[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Notices]
[Pages 5446-5447]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-01476]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[Docket 2012-0076; Sequence 42; OMB Control No. 9000-0071]
Federal Acquisition Regulation; Submission for OMB Review; Price
Redetermination
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Notice of request for public comments regarding an extension of
an existing OMB clearance.
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SUMMARY: Under the provisions of the Paperwork Reduction Act, the
Regulatory Secretariat will be submitting to the Office of Management
and Budget (OMB) a request to review and approve an extension of a
previously approved information collection requirement concerning Price
Redetermination. A notice was published in the Federal Register at 77
FR 51784, on August 27, 2012. One respondent submitted comments.
Public comments are particularly invited on: Whether this
collection of information is necessary; whether it will have practical
utility; whether our estimate of the public burden of this collection
of information is accurate, and based on valid assumptions and
methodology; ways to enhance the quality, utility, and clarity of the
information to be collected; and ways in which we can minimize the
burden of the collection of information on those who are to respond,
through the use of appropriate technological collection techniques or
other forms of information technology.
DATES: Submit comments on or before February 25, 2013.
ADDRESSES: Submit comments identified by Information Collection 9000-
0071, Price Redetermination, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching the OMB
control number. Select the link ``Submit a Comment'' that corresponds
with ``Information Collection 9000-0071, Price Redetermination''.
Follow the instructions provided at the ``Submit a Comment'' screen.
Please include your name, company name (if any), and ``Information
Collection 9000-0071, Price Redetermination'' on your attached
document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), 1275 First Street NE., Washington, DC 20417. ATTN:
Hada Flowers/IC 9000-0071, Price Redetermination.
Instructions: Please submit comments only and cite Information
Collection 9000-0071, Price Redetermination, in all correspondence
related to this collection. All comments received will be posted
without change to http://www.regulations.gov, including any personal
and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Mr. Curtis E. Glover, Sr., Procurement
Analyst, Office of Governmentwide Acquisition Policy, GSA, (202) 501-
1448 or email [email protected].
SUPPLEMENTARY INFORMATION:
I. Purpose
FAR 16.205, Fixed-price contracts with prospective price
redetermination, provides for firm fixed prices for an initial period
of the contract with prospective redetermination at stated times during
performance. FAR 16.206, Fixed price contracts with retroactive price
redetermination, provides for a fixed ceiling price and retroactive
price redetermination within the ceiling after completion of the
contract. In order for the amounts of price adjustments to be
determined, the firms performing under these contracts must provide
information to the Government regarding their expenditures and
anticipated costs.
II. Discussion and Analysis
One respondent submitted public comments on the extension of the
previously approved information collection. The analysis of the public
comments is summarized as follows:
Comment: The respondent commented that the extension of the
information collection would violate the fundamental purposes of the
Paperwork Reduction Act because of the burden it puts on the entity
submitting the information and the agency collecting the information.
Response: In accordance with the Paperwork Reduction Act (PRA),
agencies can request an OMB approval of an existing information
collection. The PRA requires that agencies use the Federal Register
notice and comment process, to extend the OMB's approval, at least
every three years. This extension, to a previously approved information
collection, pertains to FAR
[[Page 5447]]
16.206, Fixed price contracts with retroactive price redetermination.
The FAR section allows an agency to award a contract with a fixed
ceiling price and retroactively redetermine the price within the
ceiling after completion of the contract. In order for the amounts of
price adjustments to be determined, the firms performing under these
contracts must provide information to the Government regarding their
expenditures and anticipated costs. The Government uses this
information to establish fair price adjustments to Federal contracts.
Not granting this extension would consequently eliminate the
Government's ability to negotiate a fair and reasonable firm-fixed
price after the initial period.
Comment: The respondent commented that the agency did not
accurately estimate the public burden an extension of this information
collection requirement would create. The respondent offers that the
obligations imposed by the clause under a fixed-price contract with
prospective price redetermination are onerous, and will require a
contractor to implement accounting systems that are equipped to account
for allowable costs substantially the same as a cost reimbursement
contract. The respondent believes a more reasonable estimate of hours
per response would be in the range of 40 to 80 hours.
Response: It is expected and anticipated that potential contractors
seeking to do business with the Government under a fixed-price contract
with prospective price redetermination would have accounting systems
that allow for collecting, tracking, monitoring and reporting the type
of information required for this collection. Generally, the information
requested under this collection is generated in the normal course of
doing business, available electronically and organized similar to the
format requested. However, considering the public comment and given the
extent a company may not provide for accounting the information as
previously discussed, the Government has adjusted the hours per
response for this information collection to 8 hours.
Comment: The respondent commented that the collective burden of
compliance with the information collection requirement greatly exceeds
the agencies estimate and outweighs any potential utility of the
extension.
Response: The respondents concern is addressed within the framework
of OMB review and approval of this information collection requirement
and its associated regulation, as required by the Paperwork Reduction
Act (PRA) and Executive Order 12866. The PRA requires Federal agencies
to take specific steps before requiring or requesting information from
the public. These steps include (1) seeking public comment on proposed
information collections and (2) submitting proposed collections for
review and approval by OMB. A central goal of OMB review is to help
agencies strike a balance between collecting information necessary to
fulfill their statutory missions and guarding against unnecessary or
duplicative information that imposes unjustified costs on the American
public. In this regard, OMB evaluates whether the collection of
information by the agency: is necessary for the proper performance of
the functions of the agency, including whether the information has
practical utility; minimizes the Federal information collection burden,
with particular emphasis on those individuals and entities most
adversely affected; and maximizes the practical utility of and public
benefit from information collected by or for the Federal Government.
The OMB review process under Executive Order 12866 seeks to ensure
that agencies, to the extent permitted by law, comply with the
regulatory principles stated in the Executive Order and that the
President's policies and priorities are reflected in agency rules. Such
review also helps to promote adequate interagency review of draft
proposed and final regulatory actions, so that such actions are
coordinated with other agencies to avoid inconsistent, incompatible, or
duplicative policies. OMB review helps to ensure that agencies
carefully consider the consequences of rules (including both benefits
and costs) before they proceed.
Comment: The respondent commented that the Government's response to
the Paperwork Reduction Act waiver for FAR Case 2007-006 is instructive
on the total burden for respondents.
Response: Serious consideration is given, during the open comment
period, to all comments received and adjustments are made to the
paperwork burden estimate based on reasonable considerations provided
by the public. This is evidenced, as the respondent notes, in FAR Case
2007-006 where an adjustment was made from the total preparation hours
from three to 60. This change was made considering particularly the
hours that would be required for review within the company, prior to
release to the Government.
The burden is prepared taking into consideration the necessary
criteria in OMB guidance for estimating the paperwork burden put on the
entity submitting the information. For example, consideration is given
to an entity reviewing instructions; using technology to collect,
process, and disclose information; adjusting existing practices to
comply with requirements; searching data sources; completing and
reviewing the response; and transmitting or disclosing information. The
estimated burden hours for a collection are based on an average between
the hours that a simple disclosure by a very small business might
require and the much higher numbers that might be required for a very
complex disclosure by a major corporation. Also, the estimated burden
hours should only include projected hours for those actions which a
company would not undertake in the normal course of business. Careful
consideration went into assessing the estimated burden hours for this
collection, and it is determined that an upward adjustment is
reasonable at this time.
III. Annual Reporting Burden
Based on Fiscal Year 2011 information from the Federal Procurement
Data System, an estimated 230 unique contractors were awarded 1,970
fixed-price redetermination contracts. Thus, each vendor responded on
average 8.6 times a year (rounded up to 9). The hours per response is
increased to 8 hours after a reassessment of the time required to
prepare and report the information.
Respondents: 230.
Responses per Respondent: 9.
Annual Responses: 2,070.
Hours per Response: 8.
Total Burden Hours: 16,560.
Obtaining Copies of Proposals: Requesters may obtain a copy of the
information collection documents from the General Services
Administration, Regulatory Secretariat (MVCB), 1275 First Street NE.,
Washington, DC 20417, telephone (202) 501-4755. Please cite OMB Control
No. 9000-0071, Price Redetermination, in all correspondence.
Dated: January 17, 2013.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office
of Governmentwide Policy.
[FR Doc. 2013-01476 Filed 1-24-13; 8:45 am]
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