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DHS-FEMA-EMPG-FY23 Page 7 of 44 Everett, E24-278 <br />for its share. The amount of compensation must be computed in the same <br />manner as for equipment. <br />B. For Equipment: <br />1) Items with a current per-unit fair-market value of $5,000 or less may <br />be retained, sold, transferred, or otherwise disposed of with no further <br />obligation to the federal awarding agency. <br />2) Items with a current per-unit fair-market value in excess of $5,000 <br />may be retained or sold. The Subrecipient shall compensate the <br />federal awarding agency in accordance with the requirements of 2 <br />CFR 200.313 (e) (2). <br />ix. Records for equipment shall be retained by the Subrecipient for a period of six <br />years from the date of the disposition, replacement, or transfer. If any litigation, <br />claim, or audit is started before the expiration of the six-year period, the records <br />shall be retained by the Subrecipient until all litigation, claims, or audit findings <br />involving the records have been resolved. <br />b. The Subrecipient shall comply with the Department’s Purchase Review Process, which is <br />incorporated by reference and made part of this Agreement. No reimbursement will be <br />provided unless the appropriate approval has been received. <br />c. Allowable equipment categories for the grant program are listed on the Authorized <br />Equipment List (AEL) located on the FEMA website at <br />https://www.fema.gov/grants/guidance-tools/authorized-equipment-list. It is important that <br />the Subrecipient and any non-federal entity to which the Subrecipient makes a subaward <br />regard the AEL as an authorized purchasing list identifying items allowed under the <br />specific grant program; the AEL includes items that may not be categorized as equipment <br />according to the federal, state, local, and tribal definitions of equipment. The Subrecipient <br />is solely responsible for ensuring and documenting purchased items under this Agreement <br />are authorized as allowed items by the AEL at time of purchase. <br />If the item is not identified on the AEL as allowable under the grant program, the <br />Subrecipient must contact the Department Key Personnel for assistance in seeking FEMA <br />approval prior to acquisition. <br />d. Equipment purchases (those with a current per-unit fair market value in excess of <br />$5,000) must be identified and explained to the Department. Use, management, and <br />disposition of such equipment is subject to requirements outlined in 2 CFR 200.313. <br />Before making such purchases, the Subrecipient should analyze the cost benefits of <br />purchasing versus leasing equipment, especially those subject to rapid technical <br />advances. <br />e. Unless expressly provided otherwise, all equipment must meet all mandatory regulatory <br />state and DHS/FEMA adopted standards to be eligible for purchase using federal award <br />funds. <br />f. If funding is allocated to support emergency communications activities, the Subrecipient <br />must ensure that all projects comply with SAFECOM Guidance on Emergency <br />Communications Grants, located at https://www.cisa.gov/safecom/funding, including <br />provisions on technical standards that ensure and enhance interoperable <br />communications. <br />g. Effective August 13, 2020, FEMA recipients and subrecipients, as well as their contractors <br />and subcontractors, may not obligate or expend any FEMA award funds to: <br />i. Procure or obtain any equipment, system, or service that uses covered <br />telecommunications equipment or services as a substantial or essential <br />component of any system, or as critical technology of any system;