FEMA Should Disallow over $4 Million Awarded to Mountain View Electric Association, Colorado, for Improper Procurement Practices

The Mountain View Electric Association (Association) received a $7.1 million award of FEMA Public Assistance grant funds to repair facilities damaged in the Colorado Black Forest Fire. We audited $7.4 million in disaster-related costs, which included $322,417 in cost overruns. The Association did not always account for and expend FEMA Public Assistance grant funds in accordance with Federal regulations. Specifically, the Association did not follow all applicable Federal procurement standards in awarding FEMA-approved work valued at over $4 million for utility repairs and debris removal. As a result, FEMA has no assurance that costs are reasonable or that disadvantaged firms had sufficient opportunities to bid on Federal work as Congress intended.