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Section 2— Federal Changes and Initiatives <br />Indirect Costs Subgrantees may use all or part of their M &A allowance for indirect costs. <br />Subgrantees must have an approved indirect cost rate with the cognizant <br />federal agency. A copy of the approved rate is required at the time of <br />application and must be, evaluated to determine if costs are allowable and <br />reasonable. 7 <br />Organization New rules apply to overtime and operational overtime, Allowable costs <br />are limited to federally requested participation in fusion centers, which <br />must be formally pre- approved by FEMA,8 <br />Personnel Cup FY14 HSGP funds have a personnel cap of 5o %.9 <br />Equipment Subgrantees that wish to purchase equipment with FY14 funds are <br />Typing and required to type and identify the capability associated with that equipment. <br />Identification Also, per FEMA policy, the purchase of weapons and weapon accessories <br />is not allowed with HSGP hinds, 10 Special rules apply to pharinaceutieal <br />purchases and medical counter measures. 11 <br />Equipment The use of HSGp funds for maintenance contracts, warranties, repair or <br />Maintenance replacement costs, upgrades, and user fees are allowable ruder all active <br />and and future grant awards, unless otherwise noted. With the exception of <br />Sustainment maintenance plans purchased incidental to the original purchase of the <br />equipment, the period covered by a maintenance agreement or warranty <br />plan must not exceed the period of performance of the specific grant funds <br />used to purchase the plan or warranty, and address the requirements <br />identified in FEMA Information Bulletin (1B) 379. 12 <br />Construction All funded construction projects must comply with the Davis -Bacon and <br />and Renovation related Acts, US Department of Labor rules and other requests for the <br />purpose of Davis -Bacon compliance. Construction projects must be <br />formally approved by FEMA. 13 <br />r Ibid., page 10. <br />a Ibid., pages 50 -51. <br />a Ibid., page 49. <br />10 Ibid., page 57. <br />u Ibid., page 51. <br />12 Ibid., page 52. <br />131bid., pages 5154. <br />55B -18 <br />