Advance payment bonds are a new requirement in 2006 for vehicle grants. What are advanced payment bonds and where can I get one?
An advanced payment bond is like an insurance policy that protects you in the event that the manufacturer that you contracted with to build your vehicle cannot fulfill the contract, i.e., cannot finish building your vehicle for any reason. An advance payment bond is a financial tool used to guarantee that in the event of manufacturer/contractor default, funds will be available to finish the construction of your vehicle and ensure its proper operation. From the vehicle grantee's point of view, the insolvency of a contractor during the construction of a vehicle will most likely result in delayed completion of the vehicle, additional expenses for a different manufacturer/contractor to finish the work, or even loss of grant funds. For this reason, we will now require manufacturers/contractors to provide a bond from an independent bank, insurance company or bonding agency so that the vehicle grantees can recover damages they may sustain if the manufacturer/contractor's default during the construction of a vehicle. The amount of the bond should be equal to, or greater than, the sum of any payments, compensation and/or consideration provided prior to the delivery of the vehicle.
If no down payment is required, an advance payment bond is not required. Regardless of whether a performance bond is obtained, each vehicle purchase contract must include a performance clause. The performance clause stipulates a date certain when the vehicle will be delivered by the vendor. If the vendor does not deliver the vehicle by the date stipulated in the performance clause, penalties are administered to the vendor. These penalties should be of a severity sufficient to provide incentive to deliver the vehicle at the earliest possible date but no less than $100 per day.
Top
In my application, I indicated that my existing vehicle was unsafe and that I would remove it from service. What do I need to do in order to comply with this requirement?
The unsafe vehicle cannot be used in emergency service, thus it cannot be sold, donated, and or given to another department.
It may be traded in, taken to the junk yard for scrap, it may be donated to a museum, or given to a training academy if the academy is not going to use it for drivers training (they could use it for training FFS on the operation of the pump).
In order to assure that an unsafe vehicle is removed, we'll require the grantee to transfer title of the vehicle to any individual or organization that is not in the business of providing first- responder services.
Top
May I apply for more than one grant? May I request items from more than one program area?
No. Applicants may submit only one application in one of two grant program areas. Applicants may apply for any number of items or activities within one chosen program area. Below are the two grant program areas for 2006:
- Operations and Safety Program. Eligible activities are Training, Equipment, Personal Protective Equipment, Wellness and Fitness, and Modifications to Fire Stations and Facilities.
- Vehicle Acquisition Program. Eligible apparatus for fire departments include but are not limited to pumpers, brush/attack units, tanker/tenders, rescue vehicles, ambulances, quints, aerials, foam trucks, and fireboats. Eligible apparatus for nonaffiliated EMS organizations includes ambulances, rescues, and command vehicles, but NOT firefighting apparatus.
Top
Can I buy a tow-vehicle with grant funds?
Any plan to purchase a vehicle with grant funds must be applied for under the vehicle acquisition program. Be advised that a tow-vehicle is a very low priority. Tow-vehicles for a training program, e.g., for a burn-trailer, may be eligible as a transportation expense if adequately justified in the proposal, but such transportation expenses will be limited to $6,000 per year.
The tractor and trailer can be considered as separate single units, or the combination of the tractor-trailer may be considered as a single unit, depending upon local need and the ability to justify the request. However, no more than $6,000 per year can be expended for the procurement of the tractor.
Top
What types of costs are eligible under the Vehicle Acquisition Program?
There are several related costs that can be charged to a vehicle grant. Be advised, however, that all costs should be explained in the narrative portion of your application and that any requests must be reasonable and that all costs requested will be taken into consideration when the application is assessed. These additional costs can be added to your application budget by clicking on "Add Additional Funding" on the Request Details screen and entering your costs on the appropriate budget line.
- Travel costs to visit the vehicle manufacturer to inspect a piece of apparatus may be eligible.
- Equipment that is included in NFPA 1901 for fire apparatus is considered an eligible request.
- Driver training may also be eligible.
Unfortunately, due to the limited funding for EMS vehicles, we will not fund any equipment under the EMS vehicle acquisition program.
Top
Are there targeted funding amounts for the two program areas?
There are no target allocations. It is the intent of DHS to fund the best applications regardless of the program area. In fiscal year 2005, Congress reauthorized the AFG and appropriated a total of $650 million to the Department of Homeland Security to carry out the activities of the Assistance to Firefighters Grant Program. As part of this authorization, nonaffiliated EMS organizations (i.e., non-fire based EMS organizations) are eligible to receive as much as two (2) percent of the appropriated funds.
Top
My department has a vehicle on loan from the State Department of Forestry. We don't own it, but we have use of it. Do I claim this vehicle on my inventory or only vehicles that I own?
If an applicant has unfettered (free) use of a vehicle that is owned by another department or agency, the applicant must claim that vehicle in it's inventory as the vehicle's use has an affect on the applicant's ability to respond to alarms.
Top
Is there any difference in qualifying for a vehicle award this year with respect to training?
Yes. If you request a vehicle, you must certify that personnel who will drive and operate the requested vehicle meet or exceed the national standards for drivers/operators (fire vehicles NFPA 1002, EMS DOT or KKK standards). This training may be accomplished via an established in-house training program or with grant funds added to the vehicle request. If you do not have an established driver/operator training program and are not requesting training funds in your vehicle application to provide driver/operator training, your request will not be eligible for funding.
Top
For the purposes of the Vehicle Acquisition Program (Fire or EMS), what do you mean by a comprehensive driver training program?
A comprehensive driver training program includes not only instruction on driving and/or operating a particular vehicle, but would also include instruction on appropriate preventative maintenance (per NFPA 1002) and medical clearance of any drivers (per NFPA 1500).
Top
|
Home | Contact Us | Site Map 
