[Federal Register Volume 78, Number 56 (Friday, March 22, 2013)]
[Notices]
[Pages 17673-17674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06578]
[[Page 17673]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0132; Docket 2012-0076; Sequence 61]
Federal Acquisition Regulation; Submission for OMB Review;
Contractors' Purchasing Systems Reviews
AGENCY: 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 to
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
contractors' purchasing systems reviews. A notice was published in the
Federal Register at 77 FR 51783, on October 27, 2012. One comment was
received.
DATES: Submit comments on or before April 22, 2013.
ADDRESSES: Submit comments identified by Information Collection 9000-
0132, Contractors' Purchasing Systems Reviews, 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 9000-0132, Contractors' Purchasing
Systems Reviews''. Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``Information Collection 9000-0132, Contractors' Purchasing Systems
Reviews'' 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 9000-0132, Contractors' Purchasing Systems Reviews.
Instructions: Please submit comments only and cite Information
Collection 9000-0132, Contractors' Purchasing Systems Reviews, 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: Ms. Patricia Corrigan, Procurement
Analyst, Office of Governmentwide Acquisition Policy, GSA, (202) 208-
1963 or email at [email protected].
SUPPLEMENTARY INFORMATION:
A. Purpose
The objective of a contractor purchasing system review (CPSR), as
discussed in Part 44 of the FAR, is to evaluate the efficiency and
effectiveness with which the contractor spends Government funds and
complies with Government policy when subcontracting. The review
provides the administrative contracting officer (ACO) a basis for
granting, withholding, or withdrawing approval of the contractor's
purchasing system.
B. Analysis of Public Comments
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 information collections associated with
contractor purchasing system reviews (CPSR), as discussed in Part 44 of
the FAR. The objective of CPSRs is to evaluate the efficiency and
effectiveness with which the contractor spends Government funds and
complies with Government policy when subcontracting. The review
provides the administrative contracting officer a basis for granting,
withholding, or withdrawing approval of the contractor's purchasing
system. An approved purchasing system allows the contractor more
autonomy in subcontracting actions. Without an approved purchasing
system more Government oversight is necessary, and Government consent
to subcontract is required.
Comment: The respondent commented that the agency did not
accurately estimate the public burden challenging that the agency's
methodology for calculating it is insufficient and inadequate and does
not reflect the total burden. The respondent stated that ``the Agencies
estimate that only 1,580 respondents will be subject to this
requirement annually * * * is greatly understated.'' The respondent
also found the estimate of 25 hours per response to be too low. For
these reasons, the same respondent provided that the burden of
compliance with the information collection requirement greatly exceeds
the agency's estimate and outweighs any potential utility of the
extension.
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, including consultation with Subject Matter
Experts, went into assessing the burden hours for this collection, and
it is determined that an upward adjustment is not required.
The respondent expressed concern that the estimate of 1,580
respondents is ``greatly understated'' because ``the
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requirements apply regardless of whether or not the Government conducts
a review. In other words, all contractors are required to be prepared
when and if the Government ultimately conducts the purchasing system
review.'' In response, we wish to clarify the circumstances under which
CPSRs are actually conducted. If a contractor's sales to the Government
(excluding competitively awarded firm-fixed-price and competitively
awarded fixed-price with economic price adjustment contracts and sales
of commercial items in accordance with FAR part 12) are expected to
exceed $25 million during the next 12 months, an ACO may determine that
a CPSR is necessary. The ACO's determination as to whether a CPSR is
necessary is based on, but not limited to, the past performance of the
contractor, and the volume, complexity and dollar value of
subcontracts. Once an initial determination has been made regarding a
CPSR, at least every three years, the ACO shall determine whether a
CPSR is necessary. If necessary, the cognizant contract administration
office will conduct the CPSR. Generally, a CPSR is not performed for a
specific contract, as the respondent appears to imply. Rather, CPSRs
are conducted on contractors based on the factors identified above. For
example, the Defense Contract Management Agency (DCMA) Contractor
Purchasing System Review Group is a group dedicated to conducting CPSRs
for the Department of Defense. As of April 2012 the group's review
workload included more than 400 contractors worldwide. The estimate of
1,580 respondents is therefore determined to be reasonable. In
addition, the respondent is reminded that estimated burden hours should
only include projected hours for those actions which a company would
not undertake in the normal course of business. The primary purpose of
CSPRs is to evaluate a portion of the normal course of a contractor's
business, i.e., to evaluate the contractor's purchasing processes to
ensure the efficiency and effectiveness with which the contractor
spends Government funds and complies with Government policy when
subcontracting. We submit that fundamental preparation for a review is
part of a contractor's normal course of business.
The respondent also took issue with the estimate of 25 hours per
response. As indicated above, Subject Matter Experts were consulted in
developing the estimate. Based on their assessment, the time required
for reading and preparing information was adjusted upwards from 17
hours (as estimated in the currently approved information collection)
to 25 hours per completion, in order to provide a more accurate
accounting of the contractors' time expenditure needed to prepare for a
CPSR and respond to any contracting officer recommendations related to
withholding or withdrawing of contractor purchasing system approval
resulting from an CSPR.
C. Annual Reporting Burden
There is no single data collection process or system, e.g., Federal
Procurement Data System (FPDS), that identifies the number of CPSRs
conducted governmentwide. However, for purposes of this clearance, the
estimated Average Burden Per Response is estimated at 25 hours per
completion. Based on coordination with a Government agency that
conducts CPSRs, the estimate has been adjusted upwards from the current
17 hours to 25 hours, in order to provide a more accurate accounting of
the contractors' time necessary for reading information and preparing
for a CSPR.
Number of Respondents: 1,580.
Responses per Respondent: 1.
Total Responses: 1,580.
Average Burden per Response: 25.
Total Burden Hours: 39,500.
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. 9000-0132, Contractors' Purchasing Systems Reviews, in all
correspondence.
Dated: March 18, 2013.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office
of Governmentwide Policy.
[FR Doc. 2013-06578 Filed 3-21-13; 8:45 am]
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