Memo
Operating Guidance
No. 90-8, Supplement 3
September 13, 1995
Subject: NASA Requirements for Reporting on Subcontracting Plans: Revision
In Supplement No. 1 to C&G Memo 90-8 (5/17/94) we alerted you to the fact that NASA was requiring the form SF 295, "Summary Subcontract Report," to be submitted on a quarterly rather than annual basis. The OMB clearance for NASA's use of the form came up for renewal this year and we submitted comments as promised in that Supplement (see Enclosure 1).
We have just received a response to our comments (see Enclosure 2). NASA will now be requiring the SF 295 on a semiannual basis instead of quarterly. While this is certainly an improvement, it is not all that we asked for. The OMB clearance lasts for three years, so we hope in 1998 to be able to convince NASA to move from semiannual to annual reporting.
Refer:
William Sellers
(510) 987-9847
william.sellers@ucop.edu
Subject Index: 16
Organization Index: F-615, U-115
Cancel: 90-8 Suppl. 1
David F. Mears
Director
Research Administration Office
cc:
David Barnard
Materiel Managers
Small Business Coordinators
Kate Phillips/COGR
July 26, 1995
Donald J. Andreotta
NASA Agency Clearance Officer, Code JT
NASA Headquarters
Washington, DC 20503
re: OMB 83-1 (2700-0073)
Dear Mr. Andreotta:
We are writing to strongly oppose the extension of a paperwork burden on NASA contractors. The clearance request was published in the Federal Register on July 6, 1995.
On September 30, 1993, NASA published a final rule in the Federal Register that had the effect of adding a new clause to the NASA FAR Supplement, numbered 1852.219-75 and titled "Small Business and Small Disadvantaged Business Subcontracting Reporting." This rule changed the frequency of reporting on subcontracting plans on the SF 295 form from annual to quarterly, for NASA prime contracts containing subcontracting plans. It also contained a similar flowdown provision. Thus the quarterly reporting requirement has been in effect for three years--long enough to provide ample opportunity for NASA to gain experience with this requirement.
In accordance with the Paperwork Reduction Act and codified at 5 CFR 1320, any collection of information must have "practical utility" in order to obtain OMB approval (§1320.4). Practical utility, as defined in §1320.7(o), "means the actual, not merely the theoretical or potential, usefulness of information to an agency, taking into account...the agency's ability to process the information in a useful and timely fashion." The regulation goes on to state:
In determining whether information will have practical utility, OMB will take into account whether the agency demonstrates actual timely use for the information either to carry out its functions or to make it available to the public....In the case of general purpose statistics or recordkeeping requirements, practical utility means that actual uses can be demonstrated. [orig. emphasis]
Thus it is incumbent on OMB to demand proof that the NASA quarterly reporting requirement for the SF-295, as opposed to the annual requirement imposed by every other civilian agency, affords the practical utility required under the statute and implementing regulations. The statement in the clearance request, that "NASA requires more frequent reporting...to more effectively manage its goal for small disadvantaged business participation" certainly does not meet the standard of proof required, and in fact is a ludicrous justification because by inference it means that NASA needs four times as much paperwork as any other civilian agency to manage the same program .
We look forward to hearing that you have denied this request for extension. We will then expect NASA to rescind the NASA FAR Supplement clause at 1852.219-75. This action is very important to us because, by NASA's own estimate, each report consumes over 16 hours of effort to prepare. In these days of capped administrative overhead costs, we cannot afford to waste 6 person-days every year for every NASA contract that involves a subcontracting plan.
Sincerely,
David F. Mears
Director
Research Administration Office
cc:
Executive Director Feuerborn
Tony DeCrappeo/COGR
OMB, Paperwork Reduction Project (2700-0073), Washington DC 20503
National Aeronautics and Space Administration
Headquarters
Washington, DC 20546-0001
SEP 7 1995
Mr. David F. Mears, Director
Research Administration Office
University of California
300 Lakeside Drive
Oakland, CA 94612-3550
Dear Mr. Mears:
Thank you for your letter recommending a change to SF 295 reporting. The SF 295 frequency of reporting on subcontract plans has been revised from a quarterly to semiannually requirement. NASA has coordinated this revision with the Office of Management and Budget and we have both agreed to this reporting improvement which reduces government paperwork burden.
Donald J. Andreotta
Deputy Director, IRM Division