9000-0097 Supporting Statement

SUPPORTING STATEMENT

FOR INFORMATION COLLECTION SUBMISSION

OMB CONTROL NO.9000-0097, TAXPAYER IDENTIFICATION NUMBER INFORMATION

A. Justification.

1. Administrative requirements. FAR Subpart 4.9, Taxpayer Identification Number Information, and the provision at 52.204-3, Taxpayer Identification, implement statutory and regulatory requirements pertaining to taxpayer identification and reporting.

2. Uses of information. When the Internal Revenue Service (IRS) issued its final regulations implementing section 6050M of the Tax Reform Act of 1986 (Pub. L. 99-514), the reporting requirements included the requirement to report certain modifications to contracts that were awarded before

January 1, 1989. As implemented by Section 6050M of the Tax Reform Act of 1986 (Pub. L. 99-514) the reporting requirements included the requirement to report certain modifications to contracts that were awarded before January 1, 1989 and entered into on or after April 1, 1990.

In accordance with 31 U.S.C. 7701(c), a contractor doing business with a Government agency is required to furnish its Tax Identification Number (TIN) to that agency. 31 U.S.C. 3325(d) requires the Government to include, with each certified voucher prepared by the Government payment office and submitted to a disbursing official, the TIN of the contractor receiving payment under the voucher. The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the contractor’s relationship with the Government. The TIN is also required for Government reporting of certain contract information and payment information to the IRS.

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 persons 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 77 FR 51782, on August 27, 2012. No comments were received.

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 hour and cost burden. Time required to read and prepare the information is estimated at 6 minutes per response. The estimated respondents ,193,397 is based on the number of unique vendors reported in the Federal Procurement Data System for Fiscal Year 2011. This number is further clarified by the estimation that fifthteen percent of these unique vendors were awarded their first Government contract in FY 2011.

Annual Burden to the Public

Estimated respondents .................... 29,010

Responses annually............................ x 3

Total annual responses...................... 87,030

Estimated hrs/response...................... x .10

Estimated total burden/hrs.................. 8,703

Annual Cost to the Public

Total response burden hours................... 8,703

Average wages + overhead($28/hr.+ 36.25% OH)x $38.15

Total cost to the public................. $332,019

14. Estimated cost to the Government. GSA Procurement Analyst estimated that the time required for Government-wide review is one minute per response.

Annual Recordkeeping Burden and Cost

Reviewing time/hr.................................... .02

Responses/yr................................. . . . ..x 8,703

Review time/yr....................................... 174

Average wages + overhead… . . ……. … ($28/hr + 36.25%OH)x$38.15

Total Government cost.......................... $ 6,638

15. 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 FAR. The annual reporting burden decreased from what was published in the Federal Register at 73 FR 20613, on April 16, 2008. The decrease is attributed to a revised estimate of the respondents and hours per response. A potential federal contractor is required to complete a one-time registration in CCR to provide basic information in order to be awarded a Federal Government contract. Part of a potential Federal contractor’s CCR registration includes providing its TIN in accordance with FAR 52.204-7. It is estimated that a significant number of Federal contractors will not be required to submit their TIN under this collection at FAR 52.204-3, due to the requirement to submit their TIN during the registration process. Based on Federal procurement Data Systems (FPDS) data, 193,397 unique contractors were awarded Federal Government contracts in Fiscal Year 2011 (FY11). We estimate that fifteen percent of the FY11 unique vendors, responding on average to three solicitations per year, are required to provide their TIN in accordance with FAR 52.204-3. In addition, based on the TIN being readily available business information within contractor’s system, the estimated hours per response is decreased to .10.

16. 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.

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