Board approves Ernst & Young contract extension to finalize FEMA reimbursements worth nearly $197 million

The Board of Estimates voted Jan. 8 to approve a second amendment to Baltimore City’s consultant agreement with Ernst & Young (E&Y). The amendment extends the contract by three years and adds $2,000,000 to continue consulting support for FEMA and federal reimbursements tied to COVID-related expenditures.

Bob Senamy, Deputy Finance Director, said the city has used Ernst & Young to help assemble documentation and navigate FEMA’s reimbursement process for a range of eligible costs during the COVID response. Senamy told the board the city expects roughly $197 million in FEMA reimbursements related to COVID expenses, with $170.7 million already approved and about $26.6 million still pending submission and review.

Senamy explained why the consultant work continues: “we don't have the skill to do it or expertise to do it in house, and we think this is the best approach to wrap up this reimbursement.” He added that FEMA allows a 5% management fee and that the consultant costs themselves are reimbursable under FEMA rules.

Board members questioned whether the city should develop more in-house capacity to manage complex federal reimbursement and grant administration in future events. City staff and the mayor said they support building in-house capabilities where practical and cited prior efforts (including an Office of Recovery Programs) to increase internal capacity, but they described COVID-related FEMA work as unusually complex and beyond typical in-house experience.

A motion to approve the Ernst & Young amendment passed by voice vote.