83-I for residentsrev-2

Supporting Statement for Paperwork Reduction Act Submission

Public Housing – Contracting with Resident-Owned Businesses – 2577 - 0161

1. Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

Public Housing Agencies (PHAs) can enhance the economic opportunities of public housing residents by allowing for an alternative method to contract with eligible and qualified resident-owned businesses. PHAs that enter into contracts with resident-owned businesses must comply with the requirements/procedures set forth in 24 §§ 963.10, 24 §§ 963.12, 24 §§ 85.36(h), 24 §§ 85.36(i) and other such contract terms that may be applicable to the procurement under the Department’s regulations.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

Within the scope of this information collection, PHAs must collect the following:

• Certified copies of any State, county, or municipal licenses that may be required of the business to engage in the type of business activity for which it was formed. Where applicable, the PHA must obtain a certified copy of its corporate charter or other organizational document that verifies that the business was properly formed in accordance with State law;

• Certification that shows the business is owned by residents, disclosure documents that indicate all owners of the business and each owner’s percentage of the business along with sufficient evidence sufficient that demonstrates to the satisfaction of the PHA that the business has the ability to perform successfully under the terms and conditions of the proposed contract;

• Certification as to the number of contracts awarded, and the dollar amount of each contract award received, under the alternative procurement process; and

• Contract award documents, proof of bonding documents, independent cost estimates and comparable price analyses.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also, describe any consideration of using information technology to reduce burden.

This collection of information does not currently involve use of automated, electronic or other technological collection techniques.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

There is no similar information collected elsewhere. As such, there is no duplication.

5. If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods and minimize burden.

This information does not impact small businesses. As such, there is no method to minimize the burden.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is less frequently conducted, as well as any technical or legal obstacles to reducing burden.

If the information is not collected, both the Department and the PHAs will not be in compliance with the regulatory requirements regarding collection of documents specific to contracts entered into with resident-owned businesses.

7. Explain any special circumstances that would cause an information collection to be collected in a manner:

*Requiring respondents to report information to the agency more often than quarterly;

Performance reports will not be required more frequently than quarterly.

*Requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

None

*Requiring respondents to submit more than an original and two copies of any document;

None

*Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than 3 years;

None

*In connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

None

*Requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

None

*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

None

*Requiring respondents to submit proprietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent permitted by law.

None

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency’s notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received on cost and hour burden.

Specifically address comments received on cost and hour burden.

• Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and the data elements to be recorded, disclosed, or reported.

• Identify date and page number of the Federal Register notice soliciting comments on the information.

A notice of proposed information collection for the Public Housing Contracting with Resident-Owned Businesses was published in the Federal Register on February 2. 2010. Volume is 75, Number 22. No public comments were received.

• Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least every 3 years – even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

No payment or gift will be made to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation, or agency policy.

None

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

This item is not applicable.

12. Provide estimates of the hour burden of the collection of information. The statement should:

*Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business.

The Department does not have a mechanism or system to track the number of PHAs that enter into contractual agreements with resident-owned businesses. Although the Department has an inventory of 4,113 PHAs, the Department estimates that only 2 percent of PHAs contract with resident-owned businesses. The number is thought to be low because there are 1) likely to be very few eligible resident-owned businesses or 2) eligible resident-owned businesses may not have the requisite experience to meet requirements for available PHA procurements. The calculation for burden hours is as follows:

Number of PHAs	Number of Responses Annually*	Hours per Response	Total Annual Burden Hours	Cost per Hour	Total Annual Cost
82	82	*24	1,968	**$29.00	$57,072

*The Department estimates that out of a total of 4113 PHAs only 2 percent or 82 PHAs contract with resident owned business. The calculation is as follows:

82 PHAs x 24 hours = 1,968 hours x $29 p/hr = $57,072

**Average PHA salary = $60,000 per year; $1154 per week; $29.00 per hour

A PHA is required to undertake the following activities under the alternative method of procurement:

• Prepare the contract package (8 hours)

• Prepare the advertisement (4 hours);

• Review the bid documents and award the contract (8 hours);

• Conduct follow-up activities as necessary prior to the start date of the work (4 hours)

The allocation of 24 hours per response is based upon the procurement activities reflected above.

13. Provide an estimate for the total annual cost burden to respondents or record-keepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14).

Notwithstanding requirements set forth in the procurement regulations, PHAs already collect and maintain this information. As such, there is no annual cost burden to respondents or record-keepers resulting from this collection of information.

14. Provide estimates of annualized costs to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expenses that would not have been incurred without this collection of information. Agencies may also aggregate cost estimates from Items 12, 13, and 14, in a single table.

There is no additional cost to HUD for collection of this information.

15. Explain the reasons for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I.

The burden hours are lower due to the decrease in the estimated number of PHAs that contract with resident-owned businesses.

16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The information collected by PHAs will not be published or made available to the public.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

Not Applicable

18. Explain each exception to the certification statement identified in Item 19, “Certification for paperwork Reduction Act Submissions,” of OMB Form 83-I.

B. Collections of Information Employing Statistical Methods: Not applicable.