[Federal Register Volume 84, Number 102 (Tuesday, May 28, 2019)]
[Notices]
[Pages 24517-24523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11029]


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GENERAL SERVICES ADMINISTRATION

[OMB Control No. 3090-0235; Docket No. 2019-0001; Sequence No. 1]


General Services Administration Acquisition Regulation; 
Information Collection; Federal Supply Schedule Pricing Disclosures and 
Sales Reporting

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Notice of request for 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 Division is submitting a request to the Office 
of Management and Budget (OMB) to review and approve an extension of a 
previously approved information collection requirement regarding 
Commercial Sales Practices disclosures and General Services 
Administration Acquisition Regulation (GSAR) clause 552.238-81 Price 
Reductions.\1\ The information collected is used to establish and 
maintain Federal Supply Schedule (FSS) pricing and price-related terms 
and conditions.
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    \1\ This clause was formerly found at GSAR 552.238-75 but was 
amended to GSAR 552.238-81 per GSAR case 2016-G502, effective May 
23, 2019. See 84 FR 17030 from April 23, 2019.

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DATES: Submit comments on or before: July 29, 2019.

ADDRESSES: Submit comments identified by Information Collection 3090-
0235, Federal Supply Schedule Pricing Disclosures and Sales Reporting, 
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 3090-0235, Federal Supply Schedule 
Pricing Disclosures and Sales Reporting.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``Information Collection 3090-0235, Federal 
Supply Schedule Pricing Disclosures and Sales Reporting'' on your 
attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), 1800 F Street NW, Washington, DC 20405. 
ATTN: Ms. Mandell/IC 3090-0235, Federal Supply Schedule Pricing 
Disclosures.
    Instructions: Please submit comments only and cite Information 
Collection 3090-0235, Federal Supply Schedule Pricing Disclosures and 
Sales Reporting, 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: Mr. Matthew McFarland, Office of 
Acquisition Policy, (301) 758-5880 or [email protected].

SUPPLEMENTARY INFORMATION:

A. Purpose

    The extension has been renamed ``Federal Supply Schedule Pricing 
Disclosures and Sales Reporting'' because it now includes a burden 
estimate associated with the basic version of GSAR clause 552.238-80 
Industrial Funding Fee and Sales Reporting.\2\ GSA uses this 
information to collect the Industrial Funding Fee and administer the 
FSS program. This burden was included under a separate approved 
information collection identified by OMB control number 3090-0121.
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    \2\ This clause was formerly found at GSAR 552.238-74 but was 
amended to GSAR 552.238-80 per GSAR case 2016-G502, effective May 
23, 2019. See 84 FR 17030 from April 23, 2019.
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    GSA's Federal Supply Schedules, commonly known as GSA Schedules or 
Multiple Award Schedules (MAS), are Government-wide contracts providing 
federal agencies with a simplified process for acquiring commercial 
supplies and services. The FSS program is the Government's preeminent 
commercial contracting vehicle, accounting for about 10 percent of all 
federal contract dollars with approximately $33 billion of purchases 
made through the program in fiscal year 2018.
    GSA establishes the pricing and terms of each GSA Schedule contract 
with commercial vendors. Federal agencies then follow GSA's competitive 
procedures when placing orders against

[[Page 24518]]

these contracts and thereby satisfy statutory competition requirements 
to provide ``the lowest overall cost alternative to meet the needs of 
the Federal Government.'' \3\ In turn, those agencies must pay an 
Industrial Funding Fee (IFF) that covers GSA's costs of operating the 
FSS program. The fee is currently set at 0.75% and is included in the 
prices ordering activities pay vendors when purchasing from an FSS 
contract.\4\ FSS vendors then report GSA Schedule sales data and remit 
the IFF collected from ordering activities to GSA once a quarter.
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    \3\ 41 U.S.C. 152(3)(B) requires FSS ordering procedures to 
``result in the lowest overall cost alternative to meet the needs of 
the Federal Government.''
    \4\ The IFF for Schedule 599, Special Item Number 599-2 is $1.50 
per transaction.
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    There were a total of 16,215 GSA FSS contracts in fiscal year 2018. 
This information collection pertains to the pricing disclosures and 
sales reporting requirements for 14,152 of these contracts. The 
remaining 2,063 contracts participated in the Transactional Data 
Reporting pilot and were subject to a separate information collection 
identified by OMB control number 3090-0306.
    GSA believes Transactional Data Reporting offers a meaningful 
burden reduction for FSS vendors. GSA estimates the combined burden of 
this information collection is 49% more per contract than the 
Transactional Data Reporting burden. If all FSS vendors participated in 
Transactional Data Reporting, rather than being subject to the sales 
reporting and pricing disclosure requirements of this information 
collection, they would realize an estimated annual burden reduction of 
$30.8 million.\5\ On the other hand, vendors will absorb costs when 
reverting back to the requirements of this information collection, 
including costs associated with establishing a basis of award customer 
and monitoring system for PRC compliance, if GSA ends the Transactional 
Data Reporting pilot without an alternative means of collecting the 
IFF, monitoring program sales and establishing and monitoring contract 
pricing.
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    \5\ The estimated burden for this information collection, which 
applied to the 14,152 contracts not participating in the 
Transactional Data Reporting pilot, is estimated to be $94.2 
million. This equates to a per-contract burden of $6,662/year. The 
estimated burden for the Transactional Data Reporting information 
collection is $9.2 million/year for the 2,063 contracts 
participating in the FSS pilot; this equates to a per-contract the 
burden of $4,483/year. The estimated $30.8 million/year burden 
reduction is calculated by taking the updated 3090-0235 burden 
estimate ($94.2 million/year) and subtracting the product of the 
number of contracts included in 3090-0235 multiplied by the average 
per-contract burden of Transactional Data Reporting (14,152 
contracts x $4,483), which equals $63.4 million/year ($94.2M-$63.4M 
= $30.8M). More information about the Transactional Data Reporting 
burden can be found under Information Collection 3090-0306 at http://www.reginfo.gov/public by searching ``ICR'' for ``3090-0306''.
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    The Paperwork Reduction Act generally requires information 
collections to be renewed every three years.\6\ Both this information 
collection (OMB control number 3090-0235) and the Transactional Data 
Reporting information collection (OMB control number 3090-0306) were 
last approved in 2016, so GSA is now obtaining extensions to both 
information collections. Additionally, GSA is consolidating a separate 
information collection for IFF and sales reporting (OMB control number 
3090-0121) with this information collection because the burdens are 
interdependent.
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    \6\ 44 U.S.C. 3507(g).
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    This request for comments only pertains to the information 
collection requirements associated with the basic version of GSAR 
clause 552.238-80 and CSP and PRC disclosure requirements. GSA has also 
posted a separate notice requesting comments on the Transactional Data 
Reporting information collection (OMB control number 3090-0306).

Sales Reporting

    General Services Administration Acquisition Regulation (GSAR) 
clause 552.238-80 Industrial Funding Fee and Sales Reporting is 
included in every GSA Schedule contract. The basic version of the 
clause requires vendors to report their FSS contract sales to GSA 
within 30 days after the end of the quarter. GSA then calculates the 
IFF due based on the total amount of sales reported and the vendor must 
also remit that amount within 30 days after the end of the quarter.\7\
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    \7\ Alternate I of the clause applies to FSS contracts 
participating in the Transactional Data Reporting pilot and falls 
under the information collection identified by OMB control number 
3090-0306.
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FSS Pricing Disclosures

    The basic version of GSAR clause 552.238-80 Industrial Funding Fee 
and Sales Reporting also dictates the pricing procedures GSA will use 
to establish contract pricing. These pricing procedures require GSA to 
determine price reasonableness on its FSS contracts by comparing a 
vendor's prices and price-related terms and conditions with those 
offered to their other customers. Through analysis and negotiations, 
GSA establishes a favorable pricing relationship in comparison to one 
of the vendor's customers (or category of customers) and then maintains 
that pricing relationship for the life of the contract. In order to 
carry out this practice, GSA collects pricing information through CSP 
disclosures and enforces the pricing relationship through the PRC.
    Commercial Sales Practices (CSP): In accordance with GSAR 
515.408(a)(2), offerors must submit information in the Commercial Sales 
Practices Format provided in the solicitation, following the 
instructions at GSAR Figure 515.4-2, or submit information in their own 
format. In addition to when an offer is submitted, CSP disclosures are 
also required prior to executing bilateral modifications for exercising 
a contract option period, adding items to the contract, or increasing 
pricing under the Economic Price Adjustment clause (GSAR 552.216-70).
    Price Reductions Clause (PRC): GSAR 538.273 (b)(2) prescribes the 
PRC for use in all FSS solicitations and contracts. The clause is 
intended to ensure the Government maintains its price/discount (and/or 
term and condition) advantage in relation to the vendor's customer (or 
category of customer) upon which the FSS contract is based. The basis 
of award customer (or category of customer) is identified at the 
conclusion of negotiations and noted in the contract. Thereafter, the 
PRC requires FSS vendors to inform the contracting officer of price 
reductions within 15 calendar days. Per GSAR 552.238-81(c)(1),
    A price reduction shall apply to purchases under this contract if, 
after the date negotiations conclude, the Contractor--
    (i) Revises the commercial catalog, pricelist, schedule or other 
document upon which contract award was predicated to reduce prices;
    (ii) Grants more favorable discounts or terms and conditions than 
those contained in the commercial catalog, pricelist, schedule or other 
documents upon which contract award was predicated; or
    (iii) Grants special discounts to the customer (or category of 
customers) that formed the basis of award, and the change disturbs the 
price/discount relationship of the Government to the customer (or 
category of customers) that was the basis of award.
    FSS ordering procedures are required by law to ``result in the 
lowest overall cost alternative to meet the needs of the Federal 
Government.'' \8\ CSP disclosures and the PRC provide GSA a mechanism 
for meeting this objective by giving it insight into a vendor's pricing 
practices, which is proprietary information that

[[Page 24519]]

can only be obtained directly from the vendor.
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    \8\ 41 U.S.C. 152(3)(B).
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Information Collection Changes and Updates

    The burden estimates from the previous approval have been adjusted 
to include updates to sales reporting estimates previously included 
under OMB control number 3090-0121; reflect actual participation in the 
Transactional Data Reporting pilot; and revised labor rates used to 
calculate cost estimates. The number of respondents and applicable 
actions has also been updated.
    Sales Reporting: The basic version of the Industrial Funding Fee 
and Sales Reporting clause has traditionally been associated with OMB 
control number 3090-0121, which was last extended in June 2017. GSA 
determined this information collection should be consolidated with the 
FSS Pricing Disclosures information collection (OMB control number 
3090-0235) because they apply to the same population within the GSA 
Schedules program.
    The estimation methodology for the sales reporting calculations is 
the same as what was used for the 2017 renewal of OMB control number 
3090-0121 except the sales categories were revised to align with those 
used for the Transactional Data Reporting information collection (OMB 
control number 3090-0306).
    Adjustments for Transactional Data Reporting Pilot: GSA Schedule 
contracts included in the Transactional Data Reporting pilot are no 
longer subject to this information collection; the separate reporting 
requirements for those contracts are covered by OMB control number 
3090-0306.
    The Transactional Data Reporting pilot had yet to launch when these 
burden estimates were previously calculated in 2016, so GSA based its 
estimates for the number of contracts that would participate on the 
total number of contracts under the Schedules and Special Item Numbers 
eligible for the pilot:
     The ratio of GSA Schedule contracts that would continue 
under this information collection was estimated to be 56.8%, which was 
based on the percentage of the program's sales in fiscal year 2015 for 
contracts that would not be eligible to participate in the 
Transactional Data Reporting pilot.
     The ratio of GSA Schedule contracts slated to be included 
in the Transactional Data Reporting pilot was estimated to account for 
the remaining 43.2%.
    Consequently, the 2016 burden estimates for the CSP and PRC renewal 
and the 2017 IFF and sales reporting renewal relied upon these 
Transactional Data Reporting pilot participation projections. However, 
pilot participation became optional in 2017 and the number of contracts 
that eventually joined the pilot was lower than anticipated in 2016. Of 
the 16,215 contracts that were active in FY 2018,
     14,152 contracts, or 87.28% of the total, are subject to 
this information collection.
     2,063 contracts, or 12.72% of the total, participated in 
the Transactional Data Reporting pilot.
    Consequently, the revised participation figures resulted in 
significantly higher burden estimates for this information collection 
and lower burden estimates for the Transactional Data Reporting 
information collection (OMB control number 3090-0306).
    Revised Labor Rates: The previous burden estimates used a fully 
burdened labor rate of $68/hour. This included a $50/hour base rate, 
which was based on professional judgment, and 36% for fringe benefits, 
which was rounded down from the 36.25% fringe benefit factor included 
in OMB Circular A-76.\9\
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    \9\ 36.25% overhead rate was used in reference to Office of 
Management and Budget (OMB) Circular No. A-76. Circular A-76 
requires agencies to use standard cost factors to estimate certain 
costs of Government performance. These cost factors ensure that 
specific government costs are calculated in a standard and 
consistent manner to reasonably reflect the cost of performing 
commercial activities with government personnel.
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    The revised burden estimates attempt to align with the Department 
of Defense's Regulatory Cost Analysis Tool (RCAT), which was developed 
to prepare economic analyses in compliance with Executive Order 13771 
and uses various Government labor category rates as the basis for cost 
estimates. GSA determined--
     The GS-14, Step 5 labor rate from the RCAT ($77.25/hour) 
was the most appropriate for the tasks performed by vendors to comply 
with CSP and PRC disclosure requirements and perform the initial setup 
for sales reporting systems.
     The GS-12, Step 5 labor rate from the RCAT ($55.19/hour) 
was the most appropriate for the tasks performed by vendors for 
quarterly sales reporting.

B. Annual Reporting Burden

    This information collection applies to GSA FSS contracts that 
include the basic version of GSAR clause 552.238-80 Industrial Funding 
Fee and Sales Reporting. In FY 2018, 13,828 vendors held a total of 
16,215 GSA FSS contracts; 12,151 of these vendors held a total of 
14,152 contracts containing the basic version of clause 552.238-80.\10\ 
These contracts accounted for approximately 77.8% of GSA FSS sales in 
fiscal year 2018. The 2,063 GSA FSS contracts subject to Alternate I of 
GSAR clause 552.238-80--those participating in the Transactional Data 
Reporting pilot--are covered by a separate information collection 
identified under OMB control number 3090-0306.
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    \10\ Some vendors hold multiple contracts and may have contracts 
participating in the Transactional Data Reporting pilot and other 
contracts that are subject to CSP and PRC disclosure requirements.
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Cost Burden Calculation

    Sales Reporting: The two primary activities associated with sales 
reporting are initial setup and quarterly reporting. GSA calculated the 
cost burden for each as follows:
     Initial Setup: The duties required for these activities 
will generally be completely by a senior-level subject matter expert. 
For the purposes of establishing an hourly rate, GSA equates these 
duties to those of a GS-14, Step 5 employee, whose hourly rate in 2019 
for the ``Rest of U.S.'' locality is $56.92 an hour.\11\ When factoring 
a 36.25 percent overhead rate for fringe benefits, the fully burdened 
rate is $77.55 an hour.\12\
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    \11\ General Schedule (GS) labor rates may be viewed on the 
Office of Personnel Management (OPM) under Pay & Leave: Salaries and 
Wages, SALARY TABLE 2019-RUS at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/19Tables/html/RUS_h.aspx.
    \12\ 36.25% overhead rate was used in reference to Office of 
Management and Budget (OMB) Circular No. A-76. Circular A-76 
requires agencies to use standard cost factors to estimate certain 
costs of Government performance. These cost factors ensure that 
specific government costs are calculated in a standard and 
consistent manner to reasonably reflect the cost of performing 
commercial activities with government personnel.
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     Quarterly Reporting: The duties required for these 
activities will generally be completed by mid-level personnel. For the 
purposes of establishing an hourly rate, GSA equates these duties to 
those of a GS-12, Step 5 employee, whose hourly rate in 2019 for the 
``Rest of U.S.'' locality is $40.51 an hour. When factoring a 36.25 
percent overhead rate for fringe benefits, the fully burdened rate is 
$55.19 an hour.
    Pricing Disclosures: The duties required for these activities will 
generally be completed by a senior-level subject matter expert. For the 
purposes of establishing an hourly rate, GSA equates these duties to 
those of a GS-14, Step 5 employee, whose hourly rate in 2019 for the 
``Rest of U.S.'' locality is $56.92 an hour. When factoring a

[[Page 24520]]

36.25 percent rate for fringe benefits, the fully burdened rate is 
$77.55 an hour.

Heavier Lifts and Lighter Lifts

    Due to the diversity among the FSS vendor population, the burden 
associated with many of the CSP and PRC components of this information 
collection cannot be equally attributed to all FSS contracts. In these 
areas, GSA is categorizing contracts into those with a ``heavier lift'' 
or ``lighter lift.''
    FSS contracts are held by a diverse set of companies, which vary in 
terms of business size, offerings, and FSS sales volume. For example, 
in FY 2018:
     30.7 percent, or 4,975 contracts had $0 in reported FSS 
sales.
     6.8 percent, or 1,100 contracts, accounted for about 80 
percent of all FSS sales.
     The top 20 percent of FSS contracts (in terms of FY 2018 
sales) accounted for 94.6 percent of FSS sales.
     Only 19.7 percent of FSS contracts had more than $1 
million in FSS sales.
     68.7 percent of FSS contracts were held by small 
businesses and had less than $1 million in FSS sales.
     Small businesses held 81 percent of the FSS contracts but 
accounted for 37 percent of FSS sales.
    In general, a vendor's sales volume will have the greatest effect 
on the associated burden of these requirements, although the number and 
type of offerings, and business structure, can also be significant 
factors. As previously shown, a relatively small number of FSS 
contracts account for the vast majority of FSS sales and therefore 
likely bear a heavier burden for these requirements. Conversely, the 
majority of FSS contracts, which are typically held by small businesses 
with lower sales volume, absorb less of the burden for these 
requirements.
    To account for the differences among FSS contracts, GSA is 
utilizing the Pareto principle, or ``80/20 rule,'' which states 80 
percent of effects comes from 20 percent of the population. 
Accordingly, GSA is categorizing FSS contracts by those with a heavier 
lift (20 percent) and those with a lighter lift (80 percent). Contracts 
with heavier lifts are those with the characteristics leading to 
increased burden--more sales volume, higher number of contract items, 
more complex offerings, more transactions, more complex transactions, 
and/or intricate business structures.

Sales Reporting

    The basic version of the Industrial Funding Fee and Sales Reporting 
clause requires vendors to report their total sales by Special Item 
Number once a quarter in the 72A Reporting System.\13\ Vendors must 
file these reports within 30 days after the end of each of the 
following quarters:
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    \13\ https://72a.gsa.gov.

 January 1 to March 31
 April 1 to June 30
 July 1 to September 30
 October 1 to December 31

    After vendors report their sales, the 72A Reporting System 
calculates the IFF due for the quarter. The system then prompts users 
to ``Pay Now'' or ``Pay Later.'' Vendors can remit IFF payments via 
credit card, online check, or paper check. Regardless of whether a 
vendor remits the IFF at the time sales are reported or at a later 
date, the IFF due must be remitted within the same 30 day deadline 
following the end of the reporting quarters.
    Categorization of Vendors by Quarterly Sales Revenue: Sales 
reporting imposes a progressive burden--one that increases with a 
vendor's sales volume. Quarterly reporting times will increase with a 
vendor's applicable sales volume, as vendors with lower to no 
reportable sales will spend little time on quarterly reporting, while 
those with more reportable sales with face a higher reporting burden.
    GSA separated contracts into categories based on reported annual 
sales volume in order to account for the differences in reporting 
burden. These categories are:

 Category 1: No sales activity
 Category 2: Sales between $0 and $25,000
 Category 3: Sales between $25,000 and $250,000
 Category 4: Sales between $250,000 and $1 million
 Category 5: Sales over $1 million

    The distribution of contracts by sales category is as follows:

                       Contracts by Sales Category
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                                           FSS contracts   FSS contracts
                                              (count)      (percentage)
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Category 1..............................           4,657              33
Category 2..............................           1,188               8
Category 3..............................           3,469              25
Category 4..............................           2,168              15
Category 5..............................           2,670              19
                                         -------------------------------
    Total...............................          14,152             100
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    Automated vs. Manual Reporting Systems: Vendors subject to these 
clauses must create systems or processes to produce and report accurate 
data. Generally, vendors will use automated or manual systems to 
identify the quarter's reportable sales. An automated system is one 
that relies on information technology, such as an accounting system or 
data management software, to identify and compile reportable data. 
These systems can tremendously streamline the reporting process but 
require upfront configuration to perform the tasks, such as coding the 
sales types to be retrieved. Conversely, a manual system is one that 
incorporates little to no automation and instead relies on

[[Page 24521]]

personnel to manually identify and compile the reportable data. An 
example of a manual system would be an accountant reviewing invoices to 
identify the reportable data and then transferring the findings to a 
spreadsheet. In contrast to automation, a manual system requires 
relatively little setup time but the reporting effort will generally 
increase with the vendor's sales volume.
    The likelihood of a vendor adopting an automated system increases 
with their applicable sales volume. Vendors with little to no 
reportable data are unlikely to expend the effort needed to establish 
an automated reporting system since it will be relatively easy to 
identify and report a limited amount of data. However, as a vendor's 
applicable sales increase, they will be increasingly likely to 
establish an automated system to reduce the quarterly reporting burden. 
Consequently, vendors with higher reportable sales will likely bear a 
higher setup burden to create an automated system, or absorb a high 
quarterly reporting burden if they choose to rely on manual reporting 
methods.
    The following chart depicts the likelihood of the population of 
contracts operating under manual and automated reporting systems:

                                       Contracts by Reporting System Type
                                             [Manual vs. Automated]
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                                                                     Automated    Manual system--    Automated
                                                   Manual system      system        vendor count     system--
                                                   (percentage)    (percentage)                    vendor count
----------------------------------------------------------------------------------------------------------------
Category 1......................................             100               0           4,657               0
Category 2......................................             100               0           1,188               0
Category 3......................................              90              10           3,122             347
Category 4......................................              50              50           1,084           1,084
Category 5......................................              10              90             267           2,403
                                                 ---------------------------------------------------------------
    Total Count of Contracts by System Type.....  ..............  ..............          10,318           3,834
----------------------------------------------------------------------------------------------------------------
Percentage of Contracts by System Type..........  ..............  ..............             73%             27%
----------------------------------------------------------------------------------------------------------------

    Initial Setup: Vendors with active FSS contracts already have 
procedures in place to meet these longstanding reporting requirements. 
However, new FSS vendors will absorb a one-time setup burden to 
establish reporting systems. The estimated setup time varies between 
automated and manual reporting systems. Vendors implementing a manual 
system must acclimate themselves with the new reporting requirements 
and train their staff accordingly, while those with automated systems 
must perform these tasks in addition to configuring information 
technology resources.
    GSA estimates the average one-time setup burden is 8 hours for 
vendors with a manual system and 40 hours for those with an automated 
system. GSA also attributes the same system type probabilities (manual 
system 73%, automated system 27%) to the population of new vendors. 
These estimates apply to the 1,220 vendors awarded FSS contracts in 
fiscal year 2018.
    Quarterly Reporting: Vendors are required to report sales within 30 
calendar days after the end of each quarter. The average reporting 
times vary by system type (manual or automated) and sales volume. GSA 
estimates vendors using a manual system will have average quarterly 
reporting times ranging from 15 minutes (0.25 hours) per quarter for 
vendors with $0 sales to an average of 8 hours per quarter for vendors 
with quarterly sales over $1 million. On the other hand, GSA projects 
vendors with automated systems will have reporting times of 2 hours per 
quarter, irrespective of quarterly sales volume, as a result of 
efficiencies achieved through automated processes. The following table 
shows GSA's projected quarterly reporting times per sales category and 
system type:

          Quarterly Reporting Hours by System Type and Category
------------------------------------------------------------------------
                                                             Automated
                                          Manual systems      systems
------------------------------------------------------------------------
Category 1..............................            0.25            2.00
Category 2..............................            1.00            2.00
Category 3..............................            2.00            2.00
Category 4..............................            4.00            2.00
Category 5..............................            8.00            2.00
------------------------------------------------------------------------

    Annualized Public Burden Estimates for Sales Reporting: The burden 
estimates consist of quarterly reporting times for all 14,152 
participating contracts and a one-time setup burden for the 1,220 new 
contracts:
Quarterly Reporting
    Annual Burden (Hours): 90,945.
    Annual Burden (Cost): $5,019,255.
Initial Setup
    Annual Burden (Hours): 20,336.
    Annual Burden (Cost): $1,577,078.

Price Reductions Clause

    GSA attributes the PRC-related burden to training, compliance 
systems, and notifying GSA of price reductions within 15 calendar days 
after their occurrence.
    Training: FSS vendors provide training to their employees to ensure 
compliance with FSS pricing disclosure requirements. GSA is basing 
these burden estimates on the number of vendors, not the number of 
contracts, because vendors with multiple contracts

[[Page 24522]]

subject to this requirement will likely not have to provide separate 
training for each contract.
    In FY 2018, there were 12,151 vendors subject to PRC notification 
requirements, 2,830 (20%) with a heavier lift and 9,721 (80%) with a 
lighter lift. Vendors within the heavier lift category may need to 
develop formal training programs and conduct training for numerous 
divisions and offices, while vendors in the lighter lift category may 
have no need for training design and administration due to having as 
few as one person responsible for PRC compliance.
Training--Heavier Lift
    Total Annual Responses: 2,430.
    Average Hours per Response: 40.
    Total Time Burden (Hours): 97,208.
    Total Cost Burden: $7,538,480.
Training--Lighter Lift
    Total Annual Responses: 9,721.
    Average Hours per Response: 20.
    Total Time Burden (Hours): 194,416.
    Total Cost Burden: $15,076,961.
    Compliance Systems: FSS vendors must develop systems to control 
discount relationships with other customers/categories of customer to 
ensure the basis of award pricing relationship is not disturbed. In 
public comments submitted on this information collection renewal in 
2016, a respondent stated PRC monitoring burden should be 1,290 hours 
to establish a compliance system in the first year and 1,100 hours each 
year thereafter for monitoring activities. However, GSA believes the 
amount of investment into a compliance system is inversely related to 
the amount of time needed to carry out ongoing monitoring activities. 
Specifically, vendors making high upfront investments, such as 
programming a quotation tool to control discounts, will have a lower 
ongoing monitoring reporting burden. On the other hand, vendors not 
making upfront investments to establish a compliance system will have a 
higher ongoing reporting burden.
    As a result, GSA is using the 1,290 hour estimate but allocating it 
across the 20-year life of a contract for heavier lift vendors using 
automated systems to carry out monitoring activities, resulting in an 
annual burden of 65 hours. GSA estimates heavier lift vendors that 
spend less time implementing an automated system will incur a similar 
burden for monitoring activities, meaning GSA is estimating the same 65 
hour/year burden for those vendors. For lighter lift vendors, GSA is 
attributing an average burden of 700 hours for the 20-year life of the 
contract, which equates to 35 hours a year.
Compliance Systems--Heavier Lift
    Total Annual Responses: 2,430.
    Average Hours per Response: 65.
    Total Time Burden (Hours): 156,748.
    Total Cost Burden: $12,155,800.
Compliance Systems--Lighter Lift
    Total Annual Responses: 9,721.
    Average Hours per Response: 30.
    Total Time Burden (Hours): 341,995.
    Total Cost Burden: $26,521,745.
    Price Reduction Notifications: 1,035 price reduction modifications 
were completed in FY 2018, with each modification requiring a 
notification from the vendor. In a survey conducted among GSA FSS 
contracting officers, respondents estimated it took an average of 4.25 
hours to complete a price reduction modification. GSA believes FSS 
vendors bear a similar burden for this task and is therefore using the 
same burden estimate.
Price Reduction Notifications
    Total Annual Responses: 1,035.
    Average Hours per Response: 4.25.
    Total Time Burden (Hours): 4,399.
    Total Cost Burden: $341,123.

Commercial Sales Practices Disclosures

    The CSP burden results from disclosures required of any vendor 
submitting an offer for an FSS contract or modifying an FSS contract to 
increase prices, add items and Special Item Numbers, or exercise 
options.
    The burden estimates for CSP disclosures are based upon the 
estimates provided by respondents to the GSA FSS contracting officer 
survey. The 77 survey respondents provided estimates regarding the 
amount of time it takes FSS contracting officers to complete CSP-
related tasks and GSA believes these responses can be used as a 
benchmark for vendor burden estimates.
    In calculating these burden estimates, GSA acknowledges a vendor's 
tasks are more complex than simply comparing offered prices to 
discounts given to other categories of customers. In addition to 
collecting and analyzing data, GSA expects offerors to provide data 
that is current, accurate and complete. GSA recognizes this due 
diligence places an additional burden on offerors. Also, similar to the 
PRC, factors such as sales volume, the number of contract items, 
complexity of offerings, and business structures has a significant 
effect on the burden but can vary widely from vendor to vendor. 
Consequently, GSA is using the heavier lift and lighter lift 
methodology for the CSP burden estimates.
    Pre-award Disclosures: In fiscal year 2018, vendors submitted 2,503 
offers for FSS contracts with CSP disclosure requirements. GSA 
recognizes the complexity of this task varies with the type and number 
of offerings, business structure, and expected revenue, so for this 
burden estimate, these offers are separated between offerors with 
heavier lifts (20 percent or 501 offers) and those with lighter lifts 
(80 percent or 2,002 offers).
    Prior to receiving comments on this information collection in 2016, 
GSA based its burden estimates for this function directly on the 
results from the FAS survey of its FSS contracting officers. However, 
after receiving public comments stating the pre-award disclosure burden 
for vendors exceeds that for contracting officers, GSA doubled its 
vendor estimates, resulting in increases for heavier lift vendors from 
41.48 hours/year to 82.96 hours/year and for lighter lift vendors from 
32.41 hours/year to 64.82 hours/year.
Pre-Award Disclosures--Heavier Lift
    Total Annual Responses: 501.
    Average Hours per Response: 82.96.
    Total Time Burden (Hours): 41,532.
    Total Cost Burden: $3,909,407.
Pre-Award Disclosures--Lighter Lift
    Total Annual Responses: 2,002.
    Average Hours per Response: 64.82.
    Total Time Burden (Hours): 129,801.
    Total Cost Burden: $10,066,090.
    Price Increase Modifications: In FY 2018, 1,457 price increase 
modifications were processed, including 492 (20 percent) with a heavier 
lift and 1,967 (80 percent) with a lighter lift. The time burden for 
these modifications varies mainly with the type and number of 
offerings. GSA is basing its burden estimates for this function 
directly on the results from the FAS survey of its FSS contracting 
officers.
Price Increases--Heavier Lift
    Total Annual Responses: 492.
    Average Hours per Response: 10.45.
    Total Time Burden (Hours): 5,139.
    Total Cost Burden: $398,553.
Price Increases--Lighter Lift
    Total Annual Responses: 1,967.
    Average Hours per Response: 9.71.
    Total Time Burden (Hours): 18,039.
    Total Cost Burden: $1,398,942.
    Adding Items and Special Item Numbers (SINs): In FY 2018, 4,209 
addition modifications were processed, including 1,275 (20 percent) 
with a heavier lift and 5,099 (80 percent) with a lighter lift. The 
time burden for these modifications varies with the type and number of 
offerings. GSA is basing its

[[Page 24523]]

burden estimates for this function directly on the results from the FAS 
survey of its FSS contracting officers.
Addition Modifications--Heavier Lift
    Total Annual Responses: 1,275.
    Average Hours per Response: 11.13.
    Total Time Burden (Hours): 14,189.
    Total Cost Burden: $1,100,320.
Addition Modifications--Lighter Lift
    Total Annual Responses: 5,099.
    Average Hours per Response: 10.65.
    Total Time Burden (Hours): 54,306.
    Total Cost Burden: $4,211,468.
    Exercising Options: In FY 2018, 2,468 option modifications were 
processed, including 494 (20 percent) with a heavier lift and 1,974 (80 
percent) with a lighter lift. The time burden for these modifications 
varies with the type and number of offerings, business structure, and 
expected revenue. GSA is basing its burden estimates for this function 
directly on the results from the FAS survey of its FSS contracting 
officers because while the associated tasks with processing an option 
CSP are similar to that of a pre-award CSP, the option CSP requires 
less time because of familiarity and precedents created during the 
preceding contract period.
Option Modifications--Heavier Lift
    Total Annual Responses: 494.
    Average Hours per Response: 26.14.
    Total Time Burden (Hours): 12,903.
    Total Cost Burden: $1,000,605.
Option Modifications--Lighter Lift
    Total Annual Responses: 1,974.
    Average Hours per Response: 22.32.
    Total Time Burden (Hours): 44,069.
    Total Cost Burden: $3,417,521.

GSA Office of Inspector General Audits

    The GSA Office of Inspector General (OIG) regularly audits GSA 
Schedule contracts for compliance with PRC and CSP requirements. The 
GSA OIG performed 48 contract audits in FY 2018.\14\ Survey responses 
included with public comments submitted for the 2012 renewal of this 
information collection noted vendors estimated spending approximately 
440-470 hours preparing for audits involving the PRC. This burden still 
applied in 2018, so GSA is taking the median point of that range (455) 
and multiplying it by 48 audits, to reach the sum of 21,840 hours 
expended preparing for audits.
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    \14\ The GSA OIG's audit findings are outlined in their 
Semiannual Reports to the Congress. The report covering October 1, 
2017 to March 31, 2018 stated the OIG performed 21 contract audits 
and the report covering April 1, 2018 to September 30, 2018 stated 
the GSA OIG performed 27 contract audits.
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GSA OIG Audits
    Total Annual Responses: 48.
    Average Hours per Response: 455.
    Total Time Burden (Hours): 21,840.
    Total Cost Burden: $1,226,316.

Total Annual Burden

    The total estimated burden imposed by Federal Supply Schedule 
pricing disclosures is as follows:
Estimated Annual Time Burden (Hours)
    Sales Reporting: 111,281.
    Price Reductions Clause: 794,766.
    CSP Disclosures: 319,978.
    GSA OIG Audits: 21,840.
    Total Annual Time Burden: 1,247,865.
Estimated Annual Cost Burden
    Sales Reporting: $6,141,614.
    Price Reductions Clause: $61,634,109.
    CSP Disclosures: $24,814,275.
    GSA OIG Audits: $1,693,692.
    Total Annual Cost Burden: $94,283,689.

C. Public Comments

    Public comments are particularly invited on: Whether this 
collection of information is necessary and whether it will have 
practical utility; whether our estimate of the public burden of this 
collection of information is accurate, and based on valid assumptions 
and methodology; ways to enhance the quality, utility, and clarity of 
the information to be collected.
    Obtaining Copies of Proposals: Requesters may obtain a copy of the 
information collection documents from the General Services 
Administration, Regulatory Secretariat Division (MVCB), 1800 F Street 
NW, Washington, DC 20405, telephone 202-501-4755. Please cite OMB 
Control No. 3090-0235, Federal Supply Schedule Pricing Disclosures and 
Sales Reporting, in all correspondence.

Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of 
Government-wide Policy.
[FR Doc. 2019-11029 Filed 5-24-19; 8:45 am]
BILLING CODE 6820-61-P