Contract Funding - Limitation of Costs/Funds - FAR Sections Affected: 52.232-20 and 52.232-22

Forms and Documents

Document Name	Status
9000-0074 Supporting Statement (8-22-2016).docx Supporting Statement A	2016-08-22

IC Document Collections

IC ID	Document Title	Status
36559	Contract Funding - Limitation of Costs/Funds - FAR Sections Affected: 52.232-20 and 52.232-22	Modified

ICR Details

OMB Control No: 9000-0074	ICR Reference No: 201607-9000-007
Status: Historical Active	Previous ICR Reference No: 201206-9000-009
Agency/Subagency: FAR	Agency Tracking No:
Title: Contract Funding - Limitation of Costs/Funds - FAR Sections Affected: 52.232-20 and 52.232-22
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 08/25/2016
	Date Received in OIRA: 07/25/2016
Terms of Clearance: This collection is approved based on the revised materials provided by the Agency.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2019	36 Months From Approved	08/31/2016
Responses	123,392	0	57,568
Time Burden (Hours)	40,719	0	28,784
Cost Burden (Dollars)	2,321,004	0	0

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Abstract: Firms performing under Federal cost-reimbursement contracts must notify the Government when incurred costs will exceed 75 percent of the estimated cost. or when the total cost for the performance of the contracts will be greater or substantially less than estimated.

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 21873	04/13/2016
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 48423	07/25/2016
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Contract Funding - Limitation of Costs/Funds - FAR Sections Affected: 52.232-20 and 52.232-22

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	123,392	57,568	0	65,824	0	0
Annual Time Burden (Hours)	40,719	28,784	0	11,935	0	0
Annual Cost Burden (Dollars)	2,321,004	0	0	2,321,004	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The number of affected contracts was changed, based on contract award data from the Federal Procurement Data System (FPDS). During the three most recent years for which data were available (FY13, FY14, and FY15), the average number of covered awards involving incremental funding (and thereby, the requirement to issue Limitation of Funds letters) was estimated to be 123,392. This number includes all cost-plus-fixed-fee, cost-plus-award-fee, cost-plus-incentive-fee, and 10% of all cost-sharing contracts. Also, three changes were made to the estimates published in the preliminary 60-day notice at 81 FR 21873 on April 13, 2016, for this renewal. First, the initial estimate included certain fixed-price and cost-sharing contract data (subsequently deemed not directly impacted by FAR clauses 52.232-20 and 52.232-22); those data points have been removed from the estimate for this collection. Accordingly, the number of contract actions has been reduced. Secondly, the number of responses per respondent has been reassessed at one per year in lieu of five; this is consistent with updated data based on consultation with subject matter experts within the Government. Some cost-reimbursement contracts will not invoke the notices required by the two clauses, while others might invoke one or more per year. Third, the estimated time to produce each funding letter was reduced from 1/2 hour to 1/3 hour, as office software applications continue to improve, making basic computations, word processing, and communication increasingly efficient.

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Annual Cost to Federal Government: $3,516,672

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 07/25/2016

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