DoD needs this information to ensure that pass-through charges under DoD contracts and subcontracts are not excessive, in accordance with Section 852 of Public Law 109-364. DoD contracting officers will use the information to assess the value added by a contractor or subcontractor in relation to proposed, billed, or claimed indirect costs or profit on work performed by a subcontractor.
The Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics/Defense Acquisition Regulations System (DARS) is submitting the subject requirement for emergency review and approval. This emergency submission is necessary and appropriate to implement section 852 of Public Law 109-364. Section 852 requires the Secretary of Defense to prescribe regulations, not later than May 1, 2007, to ensure that pass-through charges on contracts or subcontracts (or task or delivery orders) that are entered into for or on behalf of the Department of Defense are not excessive in relation to the cost of work performed by the relevant contractor or subcontractor. The implementing amendments to the Defense Federal Acquisition Regulation Supplement will include requirements for an offeror or contractor to notify the contracting officer when subcontracted effort will exceed 70 percent of the total cost of work to be performed under a contract or subcontract, and to describe the value added by the contractor or the subcontractor that further subcontracts. If this data collection is not approved under an emergency process, it will impede the Departments ability to comply with the requirements of section 852 of Public Law 109-364.
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.