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Section 2—Federal Changes and Initiatives <br />2014 <br />Indirect Costs Subgrantees may use all orpart 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, s <br />Personnel Cap FYI HSGP funds have a personnel cap of 50 %.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 FEVU policy, the purchase of weapons and weapon accessories <br />is not allowed with HSGP funds. 10 Special rules apply to pharmaceutical <br />purchases and medical counter measures. f 1 <br />Equipment <br />Maintenance <br />The use of HSGP funds for maintenance contracts, warranties, repair or <br />replacement costs, <br />and <br />upgrades, and user fees are allowable under all active <br />and future grant awards, unless otherwise <br />Sustainment <br />noted. With the exception of <br />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 <br />period ofperformance of the specific grant funds <br />used to purchase the plan or warranty, and <br />address the requirements <br />identified in FEMA Information Bulletin (iB) 379, 12 <br />Construction <br />and Renovation <br />All funded construction projects must comply with the Davis -Bacon and <br />related Acts, US Department <br />of Labor rules and other requests for the <br />Purpose of Davis -Bacon compliance. Construction <br />formally approved by FEMA. 13 projects must be <br />° /bad., page lo. <br />Ibid., pages 50 -51. <br />9 Ibid., page 49. <br />10 Ibid., page 57. <br />11 Ibid,, page 41. <br />12 Ibid., page 52. <br />13 Ibid., pages 53 -54, <br />