U.S. Department of Homeland Security 
Washington, DC 20472 


Grant Programs Directorate Information Bulletin 
No. 293 


TO: 
All FY 2007, FY 2007 Supplemental, and FY 2008 Port Security Grant Program Grant 
Recipients 

FROM: 
W. Ross Ashley, III 

Assistant Administrator 

Grant Programs Directorate 

Federal Emergency Management Agency 

SUBJECTS: 
Repair and Replacement Costs within Port Security Grant Program 

Per the FY 2007, FY 2007 Supplemental, and FY 2008 Port Security Grant Program (PSGP) Guidance 
and Application Kits, and in the special conditions of individual awards, applicants are advised of 
unallowable costs including: 

• 
Repair (replace) of existing equipment including, but not limited to: fencing, lighting, CCTV, or 
access controls 
The purpose of this Information Bulletin (IB) is to rescind replacement costs as unallowable costs within 
the FY 2007, FY 2007 Supplemental, and FY 2008 PSGP. This IB is for the sole purpose of notifying 
PSGP grantees and is not intended to imply changes or consent within any other DHS/FEMA sponsored 
grants. 

Repair and Replacement: 

Grantees are advised that repair and replacement costs of existing equipment are now eligible expenses 
under the FY 2007, FY 2007 Supplemental, and FY 2008 PSGP awards. Allowable costs include repair 
and/or replacement of parts or equipment that will be used to support PSGP priorities identified in the 
Program Guidance. Projects including repair and replacement of parts or equipment must comply with all 
applicable PSGP requirements, including environmental regulations and budgetary reviews. All 
associated repair and replacement costs must be approved individually by the assigned Grant Programs 
Directorate PSGP Program Analyst. Any approval for this activity must be requested in writing by the 
grantee and written approval obtained from the program analyst prior to the work commencing or the 
purchase of the parts or equipment. 

Maintenance: 

Maintenance agreements and warranties for parts and equipment purchased with PSGP awards will 
continue to be an allowable expense for the life of the award. Allowable costs associated with 
maintenance agreements and warranties shall not precede the award date, nor extend beyond the period of 
performance for the grant award. Any prorated costs of maintenance agreements and warranties that 
extend beyond the life of the award will continue to be the responsibility of the grantee. On-going 

www.fema.gov 


maintenance costs (i.e. routine oil changes, monthly inspections, cleaning equipment, etc.) other than 
warranties and maintenance agreements established during initial purchase of parts and equipment are the 
responsibility of the grantee and will not be funded by PSGP awards. 

For programmatic questions regarding the PSGP, please e-mail portsecuritygrants@dhs.gov or contact 
your Program Analyst at (800) 368-6498.