U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
July 2, 2024
Via E-mail: [email protected]
Edmar David, Engineer
City of Palo Alto Utilities Department
1007 Elwell Court
Palo Alto, CA 94301
RE: Request for NGDISM Grant Pre-Award Materials Costs
Dear
City of Palo Alto:
This letter serves as official notification that the pre-award costs requested have been approved for the costs listed below that are associated with the FY 2023 Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program. Please note that, notwithstanding this approval, the Pipeline and Hazardous Materials Safety Administration (PHMSA) cannot reimburse costs prior to the full execution of the grant agreement; if, for any reason, a grant agreement is not executed, then the provisional awardee will be liable for all pre- award costs incurred. Reimbursement of costs as a Recipient of federal funds is contingent upon your compliance with the cost principles in 2 CFR Part 200, Subpart E (including allocability and documentation requirements) and any funding restrictions in the FY 2023 Notice of Funding Opportunity (NOFO).
When requesting reimbursement of actual costs incurred, the Recipient shall include a breakout of all costs incurred, including direct labor, indirect costs, and other direct costs. If PHMSA determines that the reimbursement request does not include or is not supported by sufficient detail, PHMSA may deny the request or withhold processing the request until the Recipient provides sufficient detail. You may not incur any costs that were not identified in your application unless you have received prior approval to amend your scope of work.
1200 New Jersey Avenue, SE
Washington, DC 20590
Edmar David
City of Palo Alto
The approved pre-award costs are outlined below and may not include costs for expenses that were not included in your submitted and/or updated budget and project narratives.
Item Cost ($)
Tier 2 Environmental Assessment $182,400.00
Specification Documents $29,184.00
Contract Documents $29,184.00
Total $240,768.00
Please note the Recipient’s requests for materials must provide specific details and the request must address whether it complies with the Build America, Buy America (BABA) requirements.
These requests will be reviewed on a case-by-case basis by the grant program’s Environmental Protection Specialist (EPS) to ensure that the materials will not impact any Tier 2 mitigation efforts.
The pre-award authority extended in this letter is limited to costs incurred after PHMSA’s FY 2023 announcement on April 3, 2024.
If you have any questions or concerns, please contact your grant management specialist, Jasmine Carr, via email at [email protected] and cc: [email protected].
Sincerely,
Shakira N. Mack
Director, NGDISM Grant Program
Pipeline and Hazardous Materials Safety Administration
U.S. Department of Transportation
1200 New Jersey Avenue SE
Washington, DC 20590