Submission for OMB Review; Comment Request; Reporting Executive Compensation and First-Tier Subcontract Awards, 22766-22768 [2012-9112]
Download as PDF
<![CDATA[
22766
Federal Register / Vol. 77, No. 74 / Tuesday, April 17, 2012 / Notices
Total Burden Cost (operating/
maintenance): None.
Comments submitted in response to
this notice will be summarized and/or
included in the request for Office of
Management and Budget approval of the
information collection request; they will
also become a matter of public record.
Dated: April 10, 2012.
Mary Strasser,
Director, AmeriCorps VISTA.
[FR Doc. 2012–9117 Filed 4–16–12; 8:45 am]
BILLING CODE 6050–$$–P
DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID DoD–2011–OS–0139]
Submission for OMB Review;
Comment Request
wreier-aviles on DSK5TPTVN1PROD with NOTICES
ACTION:
Notice.
The Department of Defense has
submitted to OMB for clearance, the
following proposal for collection of
information under the provisions of the
Paperwork Reduction Act (44 U.S.C.
Chapter 35).
DATES: Consideration will be given to all
comments received by May 17, 2012.
Title, Form, and OMB Number:
Department of Defense Inventory of
Contracts for Services Compliance;
OMB Control Number 0704–TBD.
Type of Request: New.
Number of Respondents: 48,884.
Responses Per Respondent: 1.
Annual Responses: 48,884.
Average Burden per Response: 5
minutes.
Annual Burden Hours: 4,074 hours.
Needs and Uses: This collection is
necessary to allow all DoD organizations
to fully implement sections 235 and
2330a of title 10, United States Code.
The information requested, such as the
Reporting Period, Contract Number,
Task/Delivery Order Number, Customer
Name and Address, Contracting Office
Name and Address, Federal Supply
Class or Service Code, Contractor Name
and Address, Value of Contract
Instrument, and the Number and Value
of Direct Labor Hours will be used to
facilitate the accurate identification of
the function performed and to facilitate
estimate the reliability of the data. The
Direct Labor Hours are requested for use
in calculating contractor manpower
equivalents. This information is
reported directly from the contractor
because this is the most credible data
source.
Affected Public: Business or other for
profit; not-for-profit institutions.
VerDate Mar<15>2010
14:27 Apr 16, 2012
Jkt 226001
Frequency: Annually.
Respondent’s Obligation: Required to
obtain or retain benefits.
OMB Desk Officer: Ms. Jasmeet
Seehra.
Written comments and
recommendations on the proposed
information collection should be sent to
Ms. Seehra at the Office of Management
and Budget, Desk Officer for DoD, Room
10236, New Executive Office Building,
Washington, DC 20503.
You may also submit comments,
identified by docket number and title,
by the following method:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Instructions: All submissions received
must include the agency name, docket
number and title for this Federal
Register document. The general policy
for comments and other submissions
from members of the public is to make
these submissions available for public
viewing on the Internet at https://
www.regulations.gov as they are
received without change, including any
personal identifiers or contact
information.
DoD Clearance Officer: Ms. Patricia
Toppings.
Written requests for copies of the
information collection proposal should
be sent to Ms. Toppings at WHS/ESD/
Information Management Division, 4800
Mark Center Drive, East Tower, Suite
02G09, Alexandria, VA 22350–3100.
Dated: April 6, 2012.
Patricia L. Toppings,
OSD Federal Register Liaison Officer,
Department of Defense.
[FR Doc. 2012–9147 Filed 4–16–12; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[OMB Control No. 9000–0177; Docket No.
2011–0076; Sequence 4]
Submission for OMB Review;
Comment Request; Reporting
Executive Compensation and First-Tier
Subcontract Awards
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Notice.
AGENCY:
Under the provisions of the
Paperwork Reduction Act, the
SUMMARY:
PO 00000
Frm 00012
Fmt 4703
Sfmt 4703
Regulatory Secretariat will be
submitting to the Office of Management
and Budget (OMB) a request to review
and approve a previously approved
information collection requirement for
Reporting Executive Compensation and
First-tier Subcontract Awards. An initial
notice soliciting public comments on
the information collection was
published in the Federal Register at 75
FR 39414, on July 8, 2010, as part of an
interim rule under FAR case 2008–039.
The public comments received on only
the information collection are addressed
in this notice under, SUPPLEMENTARY
INFORMATION. Comments on the rest of
the interim rule will be addressed with
the issuance of the final rule.
Public comments are particularly
invited on: whether this collection of
information is necessary for the proper
performance of functions of the Federal
Acquisition Regulations (FAR), and
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
May 17, 2012.
ADDRESSES: Submit comments
identified by Information Collection
9000–0177, Reporting Executive
Compensation and First-tier Subcontract
Awards, by any of the following
methods:
• Regulations.gov: https://
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 9000–0177, Reporting
Executive Compensation and First-tier
Subcontract Awards.’’ Follow the
instructions provided at the ‘‘Submit a
Comment’’ screen. Please include your
name, company name (if any), and
‘‘Information Collection 9000–0177,
Reporting Executive Compensation and
First-tier Subcontract Awards’’ on your
attached document.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Hada Flowers, 1275
First Street NE., Washington, DC 20417.
• Instructions: Please submit
comments only and cite ‘‘Information
Collection 9000–0177, Reporting
E:\FR\FM\17APN1.SGM
17APN1
Federal Register / Vol. 77, No. 74 / Tuesday, April 17, 2012 / Notices
Executive Compensation and First-tier
Subcontract Awards,’’ in all
correspondence related to this
collection. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Mr.
William Clark, Procurement Analyst,
Contract Policy Division, at telephone
202–219–1813 or via email to
william.clark@gsa.gov.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
SUPPLEMENTARY INFORMATION:
I. Purpose
The Federal Funding Accountability
and Transparency Act (‘‘Transparency
Act’’), Public Law 109–282, as amended
by section 6202 of Public Law 110–252,
was enacted to reduce ‘‘wasteful and
unnecessary spending’’ by requiring that
OMB establish a free, public, online
database containing full disclosure of all
Federal contract award information for
awards of $25,000 or more.
DoD, GSA, and NASA published an
interim rule for public comment at 75
FR 39414, on July 8, 2010, to implement
the Transparency Act reporting
requirements. The rule requires the
insertion of FAR clause 52.204–10,
Reporting Executive Compensation and
First-Tier Subcontract Awards, in
solicitations and contracts (including
commercial item contracts and
commercially available off-the-shelf
(COTS) item contracts) of $25,000 or
more.
The clause at 52.204–10 requires,
unless otherwise directed by the
contracting officer, for first-tier
subcontracts valued at $25,000 or more,
prime contractors to report first-tier
subcontract award data (e.g., name,
amount, address, etc.). If the contractor
in the previous tax year had gross
income, from all sources, under
$300,000, the contractor is exempt from
the requirement to report first-tier
subcontractor awards. If a first-tier
subcontractor in the previous tax year
had gross income from all sources under
$300,000, the contractor does not need
to report awards to that first-tier
subcontractor. Contractors will provide
these subcontract reports to the Federal
Funding Accountability and
Transparency Act Subaward Reporting
System (FSRS) (https://www.fsrs.gov).
DoD, GSA, and NASA note that there is
pre-population of some data in FSRS
from other Government systems.
The clause at 52.204–10 also requires
a contractor to report in the Central
Contractor Registration (CCR) database
at https://www.ccr.gov, the names and
total compensation of each of its five
VerDate Mar<15>2010
14:27 Apr 16, 2012
Jkt 226001
most highly compensated executives for
the contractor’s preceding completed
fiscal year. Contractors and first-tier
subcontractors are not required to report
the total compensation information
required by the rule, unless—
(i) In the contractor or subcontractor’s
preceding fiscal year, the contractor or
subcontractor received—
(1) 80 percent or more of its annual
gross revenues in Federal contracts (and
subcontracts), loans, grants (and
subgrants), cooperative agreements; and
(2) $25,000,000 or more in annual
gross revenue from Federal contracts
(and subcontracts), loans, grants (and
subgrants), cooperative agreements; and
(ii) The public does not have access
to information about the compensation
of the executives through periodic
reports filed under section 13(a) or 15(d)
of the Securities Exchange Act of 1934
(15 U.S.C. 78m(a), 78o(d)) or section
6104 of the Internal Revenue Code of
1986. (To determine if the public has
access to the compensation information,
see the U.S. Security and Exchange
Commission total compensation filings
at https://www.sec.gov/answers/
execomp.htm.)
II. Analysis of Public Comments
Comments were received on the
information collection requirement
estimated annual burden as well as the
interim rule. DoD, GSA, and NASA have
revised the information collection
requirement estimated annual burden as
a result of analysis of the public
comments. The comments on the rest of
the interim rule will be addressed with
the issuance of the final rule. The
analysis of public comments is
summarized as follows:
Comment: A respondent commented
that DoD, GSA, and NASA significantly
underestimated the costs associated
with the reporting requirements, and
failed to include in the calculations of
such costs the time required to research
and obtain the required information. A
respondent expressed concern about the
overhead rate of 36.35 percent used in
the ‘‘per hour’’ calculations. The
respondent commented that a rate of 90
percent is more accurate as the work
will be performed by corporate
personnel with both fringe and facility
components. Additionally, the
respondent indicated that while some
subcontractors will be excluded from
reporting compensation, prime
contractors will be obligated to conduct
research in order to ensure that
subcontractor exclusion determinations
are accurate. Several respondents
opined that DoD, GSA, and NASA’s
determination that prime contractors
will require only 1 hour to comply with
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
22767
the reporting requirements does not
anticipate the time and costs for
complying with the clause.
Response: DoD, GSA, and NASA have
concluded that the reporting
requirements are, for the most part,
annual submissions, hence; the
preparation of the reports does not
require a full time position. A company
officer or division manager or a
company subcontract administrator, as
part of their official duties, would have
the professional skills necessary for the
preparation of the report. DoD, GSA,
and NASA point out that the overhead
rate consist of employee paid benefits,
time off, along with payroll taxes and
other staff employment benefit-related
expenses (direct personnel expense); not
the cost of heating, lighting, rent, etc.,
(general and administrative expenses)
which would be ongoing operating costs
incurred by prime contractors
notwithstanding the reporting
requirements. Based on this
information, DoD, GSA and NASA have
determined that while the overhead rate
of 36.35 percent used in the ‘‘per hour’’
calculations may appear to be low, the
overhead rate of 36.35 is adequate for
the estimated burden calculation.
DoD, GSA, and NASA agree that
prime contractors will require
additional time to meet the reporting
requirements, as such, the combined
‘‘Preparation Hours per Response’’ time
are revised from ‘‘1’’ hour to ‘‘2.12’’
hours. DoD, NASA and GSA note that
a number of aspects of the clause may
lessen the reporting requirement on
businesses, including exceptions in the
clause that exclude some contractors
from reporting the information, and prepopulation of data in FSRS from other
Government systems.
Comment: Several respondents
question the estimated cost to the public
of $21 million to report subcontract
award data, and commented that the
cost is not sufficient to meet the
Congressional intent of a free public
Web site since the expense will borne
by the taxpayer. Another respondent
suggested that the Government consider
the cost benefit of implementing the
rule.
Response: DoD, GSA, and NASA have
revised the combined estimated cost to
the public to be $36,478,804. While the
respondent did not provide an
alternative estimate or a basis to support
its contention, the revised estimate is
based on a re-evaluation of the time to
meet the reporting requirement and
Fiscal Year 2010 (FY10) FPDS data
collected for the applicable contract
actions.
The reporting is required to
implement the Transparency Act that
E:\FR\FM\17APN1.SGM
17APN1
22768
Federal Register / Vol. 77, No. 74 / Tuesday, April 17, 2012 / Notices
wreier-aviles on DSK5TPTVN1PROD with NOTICES
was mandated by Congress. The
Paperwork Burden Act information
collection analysis was performed to
determine the administrative burden on
the public including the cost associated
with collecting and reporting on the
requirement.
III. Annual Reporting Burden
DoD, GSA, and NASA estimate the
annual burden associated with reporting
requirements of FAR 52.204–10 to be
$36,478,804.
1. Reporting first-tier subcontract
award information. The FY10 Federal
Procurement Data System (FPDS) data
collected for new contract actions
valued at $25,000 or greater, indicated
that there were 76,889 contractors with
unique DUNS numbers. DoD, GSA, and
NASA estimate that based on the
exemptions in the rule (e.g., contractors
in the previous tax year with less than
$300,000 in gross income do not have to
report), seventy-five percent of the
contractors with actions valued at
$25,000 or greater would be subject to
the reporting requirements. The burden
to report the subcontractor award
information (e.g., name, amount,
address, etc.) under FAR 52.204–10 is
estimated to average 2 hours per
response for a prime contractor and
approximately three first-tier
subcontractors per prime contractor. We
estimate the total annual public cost
burden for these elements to be
$31,370,848 based on the following:
Respondents: 230,668.
Responses per respondent: 1.
Total annual responses: 230,668.
Preparation hours per response: 2.
Total response burden hours: 461,336.
Average hourly wages ($50.00 +
36.35% overhead. Rounded to nearest
dollar): $68.00.
Estimated cost to the public:
$31,370,848.
2. Reporting executive compensation.
There were 625,884 active registrants in
CCR as of January 1, 2012. Of the
625,884 total active registrants, 620,777
were screened out by two questions
supporting the rule’s requirements, i.e.,
didn’t have 80% or more of their annual
gross revenue in U.S. Federal contracts,
grants, and/or cooperative agreements
and didn’t make more than $25 million
in annual gross revenue, or did have
80% or $25 million from Federal
contracts/grants/cooperative
agreements, but the public already had
access to the information. DoD, GSA,
and NASA estimate that it would
require those 620,777 registrants 0.10
hours per response, for a total of 62,078
response hours.
A total of 5,107 CCR registrants have
entered actual values for their top five
VerDate Mar<15>2010
14:27 Apr 16, 2012
Jkt 226001
most highly compensated executives.
Additionally, there were 90 registrants
that provided their executive
compensation responses to FSRS rather
than CCR. So, the total additional
burden imposed to respond to all three
questions posed in the reporting tool is
5,197. DoD, GSA, and NASA estimate
that it would require those 5,197
registrants 2.5 hours to provide the
information required, for a total of
12,993 response hours.
Therefore, DoD, GSA, and NASA
estimate that the total population of
respondents is 625,974, and the total
estimated response hours is 75,071,
resulting in a weighted average of 0.12
hours per respondent for executive
compensation reporting.
The Councils estimate the total
annual public cost burden for this
element to be $5,107,956 based on the
following:
Respondents: 625,974 (subcontractors
and prime contractors).
Responses per respondent: 1.
Total annual responses: 625,974.
Preparation hours per response: 0.12.
Total response burden hours: 75,117.
Average hourly wages: ($50.00 +
36.35% overhead): $68.00.
Estimated cost to the public:
$5,107,956.
Based on the above calculations, DoD,
GSA, and NASA estimate the total
annual burden associated with reporting
requirements of FAR 52.204–10 to be
$36,478,804. The reporting burden
includes the time for reviewing
instructions, and reporting the data. It
does not cover the time required to
conduct research or the time to obtain
the information for the data elements.
Requesters may obtain a copy of the
supporting statement from the General
Services Administration, Regulatory
Secretariat (MVCB), 1275 First Street
NE., Washington, DC 20417, telephone
202–501–4755. Please cite OMB Control
No. 9000–0177, Reporting Executive
Compensation and First-tier Subcontract
Awards, in all correspondence.
Dated: April 11, 2012.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
[FR Doc. 2012–9112 Filed 4–16–12; 8:45 am]
BILLING CODE 6820–EP–P
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[OMB Control No. 9000–0055; Docket 2012–
0076; Sequence 7]
Federal Acquisition Regulation;
Information Collection; Freight
Classification Description
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.
AGENCIES:
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
freight classification description.
Public comments are particularly
invited on: Whether this collection of
information is necessary for the proper
performance of functions of the Federal
Acquisition Regulations (FAR), and
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
June 18, 2012.
ADDRESSES: Submit comments
identified by Information Collection
9000–0055, Freight Classification
Description, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘Information Collection 9000–
0055, Freight Classification
Description’’ under the heading ‘‘Enter
Keyword or ID’’ and selecting ‘‘Search’’.
Select the link ‘‘Submit a Comment’’
that corresponds with ‘‘Information
Collection 9000–0055, Freight
Classification Description’’. Follow the
instructions provided at the ‘‘Submit a
Comment’’ screen. Please include your
SUMMARY:
E:\FR\FM\17APN1.SGM
17APN1
]]>Agencies
[Federal Register Volume 77, Number 74 (Tuesday, April 17, 2012)]
[Notices]
[Pages 22766-22768]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9112]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0177; Docket No. 2011-0076; Sequence 4]
Submission for OMB Review; Comment Request; Reporting Executive
Compensation and First-Tier Subcontract Awards
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Notice.
-----------------------------------------------------------------------
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 a previously approved
information collection requirement for Reporting Executive Compensation
and First-tier Subcontract Awards. An initial notice soliciting public
comments on the information collection was published in the Federal
Register at 75 FR 39414, on July 8, 2010, as part of an interim rule
under FAR case 2008-039. The public comments received on only the
information collection are addressed in this notice under,
SUPPLEMENTARY INFORMATION. Comments on the rest of the interim rule
will be addressed with the issuance of the final rule.
Public comments are particularly invited on: whether this
collection of information is necessary for the proper performance of
functions of the Federal Acquisition Regulations (FAR), and 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 May 17, 2012.
ADDRESSES: Submit comments identified by Information Collection 9000-
0177, Reporting Executive Compensation and First-tier Subcontract
Awards, by any of the following methods:
Regulations.gov: https://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 9000-0177, Reporting Executive
Compensation and First-tier Subcontract Awards.'' Follow the
instructions provided at the ``Submit a Comment'' screen. Please
include your name, company name (if any), and ``Information Collection
9000-0177, Reporting Executive Compensation and First-tier Subcontract
Awards'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE.,
Washington, DC 20417.
Instructions: Please submit comments only and cite
``Information Collection 9000-0177, Reporting
[[Page 22767]]
Executive Compensation and First-tier Subcontract Awards,'' in all
correspondence related to this collection. All comments received will
be posted without change to https://www.regulations.gov, including any
personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Mr. William Clark, Procurement
Analyst, Contract Policy Division, at telephone 202-219-1813 or via
email to william.clark@gsa.gov.
SUPPLEMENTARY INFORMATION:
I. Purpose
The Federal Funding Accountability and Transparency Act
(``Transparency Act''), Public Law 109-282, as amended by section 6202
of Public Law 110-252, was enacted to reduce ``wasteful and unnecessary
spending'' by requiring that OMB establish a free, public, online
database containing full disclosure of all Federal contract award
information for awards of $25,000 or more.
DoD, GSA, and NASA published an interim rule for public comment at
75 FR 39414, on July 8, 2010, to implement the Transparency Act
reporting requirements. The rule requires the insertion of FAR clause
52.204-10, Reporting Executive Compensation and First-Tier Subcontract
Awards, in solicitations and contracts (including commercial item
contracts and commercially available off-the-shelf (COTS) item
contracts) of $25,000 or more.
The clause at 52.204-10 requires, unless otherwise directed by the
contracting officer, for first-tier subcontracts valued at $25,000 or
more, prime contractors to report first-tier subcontract award data
(e.g., name, amount, address, etc.). If the contractor in the previous
tax year had gross income, from all sources, under $300,000, the
contractor is exempt from the requirement to report first-tier
subcontractor awards. If a first-tier subcontractor in the previous tax
year had gross income from all sources under $300,000, the contractor
does not need to report awards to that first-tier subcontractor.
Contractors will provide these subcontract reports to the Federal
Funding Accountability and Transparency Act Subaward Reporting System
(FSRS) (https://www.fsrs.gov). DoD, GSA, and NASA note that there is
pre-population of some data in FSRS from other Government systems.
The clause at 52.204-10 also requires a contractor to report in the
Central Contractor Registration (CCR) database at https://www.ccr.gov,
the names and total compensation of each of its five most highly
compensated executives for the contractor's preceding completed fiscal
year. Contractors and first-tier subcontractors are not required to
report the total compensation information required by the rule,
unless--
(i) In the contractor or subcontractor's preceding fiscal year, the
contractor or subcontractor received--
(1) 80 percent or more of its annual gross revenues in Federal
contracts (and subcontracts), loans, grants (and subgrants),
cooperative agreements; and
(2) $25,000,000 or more in annual gross revenue from Federal
contracts (and subcontracts), loans, grants (and subgrants),
cooperative agreements; and
(ii) The public does not have access to information about the
compensation of the executives through periodic reports filed under
section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of
1986. (To determine if the public has access to the compensation
information, see the U.S. Security and Exchange Commission total
compensation filings at https://www.sec.gov/answers/execomp.htm.)
II. Analysis of Public Comments
Comments were received on the information collection requirement
estimated annual burden as well as the interim rule. DoD, GSA, and NASA
have revised the information collection requirement estimated annual
burden as a result of analysis of the public comments. The comments on
the rest of the interim rule will be addressed with the issuance of the
final rule. The analysis of public comments is summarized as follows:
Comment: A respondent commented that DoD, GSA, and NASA
significantly underestimated the costs associated with the reporting
requirements, and failed to include in the calculations of such costs
the time required to research and obtain the required information. A
respondent expressed concern about the overhead rate of 36.35 percent
used in the ``per hour'' calculations. The respondent commented that a
rate of 90 percent is more accurate as the work will be performed by
corporate personnel with both fringe and facility components.
Additionally, the respondent indicated that while some subcontractors
will be excluded from reporting compensation, prime contractors will be
obligated to conduct research in order to ensure that subcontractor
exclusion determinations are accurate. Several respondents opined that
DoD, GSA, and NASA's determination that prime contractors will require
only 1 hour to comply with the reporting requirements does not
anticipate the time and costs for complying with the clause.
Response: DoD, GSA, and NASA have concluded that the reporting
requirements are, for the most part, annual submissions, hence; the
preparation of the reports does not require a full time position. A
company officer or division manager or a company subcontract
administrator, as part of their official duties, would have the
professional skills necessary for the preparation of the report. DoD,
GSA, and NASA point out that the overhead rate consist of employee paid
benefits, time off, along with payroll taxes and other staff employment
benefit-related expenses (direct personnel expense); not the cost of
heating, lighting, rent, etc., (general and administrative expenses)
which would be ongoing operating costs incurred by prime contractors
notwithstanding the reporting requirements. Based on this information,
DoD, GSA and NASA have determined that while the overhead rate of 36.35
percent used in the ``per hour'' calculations may appear to be low, the
overhead rate of 36.35 is adequate for the estimated burden
calculation.
DoD, GSA, and NASA agree that prime contractors will require
additional time to meet the reporting requirements, as such, the
combined ``Preparation Hours per Response'' time are revised from ``1''
hour to ``2.12'' hours. DoD, NASA and GSA note that a number of aspects
of the clause may lessen the reporting requirement on businesses,
including exceptions in the clause that exclude some contractors from
reporting the information, and pre-population of data in FSRS from
other Government systems.
Comment: Several respondents question the estimated cost to the
public of $21 million to report subcontract award data, and commented
that the cost is not sufficient to meet the Congressional intent of a
free public Web site since the expense will borne by the taxpayer.
Another respondent suggested that the Government consider the cost
benefit of implementing the rule.
Response: DoD, GSA, and NASA have revised the combined estimated
cost to the public to be $36,478,804. While the respondent did not
provide an alternative estimate or a basis to support its contention,
the revised estimate is based on a re-evaluation of the time to meet
the reporting requirement and Fiscal Year 2010 (FY10) FPDS data
collected for the applicable contract actions.
The reporting is required to implement the Transparency Act that
[[Page 22768]]
was mandated by Congress. The Paperwork Burden Act information
collection analysis was performed to determine the administrative
burden on the public including the cost associated with collecting and
reporting on the requirement.
III. Annual Reporting Burden
DoD, GSA, and NASA estimate the annual burden associated with
reporting requirements of FAR 52.204-10 to be $36,478,804.
1. Reporting first-tier subcontract award information. The FY10
Federal Procurement Data System (FPDS) data collected for new contract
actions valued at $25,000 or greater, indicated that there were 76,889
contractors with unique DUNS numbers. DoD, GSA, and NASA estimate that
based on the exemptions in the rule (e.g., contractors in the previous
tax year with less than $300,000 in gross income do not have to
report), seventy-five percent of the contractors with actions valued at
$25,000 or greater would be subject to the reporting requirements. The
burden to report the subcontractor award information (e.g., name,
amount, address, etc.) under FAR 52.204-10 is estimated to average 2
hours per response for a prime contractor and approximately three
first-tier subcontractors per prime contractor. We estimate the total
annual public cost burden for these elements to be $31,370,848 based on
the following:
Respondents: 230,668.
Responses per respondent: 1.
Total annual responses: 230,668.
Preparation hours per response: 2.
Total response burden hours: 461,336.
Average hourly wages ($50.00 + 36.35% overhead. Rounded to nearest
dollar): $68.00.
Estimated cost to the public: $31,370,848.
2. Reporting executive compensation. There were 625,884 active
registrants in CCR as of January 1, 2012. Of the 625,884 total active
registrants, 620,777 were screened out by two questions supporting the
rule's requirements, i.e., didn't have 80% or more of their annual
gross revenue in U.S. Federal contracts, grants, and/or cooperative
agreements and didn't make more than $25 million in annual gross
revenue, or did have 80% or $25 million from Federal contracts/grants/
cooperative agreements, but the public already had access to the
information. DoD, GSA, and NASA estimate that it would require those
620,777 registrants 0.10 hours per response, for a total of 62,078
response hours.
A total of 5,107 CCR registrants have entered actual values for
their top five most highly compensated executives. Additionally, there
were 90 registrants that provided their executive compensation
responses to FSRS rather than CCR. So, the total additional burden
imposed to respond to all three questions posed in the reporting tool
is 5,197. DoD, GSA, and NASA estimate that it would require those 5,197
registrants 2.5 hours to provide the information required, for a total
of 12,993 response hours.
Therefore, DoD, GSA, and NASA estimate that the total population of
respondents is 625,974, and the total estimated response hours is
75,071, resulting in a weighted average of 0.12 hours per respondent
for executive compensation reporting.
The Councils estimate the total annual public cost burden for this
element to be $5,107,956 based on the following:
Respondents: 625,974 (subcontractors and prime contractors).
Responses per respondent: 1.
Total annual responses: 625,974.
Preparation hours per response: 0.12.
Total response burden hours: 75,117.
Average hourly wages: ($50.00 + 36.35% overhead): $68.00.
Estimated cost to the public: $5,107,956.
Based on the above calculations, DoD, GSA, and NASA estimate the
total annual burden associated with reporting requirements of FAR
52.204-10 to be $36,478,804. The reporting burden includes the time for
reviewing instructions, and reporting the data. It does not cover the
time required to conduct research or the time to obtain the information
for the data elements.
Requesters may obtain a copy of the supporting statement from the
General Services Administration, Regulatory Secretariat (MVCB), 1275
First Street NE., Washington, DC 20417, telephone 202-501-4755. Please
cite OMB Control No. 9000-0177, Reporting Executive Compensation and
First-tier Subcontract Awards, in all correspondence.
Dated: April 11, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2012-9112 Filed 4-16-12; 8:45 am]
BILLING CODE 6820-EP-P
