Buildings and Equipment: Mastering One of the Most Complex Categories of Work



Understanding and effectively tracking each of these cost centers can result in a significant difference in reimbursement for force account and contract labor expenses.


Replacing Equipment and Supplies

As defined in 44 CFR §13.3, equipment is “tangible, non-expendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit,” and supplies are “all tangible personal property other than equipment.”

As of September 2009, FEMA’s policy on funding the replacement of damaged equipment, vehicles and supplies became more flexible, no longer limiting replacement to the same number of items of similar age, capacity, and condition, as previous policy had required. While funding is still capped at the cost to replace destroyed equipment, vehicles and supplies with the same number of items of approximately the same age, condition, and capacity that existed at the time of the disaster as determined using “blue book” values or similar price guides, applicants may now replace these items with ones for use for the...