Federal Acquisition Regulation; Submission for OMB Review; Price Redetermination, 5446-5447 [2013-01476]

Agencies

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

[Federal Register Volume 78, Number 17 (Friday, January 25, 2013)]
[Notices]
[Pages 5446-5447]
From the Federal Register Online via the Government Printing 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: 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 9000-0071, 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 https://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 curtis.glover@gsa.gov.

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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