Federal Acquisition Regulation; Submission for OMB Review; Contract Funding-Limitation of Costs/Funds, 43203-43205 [2013-17389]

Agencies

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

[Federal Register Volume 78, Number 139 (Friday, July 19, 2013)]
[Notices]
[Pages 43203-43205]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17389]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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

[[Page 43204]]

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: 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 9000-0074, 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 https://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 Edward.chambers@gsa.gov.

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]
BILLING CODE 6820-EP-P