Federal Acquisition Regulation; Submission for OMB Review; Bid Guarantees, Performance and Payment Bonds, and Alternative Payment Protections, 25444-25445 [2013-10210]

Agencies

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

[Federal Register Volume 78, Number 84 (Wednesday, May 1, 2013)]
[Notices]
[Pages 25444-25445]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10210]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[Docket 2012-0076; Sequence 28; OMB Control No. 9000-0045]


Federal Acquisition Regulation; Submission for OMB Review; Bid 
Guarantees, Performance and Payment Bonds, and Alternative Payment 
Protections

AGENCY: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice of request for an extension of an information collection 
requirement regarding 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 bid 
guarantees, performance and payment bonds, and alternative payment 
protections. A notice was published in the Federal Register at 77 FR 
61580, October 10, 2012. One comment was received.

DATES: Submit comments on or before May 31, 2013.

ADDRESSES: Submit comments identified by Information Collection 9000-
0045, Bid Guarantees, Performance, and Payment Bonds, and Alternative 
Payment Protections 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 9000-0045, Bid, Performance, and Payment 
Bonds''. Follow the instructions provided at the ``Submit a Comment'' 
screen. Please include your name, company name (if any), and 
``Information Collection 9000-0045, Bid Guarantees, Performance, and 
Payment Bonds, and Alternative Payment Protections'' 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 9000-0045, Bid Guarantees, Performance, and Payment 
Bonds, and Alternative Payment Protections.
    Instructions: Please submit comments only and cite Information 
Collection 9000-0045, Bid Guarantees, Performance, and Payment Bonds, 
and Alternative Payment Protections, in all correspondence related to 
this collection. Submit comments regarding this burden estimate or any 
other aspect of this collection of information, including suggestions 
for reducing this burden to: FAR Desk Officer, OMB, Room 10102, NEOB, 
Washington, DC 20503. 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: Ms. Cecelia L. Davis, Procurement 
Analyst, Contract Policy Division, GSA (202) 219-0202 or email 
Cecelia.davis@gsa.gov.

SUPPLEMENTARY INFORMATION: 

A. Purpose

    FAR Subparts 28.1 and 28.2; FAR clauses at 52.228-1, 52.228-2, 
52.228-13, 52.228-15, 52.228-16; and associated FAR standard forms 
implement the statutory requirements of the Miller Act (40 U.S.C. 3131 
et seq.), which requires performance and payment bonds for any 
construction contract exceeding $150,000, unless it is impracticable to 
require bonds for work performed in a foreign country, or it is 
otherwise authorized by law. In addition, the note to 40 U.S.C. 3132, 
entitled ``Alternatives to Payment Bonds Provided by the Federal 
Acquisition Regulation,'' is implemented in the FAR, which requires 
alternative payment protection for construction contracts that exceed 
$30,000 but do not exceed $150,000. Although not required by statute, 
under certain circumstances the FAR permits the Government to require 
bonds on other than construction contracts. In addition to the contract 
clauses at FAR 52.228-1, 52.228-2, 52.228-13, 52.228-15, 52.228-16, 
this information collection covers the following FAR standard forms 
(SF) as prescribed at FAR Subparts 28.1 and 28.2: SF 25, Performance 
Bond; SF 25A, Payment Bond; SF 273, Reinsurance Agreement for a Miller 
Act Performance Bond; SF 274, Reinsurance Agreement for a Bonds Statute 
Payment Bond; SF 24, Bid Bond; SF 25B, Continuation Sheet (For Standard 
Forms 24, 25, and 25A); Standard Form 34, Annual Bid Bond; Standard 
Form 275, Reinsurance Agreement in Favor of the United States; Standard 
Form 1416, Payment Bond for Other Than Construction Contracts; Standard 
Form 1418, Performance Bond for Other Than Construction Contracts; and 
Standard Form 35, Annual Performance Bond. The information collected 
under this clearance provides the Government with a form of security 
that the contractor will not withdraw a bid or assures that the 
contractor will perform its obligations under a contract.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the 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.

B. Analysis of Public Comments

    A notice was published in the Federal Register at 77 FR 61580, 
October 10, 2012. One respondent submitted public

[[Page 25445]]

comments on the extension of the previously approved information 
collection. The analysis of public comments is summarized as follows:
    Comment: The respondent commented on the need for revisions to the 
standard forms. The respondent suggested that (1) changes be made to 
the standard forms covered under the information collection to include 
an additional option regarding the bond principal's ``Type of 
Organization'' (i.e., SF 25, SF 25A, SF 24, SF 34, SF 1416, SF 1418, SF 
35). Specifically, the respondent requested that an additional check 
box be added allowing for the choice of ``Limited Liability Company 
(LLC)'' to the forms, or, in the alternative, to include a selection of 
``other''. The respondent indicated that construction companies are 
increasingly forming as limited liability companies, a hybrid type of 
organization reflecting characteristics of a corporation and of a 
partnership. The proposed revision would recognize limited liability 
companies as a type of organization; and (2) the instructions governing 
the blank space ``Liability Limit ($)'' (on forms SF 25, 25A, SF 24, SF 
25B, SF 1416, SF 1418) should be enhanced to make clear the intent of 
the information requested. The respondent, a national trade association 
of firms employing professional surety bond producers, reported that 
some confusion exists as to whether the blank refers to the 
underwriting limitation of the surety as found on the Treasury List of 
Approved Sureties or if it is intended to indicate a limitation on the 
surety's liability on the bond.
    Response: Because the respondent's suggestions neither question nor 
affect the information collection estimates included in this request 
for extension, the request for approval to extend this information 
collection will be submitted without change. However, the suggested 
standard form revisions will be researched, and, as determined 
appropriate, revised as separate actions.

C. Annual Reporting Burden

    The estimated annual reporting burden is increased since published 
in the Federal Register at 74 FR 46988, on September 14, 2009. Based on 
use of data, from the Federal Procurement Data System, for fiscal year 
2011, an upward adjustment is made to the estimated annual reporting 
burden.

52.228-1--Bid Guarantee

 (SF 24, Bid Bond; SF 34, Annual Bid Bond)

    Respondents: 19,604.
    Responses per Respondent: 1.
    Total Responses: 19,604.
    Hours per Response: 1.
    Total Burden Hours: 19,604.

52.228-2--Additional Bond Security

    Respondents: 9,802.
    Responses per Respondent: 1.
    Total Responses: 9,802.
    Hours per Response: 1.
    Total Burden Hours: 9,802.

52.228-13--Alternative Payment Protections

    Respondents: 2,178.
    Responses per Respondent: 1.
    Total Responses: 2,178.
    Hours per Response: 1.
    Total Burden Hours: 2,178.

52.228-15--Performance and Payment Bonds

(SF 25, Performance Bond; SF 25A, Payment Bond; SF 25B, Continuation 
Sheet (for SF's 24, 25, and 25A); SF 273, Reinsurance Agreement for a 
Miller Act Performance Bond; SF 274, Reinsurance Agreements for a 
Miller Act Payment Bond)

    Respondents: 19,604.
    Responses per Respondent: 1.
    Total Responses: 19,604.
    Hours per Response: 1.
    Total Burden Hours: 19,604.

52.228-16--Performance and Payment Bonds--Other than Construction

(SF 35, Annual Performance Bond; SF 1416, Payment Bond for Other Than 
Construction Contracts; SF 275, Reinsurance Agreement in Favor of the 
United States; SF 1418, Performance Bond for Other than Construction 
Contracts)

    Respondents: 4,825.
    Responses per Respondent: 1.
    Total Responses: 4,825.
    Hours per Response: 1.
    Total Burden Hours: 4,825.

    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. 9000-0045, Bid Guarantees, Performance, and Payment Bonds, and 
Alternative Payment Protections, in all correspondence.

    Dated: April 20, 2013.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of 
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office 
of Governmentwide Policy.
[FR Doc. 2013-10210 Filed 4-30-13; 8:45 am]
BILLING CODE 6820-EP-P