Attachment A

1 SUPPORTING STATEMENT EPA I CR 2159.05 RENEWALBACKGROUND C HECKS FOR CONTRACTOR EMPL OYEES
1. IDENTIFICATION OF THE INFORMATION COLLECTION (a) Title of the Information Collection This information collection request is for the Environmental Protection Agency (EPA) requirement entitled **“ Background Checks for Contractor Employees (Renewal),**  **” EPA ICR**  **Number 2159.0 5**  **and OMB Control Number 2030** 
**- 0043** 
**.** The Agency requires background checks for specified contractor employ ees working in sensitive locations or sensitive projects who are not otherwise covered by a background check in accordance with Homeland Securit y Presidential Directive

- 12 (HSPD12)

. (b) Short Characterization The EPA uses c ontractors to perform services throughout the nation with regard to environmental emergencies involving the release, or threatened release, of oil, radioactive materials or hazardous chemicals that may potentially

affect communities and the surrounding env ironment. Releases may be accidental, deliberate, or may be caused by natural disasters. The Agency may request contractors responding to any of these t ypes of incidents to conduct background checks and apply Government

- established suitability criteria i n determining whether employ ees are acceptable to perform on given sites or on specific projects. I n addition to emergency

response contractors, EPA may require background checks for contractor personnel working in sensitive sites or on sensitive projects . The background checks and application of the Government ’ s suitability

criteria must be completed prior to contract employ ee performance. The contractor shall maintain records associated with all background checks.
2. NEED FOR AND USE OF THE COLLECTIO N (a) Need/authorit y for the Collection The legal authorit y for this collection is Title 5, Code of Federal Regulations, Parts 731, 732, and 736. The EPA has a responsibility to protect the public, Agency employ ees, and contractors through a background check and application of Government

- established suitability criteria to ensure reliability , trustworthiness, and good conduct and character. This process is necessary to allow the EPA to meet its responsibilities and mitigate an y threat to the public hea lth, welfare and the environment. (b) Uses/users of the Data
In formation collected b y contractors for performing background checks is necessary for apply ing the Government

- established suitability criteria on contract employees before theAttachment A

2 individual empl oy ees perform contractual services for the EPA.
3. NONDUPLICATION, CONSUL TAT ION, AND OTHER COLLECTION CRI TERIA (a) Nonduplication
In formation requested from a contractor ’ s employ ee to determine suitability to perform on a response contract is unique to a specific individual; this information cannot be obtained from an y other source. (b) Public Notice Required Prior to I CR submission to the Office of Management and Budget. The information collection request was initially published as a Notice in the Fe deral Register on June 10, 2005 , and for renewal on November 13, 2008 and October 31, 2011. There were no comments received on the initial notice or the first renewal; however, there were two comments received on the October 31, 2011 notice of renewal

. B oth comments are related to equal emplo ym ent opportunitie s. The first comment stated that in accordance with the Equal Employ ment Opportunity Commission’s (EEOC) guidance, in order to exclude a person from employ ment based on a criminal conviction, the cr iminal conduct must be recent enough and sufficiently

job

- related to b e predictive of performance in the position sought. The current EPA policy states that individuals must not have a weapons offense in the last five y ears or a felony conviction in the last three y ears in order to be qualified to work at an EPA response site. At sensitive sites, the individual cannot have a weapons offense in the past t en y ears, a felony conviction in the last seven y ears , or a misdemeanor conviction in the last five y ears. The commenter urged the EPA to narrow its exclusions to focus on specific misdemeanor and felony convictions that relate to the w ork and the site of the contract

. The EPA recognizes the merit in this comment; however, because the nature and location of work varies, it would be difficult to list only certain misdemeanors and convictions which would be applicable without leaving the Agency at undue risk . Current EPA procedures , which have been communicated to our contractors, allow for a waiver process if a contractor feels an individual is otherwise qualified and the nature of the conviction or misdemeanor does not pose a risk to the current work. The EPA is currently in the process of rewriting its policies regarding background checks and will ensure that the language is revised to add a statement that specifies that the individual cannot have a felon y or misdemeanor conviction that poses unreasonable risk to the work or A gency , rather than blankl y stating no misdemeanors or convictions are allowed

. The new policy

will also spell out the current procedures for obtaining a waiver. The second comment was a recommendation that the EPA implement a wai ver process so that individuals or contractors can request an individualized assessment. As stated above, t his process is alread y in place and will be clearl y identified in the upcoming policy revision.Attachment A

3 (c) Consultations To determine contractor burde n associated with the information collection identified in this request, the following vendors were contacted:

_ Representative

__ Firm

___________ ____ Phone

___ Lisa Friday Weston Solutions ( 610 ) 701

- 3157 Jack Jemsek Sovereign Consulting ( 413 ) 540

- 0650 Joe Baer Tech Law ( 304 ) 230

- 1230 Chry stal Guthrie Chenega ( 703) 822

- 2767 Amy Clark Tetra Tech (626) 470

- 2516 Chuck Baker URS Corp (303) 296

- 3523 Franceska Parkman G2 (865) 482

- 4271 Mark Ruck Environmental Restoration (636) 680

- 2405 Sherry Maule Guardian Environmental (302) 918

- 3070 John Mount Kemron (404) 636

- 0928 Greg Sulan WRS (609) 371

- 7500 Dhroov Shivjiani Ecology & Environment ( 206)652

- 5853

Each individual consulted indicated that he/she understood the need for the information collection and did not find the collection burdensome. The majorit y of respondents st ated that their organization performs Background Checks of new hire s as standard practice. Estimated time to complete the information collect ion is described in section 6, “ Estimating the Burden and Cost of the Collection. ” (d) Effects of Less Frequent Collection The information provided by the contractors ’ employ ees is collected once prior to the employ ee performing work for EPA. The requirement for a background check and application of the Government ’ s suitability criteria cannot be met with a less frequent collection. (e) General Guidelines The information cont ained in this I CR is in accordance with the Office of Management and Budget ’ s general guidelines for Federal data collection, except that small entities have to follow the same collection procedures as other respondents. (f) Confidentiality The EPA contractor is responsible for collecting and maintaining information under this collection of information; therefore, each contractor will have his own procedures for ensuring confidentiality

.Attachment A

4 (g) Sensitive Questions
In formation requested is commonly col lected as a normal business practice. The contractor will collect and maintain employ ee information. The EPA will not collect contractor employ ee information nor maintain it. The Agency is responsible for receiving the suitability notification from cont ractors. If a contractor employ ee ’ s background check does not meet the suitability criteria, but the contractor wants the employ ee to work on the response site, the contractor must submit a waiver request to the Director, Superfund/RCRA Regional Procureme nt Operations Division (SRRPOD). The information submitted to SRRPOD is maintained and protected in accordance with Privacy

Act requirements.
4. THE RESPONDENTS AND THE INFORMATION RECEIVED (a) Respondents/North American Industry Classification Sy st em Codes
In formation is collected for employ ees of the contractor s and subcontractor s who perform work in sensitive sites or sensitive projects. All contractor emplo ye es who will perform on response action s are subject to a background check and must mee t the Government

- established suitability criteria prior to contract performance. Ty pically , these contractor respondents fall into the following North American Industry Classification Sy stem code: 562910 Remediation Services. Other contractors may be subj ect t o background check requirements if they are working at sensitive sites. (b) Information Requested (i) Data items The contractor ’ s employees will be required to provide information such as name, social securit y number, proof of US citizenship or le gal resident status, employ ment history , education, military service, and address of residence. (ii) Respondent Activities After performing a background check and appl yi ng the Government ’ s suitability criteria for an employ ee, the contractor must notify the contracting officer that the background checks and the application for the Government ’ s suitability criteria have been completed and that named individuals are suitable to work on a specific contract.Attachment A

5 5. THE INFORMATION COLLECTED: AGENCY ACTIVITIES, COLLECTION METHODOLOGY, AND INFORMATION MANAGEMENT (a) Agency

Activities EPA contracting officers are responsible for ensuring that they have received notification from the contractor that all of its employ ees working at sensitive sites hav e undergone a background check and have met the Government

- established suitability criteria. (b) Collection Methodology and Management The information is collected by each contractor from each employ ee who will be working at sensitive sites or in sensi tive positions which could involve law enforcement activities, indoor cleanups (including occupied household residences), drug lab cleanups, and emergency response actions at geographic all y sensitive locations such as military installations and Government buildings. Submissions are accepted in an y format so long as they include the requested data. No information is submitted to the Agency , but compliance is mandatory and no employ ee may work on a response site without meeting the Government

- established su itability criteria , unless the requirement has been waived b y the contractin g officer. O n a case - by

- case basis, contracting officers may either temporaril y or pe rmanentl y waive the requirements if they determine in writing that these requirements are not necessary at a specific location, or for a specific individual, in order to protect the Government ’ s interests. The suitability criteria has been developed b y the Government to determine that there are reasonable grounds to believe that an individual will likely

be able to perform the contract requirements on a sensitive site or in a sensitive position without undue risk to the interests of the Government. Once the contractor has applied the criteria , and the employ ee has met the requirements as prescribe d in the Statement of Work, contractors must notify the EPA contracting officer. Contractors must maintain the records of their background checks and application of the Agency ’ s suitability criteria. (c) Small Entity

Flexibility Separate or further si mplified requirements for small entities are not practical because the stated objectives cannot be met under such alternatives. The requirements of the information collection appl y to the awardees of the contract. Reasonable expense associated with the E PA background checks is reimbursable; therefore, small businesses are not expected to experience financial difficulties in fulfilling these requirements. Additionally , t here are numerous commercial sources that perform background checks. (d) Collection S chedule
In formation will be collected periodically as individuals are requested to work at a sensitive site or in a sensitive position under new or existing contracts.Attachment A

6 6. ESTI MATING THE BURDEN AND COST OF THE COLLECTION (a) Estimation of Respondent Burden Respondent burden estimates for this collection are based upon interviews with the contractors identified in 3(c) above and discussions with Agency personnel. The Agency anticipates that the contractor burden for comply ing with this requirement incl udes the time it takes for emplo ye es to provide the required information, the time to manage a subcontract for background checks, the administrative time to apply the Government ’ s suitability criteria, the time to notify

the Agency , and the effort to maint ain the records. (b) Estimation of Respondent Costs (i) Estimating Labor Costs

**Respondent Cost Estimate Respondent Cost Estimate**  B urden Lo aded Step Collection Activity Labor Cat. Hours

__ Rate

__ Cost

_ 1. Time to fill out information Employ ees
. 2 5 hour $ 58.30 $ 14.58 2. Cost to perform Background $ 7 5 .00 Check ( Third party

/ Subcontract or ) 3. Review/apply HR Manager

. 2 5 hour $ 168.35 $ 42.09 suitability criteria 4. Submit notification HR Manager

. 25 hour $ 168.35 $ 42.09 5. Maintain files A d min. Support

. 2 5 hour $ 51.88 $ 12.97 **1 hour Estimated Respondent**  **Cost per Background Check $**  **186.73** Step 1 of the informatio n collection is completed by a contractor employ ee working at a sensitive site . On average , respondents stated this process normall y takes the employee about 1 5 minutes to complete

. The cost for S tep 2, having a third part y perform a background check, is based upon market research and input from the vendors survey ed

. Vendors’ costs for this activity ranged from $25 to $175. Websites like www.hireright.com and www.monster.com show prices ranging from $30

- $100. The cost varies depending on the number of background checks purchased per ye ar, the parameters of the check, as well as the individual employ ee. A background check for an employ ee who h as onl y l ived in one state will be less than the cost for an employ ee who has lived in multiple jurisdictions. The median price of the research performed is $75 which is the figure used for the purpose of this I CR. Step s 3 and 4 , reviewing suitability an d notify ing EPA, are performed b y a human resource t ype manager and/or a security manager responsible for personnel management. Administrative support personnel are res ponsible for completing step 5, which includes filing the background check in personnel records.Attachment A

7 The cost associated with this effort was estimated using an hourl y rate based upon the National Compensation Survey : Occupational Wages in the United States, May 20 1 0 published by the U.S. Department of Labor, Bureau of Labor Statistics , and represents the most current survey data available. The categories used i ncluded the following : Hazardous Materials Removal Workers, Human Resource Manager, and Office and Admin Support

. Since the labor rates used in this estimate are from 2010 , an escal ation factor of 3 % was applied for each ye ar to determine an average wage for the respective y ear. The cost for each labor category

was determined by

multiply ing the escalated hourl y labor rate by an estimated loa ding factor of 2.95 to reflect industries ’ over head, fringe benefits, and general and administrative costs for each ye ar ( 2012

- 2014 ) that the I CR will be in effect. The 2.95 estimate was provided b y an EPA cost anal ys t as representative of average labor related burdens experience d by

EPA contract ors. The loaded labor cost s for 2012 thru 2014 were added together then divided by

three (number of y ears for the ICR) to arrive at an annualized labor cost for each labor category

. The following are the loaded labor rates used in the calculations in t he table above: Employ ees: 20 10 = $ 18.08 20 11 = ($ 18.08 x 1.0 3 ) $ 18. 62 20 12 = ($ 18. 62 x 1.0 3 ) $ 19. 18 x 2.95 = $ 56.58 20 13 = ($ 19. 18 x 1.0 3 ) $ 19.76 x 2.95 = $ 58.29 20 14 = ($ 19.76 x 1.0 3 ) $ 20.35 x 2.95 = $ 60.03 $ 174.90 /3 = $ 58.30
Human Resource Manager: 2010 = $ 52.21 2011 = ($ 52.21 x 1.0 3 ) $ 53.78 2012 = ($ 53.78 x 1.0 3 ) $ 55.39 x 2.95 = $ 16 3.40 20 13 = ($ 55.39 x 1.0 3 ) $ 57.05 x 2.95 = $ 168.30 20 14 = ($ 57.05 x 1.0 3 ) $ 58.76 x 2.95 = $ 173.34 $ 505.04 /3 = $ 168.35 Administrative Support: 20 10 = $ 16.09 2011 = ($ 16.09 x 1.0 3 ) $ 16. 57 2012 = ($ 16. 57 x 1.0 3 ) $ 17. 07 x 2.95 = $ 50.36 20 13 = ($ 17. 07 x 1.0 3 ) $ 17.58 x 2.95 = $ 51.86 20 14 = ($ 17.58 x 1.0 3 ) $ 18. 11 x 2.95 = $ 53.42 $ 155.64 /3 = $ 51.88 (ii) Capital/ Start

- up CostsAttachment A

8 Respondents will not be required to acquire capital goods to provide the requested information; therefore, capital start

- up costs have not been included in this estimate. (iii) Operating and Maintenance Costs Operating and maintenance costs, which include such items as file st orage, photocopy ing, and postage, will be nominal. (c) Estimating Agency

Burden and Cost Agency burden for responses to background check and application of Government suitability criteria. **Agency Burden Cost Estimate** Labor Lo aded Step Collectio n Activity Category Burden Hours

_ Rate

_ Cost 1. Ensure Compliance and GS

- 13 .25 hour $ 87.26 $ 21.82 d ocument file **Estimated A gency cost per background check $21.82**  Performing background checks and appl yi ng the Government ’ s suitability criteria are the responsibility

of the EPA contractor. The Agency is primarily

responsible for ensuring that contractors notify

the Agency

that a background check and application of the suitability criteria have been completed for all applicable employ ees. The Agency ’ s current effort is estimated to be approximately

15 minutes and performed by an employ ee at the GS

- 13 level. This is less than previous y ears, which was estimated at thirty minutes. After interviewing contracting officers, it was apparent that the process has become more efficient and takes less time

. The GS

- 13 per hour salary for 2011 with a locality

pay for “Rest of US” is $ 39.21

. Since government wages are frozen for 2012, an escalation factor has o nly been applied for 2013 and 2014 using a factor of 3. 0 % based upon historical cost of living increases for federal workers. These wage rates were t hen multiplied by

a factor of 2.16 to re flect Federal employ ee benefits. The 2.16 estimate was provided b y an EPA cost anal ys t as representative of labor related burdens for government employ ees. The loaded labor costs for 2012 thru 2014 were added together then divided by three (number of ye ars for the ICR) for an annualized loaded rate of $ 87.26 for the thr ee ye ars the IC R is in effect.
2011 = $39.21 2012 = $39.21 x 2.16 = $84.69 2013 = ($ 39.21 x 1.03 ) $ 40.39 x 2.16 = $ 87.24 2014 = ($40.39 x 1.03 ) $41.60 x 2.16 = $89.86 $ 261.79/3 = $87.26Attachment A

9 (d) Estimating the Respondent Universe and Total Burden All EPA contractor personnel performing on a response site must provide the required background information unless this requirement is waived b y the contracting officer. The number of contractor employ ees expected to submit the requested information for background checks for the life of this ICR (3 ye ars) is 3,000

. This number was derived by estimating the number of currentl y performing contract emplo ye es under emergency response contracts. The Ag ency estimated this number of employ ees by reviewing current contract databases , interviews with contractors and information received from the regions. There are both small and large businesses working in the field with diverse response site situations that require large variations in the number of emplo ye es. Contractors may be on

- site for a few day s or many

y ears depending on the situation. Per the EPA Office of Acquisition Management’s active contract list , t here are currently 44 c ontracts which inc lude a requirement for contractors to perform background checks on employ ees working at sensitive sites. The number of emplo ye es with background checks for each contract ranges from 5

- 350 per ye ar, not counting subcontracts. Many contracts require employ ees to be prepared to report to work locations with no notice . Therefore, these emplo yees must have background checks and meet the Government ’ s suitability

criteria even if not continuously located on

- site. Additionally , there are contractors working at their own facilities or at other than government locations who work on sensitive locations or on sensitive projects. These may include, but are not limited to, maintenance of anti

- terrorism equipment warehouses, water sy stems, environmental information, private laboratories working on genetically modified herbicides and pathogens, and law enforcement activities. The number of employ ees needed at each sensitive site varies depending on the size and nature of the cleanup. Therefore, it is very difficult to ascertain the exact number of employ ees on which background checks are being performed. The estimate of 1,000 represents our best estimate given current information. (e) Bottom L ine Burden Hours and Costs (i) Respo ndent Tall y The annual r espondent cost for this I CR is 1,000 hours at an estimated cost of $186,730. The hours were calculated by multiply ing the number of hours per occurrence, which is one, by the number of annual occurrences, 1,000 . The cost was calc ulated by multiply ing the respondent burden cost of $186.73 per background check by the number of annual occurrences, 1,000 . The estimated respondent cost over the life of the IC R, three y ears, is $560,190 ($186,730 x 3). The previous estimate for respond ent cost was $81,410 per year
. There are several reasons for the increase. T he previous ICR estimated the co st of a background check at $35; however, interviews with contractors and online market research shows that while basic checks can beAttachment A

10 $35, more in depth searches can run two to three times this cost. Also , the basic rate used for a general t ype manager in the previous estimate was $50 less an hour than that used in today ’s calculations. Interviews with contractors showed that the ty pe of manager who performs work associated with background checks is a Human Resource Manager; therefore, the rate for a Human Resource Manager was used for current calculations. Lastly , the previous I CR calculations underestimated the required effort which resulted i n unrecognized overall costs. (ii) The Agency

Tall y The annual Agency

burden for this collection request is estimated at 250 hours. This is calculated b y multiply ing the estimated burden hours per background check , which is

. 25 , by the number of annu al occurrences, 1,000 to arrive at 250 hours. The previous ICR calculation was 500 hours. This is because the government estimated that the Agency processed waiver requests on approximately

25% of the background chec ks performed. However, interviews wit h both contractors and EPA contracting officers revealed that to date no waivers have been requested or processed. Itis possible an occurrence could arise where a waiver would be necessa ry , but it would be rare, and the contracting officer could likely p erform this work in the course of his or her normal duties. The total annual Agency

cost for this collection request is estimated at $ 21,8 15

. This amount is calculated b y multiply ing the number of hours, 250, by the contracting officer’s loaded rate of $ 87.26 per hour. The estimated Agency cost over the life of the IC R, three y ears, is $65, 445. (f) Reasons for Change in Burden
As detailed above , there are a number of differences between the previous estimate and the current estimate . The previous cal culations for the contractor burden resulted in unrecognized costs . Also, the rate for the manager in the previous estimate was substantially lower than the 2010 estimate for a human resource manager, and the rate for a background check was substantially lower than the estimates confirmed by current market research. Lastly , the previous estimate accounted for costs associated with waivers ; however, research showed no waivers have been required to date. (g) Burden Statement The annual public reporting and record keeping burden for this collection of info rmation is estimated on average to be one hour per response. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide informa tion to or for a Federal agency . This includes the time needed to review instructions; develop, acquire, install, and utilize technology and sy stems for the purposes of collecting, validating, and verify ing information, processing and maintaining informa tion, and disclosing and providing information; adjust the existing ways to comply with an y previously

applicableAttachment A

1 1 instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it display s a currently valid OMB control number. The O MB control numbers for EPA ’ s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency 's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, in cluding the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

- OARM

- 2011

- 0803 , which is available for online viewing at www.regulations.gov, or in person viewing at the Office of Environme ntal Information in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday

through Friday , excluding legal holiday s. The te lephone number for the Reading Room is (202) 566

- 1744, and the telephone number for the Office of Environmental I nformation is (202) 566

- 1752. An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically . When in the sy stem, select “search,” then key in the Docket ID Number identified above. Also, you can send comments to the Office of Information and Regulatory

Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA

- HQ

- OARM

- 20 1 1

- 0803 and OMB Control Number 2030

- 00 4 3 in an y correspondence.