Federal Acquisition Regulation; Submission for OMB Review; Incentive Contracts, 62496-62498 [2012-25294]

Agencies

• DEPARTMENT OF DEFENSE
• General Services Administration
• National Aeronautics and Space Administration

[Federal Register Volume 77, Number 199 (Monday, October 15, 2012)]
[Notices]
[Pages 62496-62498]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25294]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0067; Docket 2012-0076; Sequence 10]


Federal Acquisition Regulation; Submission for OMB Review; 
Incentive Contracts

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 to 
an existing OMB clearance.

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[[Page 62497]]

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 
incentive contracts. A notice was published in the Federal Register at 
77 FR 18819, on March 28, 2012. One respondent submitted comments.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the Federal Acquisition Regulation (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 November 14, 2012.

ADDRESSES: Submit comments identified by Information Collection 9000-
0067, Incentive Contracts, 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 9000-0067, Incentive Contracts''. Follow 
the instructions provided at the ``Submit a Comment'' screen. Please 
include your name, company name (if any), and ``Information Collection 
9000-0067, Incentive Contracts'' 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 9000-0067, Incentive Contracts.
    Instructions: Please submit comments only and cite Information 
Collection 9000-0067, Incentive Contracts, 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. Michael O. Jackson, Procurement 
Analyst, Office of Acquisition Policy, GSA (202) 208-4949 or via email 
michaelo.jackson@gsa.gov.

SUPPLEMENTARY INFORMATION:

A. Purpose

    In accordance with FAR 16.4, incentive contracts are normally used 
when a firm fixed-price contract is not appropriate and the required 
supplies or services can be acquired at lower costs, and sometimes with 
improved delivery or technical performance, by relating the amount of 
profit or fee payable under the contract to the contractor's 
performance.
    The information required periodically from the contractor, such as 
cost of work already performed, estimated costs of further performance 
necessary to complete all work, total contract price for supplies or 
services accepted by the Government for which final prices have been 
established, and estimated costs allocable to supplies or services 
accepted by the Government and for which final prices have not been 
established, is needed to negotiate the final prices of incentive-
related items and services. Contractors are required to submit the 
information in accordance with several incentive fee FAR clauses: FAR 
52.216-16, Incentive Price Revision--Firm Target; FAR 52.216-17, 
Incentive Price Revision--Successive Targets; and FAR 52.216-10, 
Incentive Fee.
    The contracting officer evaluates the information received to 
determine the contractor's performance in meeting the incentive target 
and the appropriate price revision, if any, for the items or services.

B. 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. 
The respondent opposes granting the extension of the information 
collection requirement.
    Response: In accordance with the Paperwork Required 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 several incentive fee FAR clauses: FAR 52.216-
16, Incentive Price Revision--Firm Target; FAR 52.216-17, Incentive 
Price Revision--Successive Targets; and FAR 52.216-10, Incentive Fee. 
Incentive contracts are used when other types of fixed-price or cost 
reimbursement contracts are inappropriate because the assumption of 
risk on one of the contracting parties is unfavorable. Thus, incentive 
contracts provide an alternative that the contracting parties can agree 
impose some risk but not as much as the other types of fixed-price or 
cost reimbursement contracts. The information collected, which should 
be information collected in the normal course of doing business, allows 
a contractor to justify and the contracting officer to evaluate the 
contractor's performance in meeting the incentive target and the 
appropriate price revision, if any, for the items or services received. 
Not granting this extension would consequently eliminate FAR clauses 
that provide a benefit to the public and the agency collecting the 
information.
    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. For this reason, the respondent provided 
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 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

[[Page 62498]]

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 burden for 
this collection, and although adjustments were made, the estimated 
annual burden remains unchanged. However, at any point, members of the 
public may submit comments for further consideration, and are 
encouraged to provide data to support their request for an adjustment.

C. Annual Reporting Burden

    The estimated annual burden remains the same from the notice 
published at 77 FR 18819 on March 28, 2012. Adjustments were made to 
the estimated number of respondents, and the estimated annual responses 
using fiscal year 2011 data from the Federal Procurement Data System as 
a baseline. In addition, the estimated hours per response increased, 
but the total estimated burden hours remain unchanged.
    Respondents: 1,000.
    Responses Per Respondent: 2.
    Annual Responses: 2,000.
    Hours Per Response: 1.5.
    Total Burden Hours: 3,000.
    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. 9000-0067, Incentive Contracts, in all correspondence.

    Dated: October 5, 2012.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of 
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office 
of Governmentwide Policy.
[FR Doc. 2012-25294 Filed 10-12-12; 8:45 am]
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