3060-1270
Protecting National Security Through FCC Programs August 2021
SUPPORTING STATEMENT
This collection is being submitted to the Office of Management and Budget (OMB) to seek approval for revised information collection requirements as a result of recent legislation and a recent Federal Communications Commission (FCC or Commission) order as explained below.
Justification
On March 12, 2020, the President signed into law the Secure and Trusted Communications Networks Act of 2019 (Secure Networks Act), Pub. L. No. 116-124, 133 Stat. 158 (2020) (codified as amended at 47 U.S.C. §§ 1601-1609), which among other measures, directs the FCC to establish the Secure and Trusted Communications Networks Reimbursement Program (Reimbursement Program). This program is intended to provide funding to providers of advanced communications service for the removal, replacement and disposal of certain communications equipment and services that poses an unacceptable national security risk (i.e., covered equipment and services) from their networks. The Commission has designated two entities – Huawei Technologies Company (Huawei) and ZTE Corporation (ZTE), along with their affiliates, subsidiaries, and parents – as covered companies posing such a national security threat. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs – Huawei Designation, PS Docket No. 19-351, Memorandum Opinion and Order, 35 FCC Rcd 14435 (2020); Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs – ZTE Designation, PS Docket No. 19-352, Memorandum Opinion and Order, DA 20-1399 (PSHSB rel. Nov. 24, 2020).
On December 10, 2020, the Commission adopted the Second Report and Order implementing the Secure Networks Act, which contained certain new information collection requirements. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Second Report and Order, 35 FCC Rcd 14284 (2020) (Second Report and Order). These requirements will allow the Commission to receive, review and make eligibility determinations and funding decisions on applications to participate in the Reimbursement Program that are filed by certain providers of advanced communications service. These new information collection requirements will also assist the Commission in processing funding disbursement requests and in monitoring and furthering compliance with applicable program requirements to protect against waste, fraud, and abuse.
On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021 (CAA), appropriating $1.9 billion to “carry out” the Reimbursement Program and amending the Reimbursement Program eligibility requirements to expand eligibility to include providers of advanced communications service with 10 million or fewer subscribers and making clear that schools, libraries, and health care providers are eligible to receive Reimbursement Program support to the extent they qualify as providers of advanced communications services. See Pub. L. 116-260, Division N-Additional Coronavirus Response and Relief, Title IX-Broadband Internet Access Service, §§ 901, 906, 134 Stat. 1182 (2020). The Commission has interpreted the term “provider of advanced communications service” to mean “facilities-based providers, whether fixed or mobile, with a broadband connection to end users with at least 200 kbps in one direction.” Second Report and Order, 35 FCC Rcd at 14332, para. 111. Participation in the Reimbursement Program is voluntary but compliance with the new information collection requirements is required to obtain Reimbursement Program support. The Commission adopted a Third Report and Order on July 13, 2021, implementing the amendments to the Secure Networks Act by the CAA for the Reimbursement Program. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Third Report and Order, FCC 21-86 (rel. July 14, 2021) (Third Report and Order).
Separate from the Reimbursement Program, the Secure Networks Act requires all providers of advanced communications service to annually report, with exception, on whether they have purchased, rented, leased or otherwise obtained covered communications equipment or service on or after certain dates. 47 U.S.C. § 1603(d)(2)(B). The Second Report and Order adopted a new information collection requirement to implement this statutory mandate. See Secure Networks Act § 5. If the provider certifies it does not have any covered equipment and services, then the provider is not required to subsequently file an annual report, unless it later obtains covered equipment and services. Second Report and Order, 35 FCC Rcd at 14370, at para. 215.
This submission is for new information collection requirements contained in the Second Report and Order adopted by the Commission on December 10, 2020. The new requirements are necessary for the creation of a $1.9 billion reimbursement program, as directed by Congress in the Secure Networks Act, as amended. This submission also covers related new information collection requirements necessitated by the Secure Networks Act and/or the Second Report and Order and proposes to eliminate a previously approved information collection requirement that is no longer necessary.
Application Request for Funding: Section 1.50004(c) of the Commission’s rules, 47 CFR § 1.50004(c), as either directed by or consistent with section 4(d)(2)(B) of the Secure Networks Act, 47 U.S.C. § 1603(d)(2)(B), requires eligible providers seeking funding from the Reimbursement Program to submit an application that includes:
An estimate of costs reasonably incurred for the permanent removal, replacement, and disposal of covered communications equipment or service from the provider’s network. Eligible providers may rely upon the predetermined estimated costs identified in a Catalog of Expenses Eligible for Reimbursement made available by the FCC’s Wireline Competition Bureau (Bureau). Eligible providers that submit their own costs estimates must submit supporting documentation and certify that the estimate is made in good faith.
Detailed information on covered communications equipment or service being removed, replaced, and disposed and when obtained.
Certifications that (1) the applicant has developed a plan and timeline for the permanent removal and replacement of covered communications equipment or service; (2) the applicant will submit the timeline to the Commission; (3) the applicant will not purchase, rent, or otherwise obtain covered communications equipment or service; and (4) in developing risk management practices, the applicant will consult and consider the standards, guidelines, and best practices set forth in the cybersecurity framework developed by the National Institute of Standards and Technology.
A specific timeline for the permanent removal, replacement, and disposal of the covered communications equipment or services.
A certification in good faith that the applicant (1) will reasonably incur the estimated costs claimed as eligible for reimbursement; (2) will use all money received from the Reimbursement Program only for expenses eligible for reimbursement; (3) will comply with all policies and procedures relating to allocations, draw downs, payments, obligations, and expenditures of money from the Reimbursement Program; (4) will maintain detailed records, including receipts, of all costs eligible for reimbursement actually incurred for a period of 10 years; and (5) will file all required documentation for its expenses.
Opportunity to Cure: Section 1.50004(d)(1) of the Commission’s rules, 47 CFR § 1.50004(d)(1), as directed by section 4(d)(3)(B) of the Secure Networks Act, 47 U.S.C. § 1603(d)(3)(B), gives providers an opportunity to cure material deficiencies in their application as determined by the Bureau within a 15-day period before the Bureau can deny an application. These deficiencies could include inadequate cost estimates or supporting materials.
Reimbursement Claim Requests: Section 1.50004(g) of the Commission’s rules, 47 CFR § 1.50004(g), requires providers to submit reimbursement claim requests for reasonable costs actually incurred to obtain fund disbursements following the allocation of funding to the recipient for draw down. A recipient will need to include supporting invoices and other cost documentation, as directed by the Bureau, with the claim request. Recipients are required to file all reimbursement claims within 120 days following the expiration of the one-year removal, replacement, and disposal term. Prior to the expiration of the 120-day deadline, recipients can request and automatically receive a single extension of the reimbursement claim deadline for a period of up to 120 days.
Individual Term Extension Requests: Section 1.50004(h)(2) of the Commission’s rules, 47 CFR § 1.50004(h)(2), as required by section 4(d)(6)(C) of the Secure Networks Act, 47 U.S.C. § 1603(d)(6)(C), allows recipients to petition the Bureau for an extension of the one-year term for removing, replacing and disposing of covered communications equipment and service for a period of up to six months. The Bureau may grant an individual extension after finding, that due to no fault of the recipient, the recipient is unable to complete the permanent removal, replacement and disposal by the end of the term. The Bureau may grant more than one extension request to a recipient if circumstances warrant.
Disposal Documentation: Section 1.50004(j) of the Commission’s rules, 47 CFR § 1.50004(j), as directed by section 4(d)(7) of the Secure Networks Act, 47 U.S.C. § 1603(d)(7), requires recipients to dispose of covered communications equipment or service in a manner to prevent the equipment or service from being used in the networks of other providers of advanced communications service. The Commission requires that disposal must result in the destruction of the covered communications equipment of service, making the covered communications equipment or service inoperable permanently. Recipients must retain documentation demonstrating compliance with this requirement.
Status Updates: Section 1.50004(k) of the Commission’s rules, 47 CFR § 1.50004(k), consistent with the requirements of section 4(d)(8) of the Secure Networks Act, 47 U.S.C. § 1603(d)(8), requires recipients to submit status updates once every 90 days beginning on the date on which the Bureau approved an application for a reimbursement and until the recipient has filed the final certification. Recipients must file the first report within 90 days of receiving their funding allocation. The updates must include information on:
Efforts undertaken, and challenges encountered, in permanently removing, replacing, and disposing of the covered communications equipment or service;
Availability of replacement equipment in the marketplace;
Whether the recipient has fully complied with (or is in the process of complying with) all requirements of the Reimbursement Program;
Whether the recipient has permanently removed from its communications network, replaced, and disposed of (or is in the process of permanently removing, replacing, and disposing of) all covered communications equipment or services that were in the recipient’s network as of the date of the submission of the recipient’s application; and
Whether the recipient has fully complied with (or is in the process of complying with) the timeline submitted by the recipient.
Spending Reports: Section 1.50004(l) of the Commission’s rules, 47 CFR § 1.50004(l), as directed by section 4(e)(2) of the Secure Networks Act, 47 U.S.C. § 1603(e)(2), requires recipients to submit spending reports indicating how reimbursement funds have been spent, including detailed accounting of the covered communications equipment or services permanently removed and disposed of, and the replacement equipment or services purchased, rented, leased or otherwise obtained, using reimbursement funds. These spending reports must be filed semiannually within 10 calendar days after the end of January and July, starting with the recipient’s initial draw down of disbursement funds and terminating once the recipient has filed a final spending report showing the expenditure of all funds received as compared to the estimated costs submitted. A final spending report will be due following the filing of a final certification by the recipient.
Final Certification and Updates: Section 1.50004(m) of the Commission’s rules, 47 CFR § 1.50004(m), as directed by section 4(e)(4) of the Secure Networks Act, 47 U.S.C. § 1603(e)(4), requires recipients to file a final certification with the Commission. The recipient must indicate whether it has fully complied with (or is in the process of complying with) all terms and conditions of the Reimbursement Program and the commitments made in the application of the recipient for the reimbursement; has permanently removed from the communications network of the recipient, replaced, and disposed of (or is in the process of permanently removing, replacing, and disposing of) all covered communications equipment or services that were in the network of the recipient as of the date of the submission of the application of the recipient for the reimbursement; and has fully complied with (or is in the process of complying with) the timeline submitted by the recipient. The recipient will also be required to submit an updated certification if at the time the final certification is filed, the recipient has not fully complied with its obligations under the Reimbursement Program. The final certification must be filed within 10 calendar days of the expiration of the removal, replacement, and disposal term.
Documentation Retention: Section 1.50004(n) of the Commission’s rules, 47 CFR § 1.50004(n), requires recipients to retain all relevant documents, including invoices and receipts, pertaining to all costs eligible for reimbursement actually incurred during the removal, replacement, and disposal process. Recipients must retain the documentation for a period of 10 years after the date the final disbursement payment is received from the Reimbursement Program.
Annual Report: Section 1.50007 of the Commission’s rules, 47 CFR § 1.50007, as directed by section 5 of the Secure Networks Act, 47 U.S.C. § 1604, requires all advanced communication service providers to submit an annual report identifying whether they have any covered equipment and services obtained on or after August 14, 2018 or within 60 days after the date on which the Commission places such equipment and services on the covered list. These providers will be required to report on the type, location, date purchased, rented, leased or otherwise obtained and any removal and replacement plans. If the provider does have any covered equipment and services, it must submit a detailed justification as to the reasons for acquiring such equipment and services. All providers must submit a certification as to the accuracy of this information. Providers will need to submit the initial annual report 90 days after the FCC’s Office of Economics and Analytics issues a public notice announcing the availability of the reporting platform. Thereafter, providers will need to submit a report once per year on or before March 31 for the prior year.
2019 Supply Chain Order Information Collection for ETCs: The Commission previously adopted and obtained OMB approval for a one-time data collection to obtain information from ETCs and other providers on the estimated cost of replacing communications equipment produced by Huawei and ZTE. See Notice of OMB Action for Control No. 3060-1270 (Feb. 12, 2020); Report and Order, 34 FCC Rcd at 11481-82, paras. 162-66. The purpose of the collection was to help the Commission determine the amount of funding needed for a Reimbursement Program. Collection submissions were due in May 2020, and the Bureau and the Office of Economics and Analytics released the results of the collection on September 4, 2020. See Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs, WC Docket No. 18-89, Order, 35 FCC Rcd 2998 (WCB/OEA 2020) (extending response deadline to May 22, 2020); See Wireline Competition Bureau and Office of Economics and Analytics Release Results from Supply Chain Security Information Collection, WC Docket No. 18-89, Public Notice, 35 FCC Rcd 9471 (WCB/OEA 2020). As the one-time collection is completed and the Commission has no intention of conducting a subsequent data collection for this information, this requirement is no longer necessary and can be eliminated.
Statutory authority for these information collection requirements is contained in 47 U.S.C. §§ 1603-04.
These information collections do not affect individuals or households; thus, there is no impact under the Privacy Act.
2. Use of information. The Commission will use the information collected to: (1) determine an applicant’s eligibility to participate in the Reimbursement Program; (2) evaluate and issue funding allocations to recipients for the removal, replacement and disposal of covered communications equipment and services; (3) evaluate and issue decisions for the disbursement of funds for reasonable expenses actually incurred; (4) ensure funding is used for its intended purpose and to protect the Reimbursement Program against waste, fraud, and abuse; (5) monitor compliance with program requirements; and (6) identify carriers that have obtained covered communications equipment and service for use in their networks.
3. Technological collection techniques. The Commission will institute an online portal by which respondents will be able to electronically submit the required information and documents.
4. Efforts to identify duplication. The Commission does not impose a similar information collection on the respondents. There is no similar data available. Therefore, this submission does not require the collection of duplicative information.
5. Impact on small entities. In conformance with the Paperwork Reduction Act of 1995, the Commission seeks to minimize burdens on all respondents, regardless of size. The Reimbursement Program is voluntary and only providers of advanced communications service with 10 million or fewer subscribers are eligible to participate. The Reimbursement Program will help these eligible, smaller, providers with the reimbursement of costs for the removal, replacement, and disposal of covered communications equipment and services that pose an unacceptable national security risk in their networks. The Commission has limited the information requirements to those necessary to administer the Reimbursement Program in accordance with the requirements of the Secure Networks Act and to protect the program against waste, fraud, and abuse.
6. Consequences if information is not collected. Without these information collections, the Commission cannot comply with the requirements of the Secure Networks Act and will be unable to efficiently and timely allocate funding to eligible providers to help cover the cost of removing equipment and services from their networks that pose an unacceptable national security risk. In addition, the inability to collect this information will hinder the Commission’s ability to monitor program compliance and protect the Reimbursement Program against waste, fraud, and abuse.
7. Special circumstances. Special circumstances exist for this information collection that would make the collection of the information inconsistent with 5 CFR § 1320.5(d)(2) in two respects. First, the Secure Networks Act directs the Commission to provide Reimbursement Program applicants a 15-day period to cure defects in its application before the Commission can deny an application for funding. 47 U.S.C. § 1603(d)(3)(B). The Commission implemented this statutory requirement by adopting the information collection contained in section 1.50004(d)(1) of the Commission’s rules. Because the Commission lacks discretion to deviate from the statutory 15-day cure period, special circumstances exist to approve this particular information collection notwithstanding any inconsistency with 5 CFR § 1320.5(d)(2)(ii).
Second, the new information collection requirement contained in section 1.50004(n) of the Commission’s rules requires Reimbursement Program recipients to retain all relevant documentation, including invoices and receipts, pertaining to all costs eligible for reimbursement actually incurred for a period of at least 10 years after the date the recipient receives final disbursement from the Reimbursement Program. To the extent the information collection is considered inconsistent with 5 U.S.C. § 1320.5(d)(2)(iv), special circumstances exist. The 10-year documentation retention requirement is necessary to protect the Reimbursement Program against waste, fraud, and abuse. The 10-year period coincides with the 10-year statute of limitations under the False Claims Act. See 31 U.S.C. §§ 3729-33. Accordingly, if the Commission subsequently learns that a program participant engaged in fraudulent activity following the disbursement of funds, a documentation retention requirement for at least 10-year period is necessary to ensure the Commission can access documents relevant to bringing a claim under the False Claims Act against the program participant to protect the Reimbursement Program fund.
8. Federal Register notice; efforts to consult with persons outside the Commission. Pursuant to 5 C.F.R § 1320.5(d), the Commission published a 60-day notice in the Federal Register on April 26, 2021 (86 FR 22050) seeking comments from the public on the information collection requirements contained in this collection. No comments were received from the public.
9. Payments or gifts to respondents. The Commission does not anticipate providing any payment or gifts to respondents in connection with these information collections.
10. Assurance of confidentiality. As a general matter, the Commission intends to make available for public inspection the information collected. However, the Commission will treat as presumptively confidential “detailed accounting information on the covered communications equipment or services permanently removed and disposed of, and the replacement equipment or services purchased, rented, leased, or otherwise obtained” that is contained in the spending reports submitted by Reimbursement Program recipients per section 1.50004(l) of the Commission’s rules. The Commission will “withhold such disaggregated information from routine public inspection.” See Second Report and Order, 35 FCC Rcd at 14360, para. 189. Also, respondents may request materials or information submitted to the Commission that contain trade secrets, commercial, or financial information, be withheld from public inspection under 47 CFR § 0.459 of the Commission’s rules.
11. Questions of a sensitive nature. The respondents will not be required to answer any questions of a sensitive nature.
12. Estimates of the hour burden of the collection to respondents. The following represents the hour burden on the collection of information. The hourly rates identified are based on information provided by the Office of Personnel Management (OPM). See OPM, 2021 General Schedule (GS) Locality Pay Tables, Hourly Rate, Locality Pay Area Washington-Baltimore-Arlington, DC-MD-VA-WV-PA, https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2021/general-schedule/ (last visited Apr. 15, 2021).
(a) Application Requests for Funding, 47 CFR §1.50004(c):
Number of respondents: 300. Those eligible to participle in the Reimbursement Program include providers of advanced communications service with 10 million or fewer subscribers that are seeking to remove, replace, or dispose of covered communications equipment or services from their existing networks.
Frequency of response: 1
Total number of responses per respondent: 1
Estimated time per response: 6 hours
Total annual hour burden: 1,800
Total annual hour burden is calculated as follows:
300 respondents x 1 report per respondent = 300 responses x 6 hours = 1,800 total annual hours
Total annual “in-house” cost: $72,834
300 applications x 4 hours to complete in-house engineering review x $47.35/hour = $56,820
300 applications x 2 hours to complete non-engineering compliance x $26.69/hour = $16,014
Total estimate of in-house cost to respondents equals $72,834
Explanation of calculation: The estimated average burden on each respondent is six (6) hours. We estimate respondents will use in-house staff to complete the form, which requires approximately two (2) hours and will use in-house network engineers to complete the technical questions and consult with outside engineers, which requires approximately four (4) hours. We assume the respondents will use an in-house network engineer, whose earnings level is equivalent on average to the GS-12/Step 5 level at $47.35 per hour, and a non-engineer, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, to prepare and submit this information and supporting documentation:
(b) Opportunity to Cure Deficiency, 47 CFR § 1.50004(d)(1):
Number of respondents: 150. We estimate on high side that the Bureau may find that up to 50% of the applications filed requesting funding are materially deficient. Those applicants will be given an opportunity to cure the deficiency.
Frequency of response: 1
Total number of responses per respondent: 1
Estimated time per response: 2 hours
Total annual hour burden: 300
2 hours per respondent for 150 respondents filing once. Total annual hour burden is calculated as follows:
150 respondents x 1 response = 150 responses x 2 hours = 300 total annual hours.
Total estimate of in-house cost to respondents: $14,205. (300 hours x $47.35/hour).
Explanation of calculation: We estimate that those providers seeking reimbursement assistance and subject to this requirement will spend, on average, approximately 2 hours addressing any discrepancies in their application request for funding. We assume the respondents will use an in-house network engineer, whose earnings level is equivalent on average to the GS-12/Step 5 level at $47.35 per hour: 150 (responses) x 2 (hours to fill out the application) x $47.35/hour = $14,205.
(c) Reimbursement Claim Requests, 47 CFR § 1.50004(g):
Number of respondents: 300. This number conservatively assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations and will need to file reimbursement claim requests for the disbursement of funds.
Frequency of response: 10. We estimate that each respondent will file an average of 10 reimbursement claim requests annually as they seek the disbursement of funds for reasonable costs actually incurred during the removal, replacement, and disposal process.
Total number of responses per respondent: 10
Estimated time per response: 1 hour
Total annual hour burden: 3,000
1 hour per respondent for 300 respondents filing 10 requests annually.
Total annual hour burden is calculated as follows:
300 respondents x 10 claim requests = 3,000 responses x 1 hour = 3,000 total annual hours.
Total estimate of in-house cost to respondents: $80,070 (3,000 hours x $26.69/hour).
Explanation of calculation: We estimate it will take one (1) hour to log in, complete the relevant fields in the interactive template and upload and submit the supporting documentation necessary to complete a filing. We assume the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, to prepare and submit this information and supporting documentation: 300 (respondents) x 1 (hour to fill out the reimbursement claim request) x 10 (average number of submitted claim requests) x $26.69/hour = $80,070.
(d) Extension of Reimbursement Claim Request Deadline, 47 CFR § 1.50004(g):
Number of respondents: 150. This number conservatively assumes that 50% of the estimated number of Reimbursement Program recipients will seek an extension of the deadline for submitting reimbursement claim requests. Recipients are required to file all reimbursement claims within 120 days following the expiration of the one-year removal, replacement, and disposal term. Prior to the expiration of the 120-day deadline, recipients can request and receive a single extension of the reimbursement claim deadline for a period of up to 120 days.
Frequency of response: 1.
Total number of responses per respondent: 1
Estimated time per response: 1 hour
Total annual hour burden: 150
1 hour per respondent for 150 respondents filing 1 response.
Total annual hour burden is calculated as follows:
150 respondents x 1 extension request = 150 responses x 1 hour = 150 total annual hours.
Total estimate of in-house cost to respondents: $4,4004 (150 hours x $26.69/hour).
Explanation of calculation: We estimate it will take one (1) hour to log in, complete the relevant fields in the interactive template to complete a filing. We assume the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, to prepare and submit this information: 150 (respondents) x 1 (hour to fill out the reimbursement claim request) x 1 (number of filings) x $26.69/hour = $4,004.
(e) Individual Term Extension Requests, 47 CFR § 1.50004(h)(2):
Number of respondents: 150. This number conservatively assumes that 50% of the estimated number of Reimbursement Program recipients will petition for an extension of the removal, replacement, and disposal term.
Frequency of response: 1. We estimate that on average those seeking a term extension will seek only one extension request.
Total number of responses per respondent: 1
Estimated time per response: 4 hours
Total annual hour burden: 600
4 hours per respondent for 150 respondents filing 1 extension request. Total annual hour burden is calculated as follows:
150 respondents x 1 extension request = 150 responses x 4 hours = 600 total annual hours.
Total estimate of in-house cost to respondents: $33,786 (600 hours x $56.31/hour).
Explanation of calculation: We estimate recipients seeking an extension will spend, on average, approximately 4 hours researching and preparing the necessary showing to justify an extension request, including the gathering supporting documentation and the electronic submission of submission. Assuming that respondents use personnel comparable in pay to a mid-to-senior level federal employee (GS13, Step 5), we estimate the cost to be about $56.31 per hour per filing. Accordingly, we calculate the total estimate in-house cost to respondents as follow: 150 (responses) x 4 (hours to prepare petition) x 1 (average number of extension requests) x $56.31/hour = $33,786.
(f) Disposal Requirements – Documentation Retention, 47 CFR § 1.50004(j):
Number of respondents: 300. This number conservatively assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations.
Frequency of response: 1. This is a recordkeeping requirement and does not involve the filing of responses with the Commission. That said, for purposes of calculating the burden, we have defined the frequency of response as 1 as the requirement applies to each Reimbursement Program recipient.
Total number of responses per respondent: 1
Estimated time per response: 6
Total annual hour burden: 1,800
6 hours per respondent for 300 respondents. Total annual hour burden is calculated as follows:
300 respondents x 1 response x 6 hours = 1,800 total annual hours.
Total estimate of in-house cost to respondents: $48,042 (1,800 hours x $26.69/hour).
Explanation of calculation: We assume the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, and that it will take, on average, approximately 0.5 hours per month (6 hours annually) to collect, organize, and maintain documentation. Accordingly, we calculate the total estimate of in-house cost to respondents as follows: 300 (respondents) x 6 (hours per response) x 1 (frequency of response) x $26.69/hour = $48,042. The burden associated with this requirement is likely subsumed within the Documentation Retention requirement contained in section 1.50004(n) of the Commission’s rules but we have gone ahead and calculated the burden separately.
(g) Status Updates, 47 CFR § 1.50004(k):
Number of respondents: 300. This number conservatively assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations.
Frequency of response: 4 Annually. Section 1.50004(k) of the Commission’s rules requires recipients to file a status update once every 90 days beginning on the date which their application for reimbursement is approved.
Total number of responses per respondent: 4
Estimated time per response: 2 hours
Total annual hour burden: 2,400
2 hours per respondent for 300 respondents filing 4 status updates annually. Total annual hour burden is calculated as follows:
300 respondents x 4 annual status updates = 1,200 responses x 2 hours = 2,400 total annual hours.
Total estimate of in-house cost to respondents: $113,640 (2,400 hours x $47.35/hour).
Explanation of calculation: We estimate that those providers seeking reimbursement assistance will spend, on average, approximately 2 hours submitting required status updates, which will be a total of up to 4 annually. Assuming that respondents use personnel comparable in pay to a junior level federal employee (GS12/Step 5), we estimate the cost to be about $47.35 per hour per filing. Accordingly, we calculate the total estimate of in-house cost to respondents as follows: 300 (respondents) x 2 (hours to fill out status updates) x 4 (status updates needed to be submitted annually) x $47.35/hour = $113,640.
(h) Spending Reports, 47 CFR § 1.50004(l):
Number of respondents: 300. This number conservatively assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations.
Frequency of response: 2. Section 1.50004(l) of the Commission’s rules requires recipients to file reports on the spending of support received 10 days after the end of January and July, starting with the recipient’s initial receipt of disbursement funds and terminates once the recipient has filed its final certification.
Total number of responses per respondent: 2
Estimated time per response: 2 hours.
Total annual hour burden: 1,200
2 hour per respondent for 300 respondents filing two spending reports. Total annual hour burden is calculated as follows:
300 respondents x 2 spending reports = 600 responses x 2 hours = 1,200 total annual hours.
Total estimate of in-house cost to respondents: $56,820 (1,200 hours x $47.35/hour).
Explanation of calculation: The Commission estimates that all respondents will fulfill the reporting requirement without any outside assistance. We estimate it will take 2 hours to gather the relevant information, log in, complete the relevant lines of the interactive template, upload any supporting documentation, and electronically submit the filing. Assuming that respondents use personnel comparable in pay to a junior level federal employee (GS12/Step 5), we estimate the cost to be about $47.35 per hour per filing. Accordingly, we calculate the total estimate of in-house cost to respondents as follows: 300 (responses) x 2 (hours to fill out status updates) x 2 (status updates needed to be submitted) x $47.35/hour = $56,820.
(i) Final Certification and Updates,47 CFR § 1.50004(m):
Number of respondents: 300. This number conservatively assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations.
Frequency of response: 2. Each recipient is required to file a final certification within 10 days following the expiration of the removal, replacement, and disposal term. If the recipient as not fully complied with the applicable Reimbursement Program obligations at the time the final certification is due, then they will need to file a subsequent update attesting to full compliance. We can conservatively estimate that, on average, respondents would submit two filings.
Total number of responses per respondent: 2
Estimated time per response: 0.5 hours
Total annual hour burden: 300
0.5 hours per respondent for 300 respondents filing two responses. Total annual hour burden is calculated as follows:
300 respondents x 2 responses = 600 responses x 0.5 hours = 300 total annual hours.
Total estimate of in-house cost to respondents: $8,007 (300 hours x $26.69/hour).
Explanation of calculation: We estimate it will take 0.5 hours to log in, complete the relevant fields in the interactive template, and electronically submit the certification and any update. We assume the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, to prepare and submit this information: 300 (respondents) x 0.5 (per response) x 2 (average number of responses) x $26.69/hour = $8,007.
(j) Documentation Retention, 47 CFR § 1.50004(n):
Number of respondents: 300. This number assumes that all estimated respondents filing applications per section 1.50004(c) of the Commission’s rules will receive funding allocations and will be subject to this requirement even though, depending on funding availability and eligibility requirements, fewer than 300 recipients may actually receive funding allocations.
Frequency of response: 1. This is a recordkeeping requirement and does not involve the filing of responses with the Commission. That said, for purposes of calculating the burden, we have defined the frequency of response as 1 as the requirement applies to each Reimbursement Program recipient.
Total number of responses per respondent: 1
Estimated time per response: 12
Total annual hour burden: 3,600
12 hours per respondent for 300 respondents. Total annual hour burden is calculated as follows:
300 respondents x 1 response x 12 hours = 3,600 total annual hours.
Total estimate of in-house cost to respondents: $96,084 (3,600 hours x $26.69/hour).
Explanation of calculation: We assume the respondents will use in-house clerical personnel, whose earnings level is equivalent on average to the GS-7/Step 5 level at $26.69 per hour, and that it will take, on average, approximately 0.5 hours per month (6 hours annually) to collect, organize, and maintain documentation. Accordingly, we calculate the total estimate of in-house cost to respondents as follows: 300 (respondents) x 12 (hours per response) x 1 (frequency of response) x $26.69/hour = $96,084.
(k) Annual Reports, 47 CFR § 1.50007:
Number of respondents: 3,500. The Commission, as directed by the Secure Networks Act, requires all providers of advanced communications service to file an annual report identifying any covered communications equipment or service obtained on or after certain dates. This number of respondents was calculated by the Commission’s Office of Economics and Analytics (OEA) as part of the cost-benefit analysis contained in the Second Report and Order adopted on December 10, 2020.1
Frequency of response: Annually. The initial report is due within 90 days of OEA issuing a public notice announcing the availability of a new reporting platform and then thereafter by March 31st, reporting information as of December 31st of the previous year.
Total number of responses per respondent: 1
Estimated time per response: 3.5 hours
Total annual hour burden: 12,250
3.5 hours per respondent for 3,500 respondents filing annually. Total annual hour burden is calculated as follows:
3,500 respondents x 1 report per respondent = 3,500 responses x 3.5 hours = 12,250 total annual hours.
Total estimate of in-house cost to respondents: $580,038.
Explanation of calculation: We estimate it will take 3.5 hours to ascertain the relevant information, log in, complete the relevant lines of the interactive template, and electronically submit the filing. Assuming that respondents use personnel comparable in pay to a junior level federal employee (GS12/Step 5), we estimate the cost to be about $47.35 per hour per filing. Accordingly, we calculate the total estimate of in-house cost to respondents as follows: 3,500 (responses) x 3.5 hours (per response) x 1 (frequency of response each year) x $47.35/hour = $580,038.
2019 Supply Chain Order Information Collection for Eligible Telecommunication Carriers (eliminated):
Number of respondents: 0. This Commission has completed this one-time data collection. Therefore, this information collection requirement is no longer necessary and can be eliminated.
Frequency of response: None.
Total number of responses per respondent: 0
Estimated time per response: 0
Total annual hour burden: 0
0 hours per respondent for 0 respondents filing once. Total annual hour burden is calculated as follows:
respondents x 0 report per respondent = 0 responses x 0 hours = 0 total annual hours.
Total estimate of in-house cost to respondents: $0.
Explanation of calculation: This one-time data collection is complete and no longer necessary.
Burden on Respondents |
Number of Respondents |
Frequency of Responses |
Total Number of Responses |
Time per Response (Hours) |
Total Annual Burden Hours |
In-House Cost to Respondents |
a. § 1.50004(c) Application Requests for Funding |
300 |
1 |
300 |
6 |
1,800 |
$72,834 |
b. § 1.50004(d)(1) Opportunity to Cure Deficiency |
150 |
1 |
150 |
2 |
300 |
$14,205 |
c. § 1.50004(g) Reimbursement Claim Requests |
300 |
10 |
3,000 |
1 |
3,000 |
$80,070 |
d. § 1.50004(g) Extension of Reimbursement Claim Deadline |
150 |
1 |
150 |
1 |
150 |
$4,004 |
e. § 1.50004(h)(2) Term Extension Requests |
150 |
1 |
150 |
4 |
600 |
$33,786 |
f. § 1.50004(j) Disposal Requirements—Documentation Retention |
300 |
1 |
300 |
6 |
1,800 |
$48,042 |
g. § 1.50004(k) Status Updates |
300 |
4 |
1,200 |
2 |
2,400 |
$113,640 |
h. § 1.50004(l) Spending Reports |
300 |
2 |
600 |
2 |
1,200 |
$56,820 |
i. § 1.50004(m) Final Certification and Updates |
300 |
2 |
600 |
0.5 |
300 |
$8,007 |
j. § 1.50004(n) Documentation Retention Requirement |
300 |
1 |
300 |
12 |
3,600 |
$96,084 |
k. § 1.50007 Reports on Covered Communications Equipment or Services |
3,500 |
1 |
3,500 |
3.5 |
12,250 |
$580,038 |
l. 2019 Supply Chain Order Information Collection for Eligible Telecommunication Carriers |
0 |
0 |
0
|
0 |
0 |
$0
|
TOTALS:
Total Number of Unique Respondents: 3,500
Total Number of Responses Annually: 10,250
Total Annual Hourly Burden for requirements (a)-(l): 27,400
Total Annual In-house Costs to respondents: $1,107,530
Total Annual Cost (external): $1,125,000
14. Estimates of the cost burden to the Commission. There will be few, if any, additional costs to the Commission because regulatory compliance requirements are already part of Commission duties. Moreover, there will be minimal cost to the federal government because an outside party will administer the reimbursement program and develop the intake portal for respondents’ submissions.
Total Annual Cost to the Commission: $0.
There are no adjustments.
18. Exceptions to certification for Paperwork Reduction Act Submissions. When the 60/30-Day notices were published in the Federal Register on April 26, 2021 and on August 3, 2021 [86 FR 22050, 86 FR 41843] respectively, the frequency of response was inadvertently stated as annual, semi-annual and recordkeeping requirements. However, it should have been stated as annual and semi-annual reporting and recordkeeping requirements.
There are no other exceptions to the Certification Statement.
Collections of Information Employing Statistical Methods:
No statistical methods will be employed.
1 See Second Report and Order at para. 220 n.627.
| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| Author | Jesse Jachman |
| File Modified | 0000-00-00 |
| File Created | 2021-08-04 |