This collection is approved based on the revised materials provided.
Inventory as of this Action
Requested
Previously Approved
08/31/2019
36 Months From Approved
08/31/2016
138
0
600
138
0
3,000
11,134
0
0
Federal Acquisition Regulation (FAR) 52.215-19, Notification of Ownership Changes, provides that contractors shall notify the Administrative Contracting Officer when the contractor becomes aware that a change in its ownership has occurred, or is certain to occur, that could result in changes in the valuation of its capitalized assets in the accounting records. The FAR cost principles at 31.205-52, Asset valuations, addresses the allowability of certain costs resulting from asset valuations following business combinations. In order to administer that cost principle adequately, notice of changes of ownership are necessary. The referenced contract clause, Notification of Ownership Changes, establishes the responsibility for a contractor to notify the Government in the event of an ownership change.
A new estimate of the number of respondents, based on current data, was conducted. The number of contractors required to report changes in ownership that are expected to impact their indirect costs and rate structures was based on two calculations: (1) the percentage of all Federal contractors who experience changes in ownership in a given year, and (2) that percentage was applied to all Federal contractors who must submit certified cost or pricing data in a given year. In FY15, the most recent year for which data are available, there were 5,098 unique entities with active contracts awarded that year.
That year, according to the System for Award Management, there were 542 unique entities that either: (a) submitted new representations, given a recent merger or acquisition (and stock ownership changes) without novation agreements, or (b) entered novation agreements (given a change in ownership of contractor assets). The rate of ownership changes equates to 10.63%. This percentage was applied to the total number of contracts awarded in FY15 that involved submission of certified cost or pricing data, or other pre-award or post-award cost determination (FAR 31.2), which was 1297. Assuming that the rate of ownership changes is constant for all types of Federal contractors, the number of contractors affected by this information collection requirement is 138.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
9000-0115 Supporting Statement(8-22-16).doc
Notification of Ownership Changes -- FAR Sections Affected: 31.205-52 and 52.215-19