General Services Administration Acquisition Regulation; Information Collection; Federal Supply Schedule Pricing Disclosures and Sales Reporting, 24517-24523 [2019-11029]
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Federal Register / Vol. 84, No. 102 / Tuesday, May 28, 2019 / Notices
Collection 9000–0073, Advance
Payments’’. Follow the instructions
provided at the ‘‘Submit a Comment’’
screen. Please include your name,
company name (if any), and
‘‘Information Collection 9000–0073,
Advance Payments’’ on your attached
document.
• Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), 1800 F Street NW,
Washington, DC 20405. ATTN: Ms.
Mandell/IC 9000–0073, Advance
Payments.
Instructions: Please submit comments
only and cite Information Collection
9000–0073, Advance Payments, in all
correspondence related to this
collection. Comments received generally
will be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. To confirm
receipt of your comment(s), please
check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Mr.
Kevin Funk, Procurement Analyst, at
telephone 202–357–5805, or via email at
kevin.funk@gsa.gov.
SUPPLEMENTARY INFORMATION:
A. OMB Number, Title, and Any
Associated Form(s)
9000–0073, Advance Payments.
B. Needs and Uses
Advance payments may be authorized
under Federal contracts and
subcontracts. Advance payments are the
least preferred method of contract
financing and require special
determinations by the agency head or
designee. Specific financial information
about the contractor is required before
such payments can be authorized (see
FAR 32.4 and 52.232–12). The
information is used to determine if
advance payments should be provided
to the contractor.
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C. Annual Reporting Burden
Respondents: 73.
Responses per Respondent: 12.
Annual Responses: 876.
Hours per Response: 1.42.
Total Burden Hours: 1,244.
D. Public Comments
A 60 day notice was published in the
Federal Register at 84 FR 8332, on
March 7, 2019. No comments were
received.
Obtaining Copies: Requesters may
obtain a copy of the information
collection documents from the General
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Services Administration, Regulatory
Secretariat Division (MVCB), 1800 F
Street NW, Washington, DC 20405, at
202–501–4755. Please cite OMB Control
No. 9000–0073, Advance Payments, in
all correspondence.
Dated: May 21, 2019.
Janet Fry,
Director, Federal Acquisition Policy Division,
Office of Governmentwide Acquisition Policy,
Office of Acquisition Policy, Office of
Governmentwide Policy.
[FR Doc. 2019–11003 Filed 5–24–19; 8:45 am]
BILLING CODE 6820–EP–P
GENERAL SERVICES
ADMINISTRATION
[OMB Control No. 3090–0235; Docket No.
2019–0001; Sequence No. 1]
General Services Administration
Acquisition Regulation; Information
Collection; Federal Supply Schedule
Pricing Disclosures and Sales
Reporting
Office of Acquisition Policy,
General Services Administration (GSA).
ACTION: Notice of request for comments
regarding an extension to an existing
OMB clearance.
AGENCY:
24517
Reporting.’’ Follow the instructions
provided at the ‘‘Submit a Comment’’
screen. Please include your name,
company name (if any), and
‘‘Information Collection 3090–0235,
Federal Supply Schedule Pricing
Disclosures and Sales Reporting’’ on
your attached document.
• Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), 1800 F Street NW,
Washington, DC 20405. ATTN: Ms.
Mandell/IC 3090–0235, Federal Supply
Schedule Pricing Disclosures.
Instructions: Please submit comments
only and cite Information Collection
3090–0235, Federal Supply Schedule
Pricing Disclosures and Sales Reporting,
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.
Matthew McFarland, Office of
Acquisition Policy, (301) 758–5880 or
matthew.mcfarland@gsa.gov.
SUPPLEMENTARY INFORMATION:
Under the provisions of the
Paperwork Reduction Act, the
Regulatory Secretariat Division is
submitting a request to the Office of
Management and Budget (OMB) to
review and approve an extension of a
previously approved information
collection requirement regarding
Commercial Sales Practices disclosures
and General Services Administration
Acquisition Regulation (GSAR) clause
552.238–81 Price Reductions.1 The
information collected is used to
establish and maintain Federal Supply
Schedule (FSS) pricing and pricerelated terms and conditions.
DATES: Submit comments on or before:
July 29, 2019.
ADDRESSES: Submit comments
identified by Information Collection
3090–0235, Federal Supply Schedule
Pricing Disclosures and Sales Reporting,
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 3090–0235, Federal Supply
Schedule Pricing Disclosures and Sales
A. Purpose
The extension has been renamed
‘‘Federal Supply Schedule Pricing
Disclosures and Sales Reporting’’
because it now includes a burden
estimate associated with the basic
version of GSAR clause 552.238–80
Industrial Funding Fee and Sales
Reporting.2 GSA uses this information
to collect the Industrial Funding Fee
and administer the FSS program. This
burden was included under a separate
approved information collection
identified by OMB control number
3090–0121.
GSA’s Federal Supply Schedules,
commonly known as GSA Schedules or
Multiple Award Schedules (MAS), are
Government-wide contracts providing
federal agencies with a simplified
process for acquiring commercial
supplies and services. The FSS program
is the Government’s preeminent
commercial contracting vehicle,
accounting for about 10 percent of all
federal contract dollars with
approximately $33 billion of purchases
made through the program in fiscal year
2018.
GSA establishes the pricing and terms
of each GSA Schedule contract with
commercial vendors. Federal agencies
then follow GSA’s competitive
procedures when placing orders against
1 This clause was formerly found at GSAR
552.238–75 but was amended to GSAR 552.238–81
per GSAR case 2016–G502, effective May 23, 2019.
See 84 FR 17030 from April 23, 2019.
2 This clause was formerly found at GSAR
552.238–74 but was amended to GSAR 552.238–80
per GSAR case 2016–G502, effective May 23, 2019.
See 84 FR 17030 from April 23, 2019.
SUMMARY:
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these contracts and thereby satisfy
statutory competition requirements to
provide ‘‘the lowest overall cost
alternative to meet the needs of the
Federal Government.’’ 3 In turn, those
agencies must pay an Industrial
Funding Fee (IFF) that covers GSA’s
costs of operating the FSS program. The
fee is currently set at 0.75% and is
included in the prices ordering
activities pay vendors when purchasing
from an FSS contract.4 FSS vendors
then report GSA Schedule sales data
and remit the IFF collected from
ordering activities to GSA once a
quarter.
There were a total of 16,215 GSA FSS
contracts in fiscal year 2018. This
information collection pertains to the
pricing disclosures and sales reporting
requirements for 14,152 of these
contracts. The remaining 2,063 contracts
participated in the Transactional Data
Reporting pilot and were subject to a
separate information collection
identified by OMB control number
3090–0306.
GSA believes Transactional Data
Reporting offers a meaningful burden
reduction for FSS vendors. GSA
estimates the combined burden of this
information collection is 49% more per
contract than the Transactional Data
Reporting burden. If all FSS vendors
participated in Transactional Data
Reporting, rather than being subject to
the sales reporting and pricing
disclosure requirements of this
information collection, they would
realize an estimated annual burden
reduction of $30.8 million.5 On the
other hand, vendors will absorb costs
when reverting back to the requirements
of this information collection, including
costs associated with establishing a
basis of award customer and monitoring
system for PRC compliance, if GSA ends
the Transactional Data Reporting pilot
without an alternative means of
collecting the IFF, monitoring program
sales and establishing and monitoring
contract pricing.
The Paperwork Reduction Act
generally requires information
collections to be renewed every three
years.6 Both this information collection
(OMB control number 3090–0235) and
the Transactional Data Reporting
information collection (OMB control
number 3090–0306) were last approved
in 2016, so GSA is now obtaining
extensions to both information
collections. Additionally, GSA is
consolidating a separate information
collection for IFF and sales reporting
(OMB control number 3090–0121) with
this information collection because the
burdens are interdependent.
This request for comments only
pertains to the information collection
requirements associated with the basic
version of GSAR clause 552.238–80 and
CSP and PRC disclosure requirements.
GSA has also posted a separate notice
requesting comments on the
Transactional Data Reporting
information collection (OMB control
number 3090–0306).
3 41 U.S.C. 152(3)(B) requires FSS ordering
procedures to ‘‘result in the lowest overall cost
alternative to meet the needs of the Federal
Government.’’
4 The IFF for Schedule 599, Special Item Number
599–2 is $1.50 per transaction.
5 The estimated burden for this information
collection, which applied to the 14,152 contracts
not participating in the Transactional Data
Reporting pilot, is estimated to be $94.2 million.
This equates to a per-contract burden of $6,662/
year. The estimated burden for the Transactional
Data Reporting information collection is $9.2
million/year for the 2,063 contracts participating in
the FSS pilot; this equates to a per-contract the
burden of $4,483/year. The estimated $30.8 million/
year burden reduction is calculated by taking the
updated 3090–0235 burden estimate ($94.2 million/
year) and subtracting the product of the number of
contracts included in 3090–0235 multiplied by the
average per-contract burden of Transactional Data
Reporting (14,152 contracts × $4,483), which equals
$63.4 million/year ($94.2M¥$63.4M = $30.8M).
More information about the Transactional Data
Reporting burden can be found under Information
Collection 3090–0306 at https://www.reginfo.gov/
public by searching ‘‘ICR’’ for ‘‘3090–0306’’.
FSS Pricing Disclosures
The basic version of GSAR clause
552.238–80 Industrial Funding Fee and
Sales Reporting also dictates the pricing
procedures GSA will use to establish
contract pricing. These pricing
procedures require GSA to determine
price reasonableness on its FSS
contracts by comparing a vendor’s
prices and price-related terms and
conditions with those offered to their
other customers. Through analysis and
negotiations, GSA establishes a
favorable pricing relationship in
comparison to one of the vendor’s
customers (or category of customers)
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Sales Reporting
General Services Administration
Acquisition Regulation (GSAR) clause
552.238–80 Industrial Funding Fee and
Sales Reporting is included in every
GSA Schedule contract. The basic
version of the clause requires vendors to
report their FSS contract sales to GSA
within 30 days after the end of the
quarter. GSA then calculates the IFF due
based on the total amount of sales
reported and the vendor must also remit
that amount within 30 days after the
end of the quarter.7
6 44
U.S.C. 3507(g).
I of the clause applies to FSS contracts
participating in the Transactional Data Reporting
pilot and falls under the information collection
identified by OMB control number 3090–0306.
7 Alternate
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and then maintains that pricing
relationship for the life of the contract.
In order to carry out this practice, GSA
collects pricing information through
CSP disclosures and enforces the
pricing relationship through the PRC.
Commercial Sales Practices (CSP): In
accordance with GSAR 515.408(a)(2),
offerors must submit information in the
Commercial Sales Practices Format
provided in the solicitation, following
the instructions at GSAR Figure 515.4–
2, or submit information in their own
format. In addition to when an offer is
submitted, CSP disclosures are also
required prior to executing bilateral
modifications for exercising a contract
option period, adding items to the
contract, or increasing pricing under the
Economic Price Adjustment clause
(GSAR 552.216–70).
Price Reductions Clause (PRC): GSAR
538.273 (b)(2) prescribes the PRC for use
in all FSS solicitations and contracts.
The clause is intended to ensure the
Government maintains its price/
discount (and/or term and condition)
advantage in relation to the vendor’s
customer (or category of customer) upon
which the FSS contract is based. The
basis of award customer (or category of
customer) is identified at the conclusion
of negotiations and noted in the
contract. Thereafter, the PRC requires
FSS vendors to inform the contracting
officer of price reductions within 15
calendar days. Per GSAR 552.238–
81(c)(1),
A price reduction shall apply to
purchases under this contract if, after
the date negotiations conclude, the
Contractor—
(i) Revises the commercial catalog,
pricelist, schedule or other document
upon which contract award was
predicated to reduce prices;
(ii) Grants more favorable discounts or
terms and conditions than those
contained in the commercial catalog,
pricelist, schedule or other documents
upon which contract award was
predicated; or
(iii) Grants special discounts to the
customer (or category of customers) that
formed the basis of award, and the
change disturbs the price/discount
relationship of the Government to the
customer (or category of customers) that
was the basis of award.
FSS ordering procedures are required
by law to ‘‘result in the lowest overall
cost alternative to meet the needs of the
Federal Government.’’ 8 CSP disclosures
and the PRC provide GSA a mechanism
for meeting this objective by giving it
insight into a vendor’s pricing practices,
which is proprietary information that
8 41
U.S.C. 152(3)(B).
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can only be obtained directly from the
vendor.
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Information Collection Changes and
Updates
The burden estimates from the
previous approval have been adjusted to
include updates to sales reporting
estimates previously included under
OMB control number 3090–0121; reflect
actual participation in the Transactional
Data Reporting pilot; and revised labor
rates used to calculate cost estimates.
The number of respondents and
applicable actions has also been
updated.
Sales Reporting: The basic version of
the Industrial Funding Fee and Sales
Reporting clause has traditionally been
associated with OMB control number
3090–0121, which was last extended in
June 2017. GSA determined this
information collection should be
consolidated with the FSS Pricing
Disclosures information collection
(OMB control number 3090–0235)
because they apply to the same
population within the GSA Schedules
program.
The estimation methodology for the
sales reporting calculations is the same
as what was used for the 2017 renewal
of OMB control number 3090–0121
except the sales categories were revised
to align with those used for the
Transactional Data Reporting
information collection (OMB control
number 3090–0306).
Adjustments for Transactional Data
Reporting Pilot: GSA Schedule contracts
included in the Transactional Data
Reporting pilot are no longer subject to
this information collection; the separate
reporting requirements for those
contracts are covered by OMB control
number 3090–0306.
The Transactional Data Reporting
pilot had yet to launch when these
burden estimates were previously
calculated in 2016, so GSA based its
estimates for the number of contracts
that would participate on the total
number of contracts under the
Schedules and Special Item Numbers
eligible for the pilot:
• The ratio of GSA Schedule
contracts that would continue under
this information collection was
estimated to be 56.8%, which was based
on the percentage of the program’s sales
in fiscal year 2015 for contracts that
would not be eligible to participate in
the Transactional Data Reporting pilot.
• The ratio of GSA Schedule
contracts slated to be included in the
Transactional Data Reporting pilot was
estimated to account for the remaining
43.2%.
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Consequently, the 2016 burden
estimates for the CSP and PRC renewal
and the 2017 IFF and sales reporting
renewal relied upon these Transactional
Data Reporting pilot participation
projections. However, pilot
participation became optional in 2017
and the number of contracts that
eventually joined the pilot was lower
than anticipated in 2016. Of the 16,215
contracts that were active in FY 2018,
• 14,152 contracts, or 87.28% of the
total, are subject to this information
collection.
• 2,063 contracts, or 12.72% of the
total, participated in the Transactional
Data Reporting pilot.
Consequently, the revised
participation figures resulted in
significantly higher burden estimates for
this information collection and lower
burden estimates for the Transactional
Data Reporting information collection
(OMB control number 3090–0306).
Revised Labor Rates: The previous
burden estimates used a fully burdened
labor rate of $68/hour. This included a
$50/hour base rate, which was based on
professional judgment, and 36% for
fringe benefits, which was rounded
down from the 36.25% fringe benefit
factor included in OMB Circular A–76.9
The revised burden estimates attempt
to align with the Department of
Defense’s Regulatory Cost Analysis Tool
(RCAT), which was developed to
prepare economic analyses in
compliance with Executive Order 13771
and uses various Government labor
category rates as the basis for cost
estimates. GSA determined—
• The GS–14, Step 5 labor rate from
the RCAT ($77.25/hour) was the most
appropriate for the tasks performed by
vendors to comply with CSP and PRC
disclosure requirements and perform
the initial setup for sales reporting
systems.
• The GS–12, Step 5 labor rate from
the RCAT ($55.19/hour) was the most
appropriate for the tasks performed by
vendors for quarterly sales reporting.
B. Annual Reporting Burden
This information collection applies to
GSA FSS contracts that include the
basic version of GSAR clause 552.238–
80 Industrial Funding Fee and Sales
Reporting. In FY 2018, 13,828 vendors
held a total of 16,215 GSA FSS
9 36.25% overhead rate was used in reference to
Office of Management and Budget (OMB) Circular
No. A–76. Circular A–76 requires agencies to use
standard cost factors to estimate certain costs of
Government performance. These cost factors ensure
that specific government costs are calculated in a
standard and consistent manner to reasonably
reflect the cost of performing commercial activities
with government personnel.
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24519
contracts; 12,151 of these vendors held
a total of 14,152 contracts containing the
basic version of clause 552.238–80.10
These contracts accounted for
approximately 77.8% of GSA FSS sales
in fiscal year 2018. The 2,063 GSA FSS
contracts subject to Alternate I of GSAR
clause 552.238–80—those participating
in the Transactional Data Reporting
pilot—are covered by a separate
information collection identified under
OMB control number 3090–0306.
Cost Burden Calculation
Sales Reporting: The two primary
activities associated with sales reporting
are initial setup and quarterly reporting.
GSA calculated the cost burden for each
as follows:
• Initial Setup: The duties required
for these activities will generally be
completely by a senior-level subject
matter expert. For the purposes of
establishing an hourly rate, GSA equates
these duties to those of a GS–14, Step
5 employee, whose hourly rate in 2019
for the ‘‘Rest of U.S.’’ locality is $56.92
an hour.11 When factoring a 36.25
percent overhead rate for fringe benefits,
the fully burdened rate is $77.55 an
hour.12
• Quarterly Reporting: The duties
required for these activities will
generally be completed by mid-level
personnel. For the purposes of
establishing an hourly rate, GSA equates
these duties to those of a GS–12, Step
5 employee, whose hourly rate in 2019
for the ‘‘Rest of U.S.’’ locality is $40.51
an hour. When factoring a 36.25 percent
overhead rate for fringe benefits, the
fully burdened rate is $55.19 an hour.
Pricing Disclosures: The duties
required for these activities will
generally be completed by a senior-level
subject matter expert. For the purposes
of establishing an hourly rate, GSA
equates these duties to those of a GS–
14, Step 5 employee, whose hourly rate
in 2019 for the ‘‘Rest of U.S.’’ locality
is $56.92 an hour. When factoring a
10 Some vendors hold multiple contracts and may
have contracts participating in the Transactional
Data Reporting pilot and other contracts that are
subject to CSP and PRC disclosure requirements.
11 General Schedule (GS) labor rates may be
viewed on the Office of Personnel Management
(OPM) under Pay & Leave: Salaries and Wages,
SALARY TABLE 2019–RUS at https://
www.opm.gov/policy-data-oversight/pay-leave/
salaries-wages/salary-tables/19Tables/html/RUS_
h.aspx.
12 36.25% overhead rate was used in reference to
Office of Management and Budget (OMB) Circular
No. A–76. Circular A–76 requires agencies to use
standard cost factors to estimate certain costs of
Government performance. These cost factors ensure
that specific government costs are calculated in a
standard and consistent manner to reasonably
reflect the cost of performing commercial activities
with government personnel.
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36.25 percent rate for fringe benefits, the
fully burdened rate is $77.55 an hour.
Heavier Lifts and Lighter Lifts
Due to the diversity among the FSS
vendor population, the burden
associated with many of the CSP and
PRC components of this information
collection cannot be equally attributed
to all FSS contracts. In these areas, GSA
is categorizing contracts into those with
a ‘‘heavier lift’’ or ‘‘lighter lift.’’
FSS contracts are held by a diverse set
of companies, which vary in terms of
business size, offerings, and FSS sales
volume. For example, in FY 2018:
• 30.7 percent, or 4,975 contracts had
$0 in reported FSS sales.
• 6.8 percent, or 1,100 contracts,
accounted for about 80 percent of all
FSS sales.
• The top 20 percent of FSS contracts
(in terms of FY 2018 sales) accounted
for 94.6 percent of FSS sales.
• Only 19.7 percent of FSS contracts
had more than $1 million in FSS sales.
• 68.7 percent of FSS contracts were
held by small businesses and had less
than $1 million in FSS sales.
• Small businesses held 81 percent of
the FSS contracts but accounted for 37
percent of FSS sales.
In general, a vendor’s sales volume
will have the greatest effect on the
associated burden of these
requirements, although the number and
type of offerings, and business structure,
can also be significant factors. As
previously shown, a relatively small
number of FSS contracts account for the
vast majority of FSS sales and therefore
likely bear a heavier burden for these
requirements. Conversely, the majority
of FSS contracts, which are typically
held by small businesses with lower
sales volume, absorb less of the burden
for these requirements.
To account for the differences among
FSS contracts, GSA is utilizing the
Pareto principle, or ‘‘80/20 rule,’’ which
states 80 percent of effects comes from
20 percent of the population.
Accordingly, GSA is categorizing FSS
contracts by those with a heavier lift (20
percent) and those with a lighter lift (80
percent). Contracts with heavier lifts are
those with the characteristics leading to
increased burden—more sales volume,
higher number of contract items, more
complex offerings, more transactions,
more complex transactions, and/or
intricate business structures.
Sales Reporting
The basic version of the Industrial
Funding Fee and Sales Reporting clause
requires vendors to report their total
sales by Special Item Number once a
quarter in the 72A Reporting System.13
Vendors must file these reports within
30 days after the end of each of the
following quarters:
• January 1 to March 31
• April 1 to June 30
• July 1 to September 30
• October 1 to December 31
After vendors report their sales, the
72A Reporting System calculates the IFF
due for the quarter. The system then
prompts users to ‘‘Pay Now’’ or ‘‘Pay
Later.’’ Vendors can remit IFF payments
via credit card, online check, or paper
check. Regardless of whether a vendor
remits the IFF at the time sales are
reported or at a later date, the IFF due
must be remitted within the same 30
day deadline following the end of the
reporting quarters.
Categorization of Vendors by
Quarterly Sales Revenue: Sales
reporting imposes a progressive
burden—one that increases with a
vendor’s sales volume. Quarterly
reporting times will increase with a
vendor’s applicable sales volume, as
vendors with lower to no reportable
sales will spend little time on quarterly
reporting, while those with more
reportable sales with face a higher
reporting burden.
GSA separated contracts into
categories based on reported annual
sales volume in order to account for the
differences in reporting burden. These
categories are:
• Category 1: No sales activity
• Category 2: Sales between $0 and
$25,000
• Category 3: Sales between $25,000
and $250,000
• Category 4: Sales between $250,000
and $1 million
• Category 5: Sales over $1 million
The distribution of contracts by sales
category is as follows:
CONTRACTS BY SALES CATEGORY
FSS contracts
(count)
FSS contracts
(percentage)
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
4,657
1,188
3,469
2,168
2,670
33
8
25
15
19
Total ..................................................................................................................................................................
14,152
100
Category
Category
Category
Category
Category
1
2
3
4
5
Automated vs. Manual Reporting
Systems: Vendors subject to these
clauses must create systems or processes
to produce and report accurate data.
Generally, vendors will use automated
or manual systems to identify the
quarter’s reportable sales. An automated
system is one that relies on information
technology, such as an accounting
system or data management software, to
identify and compile reportable data.
These systems can tremendously
streamline the reporting process but
require upfront configuration to perform
the tasks, such as coding the sales types
to be retrieved. Conversely, a manual
system is one that incorporates little to
no automation and instead relies on
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13 https://72a.gsa.gov.
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personnel to manually identify and
compile the reportable data. An
example of a manual system would be
an accountant reviewing invoices to
identify the reportable data and then
transferring the findings to a
spreadsheet. In contrast to automation,
a manual system requires relatively
little setup time but the reporting effort
will generally increase with the
vendor’s sales volume.
The likelihood of a vendor adopting
an automated system increases with
their applicable sales volume. Vendors
with little to no reportable data are
unlikely to expend the effort needed to
establish an automated reporting system
since it will be relatively easy to
identify and report a limited amount of
data. However, as a vendor’s applicable
sales increase, they will be increasingly
likely to establish an automated system
to reduce the quarterly reporting
burden. Consequently, vendors with
higher reportable sales will likely bear
a higher setup burden to create an
automated system, or absorb a high
quarterly reporting burden if they
choose to rely on manual reporting
methods.
The following chart depicts the
likelihood of the population of contracts
operating under manual and automated
reporting systems:
CONTRACTS BY REPORTING SYSTEM TYPE
[Manual vs. Automated]
Manual
system
(percentage)
Category
Category
Category
Category
Category
1
2
3
4
5
Automated
system
(percentage)
Manual
system—
vendor count
Automated
system—
vendor count
.......................................................................................................
.......................................................................................................
.......................................................................................................
.......................................................................................................
.......................................................................................................
100
100
90
50
10
0
0
10
50
90
4,657
1,188
3,122
1,084
267
0
0
347
1,084
2,403
Total Count of Contracts by System Type ...............................................
........................
........................
10,318
3,834
Percentage of Contracts by System Type .......................................................
........................
........................
73%
27%
Initial Setup: Vendors with active FSS
contracts already have procedures in
place to meet these longstanding
reporting requirements. However, new
FSS vendors will absorb a one-time
setup burden to establish reporting
systems. The estimated setup time
varies between automated and manual
reporting systems. Vendors
implementing a manual system must
acclimate themselves with the new
reporting requirements and train their
staff accordingly, while those with
automated systems must perform these
tasks in addition to configuring
information technology resources.
GSA estimates the average one-time
setup burden is 8 hours for vendors
with a manual system and 40 hours for
those with an automated system. GSA
also attributes the same system type
probabilities (manual system 73%,
automated system 27%) to the
population of new vendors. These
estimates apply to the 1,220 vendors
awarded FSS contracts in fiscal year
2018.
Quarterly Reporting: Vendors are
required to report sales within 30
calendar days after the end of each
quarter. The average reporting times
vary by system type (manual or
automated) and sales volume. GSA
estimates vendors using a manual
system will have average quarterly
reporting times ranging from 15 minutes
(0.25 hours) per quarter for vendors
with $0 sales to an average of 8 hours
per quarter for vendors with quarterly
sales over $1 million. On the other
hand, GSA projects vendors with
automated systems will have reporting
times of 2 hours per quarter, irrespective
of quarterly sales volume, as a result of
efficiencies achieved through automated
processes. The following table shows
GSA’s projected quarterly reporting
times per sales category and system
type:
QUARTERLY REPORTING HOURS BY SYSTEM TYPE AND CATEGORY
Manual
systems
jbell on DSK3GLQ082PROD with NOTICES
Category
Category
Category
Category
Category
1
2
3
4
5
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
Annualized Public Burden Estimates
for Sales Reporting: The burden
estimates consist of quarterly reporting
times for all 14,152 participating
contracts and a one-time setup burden
for the 1,220 new contracts:
Initial Setup
Quarterly Reporting
Annual Burden (Hours): 90,945.
Annual Burden (Cost): $5,019,255.
GSA attributes the PRC-related
burden to training, compliance systems,
and notifying GSA of price reductions
VerDate Sep<11>2014
20:49 May 24, 2019
Jkt 247001
Annual Burden (Hours): 20,336.
Annual Burden (Cost): $1,577,078.
Price Reductions Clause
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0.25
1.00
2.00
4.00
8.00
Automated
systems
2.00
2.00
2.00
2.00
2.00
within 15 calendar days after their
occurrence.
Training: FSS vendors provide
training to their employees to ensure
compliance with FSS pricing disclosure
requirements. GSA is basing these
burden estimates on the number of
vendors, not the number of contracts,
because vendors with multiple contracts
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Federal Register / Vol. 84, No. 102 / Tuesday, May 28, 2019 / Notices
subject to this requirement will likely
not have to provide separate training for
each contract.
In FY 2018, there were 12,151
vendors subject to PRC notification
requirements, 2,830 (20%) with a
heavier lift and 9,721 (80%) with a
lighter lift. Vendors within the heavier
lift category may need to develop formal
training programs and conduct training
for numerous divisions and offices,
while vendors in the lighter lift category
may have no need for training design
and administration due to having as few
as one person responsible for PRC
compliance.
Training—Heavier Lift
Total Annual Responses: 2,430.
Average Hours per Response: 40.
Total Time Burden (Hours): 97,208.
Total Cost Burden: $7,538,480.
jbell on DSK3GLQ082PROD with NOTICES
Training—Lighter Lift
Total Annual Responses: 9,721.
Average Hours per Response: 20.
Total Time Burden (Hours): 194,416.
Total Cost Burden: $15,076,961.
Compliance Systems: FSS vendors
must develop systems to control
discount relationships with other
customers/categories of customer to
ensure the basis of award pricing
relationship is not disturbed. In public
comments submitted on this
information collection renewal in 2016,
a respondent stated PRC monitoring
burden should be 1,290 hours to
establish a compliance system in the
first year and 1,100 hours each year
thereafter for monitoring activities.
However, GSA believes the amount of
investment into a compliance system is
inversely related to the amount of time
needed to carry out ongoing monitoring
activities. Specifically, vendors making
high upfront investments, such as
programming a quotation tool to control
discounts, will have a lower ongoing
monitoring reporting burden. On the
other hand, vendors not making upfront
investments to establish a compliance
system will have a higher ongoing
reporting burden.
As a result, GSA is using the 1,290
hour estimate but allocating it across the
20-year life of a contract for heavier lift
vendors using automated systems to
carry out monitoring activities, resulting
in an annual burden of 65 hours. GSA
estimates heavier lift vendors that spend
less time implementing an automated
system will incur a similar burden for
monitoring activities, meaning GSA is
estimating the same 65 hour/year
burden for those vendors. For lighter lift
vendors, GSA is attributing an average
burden of 700 hours for the 20-year life
VerDate Sep<11>2014
20:49 May 24, 2019
Jkt 247001
Total Annual Responses: 9,721.
Average Hours per Response: 30.
Total Time Burden (Hours): 341,995.
Total Cost Burden: $26,521,745.
Price Reduction Notifications: 1,035
price reduction modifications were
completed in FY 2018, with each
modification requiring a notification
from the vendor. In a survey conducted
among GSA FSS contracting officers,
respondents estimated it took an average
of 4.25 hours to complete a price
reduction modification. GSA believes
FSS vendors bear a similar burden for
this task and is therefore using the same
burden estimate.
Pre-award Disclosures: In fiscal year
2018, vendors submitted 2,503 offers for
FSS contracts with CSP disclosure
requirements. GSA recognizes the
complexity of this task varies with the
type and number of offerings, business
structure, and expected revenue, so for
this burden estimate, these offers are
separated between offerors with heavier
lifts (20 percent or 501 offers) and those
with lighter lifts (80 percent or 2,002
offers).
Prior to receiving comments on this
information collection in 2016, GSA
based its burden estimates for this
function directly on the results from the
FAS survey of its FSS contracting
officers. However, after receiving public
comments stating the pre-award
disclosure burden for vendors exceeds
that for contracting officers, GSA
doubled its vendor estimates, resulting
in increases for heavier lift vendors from
41.48 hours/year to 82.96 hours/year
and for lighter lift vendors from 32.41
hours/year to 64.82 hours/year.
Price Reduction Notifications
Pre-Award Disclosures—Heavier Lift
of the contract, which equates to 35
hours a year.
Compliance Systems—Heavier Lift
Total Annual Responses: 2,430.
Average Hours per Response: 65.
Total Time Burden (Hours): 156,748.
Total Cost Burden: $12,155,800.
Compliance Systems—Lighter Lift
Total Annual Responses: 1,035.
Average Hours per Response: 4.25.
Total Time Burden (Hours): 4,399.
Total Cost Burden: $341,123.
Total Annual Responses: 501.
Average Hours per Response: 82.96.
Total Time Burden (Hours): 41,532.
Total Cost Burden: $3,909,407.
Commercial Sales Practices Disclosures
Pre-Award Disclosures—Lighter Lift
The CSP burden results from
disclosures required of any vendor
submitting an offer for an FSS contract
or modifying an FSS contract to increase
prices, add items and Special Item
Numbers, or exercise options.
The burden estimates for CSP
disclosures are based upon the estimates
provided by respondents to the GSA
FSS contracting officer survey. The 77
survey respondents provided estimates
regarding the amount of time it takes
FSS contracting officers to complete
CSP-related tasks and GSA believes
these responses can be used as a
benchmark for vendor burden estimates.
In calculating these burden estimates,
GSA acknowledges a vendor’s tasks are
more complex than simply comparing
offered prices to discounts given to
other categories of customers. In
addition to collecting and analyzing
data, GSA expects offerors to provide
data that is current, accurate and
complete. GSA recognizes this due
diligence places an additional burden
on offerors. Also, similar to the PRC,
factors such as sales volume, the
number of contract items, complexity of
offerings, and business structures has a
significant effect on the burden but can
vary widely from vendor to vendor.
Consequently, GSA is using the heavier
lift and lighter lift methodology for the
CSP burden estimates.
Total Annual Responses: 2,002.
Average Hours per Response: 64.82.
Total Time Burden (Hours): 129,801.
Total Cost Burden: $10,066,090.
Price Increase Modifications: In FY
2018, 1,457 price increase modifications
were processed, including 492 (20
percent) with a heavier lift and 1,967
(80 percent) with a lighter lift. The time
burden for these modifications varies
mainly with the type and number of
offerings. GSA is basing its burden
estimates for this function directly on
the results from the FAS survey of its
FSS contracting officers.
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Fmt 4703
Sfmt 4703
Price Increases—Heavier Lift
Total Annual Responses: 492.
Average Hours per Response: 10.45.
Total Time Burden (Hours): 5,139.
Total Cost Burden: $398,553.
Price Increases—Lighter Lift
Total Annual Responses: 1,967.
Average Hours per Response: 9.71.
Total Time Burden (Hours): 18,039.
Total Cost Burden: $1,398,942.
Adding Items and Special Item
Numbers (SINs): In FY 2018, 4,209
addition modifications were processed,
including 1,275 (20 percent) with a
heavier lift and 5,099 (80 percent) with
a lighter lift. The time burden for these
modifications varies with the type and
number of offerings. GSA is basing its
E:\FR\FM\28MYN1.SGM
28MYN1
Federal Register / Vol. 84, No. 102 / Tuesday, May 28, 2019 / Notices
Average Hours per Response: 455.
Total Time Burden (Hours): 21,840.
Total Cost Burden: $1,226,316.
burden estimates for this function
directly on the results from the FAS
survey of its FSS contracting officers.
Total Annual Burden
The total estimated burden imposed
by Federal Supply Schedule pricing
disclosures is as follows:
Addition Modifications—Heavier Lift
Total Annual Responses: 1,275.
Average Hours per Response: 11.13.
Total Time Burden (Hours): 14,189.
Total Cost Burden: $1,100,320.
Addition Modifications—Lighter Lift
Total Annual Responses: 5,099.
Average Hours per Response: 10.65.
Total Time Burden (Hours): 54,306.
Total Cost Burden: $4,211,468.
Exercising Options: In FY 2018, 2,468
option modifications were processed,
including 494 (20 percent) with a
heavier lift and 1,974 (80 percent) with
a lighter lift. The time burden for these
modifications varies with the type and
number of offerings, business structure,
and expected revenue. GSA is basing its
burden estimates for this function
directly on the results from the FAS
survey of its FSS contracting officers
because while the associated tasks with
processing an option CSP are similar to
that of a pre-award CSP, the option CSP
requires less time because of familiarity
and precedents created during the
preceding contract period.
Option Modifications—Heavier Lift
Total Annual Responses: 494.
Average Hours per Response: 26.14.
Total Time Burden (Hours): 12,903.
Total Cost Burden: $1,000,605.
Option Modifications—Lighter Lift
Total Annual Responses: 1,974.
Average Hours per Response: 22.32.
Total Time Burden (Hours): 44,069.
Total Cost Burden: $3,417,521.
jbell on DSK3GLQ082PROD with NOTICES
GSA Office of Inspector General Audits
The GSA Office of Inspector General
(OIG) regularly audits GSA Schedule
contracts for compliance with PRC and
CSP requirements. The GSA OIG
performed 48 contract audits in FY
2018.14 Survey responses included with
public comments submitted for the 2012
renewal of this information collection
noted vendors estimated spending
approximately 440–470 hours preparing
for audits involving the PRC. This
burden still applied in 2018, so GSA is
taking the median point of that range
(455) and multiplying it by 48 audits, to
reach the sum of 21,840 hours expended
preparing for audits.
GSA OIG Audits
Total Annual Responses: 48.
14 The
20:49 May 24, 2019
Jkt 247001
Estimated Annual Cost Burden
Sales Reporting: $6,141,614.
Price Reductions Clause: $61,634,109.
CSP Disclosures: $24,814,275.
GSA OIG Audits: $1,693,692.
Total Annual Cost Burden:
$94,283,689.
C. Public Comments
Public comments are particularly
invited on: Whether this collection of
information is necessary 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.
Obtaining Copies of Proposals:
Requesters may obtain a copy of the
information collection documents from
the General Services Administration,
Regulatory Secretariat Division (MVCB),
1800 F Street NW, Washington, DC
20405, telephone 202–501–4755. Please
cite OMB Control No. 3090–0235,
Federal Supply Schedule Pricing
Disclosures and Sales Reporting, in all
correspondence.
Jeffrey A. Koses,
Senior Procurement Executive, Office of
Acquisition Policy, Office of Governmentwide Policy.
[FR Doc. 2019–11029 Filed 5–24–19; 8:45 am]
BILLING CODE 6820–61–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[OMB Control No. 9000–0193; Docket No.
2019–0003; Sequence No. 22]
GSA OIG’s audit findings are outlined in
their Semiannual Reports to the Congress. The
report covering October 1, 2017 to March 31, 2018
stated the OIG performed 21 contract audits and the
report covering April 1, 2018 to September 30, 2018
stated the GSA OIG performed 27 contract audits.
VerDate Sep<11>2014
Estimated Annual Time Burden (Hours)
Sales Reporting: 111,281.
Price Reductions Clause: 794,766.
CSP Disclosures: 319,978.
GSA OIG Audits: 21,840.
Total Annual Time Burden:
1,247,865.
Information Collection; FAR Part 9
Responsibility Matters
Department of Defense (DOD),
General Services Administration (GSA),
AGENCY:
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
24523
and National Aeronautics and Space
Administration (NASA).
ACTION: Notice and request for
comments.
In accordance with the
Paperwork Reduction Act of 1995, and
the Office of Management and Budget
(OMB) regulations, DoD, GSA, and
NASA invite the public to comment on
a revision and renewal concerning the
responsibility of prospective
contractors. OMB has approved this
information collection for use through
August 31, 2019. DoD, GSA, and NASA
propose that OMB extend its approval
for use for three additional years beyond
the current expiration date.
DATES: DoD, GSA, and NASA will
consider all comments received by July
29, 2019.
ADDRESSES: The FAR Council invites
interested persons to submit comments
on this collection by either of the
following methods:
• Federal eRulemaking Portal: This
website provides the ability to type
short comments directly into the
comment field or attach a file for
lengthier comments. Go to https://
www.regulations.gov and follow the
instructions on the site.
Mail: General Services
Administration, Regulatory Secretariat
Division (MVCB), 1800 F Street NW,
Washington, DC 20405. ATTN: Lois
Mandell/IC 9000–0193, FAR Part 9
Responsibility Matters.
Instructions: All items submitted
must cite Information Collection 9000–
0193, FAR Part 9 Responsibility Matters.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. To confirm
receipt of your comment(s), please
check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail). This information
collection is pending at the FAR
Council. The Council will submit it to
OMB within 60 days from the date of
this notice.
FOR FURTHER INFORMATION CONTACT: Ms.
Mahruba Uddowla, Procurement
Analyst, at telephone 703–605–2868, or
mahruba.uddowla@gsa.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Overview of Information Collection
Description of Information Collection
1. OMB number: 9000–0193.
2. Title, and any Associated Form(s):
FAR Part 9 Responsibility Matters.
E:\FR\FM\28MYN1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 102 (Tuesday, May 28, 2019)]
[Notices]
[Pages 24517-24523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11029]
-----------------------------------------------------------------------
GENERAL SERVICES ADMINISTRATION
[OMB Control No. 3090-0235; Docket No. 2019-0001; Sequence No. 1]
General Services Administration Acquisition Regulation;
Information Collection; Federal Supply Schedule Pricing Disclosures and
Sales Reporting
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Notice of request for comments regarding an extension to an
existing OMB clearance.
-----------------------------------------------------------------------
SUMMARY: Under the provisions of the Paperwork Reduction Act, the
Regulatory Secretariat Division is submitting a request to the Office
of Management and Budget (OMB) to review and approve an extension of a
previously approved information collection requirement regarding
Commercial Sales Practices disclosures and General Services
Administration Acquisition Regulation (GSAR) clause 552.238-81 Price
Reductions.\1\ The information collected is used to establish and
maintain Federal Supply Schedule (FSS) pricing and price-related terms
and conditions.
---------------------------------------------------------------------------
\1\ This clause was formerly found at GSAR 552.238-75 but was
amended to GSAR 552.238-81 per GSAR case 2016-G502, effective May
23, 2019. See 84 FR 17030 from April 23, 2019.
---------------------------------------------------------------------------
DATES: Submit comments on or before: July 29, 2019.
ADDRESSES: Submit comments identified by Information Collection 3090-
0235, Federal Supply Schedule Pricing Disclosures and Sales Reporting,
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 3090-0235, Federal Supply Schedule
Pricing Disclosures and Sales Reporting.'' Follow the instructions
provided at the ``Submit a Comment'' screen. Please include your name,
company name (if any), and ``Information Collection 3090-0235, Federal
Supply Schedule Pricing Disclosures and Sales Reporting'' on your
attached document.
Mail: General Services Administration, Regulatory
Secretariat Division (MVCB), 1800 F Street NW, Washington, DC 20405.
ATTN: Ms. Mandell/IC 3090-0235, Federal Supply Schedule Pricing
Disclosures.
Instructions: Please submit comments only and cite Information
Collection 3090-0235, Federal Supply Schedule Pricing Disclosures and
Sales Reporting, 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. Matthew McFarland, Office of
Acquisition Policy, (301) 758-5880 or [email protected].
SUPPLEMENTARY INFORMATION:
A. Purpose
The extension has been renamed ``Federal Supply Schedule Pricing
Disclosures and Sales Reporting'' because it now includes a burden
estimate associated with the basic version of GSAR clause 552.238-80
Industrial Funding Fee and Sales Reporting.\2\ GSA uses this
information to collect the Industrial Funding Fee and administer the
FSS program. This burden was included under a separate approved
information collection identified by OMB control number 3090-0121.
---------------------------------------------------------------------------
\2\ This clause was formerly found at GSAR 552.238-74 but was
amended to GSAR 552.238-80 per GSAR case 2016-G502, effective May
23, 2019. See 84 FR 17030 from April 23, 2019.
---------------------------------------------------------------------------
GSA's Federal Supply Schedules, commonly known as GSA Schedules or
Multiple Award Schedules (MAS), are Government-wide contracts providing
federal agencies with a simplified process for acquiring commercial
supplies and services. The FSS program is the Government's preeminent
commercial contracting vehicle, accounting for about 10 percent of all
federal contract dollars with approximately $33 billion of purchases
made through the program in fiscal year 2018.
GSA establishes the pricing and terms of each GSA Schedule contract
with commercial vendors. Federal agencies then follow GSA's competitive
procedures when placing orders against
[[Page 24518]]
these contracts and thereby satisfy statutory competition requirements
to provide ``the lowest overall cost alternative to meet the needs of
the Federal Government.'' \3\ In turn, those agencies must pay an
Industrial Funding Fee (IFF) that covers GSA's costs of operating the
FSS program. The fee is currently set at 0.75% and is included in the
prices ordering activities pay vendors when purchasing from an FSS
contract.\4\ FSS vendors then report GSA Schedule sales data and remit
the IFF collected from ordering activities to GSA once a quarter.
---------------------------------------------------------------------------
\3\ 41 U.S.C. 152(3)(B) requires FSS ordering procedures to
``result in the lowest overall cost alternative to meet the needs of
the Federal Government.''
\4\ The IFF for Schedule 599, Special Item Number 599-2 is $1.50
per transaction.
---------------------------------------------------------------------------
There were a total of 16,215 GSA FSS contracts in fiscal year 2018.
This information collection pertains to the pricing disclosures and
sales reporting requirements for 14,152 of these contracts. The
remaining 2,063 contracts participated in the Transactional Data
Reporting pilot and were subject to a separate information collection
identified by OMB control number 3090-0306.
GSA believes Transactional Data Reporting offers a meaningful
burden reduction for FSS vendors. GSA estimates the combined burden of
this information collection is 49% more per contract than the
Transactional Data Reporting burden. If all FSS vendors participated in
Transactional Data Reporting, rather than being subject to the sales
reporting and pricing disclosure requirements of this information
collection, they would realize an estimated annual burden reduction of
$30.8 million.\5\ On the other hand, vendors will absorb costs when
reverting back to the requirements of this information collection,
including costs associated with establishing a basis of award customer
and monitoring system for PRC compliance, if GSA ends the Transactional
Data Reporting pilot without an alternative means of collecting the
IFF, monitoring program sales and establishing and monitoring contract
pricing.
---------------------------------------------------------------------------
\5\ The estimated burden for this information collection, which
applied to the 14,152 contracts not participating in the
Transactional Data Reporting pilot, is estimated to be $94.2
million. This equates to a per-contract burden of $6,662/year. The
estimated burden for the Transactional Data Reporting information
collection is $9.2 million/year for the 2,063 contracts
participating in the FSS pilot; this equates to a per-contract the
burden of $4,483/year. The estimated $30.8 million/year burden
reduction is calculated by taking the updated 3090-0235 burden
estimate ($94.2 million/year) and subtracting the product of the
number of contracts included in 3090-0235 multiplied by the average
per-contract burden of Transactional Data Reporting (14,152
contracts x $4,483), which equals $63.4 million/year ($94.2M-$63.4M
= $30.8M). More information about the Transactional Data Reporting
burden can be found under Information Collection 3090-0306 at https://www.reginfo.gov/public by searching ``ICR'' for ``3090-0306''.
---------------------------------------------------------------------------
The Paperwork Reduction Act generally requires information
collections to be renewed every three years.\6\ Both this information
collection (OMB control number 3090-0235) and the Transactional Data
Reporting information collection (OMB control number 3090-0306) were
last approved in 2016, so GSA is now obtaining extensions to both
information collections. Additionally, GSA is consolidating a separate
information collection for IFF and sales reporting (OMB control number
3090-0121) with this information collection because the burdens are
interdependent.
---------------------------------------------------------------------------
\6\ 44 U.S.C. 3507(g).
---------------------------------------------------------------------------
This request for comments only pertains to the information
collection requirements associated with the basic version of GSAR
clause 552.238-80 and CSP and PRC disclosure requirements. GSA has also
posted a separate notice requesting comments on the Transactional Data
Reporting information collection (OMB control number 3090-0306).
Sales Reporting
General Services Administration Acquisition Regulation (GSAR)
clause 552.238-80 Industrial Funding Fee and Sales Reporting is
included in every GSA Schedule contract. The basic version of the
clause requires vendors to report their FSS contract sales to GSA
within 30 days after the end of the quarter. GSA then calculates the
IFF due based on the total amount of sales reported and the vendor must
also remit that amount within 30 days after the end of the quarter.\7\
---------------------------------------------------------------------------
\7\ Alternate I of the clause applies to FSS contracts
participating in the Transactional Data Reporting pilot and falls
under the information collection identified by OMB control number
3090-0306.
---------------------------------------------------------------------------
FSS Pricing Disclosures
The basic version of GSAR clause 552.238-80 Industrial Funding Fee
and Sales Reporting also dictates the pricing procedures GSA will use
to establish contract pricing. These pricing procedures require GSA to
determine price reasonableness on its FSS contracts by comparing a
vendor's prices and price-related terms and conditions with those
offered to their other customers. Through analysis and negotiations,
GSA establishes a favorable pricing relationship in comparison to one
of the vendor's customers (or category of customers) and then maintains
that pricing relationship for the life of the contract. In order to
carry out this practice, GSA collects pricing information through CSP
disclosures and enforces the pricing relationship through the PRC.
Commercial Sales Practices (CSP): In accordance with GSAR
515.408(a)(2), offerors must submit information in the Commercial Sales
Practices Format provided in the solicitation, following the
instructions at GSAR Figure 515.4-2, or submit information in their own
format. In addition to when an offer is submitted, CSP disclosures are
also required prior to executing bilateral modifications for exercising
a contract option period, adding items to the contract, or increasing
pricing under the Economic Price Adjustment clause (GSAR 552.216-70).
Price Reductions Clause (PRC): GSAR 538.273 (b)(2) prescribes the
PRC for use in all FSS solicitations and contracts. The clause is
intended to ensure the Government maintains its price/discount (and/or
term and condition) advantage in relation to the vendor's customer (or
category of customer) upon which the FSS contract is based. The basis
of award customer (or category of customer) is identified at the
conclusion of negotiations and noted in the contract. Thereafter, the
PRC requires FSS vendors to inform the contracting officer of price
reductions within 15 calendar days. Per GSAR 552.238-81(c)(1),
A price reduction shall apply to purchases under this contract if,
after the date negotiations conclude, the Contractor--
(i) Revises the commercial catalog, pricelist, schedule or other
document upon which contract award was predicated to reduce prices;
(ii) Grants more favorable discounts or terms and conditions than
those contained in the commercial catalog, pricelist, schedule or other
documents upon which contract award was predicated; or
(iii) Grants special discounts to the customer (or category of
customers) that formed the basis of award, and the change disturbs the
price/discount relationship of the Government to the customer (or
category of customers) that was the basis of award.
FSS ordering procedures are required by law to ``result in the
lowest overall cost alternative to meet the needs of the Federal
Government.'' \8\ CSP disclosures and the PRC provide GSA a mechanism
for meeting this objective by giving it insight into a vendor's pricing
practices, which is proprietary information that
[[Page 24519]]
can only be obtained directly from the vendor.
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\8\ 41 U.S.C. 152(3)(B).
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Information Collection Changes and Updates
The burden estimates from the previous approval have been adjusted
to include updates to sales reporting estimates previously included
under OMB control number 3090-0121; reflect actual participation in the
Transactional Data Reporting pilot; and revised labor rates used to
calculate cost estimates. The number of respondents and applicable
actions has also been updated.
Sales Reporting: The basic version of the Industrial Funding Fee
and Sales Reporting clause has traditionally been associated with OMB
control number 3090-0121, which was last extended in June 2017. GSA
determined this information collection should be consolidated with the
FSS Pricing Disclosures information collection (OMB control number
3090-0235) because they apply to the same population within the GSA
Schedules program.
The estimation methodology for the sales reporting calculations is
the same as what was used for the 2017 renewal of OMB control number
3090-0121 except the sales categories were revised to align with those
used for the Transactional Data Reporting information collection (OMB
control number 3090-0306).
Adjustments for Transactional Data Reporting Pilot: GSA Schedule
contracts included in the Transactional Data Reporting pilot are no
longer subject to this information collection; the separate reporting
requirements for those contracts are covered by OMB control number
3090-0306.
The Transactional Data Reporting pilot had yet to launch when these
burden estimates were previously calculated in 2016, so GSA based its
estimates for the number of contracts that would participate on the
total number of contracts under the Schedules and Special Item Numbers
eligible for the pilot:
The ratio of GSA Schedule contracts that would continue
under this information collection was estimated to be 56.8%, which was
based on the percentage of the program's sales in fiscal year 2015 for
contracts that would not be eligible to participate in the
Transactional Data Reporting pilot.
The ratio of GSA Schedule contracts slated to be included
in the Transactional Data Reporting pilot was estimated to account for
the remaining 43.2%.
Consequently, the 2016 burden estimates for the CSP and PRC renewal
and the 2017 IFF and sales reporting renewal relied upon these
Transactional Data Reporting pilot participation projections. However,
pilot participation became optional in 2017 and the number of contracts
that eventually joined the pilot was lower than anticipated in 2016. Of
the 16,215 contracts that were active in FY 2018,
14,152 contracts, or 87.28% of the total, are subject to
this information collection.
2,063 contracts, or 12.72% of the total, participated in
the Transactional Data Reporting pilot.
Consequently, the revised participation figures resulted in
significantly higher burden estimates for this information collection
and lower burden estimates for the Transactional Data Reporting
information collection (OMB control number 3090-0306).
Revised Labor Rates: The previous burden estimates used a fully
burdened labor rate of $68/hour. This included a $50/hour base rate,
which was based on professional judgment, and 36% for fringe benefits,
which was rounded down from the 36.25% fringe benefit factor included
in OMB Circular A-76.\9\
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\9\ 36.25% overhead rate was used in reference to Office of
Management and Budget (OMB) Circular No. A-76. Circular A-76
requires agencies to use standard cost factors to estimate certain
costs of Government performance. These cost factors ensure that
specific government costs are calculated in a standard and
consistent manner to reasonably reflect the cost of performing
commercial activities with government personnel.
---------------------------------------------------------------------------
The revised burden estimates attempt to align with the Department
of Defense's Regulatory Cost Analysis Tool (RCAT), which was developed
to prepare economic analyses in compliance with Executive Order 13771
and uses various Government labor category rates as the basis for cost
estimates. GSA determined--
The GS-14, Step 5 labor rate from the RCAT ($77.25/hour)
was the most appropriate for the tasks performed by vendors to comply
with CSP and PRC disclosure requirements and perform the initial setup
for sales reporting systems.
The GS-12, Step 5 labor rate from the RCAT ($55.19/hour)
was the most appropriate for the tasks performed by vendors for
quarterly sales reporting.
B. Annual Reporting Burden
This information collection applies to GSA FSS contracts that
include the basic version of GSAR clause 552.238-80 Industrial Funding
Fee and Sales Reporting. In FY 2018, 13,828 vendors held a total of
16,215 GSA FSS contracts; 12,151 of these vendors held a total of
14,152 contracts containing the basic version of clause 552.238-80.\10\
These contracts accounted for approximately 77.8% of GSA FSS sales in
fiscal year 2018. The 2,063 GSA FSS contracts subject to Alternate I of
GSAR clause 552.238-80--those participating in the Transactional Data
Reporting pilot--are covered by a separate information collection
identified under OMB control number 3090-0306.
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\10\ Some vendors hold multiple contracts and may have contracts
participating in the Transactional Data Reporting pilot and other
contracts that are subject to CSP and PRC disclosure requirements.
---------------------------------------------------------------------------
Cost Burden Calculation
Sales Reporting: The two primary activities associated with sales
reporting are initial setup and quarterly reporting. GSA calculated the
cost burden for each as follows:
Initial Setup: The duties required for these activities
will generally be completely by a senior-level subject matter expert.
For the purposes of establishing an hourly rate, GSA equates these
duties to those of a GS-14, Step 5 employee, whose hourly rate in 2019
for the ``Rest of U.S.'' locality is $56.92 an hour.\11\ When factoring
a 36.25 percent overhead rate for fringe benefits, the fully burdened
rate is $77.55 an hour.\12\
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\11\ General Schedule (GS) labor rates may be viewed on the
Office of Personnel Management (OPM) under Pay & Leave: Salaries and
Wages, SALARY TABLE 2019-RUS at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/19Tables/html/RUS_h.aspx.
\12\ 36.25% overhead rate was used in reference to Office of
Management and Budget (OMB) Circular No. A-76. Circular A-76
requires agencies to use standard cost factors to estimate certain
costs of Government performance. These cost factors ensure that
specific government costs are calculated in a standard and
consistent manner to reasonably reflect the cost of performing
commercial activities with government personnel.
---------------------------------------------------------------------------
Quarterly Reporting: The duties required for these
activities will generally be completed by mid-level personnel. For the
purposes of establishing an hourly rate, GSA equates these duties to
those of a GS-12, Step 5 employee, whose hourly rate in 2019 for the
``Rest of U.S.'' locality is $40.51 an hour. When factoring a 36.25
percent overhead rate for fringe benefits, the fully burdened rate is
$55.19 an hour.
Pricing Disclosures: The duties required for these activities will
generally be completed by a senior-level subject matter expert. For the
purposes of establishing an hourly rate, GSA equates these duties to
those of a GS-14, Step 5 employee, whose hourly rate in 2019 for the
``Rest of U.S.'' locality is $56.92 an hour. When factoring a
[[Page 24520]]
36.25 percent rate for fringe benefits, the fully burdened rate is
$77.55 an hour.
Heavier Lifts and Lighter Lifts
Due to the diversity among the FSS vendor population, the burden
associated with many of the CSP and PRC components of this information
collection cannot be equally attributed to all FSS contracts. In these
areas, GSA is categorizing contracts into those with a ``heavier lift''
or ``lighter lift.''
FSS contracts are held by a diverse set of companies, which vary in
terms of business size, offerings, and FSS sales volume. For example,
in FY 2018:
30.7 percent, or 4,975 contracts had $0 in reported FSS
sales.
6.8 percent, or 1,100 contracts, accounted for about 80
percent of all FSS sales.
The top 20 percent of FSS contracts (in terms of FY 2018
sales) accounted for 94.6 percent of FSS sales.
Only 19.7 percent of FSS contracts had more than $1
million in FSS sales.
68.7 percent of FSS contracts were held by small
businesses and had less than $1 million in FSS sales.
Small businesses held 81 percent of the FSS contracts but
accounted for 37 percent of FSS sales.
In general, a vendor's sales volume will have the greatest effect
on the associated burden of these requirements, although the number and
type of offerings, and business structure, can also be significant
factors. As previously shown, a relatively small number of FSS
contracts account for the vast majority of FSS sales and therefore
likely bear a heavier burden for these requirements. Conversely, the
majority of FSS contracts, which are typically held by small businesses
with lower sales volume, absorb less of the burden for these
requirements.
To account for the differences among FSS contracts, GSA is
utilizing the Pareto principle, or ``80/20 rule,'' which states 80
percent of effects comes from 20 percent of the population.
Accordingly, GSA is categorizing FSS contracts by those with a heavier
lift (20 percent) and those with a lighter lift (80 percent). Contracts
with heavier lifts are those with the characteristics leading to
increased burden--more sales volume, higher number of contract items,
more complex offerings, more transactions, more complex transactions,
and/or intricate business structures.
Sales Reporting
The basic version of the Industrial Funding Fee and Sales Reporting
clause requires vendors to report their total sales by Special Item
Number once a quarter in the 72A Reporting System.\13\ Vendors must
file these reports within 30 days after the end of each of the
following quarters:
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\13\ https://72a.gsa.gov.
January 1 to March 31
April 1 to June 30
July 1 to September 30
October 1 to December 31
After vendors report their sales, the 72A Reporting System
calculates the IFF due for the quarter. The system then prompts users
to ``Pay Now'' or ``Pay Later.'' Vendors can remit IFF payments via
credit card, online check, or paper check. Regardless of whether a
vendor remits the IFF at the time sales are reported or at a later
date, the IFF due must be remitted within the same 30 day deadline
following the end of the reporting quarters.
Categorization of Vendors by Quarterly Sales Revenue: Sales
reporting imposes a progressive burden--one that increases with a
vendor's sales volume. Quarterly reporting times will increase with a
vendor's applicable sales volume, as vendors with lower to no
reportable sales will spend little time on quarterly reporting, while
those with more reportable sales with face a higher reporting burden.
GSA separated contracts into categories based on reported annual
sales volume in order to account for the differences in reporting
burden. These categories are:
Category 1: No sales activity
Category 2: Sales between $0 and $25,000
Category 3: Sales between $25,000 and $250,000
Category 4: Sales between $250,000 and $1 million
Category 5: Sales over $1 million
The distribution of contracts by sales category is as follows:
Contracts by Sales Category
------------------------------------------------------------------------
FSS contracts FSS contracts
(count) (percentage)
------------------------------------------------------------------------
Category 1.............................. 4,657 33
Category 2.............................. 1,188 8
Category 3.............................. 3,469 25
Category 4.............................. 2,168 15
Category 5.............................. 2,670 19
-------------------------------
Total............................... 14,152 100
------------------------------------------------------------------------
Automated vs. Manual Reporting Systems: Vendors subject to these
clauses must create systems or processes to produce and report accurate
data. Generally, vendors will use automated or manual systems to
identify the quarter's reportable sales. An automated system is one
that relies on information technology, such as an accounting system or
data management software, to identify and compile reportable data.
These systems can tremendously streamline the reporting process but
require upfront configuration to perform the tasks, such as coding the
sales types to be retrieved. Conversely, a manual system is one that
incorporates little to no automation and instead relies on
[[Page 24521]]
personnel to manually identify and compile the reportable data. An
example of a manual system would be an accountant reviewing invoices to
identify the reportable data and then transferring the findings to a
spreadsheet. In contrast to automation, a manual system requires
relatively little setup time but the reporting effort will generally
increase with the vendor's sales volume.
The likelihood of a vendor adopting an automated system increases
with their applicable sales volume. Vendors with little to no
reportable data are unlikely to expend the effort needed to establish
an automated reporting system since it will be relatively easy to
identify and report a limited amount of data. However, as a vendor's
applicable sales increase, they will be increasingly likely to
establish an automated system to reduce the quarterly reporting burden.
Consequently, vendors with higher reportable sales will likely bear a
higher setup burden to create an automated system, or absorb a high
quarterly reporting burden if they choose to rely on manual reporting
methods.
The following chart depicts the likelihood of the population of
contracts operating under manual and automated reporting systems:
Contracts by Reporting System Type
[Manual vs. Automated]
----------------------------------------------------------------------------------------------------------------
Automated Manual system-- Automated
Manual system system vendor count system--
(percentage) (percentage) vendor count
----------------------------------------------------------------------------------------------------------------
Category 1...................................... 100 0 4,657 0
Category 2...................................... 100 0 1,188 0
Category 3...................................... 90 10 3,122 347
Category 4...................................... 50 50 1,084 1,084
Category 5...................................... 10 90 267 2,403
---------------------------------------------------------------
Total Count of Contracts by System Type..... .............. .............. 10,318 3,834
----------------------------------------------------------------------------------------------------------------
Percentage of Contracts by System Type.......... .............. .............. 73% 27%
----------------------------------------------------------------------------------------------------------------
Initial Setup: Vendors with active FSS contracts already have
procedures in place to meet these longstanding reporting requirements.
However, new FSS vendors will absorb a one-time setup burden to
establish reporting systems. The estimated setup time varies between
automated and manual reporting systems. Vendors implementing a manual
system must acclimate themselves with the new reporting requirements
and train their staff accordingly, while those with automated systems
must perform these tasks in addition to configuring information
technology resources.
GSA estimates the average one-time setup burden is 8 hours for
vendors with a manual system and 40 hours for those with an automated
system. GSA also attributes the same system type probabilities (manual
system 73%, automated system 27%) to the population of new vendors.
These estimates apply to the 1,220 vendors awarded FSS contracts in
fiscal year 2018.
Quarterly Reporting: Vendors are required to report sales within 30
calendar days after the end of each quarter. The average reporting
times vary by system type (manual or automated) and sales volume. GSA
estimates vendors using a manual system will have average quarterly
reporting times ranging from 15 minutes (0.25 hours) per quarter for
vendors with $0 sales to an average of 8 hours per quarter for vendors
with quarterly sales over $1 million. On the other hand, GSA projects
vendors with automated systems will have reporting times of 2 hours per
quarter, irrespective of quarterly sales volume, as a result of
efficiencies achieved through automated processes. The following table
shows GSA's projected quarterly reporting times per sales category and
system type:
Quarterly Reporting Hours by System Type and Category
------------------------------------------------------------------------
Automated
Manual systems systems
------------------------------------------------------------------------
Category 1.............................. 0.25 2.00
Category 2.............................. 1.00 2.00
Category 3.............................. 2.00 2.00
Category 4.............................. 4.00 2.00
Category 5.............................. 8.00 2.00
------------------------------------------------------------------------
Annualized Public Burden Estimates for Sales Reporting: The burden
estimates consist of quarterly reporting times for all 14,152
participating contracts and a one-time setup burden for the 1,220 new
contracts:
Quarterly Reporting
Annual Burden (Hours): 90,945.
Annual Burden (Cost): $5,019,255.
Initial Setup
Annual Burden (Hours): 20,336.
Annual Burden (Cost): $1,577,078.
Price Reductions Clause
GSA attributes the PRC-related burden to training, compliance
systems, and notifying GSA of price reductions within 15 calendar days
after their occurrence.
Training: FSS vendors provide training to their employees to ensure
compliance with FSS pricing disclosure requirements. GSA is basing
these burden estimates on the number of vendors, not the number of
contracts, because vendors with multiple contracts
[[Page 24522]]
subject to this requirement will likely not have to provide separate
training for each contract.
In FY 2018, there were 12,151 vendors subject to PRC notification
requirements, 2,830 (20%) with a heavier lift and 9,721 (80%) with a
lighter lift. Vendors within the heavier lift category may need to
develop formal training programs and conduct training for numerous
divisions and offices, while vendors in the lighter lift category may
have no need for training design and administration due to having as
few as one person responsible for PRC compliance.
Training--Heavier Lift
Total Annual Responses: 2,430.
Average Hours per Response: 40.
Total Time Burden (Hours): 97,208.
Total Cost Burden: $7,538,480.
Training--Lighter Lift
Total Annual Responses: 9,721.
Average Hours per Response: 20.
Total Time Burden (Hours): 194,416.
Total Cost Burden: $15,076,961.
Compliance Systems: FSS vendors must develop systems to control
discount relationships with other customers/categories of customer to
ensure the basis of award pricing relationship is not disturbed. In
public comments submitted on this information collection renewal in
2016, a respondent stated PRC monitoring burden should be 1,290 hours
to establish a compliance system in the first year and 1,100 hours each
year thereafter for monitoring activities. However, GSA believes the
amount of investment into a compliance system is inversely related to
the amount of time needed to carry out ongoing monitoring activities.
Specifically, vendors making high upfront investments, such as
programming a quotation tool to control discounts, will have a lower
ongoing monitoring reporting burden. On the other hand, vendors not
making upfront investments to establish a compliance system will have a
higher ongoing reporting burden.
As a result, GSA is using the 1,290 hour estimate but allocating it
across the 20-year life of a contract for heavier lift vendors using
automated systems to carry out monitoring activities, resulting in an
annual burden of 65 hours. GSA estimates heavier lift vendors that
spend less time implementing an automated system will incur a similar
burden for monitoring activities, meaning GSA is estimating the same 65
hour/year burden for those vendors. For lighter lift vendors, GSA is
attributing an average burden of 700 hours for the 20-year life of the
contract, which equates to 35 hours a year.
Compliance Systems--Heavier Lift
Total Annual Responses: 2,430.
Average Hours per Response: 65.
Total Time Burden (Hours): 156,748.
Total Cost Burden: $12,155,800.
Compliance Systems--Lighter Lift
Total Annual Responses: 9,721.
Average Hours per Response: 30.
Total Time Burden (Hours): 341,995.
Total Cost Burden: $26,521,745.
Price Reduction Notifications: 1,035 price reduction modifications
were completed in FY 2018, with each modification requiring a
notification from the vendor. In a survey conducted among GSA FSS
contracting officers, respondents estimated it took an average of 4.25
hours to complete a price reduction modification. GSA believes FSS
vendors bear a similar burden for this task and is therefore using the
same burden estimate.
Price Reduction Notifications
Total Annual Responses: 1,035.
Average Hours per Response: 4.25.
Total Time Burden (Hours): 4,399.
Total Cost Burden: $341,123.
Commercial Sales Practices Disclosures
The CSP burden results from disclosures required of any vendor
submitting an offer for an FSS contract or modifying an FSS contract to
increase prices, add items and Special Item Numbers, or exercise
options.
The burden estimates for CSP disclosures are based upon the
estimates provided by respondents to the GSA FSS contracting officer
survey. The 77 survey respondents provided estimates regarding the
amount of time it takes FSS contracting officers to complete CSP-
related tasks and GSA believes these responses can be used as a
benchmark for vendor burden estimates.
In calculating these burden estimates, GSA acknowledges a vendor's
tasks are more complex than simply comparing offered prices to
discounts given to other categories of customers. In addition to
collecting and analyzing data, GSA expects offerors to provide data
that is current, accurate and complete. GSA recognizes this due
diligence places an additional burden on offerors. Also, similar to the
PRC, factors such as sales volume, the number of contract items,
complexity of offerings, and business structures has a significant
effect on the burden but can vary widely from vendor to vendor.
Consequently, GSA is using the heavier lift and lighter lift
methodology for the CSP burden estimates.
Pre-award Disclosures: In fiscal year 2018, vendors submitted 2,503
offers for FSS contracts with CSP disclosure requirements. GSA
recognizes the complexity of this task varies with the type and number
of offerings, business structure, and expected revenue, so for this
burden estimate, these offers are separated between offerors with
heavier lifts (20 percent or 501 offers) and those with lighter lifts
(80 percent or 2,002 offers).
Prior to receiving comments on this information collection in 2016,
GSA based its burden estimates for this function directly on the
results from the FAS survey of its FSS contracting officers. However,
after receiving public comments stating the pre-award disclosure burden
for vendors exceeds that for contracting officers, GSA doubled its
vendor estimates, resulting in increases for heavier lift vendors from
41.48 hours/year to 82.96 hours/year and for lighter lift vendors from
32.41 hours/year to 64.82 hours/year.
Pre-Award Disclosures--Heavier Lift
Total Annual Responses: 501.
Average Hours per Response: 82.96.
Total Time Burden (Hours): 41,532.
Total Cost Burden: $3,909,407.
Pre-Award Disclosures--Lighter Lift
Total Annual Responses: 2,002.
Average Hours per Response: 64.82.
Total Time Burden (Hours): 129,801.
Total Cost Burden: $10,066,090.
Price Increase Modifications: In FY 2018, 1,457 price increase
modifications were processed, including 492 (20 percent) with a heavier
lift and 1,967 (80 percent) with a lighter lift. The time burden for
these modifications varies mainly with the type and number of
offerings. GSA is basing its burden estimates for this function
directly on the results from the FAS survey of its FSS contracting
officers.
Price Increases--Heavier Lift
Total Annual Responses: 492.
Average Hours per Response: 10.45.
Total Time Burden (Hours): 5,139.
Total Cost Burden: $398,553.
Price Increases--Lighter Lift
Total Annual Responses: 1,967.
Average Hours per Response: 9.71.
Total Time Burden (Hours): 18,039.
Total Cost Burden: $1,398,942.
Adding Items and Special Item Numbers (SINs): In FY 2018, 4,209
addition modifications were processed, including 1,275 (20 percent)
with a heavier lift and 5,099 (80 percent) with a lighter lift. The
time burden for these modifications varies with the type and number of
offerings. GSA is basing its
[[Page 24523]]
burden estimates for this function directly on the results from the FAS
survey of its FSS contracting officers.
Addition Modifications--Heavier Lift
Total Annual Responses: 1,275.
Average Hours per Response: 11.13.
Total Time Burden (Hours): 14,189.
Total Cost Burden: $1,100,320.
Addition Modifications--Lighter Lift
Total Annual Responses: 5,099.
Average Hours per Response: 10.65.
Total Time Burden (Hours): 54,306.
Total Cost Burden: $4,211,468.
Exercising Options: In FY 2018, 2,468 option modifications were
processed, including 494 (20 percent) with a heavier lift and 1,974 (80
percent) with a lighter lift. The time burden for these modifications
varies with the type and number of offerings, business structure, and
expected revenue. GSA is basing its burden estimates for this function
directly on the results from the FAS survey of its FSS contracting
officers because while the associated tasks with processing an option
CSP are similar to that of a pre-award CSP, the option CSP requires
less time because of familiarity and precedents created during the
preceding contract period.
Option Modifications--Heavier Lift
Total Annual Responses: 494.
Average Hours per Response: 26.14.
Total Time Burden (Hours): 12,903.
Total Cost Burden: $1,000,605.
Option Modifications--Lighter Lift
Total Annual Responses: 1,974.
Average Hours per Response: 22.32.
Total Time Burden (Hours): 44,069.
Total Cost Burden: $3,417,521.
GSA Office of Inspector General Audits
The GSA Office of Inspector General (OIG) regularly audits GSA
Schedule contracts for compliance with PRC and CSP requirements. The
GSA OIG performed 48 contract audits in FY 2018.\14\ Survey responses
included with public comments submitted for the 2012 renewal of this
information collection noted vendors estimated spending approximately
440-470 hours preparing for audits involving the PRC. This burden still
applied in 2018, so GSA is taking the median point of that range (455)
and multiplying it by 48 audits, to reach the sum of 21,840 hours
expended preparing for audits.
---------------------------------------------------------------------------
\14\ The GSA OIG's audit findings are outlined in their
Semiannual Reports to the Congress. The report covering October 1,
2017 to March 31, 2018 stated the OIG performed 21 contract audits
and the report covering April 1, 2018 to September 30, 2018 stated
the GSA OIG performed 27 contract audits.
---------------------------------------------------------------------------
GSA OIG Audits
Total Annual Responses: 48.
Average Hours per Response: 455.
Total Time Burden (Hours): 21,840.
Total Cost Burden: $1,226,316.
Total Annual Burden
The total estimated burden imposed by Federal Supply Schedule
pricing disclosures is as follows:
Estimated Annual Time Burden (Hours)
Sales Reporting: 111,281.
Price Reductions Clause: 794,766.
CSP Disclosures: 319,978.
GSA OIG Audits: 21,840.
Total Annual Time Burden: 1,247,865.
Estimated Annual Cost Burden
Sales Reporting: $6,141,614.
Price Reductions Clause: $61,634,109.
CSP Disclosures: $24,814,275.
GSA OIG Audits: $1,693,692.
Total Annual Cost Burden: $94,283,689.
C. Public Comments
Public comments are particularly invited on: Whether this
collection of information is necessary 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.
Obtaining Copies of Proposals: Requesters may obtain a copy of the
information collection documents from the General Services
Administration, Regulatory Secretariat Division (MVCB), 1800 F Street
NW, Washington, DC 20405, telephone 202-501-4755. Please cite OMB
Control No. 3090-0235, Federal Supply Schedule Pricing Disclosures and
Sales Reporting, in all correspondence.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Government-wide Policy.
[FR Doc. 2019-11029 Filed 5-24-19; 8:45 am]
BILLING CODE 6820-61-P
