9000-0097 Supporting Statement-4-22-2016

SUPPORTING STATEMENT

INFORMATION COLLECTION 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. A 60-day notice was published in the Federal Register at 81 FR 6514 on February 8, 2016. No comments were received. A 30-day notice was published in the Federal Register at 81 FR 22601 on April 18, 2016.

9. Explanation of any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees. 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, 39,428, is based on the number of unique vendors reported in the Federal Procurement Data System for Fiscal Year 2015. This number is further clarified by FPDS data that shows thirty six percent of these unique vendors were awarded their first Government contract in FY 2015.

Annual Burden to the Public

Estimated respondents .............. ...39,428

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

Total annual responses............... ..118,284

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

Estimated total burden/hrs............. ..11,828

*The estimated cost per hour is roughly $3.80.

Annual Cost to the Public

Total response burden hours............. 11,828

Average wages + overhead... x $38

Total cost to the public............ $449,464

* Based on the salary table for GS-11/step 5 salary ($28.14 an hour for base salary) plus 36.25 percent burden, rounded to the nearest dollar, or $38 an hour. The burden rate used is that mandated by OMB memorandum M-08-13 for use in public-private competition, as updated by OMB for the current year. Reference Salary Table 2016-GS, Effective January 2016, found at www.opm.gov).

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 11,828

Review time/yr......................................... 237

Average wages + overhead($28/hr + 36.25%OH) x $38.00

Total Government cost........................... $ 9,006

* Based on the salary table for GS-11/step 5 salary ($28.14 an hour for base salary) plus 36.25 percent burden, rounded to the nearest dollar, or $38 an hour. The burden rate used is that mandated by OMB memorandum M-08-13 for use in public-private competition, as updated by OMB for the current year. Reference Salary Table 2016-GS, Effective January 2016, found at www.opm.gov).

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 increased due to FPDS data which showed that 36 percent of unique vendors awarded a contract in FY 2015 were new to doing business with the Federal Government. In past collections, the Government estimated that 15 percent of the awards were to new vendors during business with the Federal Government for the first time.

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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