This bill permits local governments to use certain procurement methods for hiring construction managers under the Federal Emergency Management Agency’s (FEMA's) Public Assistance (PA) program. It also raises to $3 million the maximum project cost threshold for PA’s simplified procedures.
Under existing regulations governing procurement using federal funds, local governments hiring a construction manager at risk (i.e., contractor who oversees construction and is responsible for costs exceeding a maximum project price) must consider the prices of proposals as a primary selection factor. Currently, local governments may not use qualifications-based procurement, where price is not used as a primary selection factor, unless it is only for architectural and engineering services.
The bill requires FEMA to issue regulations allowing local governments to hire construction managers at risk using qualifications-based procurement, regardless of the types of services procured, when using PA funds to restore or replace disaster-damaged facilities.
Also, the bill increases from $1 million to $3 million the project cost threshold below which FEMA is authorized to provide PA funds based on approved cost estimates rather than the documented incurred costs required to receive PA funds for larger projects.