[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Notices]
[Pages 43203-43205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17389]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0074: Sequence 44]
Federal Acquisition Regulation; Submission for OMB Review;
Contract Funding--Limitation of Costs/Funds
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 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
limitation of costs/funds. A notice was
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published in the Federal Register at 77 FR 75163, on December 19, 2012.
Two comments were received.
DATES: Submit comments on or before August 19, 2013.
ADDRESSES: Submit comments identified by Information Collection 9000-
0074, Contract Funding--Limitation of Costs/Funds 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 9000-0074, Contract Funding--
Limitation of Costs/Funds''. Follow the instructions provided at the
``Submit a Comment'' screen. Please include your name, company name (if
any), and ``Information Collection 9000-0074, Contract Funding--
Limitation of Costs/Funds'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), 1800 F Street NW., 2nd Notice, Washington, DC
20405-0001. ATTN: Hada Flowers/IC 9000-0074, Contract Funding--
Limitation of Costs/Funds.
Instructions: Please submit comments only and cite Information
Collection 9000-0074, Contract Funding--Limitation of Costs/Funds, 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. Edward N. Chambers, Procurement
Analyst, Office of Governmentwide Acquisition Policy, GSA (202) 501-
3221 or email [email protected].
SUPPLEMENTARY INFORMATION:
A. Purpose
Firms performing under Federal cost-reimbursement contracts are
required to notify the contracting officer in writing whenever they
have reason to believe--
(1) The costs the contractors expect to incur under the contracts
in the next 60 days, when added to all costs previously incurred, will
exceed 75 percent of the estimated cost of the contracts; or
(2) The total cost for the performance of the contracts will be
greater or substantially less than estimated.
As a part of the notification, the contractors must provide a
revised estimate of total cost.
B. Discussion and Analysis
One respondent submitted public comments on the extension of the
previously approved information collection. The analysis of these
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 OMB approval of an existing information
collection. The PRA requires that agencies use the Federal Register
notice and comment process, to extend OMB's approval, at least every
three years. This extension, to a previously approved information
collection, pertains to FAR clauses 52.232-20 and 52.232-22. These
clauses require contractors performing under Federal cost-reimbursement
contracts to notify the contracting officer in writing whenever they
have reason to believe--
(1) The costs the contractors expect to incur under the contracts
in the next 60 days, when added to all costs previously incurred, will
exceed 75 percent of the estimated cost of the contracts; or
(2) The total cost for the performance of the contracts will be
greater or substantially less than estimated. As a part of the
notification, the contractors must provide a revised estimate of total
cost.
These notifications assist the Government in its effort to provide
timely funding of cost reimbursement contracts. The lack of such
notifications increases the risk that funding may lapse, resulting in
contract work stoppages. This clause has existed substantially the same
since the inception of the FAR.
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. First, the respondent questioned the
basis for the estimated number of respondents of 3,598, stating that it
appears to be understated. The respondent also questioned the basis for
the estimate of 15.96999 responses per respondent, stating that the
five decimal places imply a precise calculation underlying the
estimate. Finally, the respondent stated that the average burden
estimate of 0.5 hours per response is unrealistically low and
unsubstantiated. For this reason, the respondent contends that the
agency should reassess the estimated total burden hours and revise the
estimate upwards to be more accurate, as was done in FAR Case 2007-006.
The same respondent also provided that the burden of compliance with
the information collection requirement 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 went into assessing the estimated burden hours for this
collection, and although the respondent provided estimates of responses
and burden hours, the estimates cannot be confirmed with any degree of
certainty to totally rely on the information. However, it is determined
that an upward adjustment is warranted at this time based upon
consideration of the information provided in the public comment. The
information collection requirement has been revised to reflect an
overall increase in the total public burden hours.
The estimates of the number of respondents and the number of
responses per respondent are based on data from the Federal Procurement
Data System--Next Generation (FPDS-NG) for Fiscal Year (FY) 2011. For
FY 2011 there were 3,598 unique vendors with 57,460 funding only
actions under cost reimbursement contracts. These funding
[[Page 43205]]
actions are usually the result of the notification required by this
information requirement. The number of responses per respondent
(15.96999) was derived by dividing the number of actions by the number
of unique vendors. The preciseness of the number of responses
demonstrates the level of review and the serious consideration given to
the data gathered for this information collection. However, in response
to the public comment received, the number of responses per respondent
has been rounded up to 16.
With regard to the estimate of 0.5 hours per response, we believe
that the notification typically involves an observation of the
contractors accounting and financial reporting system that available
funds will fall below the 75 percent threshold within the next 60 days,
followed by a very brief letter to the contracting officer referencing
the applicable contract clause at FAR 52.232-20 or FAR 52.232-22. The
contractor's responsibility to foresee the availability of funds and
probable cost overruns carries with it a duty to maintain an accounting
and financial reporting system capable of securing timely knowledge of
all probable costs before they are incurred. This information
collection does not require contractors to create or maintain any
record or system that the contractor does not maintain in its ordinary
course of business. Therefore, the estimated burden hour per response
of 30 minutes for this collection of information is valid. However, the
rounding of the annual number of responses per respondent from 15.96999
to 16, based upon consideration of the information provided by the
respondent, resulted in a revision to the information collection
requirement to reflect an overall increase in the total public burden
hours.
C. Annual Reporting Burden
Respondents: 3,598.
Responses Per Respondent: 16.
Annual Responses: 57,568.
Hours Per Response: .500.
Total Burden Hours: 28,784.
Obtaining Copies of Proposals: Requesters may obtain a copy of the
information collection documents from the General Services
Administration, Regulatory Secretariat (MVCB), 1800 F Street NW., 2nd
Floor, Washington, DC 20417, telephone (202) 501-4755. Please cite OMB
Control No. 9000-0074, Contract Funding--Limitation of Costs/Funds, in
all correspondence.
Dated: July 15, 2013.
Karlos Morgan,
Acting Director, Federal Acquisition Policy Division, Office of
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office
of Governmentwide Policy.
[FR Doc. 2013-17389 Filed 7-18-13; 8:45 am]
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