INFORMATION COLLECTION
SUPPORTING STATEMENT – PART A
Disadvantaged Business Enterprise American Recovery and Reinvestment Act (ARRA)
Bonding Assistance Reimbursable Fee Program
The President signed the American Reinvestment and Recovery Act (ARRA) (P.L. 111-5) appropriated $20 million Disadvantaged Business Enterprise (DBE) Bonding Assistance Program for certified DBEs that are specifically working on the transportation and infrastructure ARRA funded projects. US Department of Transportation (DOT) is authorized under Section 332(b) (6) of Title 49, the United States Code to participate in and cooperate with U.S. government programs designed to provide financial assistance to minority and women owned businesses. The Bonding Assistance Program (BAP) is cited in Section 332 (e) of Title 49, whereas the Secretary of Transportation shall provide assistance in obtaining bid, payment, and performance bonds by DBEs. The DBE program goals apply to all Recovery Act transportation infrastructure programs. Therefore this investment will help address the disproportionate effect that the increase in unemployment has had on minority owned and women owned businesses. This DBE BAP program meets the DOT’s Global Connectivity Strategic Goal Outcome 6. Expanded opportunities for all businesses in the transportation sector, especially small, women-owned and disadvantaged businesses.
The information collected will be from the DBE working on transportation infrastructure ARRA funded project. Under the DBE ARRA BAP program, DBEs performing on a transportation and infrastructure projects receiving ARRA funding assistance from any DOT mode of transportation such as Federal Highway Administration, (FHWA), Federal Transit Administration (FTA), Federal Aviation Administration (FAA), Federal Railroad Administration (FRA), Maritime Administration (MARAD) will receive financial bonding assistance in the form of bonding fee cost reimbursement. This provision is applicable to a subcontract or prime contract at any tier in the construction project. Under this program DOT will directly reimburse DBEs the premiums paid to the surety company for performance, payment or bid/proposal bonds. The range of the premium fee is between 1-3% of the total bond amount. In the event the DBE also obtains a bond guarantee from Small Business Administration’s (SBA) Surety Bond Guarantee Program (SBGP), the DOT will also reimburse the DBE for the small business concern (principal) fee of .729% of the contract price
The information collected will be used by DOT OSDBU to verify eligibility, including whether the applicant is a current certified DBE.
3. The U.S. Department of Transportation ARRA BAP Application for Reimbursement of Reimbursement of Bond Fees is a fill able form. The form can be electronically submitted by email or submitted by regular mail. A link to the application will also be posted on www.govbenefits.gov However, there is no electronic application process for this new program.
This is a new program created out of the American Reinvestment and Recovery Act. A DBE Bonding Assistance Reimbursable Fee Program has not been done before from US DOT/OSDBU. Since this program involves the reimbursement of costs related to a specific transaction, the information being collected is not already available. : 1) the name of the company and full street address; 2) the Dun and Bradstreet Number (DUNS); 3) Assertion that the DBE is registered in the Central Contractor Registration (ccr.gov) inclusive of bank information to process payment; 4) DOT transportation related contract information and supporting documentation, proof of transportation-related contract and documentation that indicates the federal project number; 5) bond information and supporting documentation, a copy of the bond and proof of payment of the premium(s) and fee(s) related to the bond; 6)DBE certification information and supporting documentation, a copy of DBE certification and annual affidavit, if applicable The information collected will be verified by OSDBU staff as part of the application process.
This collection is for DBEs working on transportation infrastructure ARRA funded project. DBEs are small businesses. Efforts have been made to simplify the application form, keeping it to one page with three page instructions to assist the DBE to submit a complete application package to expedite reimbursement and minimize burden. In addition a sample letter to show how to indicate the federal project number is included. Applicants will be able to find further guidance at http://www.dot.gov/recovery/ost/. A coordinated effort has been made with the DOT Operating Administrations to minimize duplicative reporting OSDBU’s intent is to give this subsidy reimbursement fee to the DBEs trying to obtain surety bonding to assist DBEs to become more competitive and perform on more transportation infrastructure projects receiving ARRA funding assistance from any DOT mode of transportation and minimize cash flow difficulties.
The information on the application form needs to be collected so the DBE can be reimbursed for the bonding fees. If the DBE applicant wants to take advantage of the financial assistance than he or she must provide the information required to determine eligibility and support DOTs expenditure on their behalf. OMB Memorandum M-09-10 and M-09-15 require recipient reporting for all ARRA funded programs.
There is a one-time data collection to verify eligibility for a financial assistance related to a specific transaction. To be eligible for a Bonding Assistance Reimbursable Fee the DBE must:
be a certified DBE in accordance with Title 49 Code of Federal Regulation Part 26 (49 CFR 26) A copy of their DBE Certification and/or annual affidavit is required. The DBE has to find a copy of their certification and attach it to the application.
the DBE is required to have a Dun and Bradstreet Number (DUNS#). The website is provided on the form for the DBE to apply for a DUNS number if they do not already have one. It is an ARRA requirement to have a DUNS number when providing services on a project receiving funding pursuant to the ARRA. It is also a good business practice. So most DBEs already have a DUNS. If not they can complete the instructions on the www.fedgov.dnob.com/webform to apply;
The DBE must be registered in the Central Contractor Registration (CCR). It is an ARRA requirement to be registered in the CCR if providing services on a project receiving funding pursuant to the ARRA. The DBEs bank information is required to process payment to the DBE. They do not give DOT/OSDBU their bank information as part of the application package. To minimize burden and not collect Personally Identifiable Information in the application package, it is a requirement for the DBE to include their bank information in their CCR profile. In order to directly contract with the federal government, a contractor must be registered in the CCR. However, DBEs normally work for the state or local transportation provider and it is not a requirement to do business for these entities. Therefore most DBEs will have not already registered with the CCR. To assist them, the application form instructions provide the internet address, www.ccr.gov, to obtain the instructions and register. The OSDBU staff person will ask them if they have entered this information in CCR. They will not ask them to provide this information to OSDBU.
The DBE must supply a copy of the bond and proof of payment that the fee(s) have been paid. The DBE should have this information available and be able to fill out the information with minimal burden.
In an effort not to impose an undue burden on potential applicants, OSDBU intends to collect the minimum information to be consistent with DOT and government-wide practices for ARRA reporting requirements, verify eligibility for the ARRA BAP program, and substantiate obligation and disbursement of ARRA funds. OSDBU will process all applications. If the application is not complete OSDBU or one of the Small Business Transportation Resource Centers (SBTRCs) will assist the DBEs to make it complete. The only potential burden to the DBE applicant is the requirement to obtain a letter from the federal, state or local transportation authority indicating the federal project number. We have enclosed a sample letter. To minimize burden, if there is a current form such as a State DOT subcontract form or other transportation entity that identifies the federal project number, then they can submit that document in lieu of the letter. If there is any problems the DBE applicant should contact the Office of Small and Disadvantaged Business Utilization (OSDBU) for assistance (202) 366-1930 to help with the process. There is no additional information that is required that should cause undue burden on the DBE to the point that he or she stops processing the form. There are no special circumstances that would cause the data collection described above to be conducted in a manner requiring respondents to report information to the agency more often than quarterly; requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it; requiring respondents to submit more than an original and two copies of any document; requiring respondents to retain records for more than three years; that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or requiring respondents to submit proprietary trade secret, or other confidential information.
Compliance with 5 CFR 1320.8: Not applicable.
There is no payment or gift to respondents.
The information collected on the form does not trigger the Privacy Act.
No sensitive information is required on the DOT ARRA BAP form.
Estimate of burden hours for information requested:
Respondents: Certified Disadvantaged Business Enterprises (DBEs) that are pursing, in the process, or have obtained contracts on ARRA transportation infrastructure projects. We spoke to the SBA Surety Bond Guarantee Program personnel and a representative the Surety and Fidelity Association of America (SFAA) who represents the small and emerging businesses to glean the required estimates. The average bond for a small and emerging business or DBE is between $250,000 and $500,000. Therefore to calculate the universe US DOT/OSDBU can serve, we estimate an average bond to be $350,000. The Bonding Premium Fee charged by the Sureties is a range of 2 to 3% of the total bond. Therefore we utilized an average premium of 2.5% or $8,750.00 on a $350,000 bond. The SBA Surety Guarantee Bond Program Principal Fee is currently set to .729% of the contract price, or bond amount. So on a $350,000 bond, the SBA principal fee is $2,551. Therefore, the number of DBEs that we can assist with $20 million is calculated to be approximately 1,770. The average amount of financial assistance is $11,300.00 per DBE on one application, submittal to include both eligible fees.
Form: U.S. Disadvantaged Business Enterprise (DBE) American Reinvestment and Recovery Act of 2009 Bonding Assistance Reimbursable Fee Program DOT Form F4504
Respondents: 1770
Frequency: Once
Estimated Average Burden per Response: 2 hours
Estimated Total Annual Burden Hours: 3540 hours
Estimate of total annual costs to respondents
Respondents: Certified Disadvantaged Business Enterprises (DBEs) that are pursing, in the process, or have obtained contracts on ARRA transportation infrastructure projects. The average total annual cost to the respondents was calculated on the approximate one hour it will find the documentation to complete the application. The individual completing the task usually is the officer manager so if you annualize their salary and add in overhead plus add the average salary of the principle owner, who has to assist in finding the documentation –making the phone calls; sending emails; collecting the necessary data and describing it to the office manager/clerical assistant to record on the form. Therefore the total estimate is one hour for the office manager/clerical staff and another hour for the principle to assist in the process. The cost is based on a combined estimate of these two salaries for two hours using pay scale documentation ($24.00 an hour for the office manager/clerical assistant and $74.00 an hour for the principle for a total $94.00 per hour).
Form: U.S. Disadvantaged Business Enterprise (DBE) American Reinvestment and Recovery Act of 2009 Bonding Assistance Reimbursable Fee Program DOT Form F4504
Respondents: 1770
Frequency: Once
Estimated Average Burden per Response: 2 hours
Estimated Total Annual Burden Hours: 3540 hours
Estimated Total Annual Cost to Respondents: $332,760.
Estimate Cost to the Federal Government: Respondents: Certified Disadvantaged Business Enterprises (DBEs) that are pursing, in the process, or have obtained contracts on ARRA transportation infrastructure projects. The burden to the government will involve handling the inquiries; answering the questions; processing the application; making sure the items on the internal bonding checklist are complete; everything requested on the application is complete and the DBE is eligible for the cost reimbursement. There will be a communication process with the DBE and the OSDBU staff personnel from the inquiry phase to completion from telephone and email correspondence. There is no cost to the federal government for the federal employees since Bonding Assistance is within the Mission of the Office of Small and Disadvantaged Business. However, the contractor support that will assist with this program will be the Staff Assistants who will be answering the inquiries and helping with bond application processing and another contractor to process the applications and make sure they are complete and ready for approval. There will be additional time spent describing to an individual who is not DBE certified and is not on an ARRA DOT infrastructure project. An estimate of time involved working on these program using the 1770 potential applicants is $127,000.
Form: Disadvantaged Business Enterprise (DBE) American Reinvestment and Recovery Act of 2009 Bonding Assistance Reimbursable Fee Program
DOT Form F4504
Respondents: 1770
Frequency: Once
Estimated Average Burden per Response: 2 hours
Estimated Total Annual Burden Hours: 3540 hours
Estimated Total Annual Cost to Federal Government: $127,000
This is a new program created out of the American Reinvestment and Recovery Act. There are no program changes or adjustments reported.
DOT will not be publishing the results of this data collection.
Approval for not displaying the expiration date of OMB approval. None
Exceptions to certification statement. None
| File Type | application/msword |
| Author | nancy.strine |
| Last Modified By | tracey.jackson |
| File Modified | 2009-08-18 |
| File Created | 2009-08-18 |