Surety Bond Supporting Statement B

B. Collection of Information Employing Statistical Methods.

1. The target population for this survey is the approximately 72,000 small construction businesses that are less than two years old listed in the Dunn & Bradstreet (D&B) database. In order to achieve a 95% level of confidence, a total of 382 survey responses is required. The companies to be surveyed will be randomly selected by D&B. The surveys will be conducted via telephone, and to ensure completion of 382 surveys, the list of small businesses provided by D&B will include a total of 955 small businesses. This allows for a 40% rate of successful telephone contact.

2. Five staff members will conduct the survey, and a scripted format will be utilized to ensure uniformity in the explanation of the purpose of the survey for the small business, as well as the questioning, recording of results, and survey closure with the small business. It is anticipated that this survey will not be conducted again in a period of at least three years. A completed survey sample of 382 small businesses against a total population of 72,000 small businesses yields a 95% confidence level based upon accepted statistical sampling procedures. The 72,000 small construction business population was chosen, as this population is limited to businesses less than two years old, and would be most in need of the Surety Bond Guarantee Program, as contrasted with older, more established businesses that can generally obtain surety bonds in the commercial market.

3. It is anticipated that some surveys will require repeat calls to the small business. Additionally, some small businesses may be unwilling to complete the telephone survey. To ensure completion of the required 382 surveys, business name, address, and telephone number will be extracted from the D&B database for a total of 955 small businesses. The survey questions are simple and direct, and will enable easy tabulation.

4. The staff conducting the surveys will be required to rehearse the survey with supervisory personnel in advance of conducting the actual surveys. The rehearsals are to ensure proper introduction and closure of the survey with the small businesses, and to ensure a standardized survey question process and procedure by the five Government staff conducting the survey and recording results.

5. Frank Lalumiere, Director, Surety Bond Guarantee Program, consulted with representatives in the SBA Offices of General Counsel and Government Contracts concerning the survey process, sampling plan, and confidence levels. Mr. Lalumiere and his staff will be responsible for collecting the survey data and analyzing the results.