SPST 0072 -Procurement 2022

SUPPORTING STATEMENT

ACQUISITION SERVICES INFORMATION REQUIREMENTS

(OMB Control No. 3064‑0072)

INTRODUCTION

The Federal Deposit Insurance Corporation (FDIC) is requesting a three-year renewal, with revisions, of the information collection associated with Acquisition Services Information Requirements (OMB Control No. 3064-0072). The collection of information involves the submission of various documents by contractors who wish to do business with the FDIC or are currently under contract with the FDIC, and by government agencies or commercial businesses that provide FDIC with past performance information. The current clearance for the collection expires on January 31, 2022. The FDIC has reviewed its previous PRA submission and has revised its methodology to better account for the burdens associated with requests for proposals and price quotations as well as requests for information (RFIs). In addition, the information collection has been revised to include applications and submissions related to Prize Competitions and Innovation Pilot Programs that may result in the award of a contract.

1. JUSTIFICATION

1. Circumstances and Need

The Federal Deposit Insurance Act (12 U.S.C. Section 1819) empowers the FDIC to enter into contracts using private sector contractors to provide goods or services. This Act also provides that FDIC may promulgate policies and procedures to administer the powers granted to it, including the power to enter into contracts. The authority to establish policies and procedures and generate the contracting program has been delegated by the Board of Directors to the Director, Division of Administration. Therefore, pursuant to such policies, the Acquisition and Corporate Services Branch, Division of Administration, FDIC Headquarters in Washington D.C., has developed forms and clauses to facilitate the procurement of goods and services from private sector contractors.

In order to obtain competitive proposals and contracts from vendors interested in providing goods or services to the FDIC, the FDIC uses the Solicitation/Award request (Form 3700/55). This form is completed by the FDIC and is used in connection with a request for proposal and a request for price quotations.

In anticipation of a particular contract solicitation, the FDIC may first conduct market research to narrow down the list of potential contractors. This is done through an RFI. Following the RFI process, potential firms may be notified if they are to be included in the next phase of the acquisition process.

The FDIC Background Investigation Questionnaire for Contractor Personnel and Subcontractors (Form 1600/04), Background Investigation Questionnaire for Contractors (Form1600/07), Integrity and Fitness Representations and Certifications (Form 3700/12), and Leasing Representations and Certifications (Form 3700/44) are a result of the implementation of 12 CFR Part 366. The FDIC adopted 12 CFR Part 366 (Part 366) pursuant to Section 12(f)(3) and (4) of the Federal Deposit Insurance Act, 12 U.S.C. 1822(f)(3) and (4), and the rulemaking authority of the FDIC found at 12 U.S.C. 1819. Pursuant to those sections and consistent with the goals and purposes of titles 18 and 41 of the U.S. Code, Part 366 establishes the minimum standards of integrity and fitness that contractors, subcontractors, and employees of contractors and subcontractors must meet if they perform any service or function on behalf of the FDIC. Part 366 includes regulations governing conflicts of interest, ethical responsibility, and use of confidential information in accordance with 1822(f)(3); and the prohibitions and the submission of information in accordance with 1822(f)(4). Part 366 applies to a person who submits an offer to perform or performs, directly or indirectly, a contractual service or function on behalf of the FDIC.

In addition, the evaluation of an offeror’s past performance under formal contracting procedures is a mandatory technical evaluation criterion in the FDIC’s standard solicitation document. In support of the evaluation of the past performance criterion, the FDIC Past Performance Questionnaire (Form 3700/57) was developed to be submitted by other government agencies or commercial businesses who are doing business, or have done business, with the contractor that the FDIC is evaluating.

The FDIC Contractor Representations and Certifications form (Form 3700/04A) must be completed by any offeror that responds to a solicitation for an award over $100,000.

Finally, in connection with a contract proposal, the FDIC seeks a commitment from an FDIC contractor to ensure, to the maximum extent possible consistent with applicable law, the fair inclusion of minorities and women in its workforce and the workforces of its applicable subcontractors. The commitment is asserted by the FDIC Fair Inclusion of Minorities and Women, which is a contract clause implementing Section 342(c)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5452). The clause asserts the FDIC’s right to request documentation from the contractor that demonstrates the contractor’s good faith effort to include minorities and women in its workforce and subcontractors’ workforces.

2. Use of Information Collected

The information requested is used to determine the qualifications, fitness and integrity of contractors wishing to enter into contracts or leases with the FDIC and to obtain past performance information pertaining to specific contractors. The forms have legal significance since their submission represents formal offers and/or averments, which, if fraudulent, are punishable under provisions of both civil and criminal law. The past performance information collected is used to compare and evaluate technical capabilities of multiple offerors. Such evaluations may take place on items ranging in complexity from routine office equipment to highly specialized services. The Fair Inclusion documentation collected will be used to help determine whether a contractor has made a good faith effort to include minorities and women in its workforce.

3. Use of Technology to Reduce Burden

Respondents may use any information technology that permits review by FDIC. Electronic copies of the certain forms are available on FDIC’s external website. These forms can be used by contractors that propose on FDIC contracts, contractors doing business with FDIC, and government agencies or commercial businesses that provide past performance information to FDIC.

4. Efforts to Identify Duplication

The information collected does not duplicate information existing elsewhere. In addition, the FDIC uses option provisions in contracts when an increase in the same or similar products and services can be reasonably anticipated. This approach eliminates excessive solicitation of the same or similar items when competition was used initially and a determination that the price obtained through the option is reasonable.

5. Minimizing Burden on Small Entities

The amount of information collected varies with the competitiveness and complexity of the procurement. The number of entities considered small, according to the Small Business Administration, is difficult to estimate given that acquisition services vary greatly. However, in general, procurement requirements are less complex for small firms. Therefore, the amount of information collected from a small firm is generally less burdensome than for a major solicitation responded to by a large firm.

6. Consequences to Less Frequent Collections

The information is collected on an “as needed” basis to support legislative requirements. It would not be possible for FDIC to conduct acquisition services in accordance with applicable law if the information is not collected on the occasions required.

7. Special Circumstances

None.

8. Consultation with Persons Outside the FDIC

FDIC published a notice in the Federal Register informing the public of its intent to renew this information collection and seeking public comment. That notice was published on November 10, 2021 (86 FR 62530). No comments were received. On January 19, 2022 FDIC published a second notice in the Federal Register (87 FR 2784) informing the public that the agency is submitting a request to OMB for the renewal of this information collection. That notice provides for an additional 30-day comment period and if any comments are received, FDIC will address them as instructed by OMB.

9. Payment or Gifts to Respondents

None.

10. Confidentiality

Information will be kept confidential to the extent allowed by law. Any information deemed to be of a confidential nature would be exempt from public disclosure in accordance with the provisions of the Freedom of Information Act (5 U.S.C. 552).

11. Information of a Sensitive Nature

The forms related to this information collection contain Personally Identifiable Information, including name, address, telephone number, customer account number and/or social security number. This information is necessary to assist the FDIC in determining the qualifications, fitness and integrity of contractors wishing to enter into contracts or leases with the FDIC and to obtain past performance information pertaining to specific contractors. The Systems of Records Notices associated with this collection may be viewed at the following link: https://www.fdic.gov/regulations/laws/rules/2000-4000.html. The applicable Privacy Impact Assessment is available at https://www.fdic.gov/about/privacy/assessments.html.

12. Estimates of Hour Burden and Annualized Cost

This information collection involves the submission of various documents by (1) contractors who wish to do business with the FDIC or are currently under contract with the FDIC; (2) those vendors and parties participating in innovation pilot programs and prize competitions with the possibility of being awarded a contract; and (3) government agencies or commercial businesses that provide FDIC with past performance information. There is no change in the method or substance of the collection. However, the FDIC has amended this submission to account for the burdens associated with vendors and parties participating in innovation pilot programs and prize competitions.

During the review of this information collection, FDIC determined that portions of the PRA burdens that are currently under the IC entitled Innovation Pilot Programs. (OMB No. 3064-0212) should be transferred to OMB No. 3064-0072. OMB No. 3064-0212 involves the collection of information from third parties (banks and firms in partnership with banks) who are invited to voluntarily propose time-limited pilot programs, which will be collected and considered by the FDIC on a case-by-case basis. These third parties may request to participate by submitting proposals during a set time period for submissions. Applicants will propose the design and parameters of the pilot program tests, as well as any tailored regulatory and supervisory assistance needed from the FDIC. Collected proposals will be assessed, prioritized and identified for testing, either on their own or as part of a subject-area focused grouping of pilot programs. OMB No. 3064-0212 was approved in March 2020 for an annual burden of 3,000 hours, comprising an estimated 60 hours of burden per proposal for 50 annual respondents.¹ FDIC has determined that the burdens associated with OMB No. 3064-0212 that contain the possibility of entering into a contract with the FDIC should be transferred to OMB No. 3064-0072. To avoid duplication of burden hours, OMB No. 3064-0212 will be separately amended to only contain the burden on IDIs and third parties that are involved in the various projects that third parties may engage in.

In its review, FDIC also determined that OMB No. 3064-0072 should include the burden involved with the preparation and submission of applications to participate in FDIC-sponsored or co-sponsored prize competitions if the outcome of those prize competitions includes the possibility of entering into a contract with the FDIC. These burdens are similar to the burdens currently under the IC entitled Generic Clearance for Prize Competition Participation (OMB No. 3064-0211). However, OMB No. 3064-0211 contains and will continue to contain those burdens associated with prize competitions whose outcomes do not include the possibility of a entering into a contract with the FDIC.

FDIC has revised its burden estimates for this information collection as follows:

The burden for OMB No. 3064-0072 in the prior (2018) information collection request (ICR) was broken out by the following reporting items: (1) Request for Proposal and Price Quotation Form 3700/55; (2) Request for Information; (3) Background Investigation Form 1600/04; (4) Background Investigation Form 1600/07; (5) Integrity & Fitness Representations Form 3700/12; (6) Leasing Representations & Certifications Form 3700/44; (7) Past Performance Questionnaire Form 3700/57; (8) Contractor Representations and Certifications Form 3700/4A; and (9) Fair Inclusion of Minorities and Women Form 3700/59. For this ICR revision, FDIC is adding the burden associated with Background Investigation Form 1600/10 because it had been inadvertently omitted in the past and is required from the same individuals who are required to complete the Form 1600/04. The FDIC is also removing the burden associated with Form 3700/59 because the form is no longer used.

For each of the above burden line items FDIC reviewed and in some instances updated the estimated annual number of respondents, the estimated annual number of responses per respondent, and the hourly burden per response. Details are as follows:

Request for Proposal – Price Quote Form 3700/55. This line item comprises competitive and non-competitive proposals and contracts from vendors interested in providing goods or services to the FDIC. To estimate the number of responses for this ICR, FDIC referenced proposals received in response to FDIC solicitations in the last five years. Between 2016 and 2020, the FDIC received 3,169 proposals submitted by respondents in response to 1,710 solicitations made by the FDIC in that period, for an average of 634 proposals per year.² For purposes of estimating annual burden, FDIC assumes that each proposal is submitted by a distinct vendor. Thus, for the line item “Request for Proposal – Price Quote Form 3700/55”, FDIC estimates that the number of annual responses per respondent is one and estimates a respondent count of 634 per year. This is a slight decrease from the 656 respondents estimated in the 2018 ICR.

To estimate the hourly burden per response, FDIC reviewed contract clause reports generated from FDIC’s Automated Procurement System (APS) that identified the number of provisions and clauses used by the FDIC between 2016 and 2020. Based on its experience with contract language, FDIC estimates the time it takes to read and respond to each clause or provision. FDIC than estimated the total annual burden for respondents by finding the product of the time to read and respond to each clause or provision and the annual number of proposals associated with each clause or provision. This calculation resulted in an estimate of 5,684 hours per year, or an average of 8.96 hours per proposal. Since this ICR considers each proposal as a response to the line item “Request for Proposal – Price Quote Form 3700/55,” FDIC estimates an hourly burden of 8.96 hours per response. This is an increase of approximately 2.4 hours per response from the estimate in the 2018 ICR. The increase can be attributed to the additional clauses and provisions introduced since 2018 and FDIC’s revisions of the length of time it takes respondents to read and respond to various clauses and provisions.

Request for Information (RFI). This line item comprises information collected from potential contractors in response to a targeted RFI. In anticipation of a particular contract solicitation, the FDIC may first conduct market research to narrow down the list of potential contractors. Following review of responses received during the RFI process, potential firms may be notified if they are to be included in the next phase of the acquisition process. To estimate the annual number of respondents to an RFI, the FDIC tallied the number of responses received in response to RFIs issued between the years 2018 and 2020. In those three years, the FDIC received a total of 322 responses across 22 RFIs, for an average of 107 responses per year. FDIC assumes that each response to an RFI is submitted by a distinct contractor. Thus, for the line item “Request for Information,” FDIC estimates that the number of annual responses per respondent is one and estimates an average of 107 respondents per year. This is a decrease of 23 respondents per year from the estimate in the 2018 ICR.

The FDIC estimates that respondents spent 18,914 hours to prepare and submit the 322 responses received between 2018 and 2020, for an average response time of 58.74 hours per response or 58.74 hours per response for line item “Request for Information.” This is an increase from the 12 hours per response estimated in the 2018 ICR. The increase from the previous estimate of approximately 40 hours to the current estimate of 58.74 hours per response is due to FDIC’ revised burden estimate for the time required to respond to this information collection item.

.

Background Investigation Questionnaire for Contractor Personnel and Subcontractors (Form 1600/04), Background Investigation Questionnaire for Contractors (Form 1600/07), and Background Investigation Questionnaire for Contractors (Form 1600/10). These information collection line items comprise information collected in a background investigation to determine whether a contractor meets the required fitness and integrity standards for employment or performance under a contract with the FDIC, pursuant to 12 CFR Part 366 (Part 366). Respondents to these line items are persons who submit an offer to perform or performs, directly or indirectly, a contractual service or function on behalf of the FDIC. FDIC received approximately 100 Form 1600/04; 65 Form 1600/07; and 100 Form 1600/10 per year. Based on the estimate that 1.85 proposals are received for each solicitation,³ FDIC assumes that 1.85 Background Investigation forms are submitted for each of form processed.⁴ FDIC assumes that each form is submitted by a distinct vendor. Thus, for these line items, FDIC estimates that the number of annual responses per respondent is one and estimates that then annual number of respondent is 185 for Form 1600/04; 120 for Form 1600/07; and 185 for Form 1600/10.⁵ For Forms 1600/04 and 1600/07, these estimates decreased substantially from the 2000 and 200 respondents, respectively, reported in the 2018 ICR. The decrease can be attributed to a revision of the estimation methodology; the previous methodology erroneously included post-award submissions which FDIC considers performance requirements under an awarded contract and thus, not PRA burden. The FDIC reviewed the hourly burden estimate per response for each of these forms and believers that the estimate of .33 hours for form 1400/04; .5 hours for form 1600/07; and .17 hours for form 1600/10 is reasonable and appropriate.

Leasing Representations & Certifications Form 3700/44. This IC line item comprises representations and certifications by lessors of premises, buildings, and land that is leased by the FDIC. Like the previous line item, information on Form 3700/44 is primarily used to review a potential lessor for fitness and integrity pursuant to Part 366. FDIC estimates that it processes approximately 15 Forms 3700/44 per year. FDIC assumes that each form is submitted by a distinct lessor. Thus, for this line item, FDIC assumes that the number of annual responses per respondent is one and estimates an average of 15 respondents per year. The FDIC reviewed the hourly burden estimate of one hour per response and believers that this estimate remains reasonable and appropriate for this line item.

Past Performance Questionnaire Form 3700/57. This IC line item comprises submissions by other government agencies or commercial businesses who are doing business, or have done business, with the contractor that the FDIC is evaluating. The evaluation of a contractor’s past performance under formal contracting procedures is a common technical evaluation criterion in the FDIC’s standard solicitation document. The FDIC Past Performance Questionnaire (Form 3700/57) was developed to support of the evaluation of the past performance criterion. To estimate the annual number of responses and respondents to this line item, FDIC ran an APS clause report on the number of times provision 7.3.2-20, titled “Evaluation of Past Performance,” was included in FDIC solicitations between 2016 and 2020. There were 270 such solicitations, or an average of 54 per year. FDIC estimates an average of four 3700/57 form responses are received annually for each proposal. Based on the average of 1.85⁶ proposals received per solicitation per year, FDIC estimate a total of 400 Forms 3700/57 received per year.⁷ For this ICR, FDIC assumes that each form 3700/57 is submitted by a distinct agency or business. Thus, for this line item, FDIC assumes that the number of annual responses per respondent is one and estimates 400 respondents per year for Form 3700/57. The FDIC reviewed the hourly burden estimate of .75 hour per response and believers that this estimate remains reasonable and appropriate for this line item.

Contractor Representations and Certifications Form 3700/4A. This IC line item comprises information collected by the FDIC from contractors and is used primarily in emergency situations when contracts will be awarded without issuing a Request for Proposal – Price Quote Form 3700/55. Certifications include, but are not limited to, the Certification of Registration in System for Award Management, the Certification of Independent Price Determination, the Certification and Disclosure Regarding Payments to Influence Certain Federal Transactions, and the Certification Regarding Fair Inclusion of Minorities and Women. Since this form is only used in emergency situations and the FDIC do not expect using this form in the upcoming approval period, FDIC uses a placeholder response and respondent count of one per year for the line item Contractor Representations and Certifications Form 3700/4A.

For the upcoming approval period, the FDIC adds the following certifications and representations to this form: the Small Business Representation, the Covered Telecommunications Equipment or Services – Representation, the Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment, and the Prohibition on Contracting with Entities that Require Certain Internal Confidentiality Agreements or Statements Representation. Given these additions to the form, FDIC is revising the estimated time to respond for this item from 0.33 hours in the 2018 ICR to 0.67 hours.

Integrity and Fitness Representations and Certifications (Form 3700/12). Similar to Form 3700/4A, Form 3700/12 is used to collect information from contractors in emergency situations when contracts will be awarded without issuing a Request for Proposal – Price Quote Form 3700/55. The information collected in Form 3700/12 helps the FDIC determine whether the applicant meets the minimum standards of integrity and fitness that contractors, subcontractors, and employees of contractors and subcontractors must meet if they perform any service or function on behalf of the FDIC pursuant to part 366. Since this form is only used in emergency situations and the FDIC do not expect any emergency situations to occur in the upcoming approval period, FDIC uses a placeholder response and respondent count of one per year for the line item Integrity and Fitness Representations and Certifications (Form 3700/12). The FDIC reviewed the hourly burden estimate of .33 hour per response and believers that this estimate remains reasonable and appropriate for this line item.

Fair Inclusion of Minorities and Women Form 3700/59. As noted above, this line item has been removed from this ICR. The information collected in this form is collected through Form 3700/55 and Form 3700/4A, so this form has been discontinued.

Prize Competitions. As described above, this ICR adds to OMB No. 3064-0072 the burdens involved with the preparation and submission of applications to participate in FDIC-sponsored or co-sponsored prize competitions if the outcomes of those prize competitions include the possibility of entering into a contract with the FDIC. The information associated with this burden are collected from potential and actual participants (including technologists, coders, engineers and developers; consumers of financial services; consumer advocates; academics; members of trade groups and other associations; individuals connected to financial institutions, community banks, and financial and bank service and technology providers; software, data, and technology firms; and other members of the public) of those prize competitions. The FDIC collects information from respondents during both an application phase and during a proposal phase.

Application Phase: The FDIC has never conducted a prize competition whose outcomes include the possibility of entering into a contract with the FDIC. FDIC anticipates that approximately 100 applications would be received if the FDIC were to initiate such a prize competition. For the purposes of this ICR, FDIC assumes that each application is submitted by a distinct respondent. Thus, for the line item “Prize Competition – Application,” FDIC assumes that the number of responses per respondent is one and use a respondent count of 100 per year.

In order for the FDIC to determine which applicants will be eligible and selected to participate in FDIC prize competitions, the FDIC will request that potential participants provide their name, contact information, address, and such other information that may be necessary to evaluate applicants’ qualifications and ability to participate in the event as well as to match the applicants’ anticipated role to the needs of the competition. Applicants will also be asked to acknowledge the terms and conditions of participating in the prize competition. Based on their experience with previous prize competitions, FDIC estimates that respondents will spend, on average, one hour to prepare and submit an application.

Proposal Phase: Certain participants in these prize competitions may be invited to present a contract proposal to be considered by the FDIC. Should such a prize competition occur, FDIC anticipates that it would receive five contract proposals per year. For the purposes of this ICR, FDIC assumes that each proposal is submitted by a distinct respondent. Thus, for the line item “Prize Competition – Proposal,” FDIC assumes that the number of responses per respondent is one and estimates five respondents per year.

Based on its experience with previous prize competitions, FDIC estimates that respondents will spend, on average, 60 hours to prepare and submit a proposal.

Pilot Programs. As described above, this ICR transfers the burdens involved with the application and preparation of submissions to participate in FDIC-sponsored or co-sponsored pilot programs if the outcomes of those pilot programs include the possibility of entering into a contract with the FDIC. Pilot programs are typically conducted in four phases, with a declining number of participants advancing at each phase. The FDIC provides fixed monetary awards for the successful completion of some of these phases. In order to evaluate potential contractors, the FDIC collects information from respondents twice: during an application phase and during a proposal phase.

Application Phase: The FDIC issues a call for concept papers as a general solicitation. Interested parties respond by submitting concept papers, thus becoming offerors. The FDIC then subjectively assesses those papers to determine its confidence in the prospective merits of those concept papers as well as the FDIC’s confidence in the offeror’s apparent ability to transform concepts into real-world solutions. Based on experience with the first Innovation Pilot Program⁸ FDIC estimates that 50 concept papers are submitted to the FDIC in response to a call. Although one company could submit multiple concept papers to one call, or different concept papers to different calls, the FDIC considers a concept paper submission for each call to be from a distinct respondent. The FDIC anticipates issuing three calls per year. Thus, for purposes of this ICR, FDIC estimates 150 respondents per year and one response per respondent per year.

FDIC estimates that the hourly burden for preparing concept papers to be similar to that of RFPs. However, the applications for pilot programs are usually more extensive than the average RFP. Based on the hourly burden estimated for RFPs and FDIC’s limited experience with pilot programs FDIC estimates that each pilot program application will take 20 hours to prepare and submit.

Proposal Phase: During a pilot program, all participants will provide an initial summary of the terms and conditions (including price, deliverables, intellectual property rights, and so forth) it contemplates proposing for a follow-on pilot. The FDIC may provide feedback to the contractor and contractors may resubmit their proposal one or more times based on feedback received. FDIC estimates that approximately 60 percent of applications received in response to calls for concept papers, or 90 applications per year,⁹ will be invited to submit a contract proposal. As above, the FDIC assumes each response to be from a distinct respondent. Thus, for the line item “Innovation Pilot Program - Proposal,” FDIC estimates 90 respondents per year and one response per respondent per year.

FDIC believes that, given the iterative nature of the process, it is likely that contractors will go through multiple iterations of contract proposals. FDIC estimates that each respondent will have to revise their submission twice, on average. In addition, these contract proposals include pricing, terms, and conditions, which will require more time than the concept papers. Given these differences, the SMEs from DIT estimate that each response to Innovation Pilot Program - Proposal will take 60 hours to prepare and submit.

Summary of Burdens

The total annual burden estimate for each IC line item for this ICR is the product of the estimated number of annual respondents, number of responses per respondent, and hourly burden per response. The total annual burden estimate for the entire IC is 21,234 hours per year. The summary of burdens is provided in the following table:

Summary of Annual Burden (OMB No. 3064-0072)
	Type of Burden	Obligation to Respond	Number of Respondents	Responses per Respondent	Time per Response	Frequency of Response	Total Annual Estimated Burden
Request for Proposal and Price Quotation (includes Basic Safeguards) - Solicitation/Award (Form 3700/55)	Reporting	Required to Obtain or Retain Benefits	634	1	8.96	On Occasion	5,681
Request for Information	Reporting	Voluntary	107	1	58.74	On Occasion	6,285
Background Investigation Questionnaire for Contractor Personnel and Subcontractors (Form 1600/04)	Reporting	Required to Obtain or Retain Benefits	185	1	0.33	On Occasion	61

Background Investigation Questionnaire for Contractors (Form 1600/07)	Reporting	Required to Obtain or Retain Benefits	120	1	0.5	On Occasion	60
Background Investigation Questionnaire for Contractors (Form 1600/10)	Reporting	Required to Obtain or Retain Benefits	185	1	0.17	On Occasion	31
Leasing Representations and Certifications (Form 3700/44)	Reporting	Required to Obtain or Retain Benefits	15	1	1	On Occasion	15
Past Performance Questionnaire (Form 3700/57)	Reporting	Required to Obtain or Retain Benefits	400	1	0.75	On Occasion	300
Contractor Representations and Certifications (Form 3700/04A)	Reporting	Required to Obtain or Retain Benefits	1	1	0.67	On Occasion	1
Integrity and Fitness Representations and Certifications (Form 3700/12)	Reporting	Required to Obtain or Retain Benefits	1	1	0.33	On Occasion	1
Prize Competitions – Application	Reporting	Required to Obtain or Retain Benefits	100	1	1	On Occasion	100
Prize Competitions – Proposal	Reporting	Required to Obtain or Retain Benefits	5	1	60	On Occasion	300
Innovation Pilot Programs - Application	Reporting	Required to Obtain or Retain Benefits	150	1	20	On Occasion	3,000
Innovation Pilot Programs - Proposal	Reporting	Required to Obtain or Retain Benefits	90	1	60	On Occasion	5,400
Total Estimated Annual Burden							21,235

Total Estimated Hourly Labor Compensation Rates

To estimate the weighted average hourly labor cost of the Total Estimated Annual Burden, FDIC uses the 75th percentile hourly wages reported by the Bureau of Labor Statistics (BLS) National Industry-Specific Occupational Employment and Wage Estimates for the relevant occupations in the Depository Credit Intermediation sector, as of March 2021. FDIC uses the allocation of labor shown in the table below to find the estimated hourly cost of complying with this ICR. The estimated hourly compensation rates are shown in the following table:

Summary of Hourly Burden Cost Estimate (OMB No. 3064-0072)
Estimated Category of Personnel Responsible for Complying with the PRA Burden	Total Estimated Hourly Compensation	Estimated Weights	Estimated Total Weighted Labor Cost Component
Executives and Managers	$127.80	50%	$63.90
Lawyers	$152.86	50%	$76.43
Total Estimated Weighted Average Hourly Compensation Rate		100%	$140.33

Source: Bureau of Labor Statistics: "National Industry-Specific Occupational Employment and Wage Estimates: Industry: Credit Intermediation and Related Activities (5221 And 5223 only)" (May 2020), Employer Cost of Employee Compensation (March 2021), Consumer Price Index (March 2021).

Note: The 75th percentile wage information reported by the BLS in the Specific Occupational Employment and Wage Estimates does not include health benefits and other non-monetary benefits. According to the March 2021 Employer Cost of Employee Compensation data compensation rates for health and other benefits are 33.3 percent of total compensation. Additionally, the wage has been adjusted for inflation according BLS data on the Consumer Price Index for Urban Consumers (CPI-U) so that it is contemporaneous with the non-wage compensation statistic. The inflation rate was 3.31 percent between May 2020 and March 2021.

The hourly wage was estimated as $104.06 in the 2018 ICR. Since the allocation of labor in this ICR is the same as in the 2018 ICR, the difference is solely due to the updated hourly compensation rates for the occupations involved in this IC.

Total Estimated Labor Cost of Estimated Annual Burden

FDIC estimates the total annual cost burden for OMB No. 3064-0072 by multiplying the total estimated annual burden of 21,235 hours by weighted average hourly cost estimate of $140.33 per hour. The estimated total annual cost burden is thus equal to 21,235 hours per year multiplied by $140.33 per hour or $2,979,908 per year. The 2018 ICR estimated an annual cost burden of $814,790. The increase in burden costs is primarily driven by the addition of the burdens related to innovation pilot programs.

13. Capital, Start-up, Operating, and Maintenance Costs

None.

14. Estimated Annualized Cost to the Federal Government

None.

15. Reason for Change in Burden

See Section 12 above.

16. Publication

No publication for statistical use is contemplated.

17. Display of Expiration Date

Not applicable.

18. Exceptions to Certification Statement

None.

2. STATISTICAL METHODS

Not applicable.

1 See https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202001-3064-009 (last accessed September 30, 2021).

2 The FDIC received 769, 605, 678,610, and 507 proposals in each year between 2016 and 2020, respectively.

3 As noted above, the FDIC received 3,169 proposals submitted by respondents in response to 1,710 solicitations made by the FDIC between 2016 and 2020. Therefore, the average number of responses per proposal is 1.85 (3,169/1,710).

4 This assumption implies that each solicitation results in a single approved proposal. SMEs from DOA inform me that some solicitations result in more than one approved proposal, but the assumption of a single approved proposal is appropriate because the result is a conservative estimate of the burden.

5 185 = 100 * 1.85. 120 = 65 * 1.85.

6 See footnote 3 above.

7 400 = 54 * 1.85 * 4.

8 The first Innovation Pilot Program, Rapid Phased Prototyping (RPP), began in August 2020. Details for RPP can be found at https://www.fdic.gov/fditech/rpp.html (last accessed September 30, 2021). The proposal submission phase for RPP is expected to finish in 2021. The FDIC received 35 applications for RPP; SMEs in DIT and Legal conservatively estimate 50 responses per pilot program to account for the fact that future collections could receive increased interest. The SMEs also anticipate to hold up to three pilots a year, for a total of 150 estimated applications per year.

9 90 contract proposals = 50 application per call * 3 calls per year * 60%.

9