Justification for Nonsubstantive Change Request (Dropping the annual form)

CHANGE REQUEST for OMB

Title: Survey of Plant Capacity Utilization

OMB Control Number: 0607-0175

Expiration Date: 10/31/2009

The Survey of Plant Capacity was conducted on both a quarterly (Form MQ-C2) and annual (Form MQ-C1) basis for calendar year 2006. The annual survey was co-funded by the Federal Reserve Board (FRB) and the Defense Logistic Agency (DLA). The quarterly survey was solely funded by the FRB.

Due to budget limitations, the DLA has decided to cease funding of the annual survey. Since the FRB cannot fund both surveys, the annual survey will be discontinued beginning with calendar year 2007.

As a result of losing the annual survey, the sample for the quarterly survey will need to be increased from 6,000 to 7,500 respondents to account for the loss in industry detail. We will also be adding a number of check boxes to the form. These check boxes appeared on the annual form and help clarify reporting patterns. The check boxes add no significant burden, however, we did add an additional .25 hours for these boxes. These changes will not take effect until 1^st quarter 2008 which will be mailed in March 2008. The total net effect on burden is summarized below.

Burden RESPONSES HOURS

Previous: 41,000 74,250

MQ-C2 24,000 36,000

MQ-C1 17,000 38,250

New: 30,000 52,500

MQ-C2 30,000 52,500

Difference: -11,000 -21,750

Program change -11,000 -21,750