Reimbursement of Corps of Engineers for Disaster Assistance Work

The Chief of Engineers of the Army Corps of Engineers requested an opinion on whether the Federal Disaster Assistance Administration (FDAA) was legally responsible for payment of the Corp's general administrative cost under an agreement between the two agencies. Although FDAA's regulations at the time prohibited them from paying overhead to cooperating agencies, FDAA is required to comply with its agreements with the Corps and to reimburse that agency for overhead costs incurred in carrying out the FDAA-requested work.