SUPPORTING STATEMENT
FOR PAPERWORK REDUCTION ACT SUBMISSION
9000-0069, INDIRECT COST RATES
1. Administrative requirements. The contractor’s proposal of final indirect cost rates is necessary for the establishment of rates used to reimburse the contractor for the costs of performing under the contract. The supporting cost data are the cost accounting information normally prepared by organizations under sound management and accounting practices.
2. Uses of information. The proposal and supporting data is used by the contracting official and auditor to verify and analyze the indirect costs and to determine the final indirect cost rates or to prepare the Government negotiating position if negotiation of the rates is required under the contract terms.
3. Consideration of information technology. We use improved information technology to the maximum extent practicable. Where both the Government agency and contractors are capable of electronic interchange, the contractors may submit this information collection requirement electronically.
4. Efforts to identify duplication. This requirement is being issued under the Federal Acquisition Regulation (FAR) which has been developed to standardize Federal procurement practices and eliminate unnecessary duplication.
5. If the collection of information impacts small businesses or other entities, describe methods used to minimize burden. The burden applied to small businesses is the minimum consistent with applicable laws, Executive orders, regulations, and prudent business practices.
6. Describe consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently. Collection of information on a basis other than solicitation-by-solicitation is not practical.
7. Special circumstances for collection. Collection is consistent with guidelines in 5 CFR 1320.6.
8. Efforts to consult with person outside the agency. Under the procedures established for development of the FAR, agency and public comments were solicited and each comment addressed before finalization of the text. A notice was published in the Federal Register at 74 FR 27798, June 11, 2009, made this requirement available to the public and requested comments. No major problems regarding this requirement were reported.
9. Explanation of any decision to provide any payment or gift to respondents, other than reenumeration of contractors or guarantees. Not applicable.
10. Describe assurance of confidentiality provided to respondents. This information is disclosed only to the extent consistent with prudent business practices and current regulations.
11. Additional justification for questions of a sensitive nature. No sensitive questions are involved.
12 & 13. Estimated total annual public hours and cost burden.
Used a baseline of 5,000 hours. Twenty-five percent of the 5000 hours is spent on reporting and 75% is recordkeeping. Twenty-five percent of the recordkeeping burden addresses Government unique-requested information.
Annual Recordkeeping Burden and Cost
Estimated respondents/yr 3,000
Responses annually x 1
Total annual responses 3,000
Estimated hrs/response(25% of 5,000) x 1,250
Estimated total burden/hrs (3,000 x 1,250) 3,750,000
Numbers of recordkeepers 3,000
Estimated hrs/response (25% of 3,750) x 938
Total recordkeeping burden hours(3,000 x 938) 2,814,000
Hours per response (1,250 + 938) 2,188
Total response and recordkeeping burden hours 6,564,000
Average wages + overhead ($24/hr + 75% OH) $ 42
Estimated cost to public 275,688,000
14. Estimated cost to the Government. Time required for Governmentwide review is estimated at 40 hours per response.
Annual Reporting Burden and Cost
Respondents/yr 3,000
Reviewing time/hr 40
Reviewing time/yr 120,000
Average wages + overhead ($20/hr+100%OH) $ 40
Total Government cost $4,800,000
Explain reasons for program changes or adjustments reported in Item 13 or 14. This submission requests an extension of OMB approval of an information collection requirement in the Federal Acquisition Regulation (FAR). The information collection requirement in the FAR remains unchanged.
Outline plans for published results of information collections. Results will not be tabulated or published.
17. Approval not to display expiration date. Not applicable.
18. Explanation of exception to certification statement. Not applicable.
B. Collections of Information Employing Statistical Methods.
Statistical methods are not used in this information collection.
| File Type | application/msword |
| File Title | .DEPARTMENT OF DEFENSE |
| Author | Network Administrator |
| Last Modified By | hadanflowers |
| File Modified | 2009-10-05 |
| File Created | 1996-03-27 |