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Section 2—Federal Changes and Initiatives 12015 <br />Indirect costs claimed must be calculated using the base approved in the <br />indirect cost Negotiation Agreement. A copy of the approved Negotiation <br />Agreement is required at the time of application. <br />2. Subrecipients who have never received a negotiated indirect cost rate and <br />receive less than $35 million in direct federal funding per year may claim <br />the 10% de minimis indirect cost rate based on Modified Total Direct <br />Costs (MTDC) as described in 2 C.F.R. Part 200, §200.68 and Subpart E. <br />Indirect costs are in addition to the M&A allowance, and must be included in the <br />grant award application as a "Project' and reflected in the Financial <br />Management Forms Workbook on the Indirect cost category ledger if being <br />claimed under the award. <br />Organization New rules apply to overtime and operational overtime. Allowable costs are <br />limited, and must be formally pre -approved by FEMA.' <br />Personnel Cap FY2015 SHSP and UASI funds have a personnel cap of 50%.6 <br />Equipment Subrecipients that wish to purchase equipment with FY2015 HSGP funds are <br />Typing and required to type and identify the capability associated with that equipment. Also, <br />Identification per FEMA policy, the purchase of weapons and weapon accessories is not <br />allowed with HSGP funds. Special rules apply to pharmaceutical purchases and <br />medical counter measures.7 <br />Equipment Use of HSGP funds for maintenance contracts, warranties, repair or replacement <br />Maintenance/ costs, upgrades, and user fees are allowable as described in FEMA Information <br />Sustainment Bulletin (IB) 379.8 <br />Construction All funded construction projects must comply with the Davis -Bacon and related <br />and Renovation Acts, U.S. Department of Labor rules and other requests for the purpose of <br />Davis -Bacon compliance. All construction projects must first receive written <br />pre -approval from FEMA. 9 <br />Exercises, Subrecipients must conduct threat and performance-based exercises in <br />Improvement accordance with DHS Homeland Security Exercise and Evaluation Program <br />Plans, and After (HSEEP) manuals. <br />Action <br />Reporting <br />Exercises, Pursuant to Grant Programs Directorate Information Bulletin No. 366, <br />s Ibid., page 52 <br />e Ibid., page 51 <br />7 Ibid., page 53 <br />a Ibid., page 53-54 <br />9 Ibid., page 55-56 <br />