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FEMA Misapplied the Cost Estimating Format Resulting in an $8 Million Overfund to the Port of Tillamook Bay, Oregon

Executive Summary

This report focuses solely on the FEMA's application of the Cost Estimating Format for the Port of Tillamook Bay, Oregon's (Port) most significant project, an alternate project totaling $44.6 mllion. FEMA officials did not use the Cost Estimating Format correctly in estimating damages to the Port’s railroad. Specifically, FEMA did not follow applicable laws, regulations, and guidelines because it used improper assumptions in calculating estimated project costs using the Cost Estimating Format. As a result, FEMA overstated the Port’s construction (base) and non-construction costs, which resulted in FEMA overfunding Alternate Project 936 by $8,021,884.

Report Number

OIG-15-89-D

Issue Date

05/07/2015

Document File

OIG_15-89-D_May15.pdf

DHS Agency

FEMA

Oversight Area

Disaster Recovery

Fiscal Year

2015

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