[Federal Register Volume 78, Number 56 (Friday, March 22, 2013)]
[Notices]
[Pages 17673-17674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-06578]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0132; Docket 2012-0076; Sequence 61]


Federal Acquisition Regulation; Submission for OMB Review; 
Contractors' Purchasing Systems Reviews

AGENCY: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice of request for public comments regarding an extension to 
an existing OMB clearance.

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SUMMARY: Under the provisions of the Paperwork Reduction Act, the 
Regulatory Secretariat will be submitting to the Office of Management 
and Budget (OMB) a request to review and approve an extension of a 
previously approved information collection requirement concerning 
contractors' purchasing systems reviews. A notice was published in the 
Federal Register at 77 FR 51783, on October 27, 2012. One comment was 
received.

DATES: Submit comments on or before April 22, 2013.

ADDRESSES: Submit comments identified by Information Collection 9000-
0132, Contractors' Purchasing Systems Reviews, by any of the following 
methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching the OMB 
control number. Select the link ``Submit a Comment'' that corresponds 
with ``Information Collection 9000-0132, Contractors' Purchasing 
Systems Reviews''. Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``Information Collection 9000-0132, Contractors' Purchasing Systems 
Reviews'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1275 First Street NE., Washington, DC 20417. ATTN: 
Hada Flowers/IC 9000-0132, Contractors' Purchasing Systems Reviews.
    Instructions: Please submit comments only and cite Information 
Collection 9000-0132, Contractors' Purchasing Systems Reviews, in all 
correspondence related to this collection. All comments received will 
be posted without change to http://www.regulations.gov, including any 
personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Patricia Corrigan, Procurement 
Analyst, Office of Governmentwide Acquisition Policy, GSA, (202) 208-
1963 or email at [email protected].

SUPPLEMENTARY INFORMATION: 

A. Purpose

    The objective of a contractor purchasing system review (CPSR), as 
discussed in Part 44 of the FAR, is to evaluate the efficiency and 
effectiveness with which the contractor spends Government funds and 
complies with Government policy when subcontracting. The review 
provides the administrative contracting officer (ACO) a basis for 
granting, withholding, or withdrawing approval of the contractor's 
purchasing system.

B. Analysis of Public Comments

    One respondent submitted public comments on the extension of the 
previously approved information collection. The analysis of the public 
comments is summarized as follows:
    Comment: The respondent commented that the extension of the 
information collection would violate the fundamental purposes of the 
Paperwork Reduction Act because of the burden it puts on the entity 
submitting the information and the agency collecting the information.
    Response: In accordance with the Paperwork Reduction Act (PRA), 
agencies can request an OMB approval of an existing information 
collection. The PRA requires that agencies use the Federal Register 
notice and comment process, to extend the OMB's approval, at least 
every three years. This extension, to a previously approved information 
collection, pertains to information collections associated with 
contractor purchasing system reviews (CPSR), as discussed in Part 44 of 
the FAR. The objective of CPSRs is to evaluate the efficiency and 
effectiveness with which the contractor spends Government funds and 
complies with Government policy when subcontracting. The review 
provides the administrative contracting officer a basis for granting, 
withholding, or withdrawing approval of the contractor's purchasing 
system. An approved purchasing system allows the contractor more 
autonomy in subcontracting actions. Without an approved purchasing 
system more Government oversight is necessary, and Government consent 
to subcontract is required.
    Comment: The respondent commented that the agency did not 
accurately estimate the public burden challenging that the agency's 
methodology for calculating it is insufficient and inadequate and does 
not reflect the total burden. The respondent stated that ``the Agencies 
estimate that only 1,580 respondents will be subject to this 
requirement annually * * * is greatly understated.'' The respondent 
also found the estimate of 25 hours per response to be too low. For 
these reasons, the same respondent provided that the burden of 
compliance with the information collection requirement greatly exceeds 
the agency's estimate and outweighs any potential utility of the 
extension.
    Response: Serious consideration is given, during the open comment 
period, to all comments received and adjustments are made to the 
paperwork burden estimate based on reasonable considerations provided 
by the public. This is evidenced, as the respondent notes, in FAR Case 
2007-006 where an adjustment was made from the total preparation hours 
from three to 60. This change was made considering particularly the 
hours that would be required for review within the company, prior to 
release to the Government.
    The burden is prepared taking into consideration the necessary 
criteria in OMB guidance for estimating the paperwork burden put on the 
entity submitting the information. For example, consideration is given 
to an entity reviewing instructions; using technology to collect, 
process, and disclose information; adjusting existing practices to 
comply with requirements; searching data sources; completing and 
reviewing the response; and transmitting or disclosing information. The 
estimated burden hours for a collection are based on an average between 
the hours that a simple disclosure by a very small business might 
require and the much higher numbers that might be required for a very 
complex disclosure by a major corporation. Also, the estimated burden 
hours should only include projected hours for those actions which a 
company would not undertake in the normal course of business.
    Careful consideration, including consultation with Subject Matter 
Experts, went into assessing the burden hours for this collection, and 
it is determined that an upward adjustment is not required.
    The respondent expressed concern that the estimate of 1,580 
respondents is ``greatly understated'' because ``the

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requirements apply regardless of whether or not the Government conducts 
a review. In other words, all contractors are required to be prepared 
when and if the Government ultimately conducts the purchasing system 
review.'' In response, we wish to clarify the circumstances under which 
CPSRs are actually conducted. If a contractor's sales to the Government 
(excluding competitively awarded firm-fixed-price and competitively 
awarded fixed-price with economic price adjustment contracts and sales 
of commercial items in accordance with FAR part 12) are expected to 
exceed $25 million during the next 12 months, an ACO may determine that 
a CPSR is necessary. The ACO's determination as to whether a CPSR is 
necessary is based on, but not limited to, the past performance of the 
contractor, and the volume, complexity and dollar value of 
subcontracts. Once an initial determination has been made regarding a 
CPSR, at least every three years, the ACO shall determine whether a 
CPSR is necessary. If necessary, the cognizant contract administration 
office will conduct the CPSR. Generally, a CPSR is not performed for a 
specific contract, as the respondent appears to imply. Rather, CPSRs 
are conducted on contractors based on the factors identified above. For 
example, the Defense Contract Management Agency (DCMA) Contractor 
Purchasing System Review Group is a group dedicated to conducting CPSRs 
for the Department of Defense. As of April 2012 the group's review 
workload included more than 400 contractors worldwide. The estimate of 
1,580 respondents is therefore determined to be reasonable. In 
addition, the respondent is reminded that estimated burden hours should 
only include projected hours for those actions which a company would 
not undertake in the normal course of business. The primary purpose of 
CSPRs is to evaluate a portion of the normal course of a contractor's 
business, i.e., to evaluate the contractor's purchasing processes to 
ensure the efficiency and effectiveness with which the contractor 
spends Government funds and complies with Government policy when 
subcontracting. We submit that fundamental preparation for a review is 
part of a contractor's normal course of business.
    The respondent also took issue with the estimate of 25 hours per 
response. As indicated above, Subject Matter Experts were consulted in 
developing the estimate. Based on their assessment, the time required 
for reading and preparing information was adjusted upwards from 17 
hours (as estimated in the currently approved information collection) 
to 25 hours per completion, in order to provide a more accurate 
accounting of the contractors' time expenditure needed to prepare for a 
CPSR and respond to any contracting officer recommendations related to 
withholding or withdrawing of contractor purchasing system approval 
resulting from an CSPR.

C. Annual Reporting Burden

    There is no single data collection process or system, e.g., Federal 
Procurement Data System (FPDS), that identifies the number of CPSRs 
conducted governmentwide. However, for purposes of this clearance, the 
estimated Average Burden Per Response is estimated at 25 hours per 
completion. Based on coordination with a Government agency that 
conducts CPSRs, the estimate has been adjusted upwards from the current 
17 hours to 25 hours, in order to provide a more accurate accounting of 
the contractors' time necessary for reading information and preparing 
for a CSPR.
    Number of Respondents: 1,580.
    Responses per Respondent: 1.
    Total Responses: 1,580.
    Average Burden per Response: 25.
    Total Burden Hours: 39,500.
    Obtaining Copies of Proposals: Requesters may obtain a copy of the 
information collection documents from the General Services 
Administration, Regulatory Secretariat (MVCB), 1275 First Street NE., 
Washington, DC 20417, telephone (202) 501-4755. Please cite OMB Control 
No. 9000-0132, Contractors' Purchasing Systems Reviews, in all 
correspondence.

    Dated: March 18, 2013.
William Clark,
Acting Director, Federal Acquisition Policy Division, Office of 
Governmentwide Acquisition Policy, Office of Acquisition Policy, Office 
of Governmentwide Policy.
[FR Doc. 2013-06578 Filed 3-21-13; 8:45 am]
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