Indirect Cost Rates, Predetermined Indirect Cost Rates, and Bankruptcy Notifications - FAR Sections Affected: 52.216-7, 52.216-15, 52.242-4, and 52.242-13

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
9000-0069 & -0108 Supporting Statement 07.31.2019.docx	Supporting Statement A	Uploaded 2019-08-13	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
44230	Allowable Cost and Payment--52.216-7,Predetermined Indirect Cost Rates--52.216-15, and Certification of Final Indirect Costs--52.242-4		Modified
237335	Bankruptcy--52.242-13		New

ICR Details

OMB Control No: 9000-0069	ICR Reference No: 201908-9000-002
Status: Active	Previous ICR Reference No: 201605-9000-004
Agency/Subagency: FAR	Agency Tracking No:
Title: Indirect Cost Rates, Predetermined Indirect Cost Rates, and Bankruptcy Notifications - FAR Sections Affected: 52.216-7, 52.216-15, 52.242-4, and 52.242-13
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/14/2019
	Date Received in OIRA: 08/13/2019
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2022	36 Months From Approved	09/30/2019
Responses	6,145	0	3,000
Time Burden (Hours)	1,578,868	0	6,564,000
Cost Burden (Dollars)	92,172,694	0	262,560,000

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Abstract: For FAR 52.216-7, 52.216-15, and 52.242-4, the contracting officer and auditor use the proposal and supporting data to verify and analyze the indirect costs and to determine the final indirect cost rates or to prepare the Government negotiating position if negotiation of the rates is required under the contract terms. The contracting officer uses the notification received under FAR 52.242-13 to ensure the contractor’s ability to perform its Government contract.

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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:
	84 FR 25277	05/31/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 38983	08/08/2019
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

table that charts list of burden

IC Title	Form No.	Form Name
Allowable Cost and Payment--52.216-7,Predetermined Indirect Cost Rates--52.216-15, and Certification of Final Indirect Costs--52.242-4
Bankruptcy--52.242-13

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ICR Summary of Burden

table that charts list 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	6,145	3,000	0	3,145	0	0
Annual Time Burden (Hours)	1,578,868	6,564,000	0	-4,985,132	0	0
Annual Cost Burden (Dollars)	92,172,694	262,560,000	0	-170,387,306	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: Yes

Burden Reduction Due to: Cutting Redundancy

Short Statement: The information collection burden hour requirement for FAR clause 52.242-13 has decreased due to the reduction in business bankruptcies between the years 2015 and 2017. The reductions in the estimated hours for the submission and certification of indirect final cost rate proposals reflect current estimates from subject matter experts. The estimate of 6,564,681 hours had remained unchanged since 2006 and included hours for FAR 52.216-13, which was subsequently removed from the FAR by final rule 2004-025. In the intervening years, since this estimate was established, contractor accounting systems and software have matured enabling more efficient collection of cost information and facilitating preparation of the final indirect cost rate proposal.

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Annual Cost to Federal Government: $12,472,277

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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: 08/13/2019

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