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Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Rules and Regulations
For a hearing at the applicants location, FEMA representatives would need to travel to the location of the hearing. Costs for a local hearing would be higher for FEMA due to paying for travel time as well as actual travel costs.
Travel costs are estimated using the
attorneys at $109.30 each 58 hours $12,679 plus $5,032 for non-travelling program analysts resulting in a total cost of $17,711. The total estimated costs to FEMA for a local hearing are presented in Table 7.

figures previously mentioned and would be $1,269 per person for a total of $2,538, if 2 attorneys travel to the applicants location. Additionally, FEMA estimates that the time would increase to 58 hours due to 11 hours of travel time for the attorneys totaling 2

TABLE 7ESTIMATED FEMA COSTSLOCAL
2019$
Cost for four expert witnesses
Cost of court reporter
Opportunity costs of time for FEMA employees
Travel costs 2 attorneys
Total per-case cost to FEMA

$10,188

$730

$ 17,711

$2,538

$31,167

In addition to these costs, FEMAs PA
Program hired an Arbitration Coordinator at the GS13 Step 5 level with an annual salary of $116,353. With the 1.46 multiplier for a fully loaded wage rate, the additional cost to FEMA
is $169,875 per year. Therefore, the annual total costs to FEMA range from $194,657 $169,875 + $24,782 if the
hearing is held in Washington, DC to $201,042 $169,875 + $31,167 if the hearing is held at the applicants location.

applicant. Government and FEMA costs would be higher for a hearing held local to the applicant, and likewise, applicant and recipient costs would be higher if the hearing was held in Washington, DC. FEMA estimates that the total costs per case to range between $52,496 and $59,989. Table 8 presents the range of estimated costs per arbitration case.

Total Costs The total cost per case vary based on who the applicant uses as a representative, and whether the hearing is held in Washington, DC or local to the
TABLE 8TOTAL COST PER CASE
2019$
FEMA
Low
High

As established earlier in this analysis, FEMA estimates an average of 15
arbitration cases per year. Therefore, FEMA estimates the total annual costs to range between $957,315 15 cases
$31,167 per case + $169,875 to hire a new FEMA employee + 15 cases

Applicant
$31,167
24,782

Recipient
$13,211
22,651

$8,118
12,556

Total $52,496
59,989

$1,069,710 high. Table 9 shows the estimated total costs per year of this final rule. The low-cost estimate assumes that all hearings would be held at the applicants location, while the high estimate assumes hearings would be held in Washington, DC.

$13,211 per case for applicant + 15
cases $8,118 per case for the recipient = $957,315 low and $1,069,710 15
cases $24,782 per case + $169,875 for a new FEMA employee + 15 cases
$22,651 per case for the applicant + 15
cases $12,556 for the recipient =

TABLE 9TOTAL COST PER YEAR FOR 15 CASES
2019$
FEMA
Low
High

Applicant
$637,380
$541,605

Recipient
$198,165
$339,765

$121,770
$188,340

Total $957,315
$1,069,710

Tables 10 and 11 show the total 10year costs and 10-year costs annualized at 3 percent and 7 percent.

TABLE 1010-YEAR COST TOTALS USING 3 PERCENT AND 7 PERCENT DISCOUNT RATES

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Low estimate, 2019$
Year 1
2 3
4 5

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16:35 Aug 13, 2021

FEMA costs
Applicant costs
$637,380
637,380
637,380
637,380
637,380

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PO 00000

Recipient costs
$198,165
198,165
198,165
198,165
198,165

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$121,770
121,770
121,770
121,770
121,770

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Total costs
Annual costs discounted at 3% 1

$957,315
957,315
957,315
957,315
957,315

E:FRFM16AUR1.SGM

$929,432
902,361
876,079
850,562
825,788

16AUR1

Annual costs discounted at 7% 1
$894,687
836,156
781,454
730,331
682,552