0704-0386 2014 Supporting Statement 082014

SUPPORTING STATEMENT

OMB No. 0704-0386

Defense Federal Acquisition Regulation Supplement (DFARS) Part 219, Small Business Programs and associated clauses in part 252.219

A. Justification

1. Circumstances necessitating the information collection. This justification addresses the information collection requirements approved under OMB Clearance Number 0704-386. The Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.219-7003, Small Business Subcontracting Plan (DoD Contracts), paragraph (g) includes a written notification requirement for prime contractors that have identified specific small business concerns in their subcontracting plans. The intent of this notification is to alert the administrative contracting officer of any substitutions of those firms with firms that are not small businesses.

2. Purpose. DFARS Part 219 prescribes policies and procedures for applying small business management considerations in the acquisition of supplies and services. The information collected under DFARS 252.219-7003 (g) is used by the administrative contracting officer to improve administration under the small business subcontracting program and to evaluate a contractor’s past performance in complying with its subcontracting plan.

3. Use of automated, electronic, mechanical, or other technological collection techniques. Improved information technology is used to the maximum extent practicable. Contractors may submit the required notification information electronically, and DoD may process the data collected electronically via Electronic Data Interchange. This means of collection was adopted to reduce input errors and increase efficiency.

4. Duplication. As a matter of policy, DoD reviews the Federal Acquisition Regulation (FAR) to determine if adequate language already exists. The proposed DFARS language applies solely to DoD and is not considered duplicative of any language in the FAR. There is no similar information available from any other source.

5. Small Business. Small businesses are not required to submit small business subcontracting plans and are therefore not directly affected by the notification requirement. However, small businesses are expected to benefit from the improved administration of subcontracting plans and consideration of compliance in past performance.

6. Consequence if the collection is not conducted. Information required by 252.219-7003(g) is collected as the need arises to keep the administrative contracting officer apprised of a contractor’s compliance with its approved subcontracting plans. Under the current procedure, the prime contractor proposes, and the contracting officer negotiates and ultimately approves, the contractor’s subcontracting plan. Consistent with section 1322 of Public law 111-240, the “Small Business Jobs Act of 2010,” (15 U.S.C. 637(d)(6)), the approved subcontracting plan is monitored by the administrative contracting officer to ensure the contractor has provided proper notification for any substitutions of firms that are not small business firms. This notification is required for DoD to assess compliance with approved subcontracting plans. It is also a valuable source of past performance information for procuring contracting officers during the source selection phase of a solicitation.

7. Special circumstances. There are no special circumstances that require the collection to be conducted in any manner listed in 5 CFR 1320.5 (d) (2). The collection of this information is consistent with the general information collection guidelines in 5 CFR 1320.6.

8. Publication in the Federal Register. Public comments were solicited in the Federal Register on June 9, 2014, at 79 FR 32923, as required by 5 CFR 1320.8(d). No public comments were received in response to the notice. On August 20, 2014, DARS published a notice in the Federal Register at 79 FR 49290 stating that the proposed information collection had been submitted to OMB for approval.

9. Payment or gift to respondents. No payment or gift will be provided to respondents.

10. Assurance of confidentiality. The information collected will be disclosed only to the extent consistent with prudent business practices and statutory requirements. No assurance of confidentiality is provided to respondents.

11. Sensitive questions. No sensitive questions are involved.

12. Public Burden. Estimate of public burden:

Number of Respondents Note (1)	41
Responses per Respondent (1)	1
Annual responses	41
Hours per response (1)	1
Total Hours	41
Cost per Hour (2)	$37.58
Total annual cost to public	$1,541.00

Notes:

(1) The estimated number of respondents, responses per respondent, and hours per response for this information collection requirement are based on consultations with DoD personnel. It is estimated that no more than 41 contracts would be subject to the requirement of 52.219-7003(g), with an estimate of one response per respondent and 1 hour per response.

(2) The estimated cost of $37.58 per hour incorporates the GS-11/Step 5 rate of $27.58 plus a fringe benefit rate of 36.25 percent. The 36.25 percent fringe benefit was taken from OMB Memorandum M-08-13 dated March 11, 2008.

13. Estimated nonrecurring costs. There are no nonrecurring costs, i.e., capital and start-up operation and maintenance costs.

14. Government Burden. Estimate of cost to the Federal Government:

Annual Responses Note (1)	41
Hours per Response (3)	1
Total Hours	41
Cost per Hour (2)	$37.58
Total Annual Cost to Government	$1,541.00

Notes:

(1) and (2) See Item 12.

(3) The estimated hours per response is based on the time required for the Government to receive, review, and analyze the information submitted by the contractor. They were developed as a result of discussions with DoD personnel.

15. Reasons for change in burden. There are no program changes or adjustment to estimated burden hours. The increase in total annual cost reflected in Item 12 is an adjustment attributed to the one percent increase of the 2014 General Schedule salary table and the application of the most recent fringe benefit cost factor.

16. Publication of information collection. The results of the information collection will not be published.

17. Display of expiration date. We do not seek approval not to display the expiration date for OMB of the information collected.

18. Exceptions to Certification Statement: There are no exceptions to the certification statement identified in Item 19 of OMB Form 83-1.

B. Collections of Information Employing Statistical Methods: Statistical methods will not be employed.

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