1 **SUPPORTING STATEMENT EPA ICR 2159.06**  **BACKGROUND CHECKS FO R CONTRACTOR EMPLOYE**  **ES (RENEWAL) 1.**  **Identification of the Information Collection (a) Title of the Information Collection**  Background Checks for Contractor Employ ees (Renewal), EPA I CR Number 2159.0 6 , OMB Control Number 2030

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. **(b) Short Characterization /Abstract**  The Environmental Protection Agency (EPA) requires background checks for specified contractor employ ees work ing in sensitive locations or sensitive projects who are not otherwise covered b y a background check in accordance with Homeland Security Presidential Directive

- 12 (HSPD12). The EPA uses contractors 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 environment. 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 appl y Government

- established suitability criteria in determining whether emplo ye es are acceptable to perform on give n sites or on specific projects. In 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 suit ability 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 Collection**  **(a) Need/authority 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

- establ ished 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 health, welfare and the environment. **(b) Uses/users of the Data** 
In formation collected b y contractors for performing background checks is necessary for applying the Government

- established suitability criteria on contract employees before the2

individual employ ees perform contractual services for the EPA. **3. Nonduplication, Consultation, and Other Collection Criteria**  **(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 ICR submission to the Office of Management and Budget.**  A Federal Register notice to renew this information collection was posted on February 9, 2015 at 80 FR 6956. There were no comments received on the notice of renewal

. One clarification email was sent February 9 , 2015 from the Senior Program Analy st, Program Policy , Federal Investigative Services, US. Office of Personnel Management (OPM)

. to clarify if this renewal was a Pape rwork Reduction Act of 1995 (PRA) Notice. EPA background checks are done based on the Homeland Security Presidential Directive

- 12 (HSPD

- 12) and referred to the previous Ren ewals located on the FR website. The current EPA policy states that individuals must not have a weapons offense in the last five years or a felony conviction in the last three years 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 ten y ears, a felony conviction in the last seven y ears , or a misdemeanor conviction in the last five y ears. 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 po se a risk to the current work. The EPA is currentl y 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 felony or misdemeanor conviction that poses unreasonable risk to the work or A gency , rather than blankly stating no misdemeanors or convictions are allowed

. The new policy

will also spell out the current procedures for obtaining a waiver.

. . **(c) Consultations** To determine contractor burden associated with the information collection identified in this request, the following vendors were contacted:

_Repres entative

__ Firm

___________ ____Phone

___ Lisa Friday Weston Solutions ( 610 ) 701

- 3157 Eric Simpson Sovereign Consulting ( (508) 339

- 3200 Joe Baer Tech Law ( 304 ) 230

- 1230 Each individual consulted indicated that he/she understood the need for the information collection and did not f

ind the collection burdensome. The majorit y of respondents st ated that3

their organization performs Background Checks of new hires as standard pr actice. 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 inform ation contained 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** Th e 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

. **(g) Sensitive Questions**
In formation requested is common ly collected as a normal business practice. The contractor will collect and maintain employ ee information. The EPA will not collect contractor employ e e information nor maintain it. The Agency is responsible for receiving the suitability notification from c ontractors. 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 Procur ement 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 System Codes** 
In formation is collected for employ ees of the contractor s and subcontractor s who perform work in sensitiv e sites or sensitive projects. Contractors correspond with the North American Industry Classification Sy stem code: 562910 , Remediation Se rvices. **(b) Information Requested**4 **(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 legal resident status, employment 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 applicat ion for the Government ’ s suitability criteria have been completed and that named individuals are suitable to work on a specific contract.
**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 have undergone a background check and have met the Government

- estab lished 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 sensitive positions which could involve law enforcement activities, i ndoor cleanups (including occupied household residences), drug lab cleanups, and emergency response actions at geographic all y sensitive locations such as military installat ions and Government buildings. Submissions are accepted in an y format so long as th e y 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 suitability 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 th e interests of the Government. Once the contractor has applied the criteria , and the emplo ye e has met the requirements as prescribed in the Statement of Work, contractors must notif y the EPA contracting officer. Contractors must maintain the records of their background checks and application of the Agency ’ s suitability criteria.5

**(c) Small Entity Flexibility** Separate or further simplified requirements for small entities are not practical b ecause the stated objectives cannot b e met under such alternatives. The requirements of the information collection appl y to the awardees of the contract. Reasonable expense associated with the EPA background checks is reimbursable; therefore, small busines ses are not expected to experience financial difficulties in fulfilling these requirements. Additionally , there are numerous commercial sources that perform background checks. **(d) Collection Schedule**
In formation will be collected periodically as individu als are requested to work at a sensitive site or in a sensitive position under new or existing contracts.

**6. Estimating the Burden and Cost of the Collection**  **(a) Estimation of Respondent Burden** Respondent burden estimates for this collection are base d upon interviews with the contractors identified in 3(c) above and discussions with Agency personnel. The Agency anticipates that the contractor burden for complying with this requirement includes the time it takes for emplo ye es to provide the required i nformation, 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 maintain 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 $ 65.47 $ 16.37 2. Cost to perform Background $ 7 5 .00 Check ( Third party

/ Subcontract or) 3. Review/apply HR Manager

. 2 5 hour $ 172.36 $ 43 .09 suitability criteria 4. Submit notification HR Manager

. 25 hour $ 172.36 $ 43 .09 5. Maintain files A dmin. Support

. 2 5 hour $ 53.38 $ 13.35 **1 hour Estimated Respondent**  **Cost per Background Check $**  **190.90**6

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 party 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 we ll as the individual employ ee. A background check for an employ ee who has onl y l ived in one state will be less than the cost for an employ ee who has l ived in mult iple jurisdictions. The median price of the research performed is $75 which is the figure use d for the purpose of this I CR. Step s 3 and 4 , reviewing suitability and notifying EPA, are performed b y a human resource t ype manager and/or a security manager respons ible for personnel management. Administrative support personnel are res ponsible for completing step 5, which includes filing the background check in personnel records.
The cost associated with this effort was estimated using an hourl y rate based upon the May 2013 National Occupational Employ ment and Wage Estimates United States ( http://www.bls.gov/oes/current/oes_nat.htm#43

- 0000 ) published by the U.S. Department of Labor, Bureau of Labor Statistics . Previously the National Compensation Survey : Occupational Wages in the United States, May 20 was used for the cost. 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 2013 , an escalation factor of 3 % was applied for each ye ar to determine an average wage for the res pective y ear. The cost for each labor category

was determined b y multiplying 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 ( 2013

- 2017 ) that the I CR will be in effect. The 2.95 estimate was prov ided b y an EPA cost anal ys t as representative of average labor related burdens experience d by

EPA contractors. The loaded labor cost s for 2014 thru 201 7 were added together then divided by

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

. The following are the loaded labor rates used in the calculations in the table above: Employ ees: 20 13 = $ 20.30 20 1 4 = ($ 20.30 x 1.0 3 ) $ 20

. 91 20 15 = ($ 20.91 x 1.0 3 ) $ 21.54 x 2.95 = $ 63.54 20 1 6 = ($ 21.54 x 1.0 3 ) $ 22.19 x 2.95 = $ 65.45 20 1 7 = ($ 22.19 x 1.0 3 ) $ 22.86 x 2.95 = $ 67.42 $ 196.41 /3 = $ 65.477

Human Resource Manager: 2013 = $ 5 3.45 2014 = ($ 53.35 x 1.0 3 ) $ 55.05 2015 = ($ 55.05 x 1.0 3 ) $ 5 6.71 x 2.95 = $ 16 7.28 20 16 = ($ 56.71 x 1.0 3 ) $ 58.41 x 2.95 = $ 172.31 20 17 = ($ 58.41 x 1.0 3 ) $ 60.16 x 2.95 = $ 177.48 $ 517.07 /3 = $ 172.36 Administrative Support: 20 13 = $ 16. 78 2014 = ($ 16.78 x 1.0 3 ) $ 17.28 2015 = ($ 17.28 x 1.0 3 ) $ 17. 80 x 2.95 = $ 50.36 20 1 6 = ($ 17. 80 x 1.0 3 ) $ 18

. 33 x 2.95 = $ 54.09 20 17 = ($ 18.33 x 1.0 3 ) $ 18. 88 x 2.95 = $ 55.70 $ 160.15 /3 = $ 53.38 **(ii) Capital/ Start**
**- up Costs**  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 storage, photocopying, and postage, will be nominal. **(c) Estimating Agency Burden and Cost** Agency burden for responses to background check and applicatio n of Government suitability criteria. **Agency Burden Cost Estimate** Labor Lo aded Step Collection Activity Category Burden Hours

_Rate

_ Cost 1. Ensure Compliance and GS

- 13 .25 hour $ 88.13 $ 22.03 d ocument file **Estimated A gency**  **cost per background check $ 22.03**  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 contracto rs 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 b y an employ ee at the GS

- 13 lev el. This is less than8

previous y ears, which wa s 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 201 3 with a locality

pay fo r “Rest of US” is $ 39.21 . Government wages were frozen for 2013. The GS

- 13 per hour salary for 2014 with a locality

pay for “Rest of US” is $39.60 . An escalation factor has been applied using a factor of 3. 0 % based upon historical cost of living increases for federal workers. These wage rates were then 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 loade d labor costs for 201 4 thru 201 7 were added together then divided by three (number of y ears for the ICR) for an annualized loaded rate of $ 88.13 for the three years the I CR is in effect. 2014 = $39. 60 2015 = $39.60 x 2.16....= $85.54 2016 = ($ 39.6 0 x 1.03 ) $ 40. 79 x 2.16 = $ 8 8.10 2017 = ($40.7 9 x 1.03 ) $42.01 x 2.16

.. = $ 90.75 $ 264.39 /3 = $ 88.13
**(d) Estimating the Respondent Universe and Total Burden** Based on our research for this I CR, on average over the next three y ears approximate ly 3,000 existing respondents will be subject to the standard. No additional respondents per year will become subject. The Agency

estimated this number of employ ees by reviewing current contract databases , interviews with contractors and inf ormation 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 , there are currently 44 c ontracts which include 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 chec ks 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 st ems, environmental information, private laboratories working on genetically modified herbicides and pathogens, and law enforcement activities. Th e number of employ ees needed at each sensitive site varies depending on the size and9

nature of the cleanup. Therefore, it is very difficult to ascertain the exact number of employees on which background checks are being performed. The estimate of 1,000 r epresents our best estimate given current information. **(e) Bottom Line Burden Hours and Costs** (i) Respondent Tall y The annual r espondent burden for this ICR is 1,000 hours at an estimated cost of $ 190,900

. The hours were calculated b y multiplying the number of hours per occurrence, which is one, by the number of annual occurrences, 1,000 . The cost was calculated by multiplying the respondent burden cost of $ 190.90 per background check by the number of annual occurrences, 1,000 . The estimated respondent cost over the life of the I CR, three y ears, is $5 72 , 70 0 ($ 190,900 x 3). The previous estimate for respondent cost was $81,410 per ye ar
. There are several reasons for the increase. T he previous I CR estimated the co st of a background check at $ 35; however, interviews with contractors and online market research shows that while basic checks can be $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 $5 0 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 f or current calculations. Lastly , the previous I CR calculations underestimated the required effort which resulted in unrecognized overall costs. (ii) The Agency

Tall y The annual Agency

burden and cost over the next three ye ars is estimated to be 250 h ours. This is calculated by multiplying the estimated burden hours per background check , which is

. 25 , by the number of annual occurrences, 1,000 to arrive at 250 hours. The total annual Agency

cost for this collection request is estimated at $ 22,032.50

. This amount is calculated b y multiplying the number of hours, 250, by the contracting officer’s loaded rate of $ 88.13 per hour. The estimated Agency cost over the life of the IC R, three y ears, is $ 66,097.50

. **(f) Reasons for Change in Burden**  There is no change of hours in the total estimated respondent burden compared with the ICR currentl y approved by OMB. The loaded labor costs were added together then divided b y three (number of ye ars for the I CR) for the three years the ICR is in effect. There is no change in burden. The prior IC R package also had 1,000 burden hours. The prior package was incorrectly entered in the s ys tem as 450 hours. The correct burden amount in the supporting statement and notice is 1,000 public burden hours, and has not chan ged since the prior I CR package.10

**(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 resource s expended by persons to generate, maintain, retain, or disclose or provide information 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 coll ecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with an y previously

applicable 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 collect ion of information unless it display s a currently valid OMB control number. The OMB 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, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

- OARM

- 201 4

- 0857 , which is available f or online viewing at www.regulations.gov, or in person viewing at the Office of Environmental Information in the EPA Docket Center (EPA/DC), EPA W illiam Jefferson Clinton , Room 3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Pub lic Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday , excluding legal holiday s. The telephone number for the Reading Room is (202) 566

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

- 1752. An e lectronic 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 electronicall y. When in the system, select “search,” then key in the Docket ID Number identified above. Also, yo u can send comments to the Office of In formation and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washin gton, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA

- HQ

- OARM

- 2014

- 0857 and OMB Control Number 2030

- 00 4 3 in any correspondence. **Part B of the Supporting Statement** This part is not applicable because no statistical methods were used in collecting this information.