0704-0248 Supporting Statement Part A

A. JUSTIFICATION
1. This is a request for extension of the information collection
requirement currently approved under OMB Control Number 0704­
0248, for Defense Federal Acquisition Regulations Supplement
Appendix F, Material Inspection and Receiving Report and related
forms.
The approval for 0704-0248 expires March 31, 2008.
2.
This information is used to process inspection and receipt of
materials and payments to contractors.
3. Contractors may submit the forms electronically.
The
contractor must sign the forms.
Electronic signatures are
accepted.
4. As a matter of policy, DoD reviews the Federal Acquisition
Regulation to determine whether adequate language already exists.
This information collection does not duplicate any other
requirement.
5.
The information collections associated with small businesses
are the minimum consistent with applicable laws, Executive
Orders, regulations, and prudent business practices.
6.
The frequency for collecting this information was reviewed by
the DoD specialists who are most knowledgeable of the
requirements and the need for the information.
Every attempt has
been made to keep the frequency of collection to a minimum
without jeopardizing the ability of the Government to assure that
contractors are performing their contractual requirements.
Collecting this information less frequently would impede
Government personnel from performing their administrative
functions in an effective and efficient manner.
7.
Collection is consistent with the guidelines in 5 CFR
1320.5(d). The information will not be collected in a manner
that requires an explanation of special circumstances.
8.
Public comments were solicited in the Federal Register on
December 7, 2007(72 FR 69197), as required by 5 CFR 1320.8(d)
No comments were received in response to the request for
comments.
9. No payment or gift will be provided to respondents, other
than remuneration of contractors under their contracts.
10. The information collected will be disclosed only to the
extent consistent with prudent business practice, current
regulations, and statutory requirements.
No assurance of
confidentiality is provided to respondents.

11.

No sensitive questions are involved.

12. The estimated hour burden of the collection of information
and the estimated annualized cost to respondents were based on
discussions with quality assurance, contract administration
specialists from the Defense Contract Management Agency (DCMA).
Definitive information was not available; therefore, we relied on
the judgment and expertise of those technical specialists.
DO 250 series forms are prepared in two media, as a
computer-generated form and in hard copy.
Contractors of various
sizes use computer generated forms.
The degree of automation
ranges from the ability to generate a completed form merely by
entering an identifier, such as, part number, serial number, job
order, etc., to calling up the form on the computer screen and
entering the data on the form.
Contractors that use hard copy
forms can minimize the entries by entering standard information
on a form, copying it and then entering the peculiar information
that pertains to the specific shipment.
DCMA estimates that there will be approximately 744,000
shipments per year where inspection is at source.
DCMA quality
assurance specialists estimate that there are approximately one
and a half times as many deliveries where inspection is at
destination.
This adds an additional 1,116,000 deliveries to our
estimate bringing the total to approximately 1.86 million.
Based
on DCMA estimates approximately 91 percent of the forms will be
generated from a fully automated system.
There are approximately
17,120 contractors that submit DO 250s or provide the equivalent
information through wide area workflow- receipt and acceptance.
We estimate that 80 percent use a fully automated system.
Contractors that use a fully automated system, such as,
Westinghouse and United Technologies, have indicated that it
takes no more than 1 minute to prepare the forms.
For those
contractors that are not fully automated, we estimate that it
takes approximately 30 minutes to prepare the forms.
DCMA contract administration specialists indicate that each
form submitted as a shipping document will also be prepared and
submitted as an invoice. According to DCMA contract
administration specialists, many forms, when they are prepared as
a shipping document, already contain the invoice information.
In
these situations, all the contractor need do is stamp the
document as an invoice and submit it.
In those cases where the
invoice information is not provided on the shipping document, the
contractor must add it to the forms.
Where the contractor has a
fully automated system, we estimate that it will take
approximately 1 minute to prepare the forms.
Where the
contractor does not have a fully automated system, we estimate
that it will take approximately 5 minutes to prepare and submit
the forms.

2

_ _ _ _•

~

-....l>;

~'

I.

As a shipping document:

a.
b.
c.
d.

e.
II.

b.
c.
d.

e.

b.
c.
d.
e.

*

Total

13,696

3,424

17,120

124

49

109*

1,693,000

167,000

1,860,000

1 min
28,200

30 min
83,500

4 min**
111,700

Number of
respondents
Responses per
respondent
Total
responses
Hours per
response
Total hours

3,424

17,120

13,696
124
1,693,000

49
167,000

1 min
28,200

5 min
13,900

109*
1,860,000
1.5min**
42,100

Sum Total

a.

**

Not Fully
Automated

As an invoice:

a.

II I.

Number of
respondents
Responses per
respondent
Total
responses
Hours per
response
Total hours

Fully
Automated

Number of
respondents
Responses per
respondent
Total
responses
Hours per
response
Total hours

17,120
217*
3,386,000
1 min
56,400

334,000

3,720,000

17.5 min
97,400

2.5 min**
153,800

Calculated by dividing c by a and rounding off.
Calculated by dividing e by c and rounding off.
Total annual hours
I.	
II.	 Cost per hour
III.	 Total annual cost to

Public

153,800
$28*
$4,306,400


* Based on a 2007 GS-09, step 5 salary ($21.08/hour,
base schedule) plus 32.85 percent burden.

3

2007

13. We do not estimate any annual cost burden apart from the
hour burdens in items 12 and 14.
14. We estimate the annualized cost to the Government as
follows: We estimate it will take the Government 30 minutes to
review and analyze the information in each response.
Total Annual Responses
Hours per response
Total Burden hours
Average wages

3,720,000
X .5
1,860,000
X $28
$52,080,000

Wages are based on a 2007 GS-09, step 5 salary ($21. 08/hour,
2007 base schedule) plus 32.85 percent burden.
15.
There are no program changes in this submission.
The
reduction in the estimated number of burden hours from 344,500
hours to 153,800 hours is based on current DCMA estimates of the
number of shipments per year, which accounts for a decrease in
the number of respondents by approximately 50 percent.
The 50
percent drop in respondents is likely due to the fact that the
number of respondents had not been updated since 1992.
The
adjustment in costs is also the result of using 2007 wage rates.
16.
Results of this information collection will not be tabulated
or published.
17. We do not seek approval to not display the expiration dates
for OMB approval of the information collection.
18.
There are no exceptions to the certification accompanying
this Paperwork Reduction Act submission.

B.

Collections of Information Employing Statistical Methods
Statistical methods will not be employed.

4