FR 2021-00264

The notice from the Department of Defense (DOD), General Services Administration (GSA), and NASA is an important update under the provisions of the Paperwork Reduction Act. The agencies are seeking approval from the Office of Management and Budget (OMB) to renew and revise requirements related to certified cost or pricing data. These requirements aim to ensure that government contract costs, as well as any modifications to such contracts, are fair and reasonable. To gather input, the document invites public comments and provides instructions for submission, ensuring transparency in the process.

General Summary

The essence of the document is to highlight the ongoing efforts by government agencies to collect and assess cost or pricing data from contractors. This data collection is mandated by the Truth in Negotiations Act, which sets guidelines for ensuring fairness in government contracts. The notice specifies certain Federal Acquisition Regulation (FAR) clauses that detail the requirements and conditions under which contractors must submit this data. This process is necessary for the government to verify that prices in contracts and their modifications remain equitable.

Significant Issues or Concerns

There are a few notable concerns regarding the document. One major point of confusion is the lack of clarity in quantifying the "threshold for submission of certified cost or pricing data" as referenced in the FAR 15.403-4(a)(1). This could be problematic for contractors trying to understand their obligations. Additionally, the document heavily references specific clauses from the Federal Acquisition Regulation, which might be challenging for those not well-versed in legal or governmental terminology. The absence of clear examples of what constitutes “certified cost or pricing data” further adds to potential misunderstandings.

Furthermore, the document does not outline any procedures in place to handle inefficiencies or wasteful spending in the data collection process. This omission could concern taxpayers interested in accountability and effective use of resources. Another point worth noting is that the document does not address potential conflicts of interest or measures to ensure impartiality during the review process, which could be a concern for contractors and the public.

Impact on the Public

The renewal and revision of these data collection requirements are likely to have a wide-reaching impact. For the general public, primarily taxpayers, these efforts aim to ensure that government spending is justifiable and transparent. By verifying that contract prices are fair, the public can trust that government funds are being utilized appropriately.

Impact on Specific Stakeholders

For contractors, this notice means a continued obligation to report and justify their pricing structures when engaging in government contracts. While ensuring fairness, these requirements could impose a significant administrative burden, as indicated by the document’s summary of annual data submission expectations — involving tens of thousands of responses and millions of burden hours. Since the document does not break down these hours per respondent, it is difficult to gauge whether the administrative load is reasonable for each contractor.

The absence of public comments indicates a possible lack of engagement or awareness among stakeholders during the notice period. This could be consequential as it suggests that either stakeholders were not sufficiently informed or did not feel compelled to participate in shaping these important regulations.

Overall, the document aims to ensure fairness in government contracting, though it raises important questions about transparency and communication with stakeholders. The notice calls for public commentary, offering a channel for potentially affected parties to influence future policy decisions, albeit more engagement is clearly needed.