0704-0549 Supporting Statement

SUPPORTING STATEMENT

0704-0549, Contractors Performing Private Security Functions

A. Justification

1. Need for the Information Collection

Section 862 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2008, as amended,¹ establishes requirements and limitations for contractors performing private security functions outside the United States. Section 862, as amended, is implemented at 32 CFR part 159, “Private Security Contractors Operating in Contingency Operations, Combat Operations or Other Significant Military Operations” and DoD Instruction (DoDI) 3020.50, “Private Security Contractors (PSCs) Operating in Contingency Operations, Humanitarian or Peace Operations, or Other Military Operations or Exercises,” which require geographic combatant commanders to establish procedures and assign responsibilities for ensuring that contractors and contractor personnel report certain security incidents when performing private security functions in covered operational areas.²

The clause at Defense Federal Acquisition Regulation Supplement (DFARS) 252.225-7039, Defense Contractors Performing Private Security Functions Outside the United States, is being amended (see DFARS case 2015-D021) to require contractors and subcontractors performing private security functions in designated operational areas outside the United States to comply with 32 CFR 159 and any orders, directives, and instructions contained in the contract on reporting the following types of incidents to the geographic combatant commander if and when they occur:

(a) A weapon is discharged by personnel performing private security functions.

(b) Personnel performing private security functions are attacked, killed, or injured.

(c) Persons are killed or injured or property is destroyed as a result of conduct by contractor personnel.

(d) A weapon is discharged against personnel performing private security functions or personnel performing such functions believe a weapon was so discharged.

(e) Active, non-lethal countermeasures (other than the discharge of a weapon) are employed by personnel performing private security functions in response to a perceived immediate threat.

2. Use of the Information

Geographic combatant commanders use the information reported by private security contractors on security incidents in order to properly account for and track contractor personnel and assets in theater and to respond to security incidents as deemed necessary.

3. Use of Information Technology

Contractors are required to report in accordance with orders and instructions established by the applicable Combatant Commander. Improved information technology is used to the maximum extent practicable.

4. Non-duplication

As a matter of policy, DoD reviews the FAR to determine if adequate language already exists. The clause at FAR 52.225-26, Contractors Performing Private Security Functions, is being amended (see FAR case 2014-018) to remove all references to DoD-specific requirements for private security contractors performing outside the United States, to include the above-described security incident reporting requirement), which are being consolidated under the clause at DFARS 252.225-7039. There is no duplication of data collection.

5. Burden on Small Business

The burden applied to small business is the minimum consistent with applicable laws, regulations, executive orders, and prudent business practices.

6. Less Frequent Collection

In order to meet the requirements of 32 CFR part 159, contractors are required to provide timely notification, in accordance with orders and instructions established by the Geographic Combatant Commander when an incident occurs. Reporting of incidents is necessary for the geographic combatant commander to respond, as deemed necessary, to security incidents in designated operational areas. Non-reporting of incident could lead to administrative action or the removal, as appropriate, of PSCs and PSC personnel.

7. Paperwork Reduction Act Guidelines

There are no special circumstance that require the collection to be conducted in a manner inconsistent with the guidelines delineated in 5 CFR 1320.5(d)(2).

8. Consultation and Public Comments

Collection is consistent with the guidelines in 5 CFR 1320.6.

Public comments for the proposed rule were solicited in the Federal Register at 80 FR 81496 on December 30, 2015 as required by 5 CFR 1320.8(d). The public comment period closed on February 29, 2016. Comments on the rule were received from one respondent; however, none of the comments were related to the reporting of incidents to the geographic Combatant Commander.

Public comments for the final rule were final rule were solicited in the Federal Register at 81 FR 42559 on June 30, 2016.

9. Gifts or Payment

No payment or gift will be provided to respondents, other than remuneration of contractors under their contracts.

10. Confidentiality

The information collected will be disclosed only to the extent consistent with statutory requirements, current regulations and prudent business practices.

11. Sensitive Questions

Questions of a sensitive nature are not involved.

12. Respondent Burden, and its Labor Costs

a. Estimates of Public Burden

The estimated annual cost to the public for the subject reporting requirement is as follows:

Estimation of Respondent Burden Hours: 252.225-7039
Number of respondents	12
Responses per respondent	4
Number of responses (a)	48
Hours per response (b)	.5 hours
Estimated hours (number of responses multiplied hours per response)	24 hours
Cost per hour (c)	$38.00
Total cost to respondents	$912.00

Notes:

(a) The OSD subject matter experts on contractors performing private security functions have estimated an average of 4 incidents per month or 48 incidents (responses) per year.

(b) Based on the nature of the task, the subject matter experts determined that it takes approximately 30 minutes for each contractor to retrieve, prepare, and submit the information for each incident report.

(c) Based on our assessment, the complexity of the work is equivalent to that of a GS-11. Accordingly, we calculated the hourly rate by adding an overhead factor of 36.25% (taken from OMB Memo M-08-13, which provides standard cost factors for agency use) to the calendar year (CY) 2015 Office of Personnel Management rate for a GS-11, step 5 as follows:

Cost per hour
GS-11, step 5	$27.86
OMB burden @ 36.25%	$10.10
	$37.96
Rounded to the nearest dollar:	$38.00

13. Respondent Costs Other Than Burden Hour Costs

DoD does not estimate any annual cost burden apart from the hour burden in Item 12.

14. Cost to the Federal Government

The estimated annual cost to the Government for receiving, reviewing, analyzing, and forwarding the information submitted by the contractor is as follows:

Estimation of Federal Government Burden Hours: 252.225-7039
Number of responses (a)	48
Hours per response (b)	.5 hours
Estimated hours (number of responses multiplied hours per response)	24 hours
Cost per hour (c)	$38.00
Annual Federal Government burden (estimated hours multiplied by cost per hour)	$912.00

Notes:

(a) Per paragraph 12(a), we estimate that the Government receives approximately 48 contractor incident reports each year.

(b) According to OSD subject matter experts on contractors performing private security functions, it takes approximately 30 minutes for the Government to receive, review, and analyze the information for each incident reported by a contractor.

(c) Based on our assessment, the complexity of the work is equivalent to that of a GS-11. Accordingly, we calculated the hourly rate by adding the current OMB burden of 36.25% to the CY 2015 base rate for a GS-11, step 5 as follows:

Cost per hour
GS-11, step 5	$27.86
OMB burden @ 36.25%	$10.10
	$37.96
Rounded to the nearest dollar:	$38.00

15. Reason for Changes in Burden

This is a new information collection submission for OMB clearance.

16. Publication of Results

Results of this collection will not be published.

17. Non-Display of OMB Expiration Date

DoD does not seek approval to not display of the expiration date for OMB approval of the information collection.

18. Exceptions to “Certification for Paperwork Reduction Submissions”

There are no exceptions to the certification accompanying this Paperwork Reduction Act submission.

B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

Statistical methods will not be employed.

1 Section 862 of FY 2008 NDAA was amended by sections 853 of the FY 2009 NDAA, 813(b) of the FY 2010 NDAA, and 832 of the FY 2011 NDAA.

2 See paragraph (a)(1)(v) of 32 CFR 159.6 and paragraph 1.a.(5) of Enclosure 3 of DoDI 3020.50.

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