammunition, grenade launchers, bayonets, or weaponized aircraft, vessels,
<br />or vehicles of any kind with weapons installed.
<br />• General-use facility expenditures, to include, but not limited to ordinary facility maintenance,
<br />contracts for maintenance, and specifically backup or emergency generators.
<br />• General vehicle maintenance, service contracts, or warranties. This is different from maintenance
<br />and sustainment costs that are allowable, but only for projects funded under a grant award. For
<br />projects or equipment not funded by the grant award, general maintenance, service contracts, and
<br />warranties are not allowable.
<br />• Expenditures for items such as general-use software (word processing, spreadsheet, graphics,
<br />etc.), general-use computers and related equipment (other than for allowable M&A activities, or
<br />otherwise associated preparedness or response functions), general-use vehicles, licensing fees,
<br />recurring operating costs (e.g., cell phone services, maintenance contracts).
<br />• Organizational operating expenses.
<br />• Personnel costs, to include, but not limited to, overtime and backfill (except as detailed above).
<br />• Activities unrelated to the completion and implementation of the IBSGP.
<br />• Other indirect costs (meaning property purchase, depreciation, or amortization expenses).
<br />• Initiatives in which federal agencies are the beneficiary or that enhance federal property.
<br />• Initiatives which study technology development.
<br />• Proof-of-concept initiatives.
<br />• Initiatives that duplicate capabilities being provided by the Federal Government.
<br />• Other items not in accordance with the AEL, in accordance with IB 426, or not previously listed
<br />as allowable costs.
<br />• Pre-award costs are not allowable and will not be approved, with the exception of costs resulting
<br />from pre-award grant writing services provided by an independent contractor that shall not
<br />exceed $1,500, as detailed in “Pre-Award Costs” above and in the IBSGP NOFO.
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<br />Other Allowable Costs
<br />Maintenance and Sustainment Costs
<br />The use of FEMA preparedness grant funds for maintenance contracts, warranties, repair or replacement
<br />costs, upgrades, and user fees are allowable under all active and future grant awards, unless otherwise
<br />noted. Preparedness grant funds may be used to purchase maintenance contracts or agreements, warranty
<br />coverage, licenses and user fees. These contracts may exceed the period of performance if they are
<br />purchased incidental to the original purchase of the system or equipment as long as the original purchase
<br />of the system or equipment is consistent with that which is typically provided for, or available through,
<br />these types of agreements, warranties, or contracts. When purchasing a stand-alone warranty or extending
<br />an existing maintenance contract on an already-owned piece of equipment system, coverage purchased
<br />may not exceed the period of performance of the award used to purchase the maintenance agreement or
<br />warranty. As with warranties and maintenance agreements, this extends to licenses and user fees as well.
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<br />Grant funds are intended to support the National Preparedness Goal (the Goal) and fund projects that
<br />build and sustain the core capabilities necessary to prevent, protect against, mitigate the effects of,
<br />respond to, and recover from those threats that pose the greatest risk to the security of the Nation. In order
<br />to provide recipients the ability to meet this objective, the policy set forth in IB 379: Guidance to State
<br />Administrative Agencies to Expedite the Expenditure of Certain DHS/FEMA Grant Funding allows for
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