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23 <br />FY 2022 PSGP NOFO Back to the Top <br />I. REPLACEMENT EQUIPMENT AND SERVICES <br />FEMA grant funding may be permitted to procure replacement equipment and services <br />impacted by this prohibition, provided the costs are otherwise consistent with the <br />requirements of the NOFO and the Preparedness Grants Manual. <br /> <br />II. DEFINITIONS <br />Per section 889(f)(2)-(3) of the FY 2019 NDAA and 2 C.F.R. § 200.216, covered <br />telecommunications equipment or services means: <br /> <br />i. Telecommunications equipment produced by Huawei Technologies Company or ZTE <br />Corporation, (or any subsidiary or affiliate of such entities); <br />ii. For the purpose of public safety, security of Government facilities, physical security <br />surveillance of critical infrastructure, and other national security purposes, video <br />surveillance and telecommunications equipment produced by Hytera <br />Communications Corporation, Hangzhou Hikvision Digital Technology Company, or <br />Dahua Technology Company (or any subsidiary or affiliate of such entities); <br />iii. Telecommunications or video surveillance services provided by such entities or using <br />such equipment; or <br />iv. Telecommunications or video surveillance equipment or services produced or <br />provided by an entity that the Secretary of Defense, in consultation with the Director <br />of National Intelligence or the Director of the Federal Bureau of Investigation, <br />reasonably believes to be an entity owned or controlled by, or otherwise connected to, <br />the People’s Republic of China. <br /> <br />Examples of the types of products covered by this prohibition include phones, internet, video <br />surveillance, and cloud servers when produced, provided, or used by the entities listed in the <br />definition of “covered telecommunications equipment or services.” See 2 C.F.R. § 200.471. <br /> <br />b. Pre-Award Costs <br />Pre-award costs are not allowable and will not be approved, with the exception of costs <br />resulting from pre-award grant writing services provided by an independent contractor that <br />shall not exceed $1,500 per applicant per year. <br /> <br />c. Management and Administration (M&A) Costs <br />M&A costs are allowed. Recipients may use up to 5% of the amount of the award’s federal <br />share for their M&A costs. M&A activities are those defined as directly relating to the <br />management and administration of PSGP funds, such as financial management and <br />monitoring. M&A expenses must be based on actual expenses or known contractual costs. <br />Requests that are simple percentages of the award, without supporting justification, will not <br />be allowed or considered for reimbursement. <br /> <br />M&A costs are not operational costs. They are the necessary costs incurred in direct support <br />of the grant or as a consequence of the grant and should be allocated across the entire <br />lifecycle of the grant. Examples include preparing and submitting required programmatic and <br />financial reports, establishing and/or maintaining equipment inventory, documenting <br />operational and equipment expenditures for financial accounting purposes; responding to