Document ID: EPA-HQ-OA-2016-0457-0003
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2016-08-05T04:00Z

SECTION I:  PART A OF THE SUPPORTING STATEMENT	
      
1. 	IDENTIFICATION OF THE INFORMATION COLLECTION			

1(a) Title and Number of the Information Collection
            
      Participation by Disadvantaged Business Enterprises in Procurements under EPA Financial Assistance Agreements (Direct Final Rule); ICR Number 2536.01.

1(b) Short Characterization/ Abstract
      EPA is revising its Disadvantaged Business (DBE) Program, an outreach, education and goal setting program designed to increase and encourage the utilization and participation of DBEs in procurements funded by EPA assistance agreements. Recipients of EPA financial assistance agreements are required to seek, and encouraged to utilize, small, minority, and women-owned businesses for their procurement needs under the financial assistance agreement. 
	The information collected under EPA's DBE program includes the following: 1) EPA DBE Program contract administration forms 2) EPA DBE certification information, 3) negotiated fair share objectives, and 4) reporting and recordkeeping to demonstrate compliance. The EPA is proposing to revise this information as follows:
      
      Contract Administration Forms. Contract administration forms are required of recipients of EPA financial assistance agreements, their prime contractors, and subcontractors. These forms include:
      
 EPA Form 6100-3: Captures the DBE subcontractor's description of work to be performed and the price of the work submitted to the prime contractor; and
 EPA Form 6100-4: Describes the prime contractor's actual and/or anticipated use of identified certified DBE subcontractors and the estimated dollar amount of each subcontract.
            
      EPA is removing one existing administrative form, EPA Form 6100 - 2 -- DBE Program Subcontractor Participation Form. 
      
	EPA DBE Certification. EPA requires an entity (i.e., prime contractors or subcontractors for recipients of EPA financial assistance agreements) to be certified in order to be considered a Minority Business Enterprise (MBE) or Woman Business Enterprise (WBE) under EPA's DBE Program for its financial assistance programs. Under the current requirements of Part 33, EPA requires an entity to first try to become certified by a federal agency (e.g., the Small Business Administration (SBA), or the Department of Transportation (DOT)), or by a State, locality, Indian Tribe or independent private organization so long as their applicable criteria match those under Section 8(a)(5) and (6) of the Small Business Act and applicable implementing regulations. EPA then only certifies firms that cannot get certified by one of these entities. EPA is proposing to revise the EPA's existing certification process under Part 33 to accept and implement a self-certification process for firms who are not otherwise certified by another entity. The requirements would allow qualified firms to electronically self-certify under the EPA's DBE program as an MBE or WBE, using the EPA's Small Business Vendor Profile System (SBVPS) at its OBSP website. To qualify as an MBE or WBE under EPA's programs, an entity must establish that it is owned and/or controlled by socially and economically disadvantaged individuals who are of good character and are citizens of the United States. The EPA's SBVPS currently exists as a database for small businesses to register with the agency. Once the self-certification method has been implemented, a check box will be activated at the bottom of the registration form allowing companies to attest to meeting the certification requirements of the DBE Program. These changes would remove the current paper application process and agency activities related to maintaining forms and conducting reviews. 
      
      Consistent with the addition of a self-certification program, EPA is removing the following certification applications, which are currently required of firms applying to be recognized as DBEs (i.e., prime contractors or subcontractors for recipients of EPA financial assistance agreements):

 EPA DBE Certification Application (EPA Form 6100 - 1a) (Sole Proprietorship);
 EPA DBE Certification Application (EPA Form 6100 - 1b) (Limited Liability Company);
 EPA DBE Certification Application (EPA 6100 - 1c) (Partnerships);
 EPA DBE Certification Application (EPA Form 6100 - 1d) (Corporations);  
 EPA DBE Certification Application (EPA Form 6100 - 1e) (Alaska Native Corporations);
 EPA DBE Certification Application (EPA Form 6100 - 1f) (Tribally Owned Businesses);
 EPA DBE Certification Application (EPA Form 6100 - 1g) (Private and Voluntary Organizations);
 EPA DBE Certification Application (EPA Form 6100 - 1h) (Concerns owned by Native Hawaiian Organizations); and 
 EPA DBE Certification Application (EPA Form 6100 - 1i) (Concerns Owned by Community Development Corporations). 
            
	Instead, firms will electronically register and self-certify under the EPA's DBE program as an MBE or WBE using the EPA's online SBVPS, as described in section 4(b) of this document.

	Fair Share Objectives. In an effort to ensure that Minority Business Enterprises (MBEs) and Women's Business Enterprises (WBEs) receive a "fair share" of procurement opportunities funded by EPA financial assistance agreements, it is required that all financial assistance recipients, unless exempt under 40 CFR 33.411, negotiate objectives/goals for MBE/WBE utilization. A fair share objective is a goal based on the capacity and availability of qualified, certified MBEs and WBEs in the relevant geographic market for the grant recipient. Currently, recipients must determine separate WBE and MBE fair share objectives for each of four procurement categories (equipment, construction, services, and supplies). The requirements of 40 CFR 33.411 provide an exemption from these requirements for recipients of any single EPA financial assistance agreement in the amount of $250,000 or less or recipients of more than one EPA financial assistance agreement with a combined total of $250,000 or less in any one fiscal year. EPA is proposing to revise the exemption threshold under 40 CFR 33.411 from $250,000 to $1 million. The rule would also remove the four procurement categories, and require the recipient to determine one objective for MBEs and one for WBEs. A recipient of an EPA financial assistance agreement (unless exempt under 40 CFR 33.411) must submit its proposed MBE and WBE fair share objectives and supporting documentation to EPA. EPA does not have a formal method to collect this information.

	Reporting and Recordkeeping: All EPA financial assistance recipients are required to report to the Agency on their efforts to comply with the DBE Program requirements. This is how EPA evaluates and ensures the effectiveness of, and compliance with, the program's requirements. The current rule requires recipients to report annually or semiannually depending on the type of financial assistance agreement received. EPA is proposing to revise the reporting requirements to incorporate a Class Deviation previously issued by the EPA to granted exceptions from the reporting requirements of Part 33.  The Deviation changed the frequency of DBE reporting to annual for all recipients, and limited reporting to financial assistance agreements with funds budgeted for procurements above the simplified acquisition threshold of $150,000. Reporting and recordkeeping requirements for EPA's existing MBE and WBE specific provisions in 40 CFR Parts 30 and 31 are covered by the existing ICR "General Administrative Requirements for Assistance Programs" with OMB control number 2030-0020, renewed June 5, 2015, which covers "MBE/WBE Utilization under Federal Grants, Cooperative Agreements, and Interagency Agreements" for all EPA financial assistance programs, EPA Form 5700-52A. That ICR is not superseded by this ICR and will remain in effect. 

      MBE/WBE reporting and recordkeeping requirements for EPA's Clean Water State Revolving Fund (CWSRF) Program codified in 40 CFR 35.3145(d) and (e) are covered by ICR control number 2040-0118; MBE and WBE reporting and recordkeeping requirements for EPA's Drinking Water State Revolving Fund (DWSRF) Program, codified in 40 CFR 35.3575(d) are covered by ICR control number 2040-0185; and MBE/WBE reporting and recordkeeping requirements for EPA's Superfund Program regulations are covered by ICR control number 2050-0179. Those ICRs are not superseded by this ICR and will remain in effect.

        This ICR examines the respondent reporting requirements, associated hour, and cost burden of the EPA DBE rule for the key functional components of the DBE program identified above, except the reporting and recording keeping requirements covered under EPA ICR control number 2030-0020. 
  
2.  NEED/AUTHORITY FOR THE COLLECTION

2(a) Need/Authority for this Collection
            
      This ICR is for the purpose of ensuring that EPA's statutory DBE procurement goal requirements are implemented in harmony with the United States Supreme Court's decision in Adarand Constructors, Inc. v. Pena, 115 S. Ct. 2097 (1995).

      EPA's legal authorities for its DBE Program are:

Public Law 102-389, a 1993 appropriations act (42 U.S.C. §4370d) (EPA's 8% statute), which provides in pertinent part:

      "The Administrator of the Environmental Protection Agency shall, hereafter, to the fullest extent possible, ensure that at least 8 per centum of Federal funding for prime and subcontracts awarded in support of authorized programs, including grants, loans and contracts for wastewater treatment and leaking underground storage tanks grants, be made available to business concerns or other organizations owned or controlled by socially and economically disadvantaged individuals (within the meaning of Section 8(a)(5) and (6) of the Small Business Act (15 U.S.C. § 637 (a)(5) and(6)), including historically black colleges and universities.  For purposes of this section, economically and socially disadvantaged individuals shall be deemed to include women."

Public Law 101-549, Title X of the Clean Air Act Amendments of 1990 (42 U.S.C. §7601 note) (EPA's 10% statute), which provides in pertinent part:

      "In providing for any research relating to the requirements of the amendments made by the Clean Air Act Amendments which use funds of the Environmental Protection Agency, the Administrator of the Environmental Protection Agency shall, to the extent practicable, require that not less than 10 percent of the total Federal funding for such research will be made available to disadvantaged business concerns."
      
2(b) Practical Utility/Users of the Data
      
The contract administration forms associated with the Disadvantaged Business Enterprise (DBE) Program are designed to prevent unfair practices that adversely affect DBEs. The forms are to be completed by the prime contractor and submitted to either the EPA DBE Coordinator or the financial assistance agreement recipient. The data that is collected will allow EPA to monitor the contractor's DBE utilization. 

The self-certification process for EPA's Disadvantaged Business Enterprise Program is intended to replace the current EPA DBE certification forms while still providing for certification of those firms that cannot obtain certification from other federal, local, tribal and private entities. The self-certification program is necessary because the statutory authority for EPA's program includes classification of businesses that are not currently certified by other sources. EPA currently only certifies firms that are denied certification from other entities. This approach would no longer require businesses to first seek certification from other entities before requesting EPA DBE certification.  All businesses who meet the EPA DBE program certification requirements would be able to participate in self-certifying. EPA will still accept certification from other entities and encourage businesses to obtain certifications from these sources. Allowing firms to obtain certification from other sources is beneficial to businesses because the EPA DBE certification is only accepted by EPA while certifications from other sources have broader applications.

The fair share objectives ensure that MBEs and WBEs receive a "fair share" of procurement opportunities funded by EPA financial assistance agreements. Recipients, unless exempt under 40 CFR 33.411, must negotiate fair share objectives for MBE and WBE participation in procurement. The objectives are based on disparity studies or availability analyses showing the availability of MBEs or WBEs in the financial assistance recipient's relevant geographic buying market.

      
3.  NON DUPLICATION, CONSULTATIONS, AND OTHER COLLECTION CRITERIA

3(a) Non Duplication

      All of the information collected pursuant to this ICR is specific to the associated rulemaking.  To the extent MBEs and/or WBEs are certified by another Federal agency, there is no duplication of effort involved for them to become certified under this rulemaking since they are not required to obtain EPA certification under those circumstances. The information collected from respondents on the contract administration forms is required by statute and is not available from other sources.

3(b) Public Notice Required Prior to ICR submission to OMB
      
      A public notice of this collection is provided in the Federal Register notice of "Participation by Disadvantaged Business Enterprises in Procurements under EPA Financial Assistance Agreements; Direct Final Rule."  The Docket ID No. for the notice is EPA-HQ-OA-2006-0278, and can be accessed at www.regulations.gov.   

3(c) Consultations

For the development of this rule, EPA has performed a comprehensive review of the existing DBE program. As part of this process, the following nine EPA DBE Regional Coordinators analyzed current DBE processes/procedures and improvements included in this rulemaking. 

 Region 1 (CT, ME, RI, MA, NH, VT)
Larry Wells
wells.larry@epa.gov
 Region 2 (NJ, NY, PR, VI)
Michele Junker 
Peggy DeLuca
junker.michele@epa.gov
deluca.peggy@epa.gov
 Region 4 (AL, FL, GA, KY, MS, NC, SC, TN)
Charles Hayes
hayes.charles@epa.gov
 Region 5 (IL, IN, MI, MN, OH, WI)
Adrianne Callahan
callahan.adrianne@epa.gov
 Region 6 (AR, LA, NM, OK, TX)
Debora Bradford
bradford.debora@epa.gov
 Region 7 (MO, NE, IA, KS)
Chester Stovall
stovall.chester@epa.gov
 Region 9 (AZ, HI,CA, NV)
Joe Ochab
ochab.joe@epa.gov
 Region 10 (AK, ID, OR, WA)
Greg Luchey
luchey.greg@epa.gov

The following EPA staff also reviewed and provided comment:
 Caryn Meullerleile, Regulatory Management Division, Office of Policy
 Wendel Askew, Assistant General Counsel for Assistance Law, Office of General Counsel
 Lakeya Brantley, Attorney-Advisor, Civil Rights and Finance Law Division, Office of General Counsel

3(d) Effects of Less Frequent Collection  
  
      Contract Administration Forms:  
      
      The requirement under section 33.302(d) for a recipient to require its prime contractor to have any anticipated DBE subcontractors complete EPA Form 6100-3 DBE Subcontractor Performance Form and the requirement under section 33.302(e) for a recipient to require its prime contractor to complete and submit EPA Form 6100-4 DBE Program Subcontractor Utilization Form as part of the prime contractor's bid or proposal package are both activity based. No lower frequency of filing is possible.
      
      EPA DBE Self Certification:
      
      The requirement under section 33.201 for an EPA financial assistance recipients' MBE or WBE prime or subcontractor to self-certify under EPA's DBE Program is activity based. No lower frequency of filing is possible. 
      
      If there are any changes to the entity's circumstances which affects its ability to meet disadvantaged status, ownership, and/or control requirements, the entity must remove its self-certification entry in the EPA SBVPS within 30 days of the occurrence of the change. This filing is activity-based. In order to qualify and participate as an MBE or WBE prime or subcontractor for EPA recipients under EPA's DBE Program, the entity must be properly certified and demonstrate that it is owned or controlled by one or more individuals claiming disadvantaged status under the EPA's 8% statute or owned and controlled by one or more individuals claiming disadvantaged status under the EPA's 10% statute. 
      
      Fair Share Objectives: Under the rule, a recipient must submit its proposed MBE and WBE fair share objectives and supporting documentation to EPA within 90 days after its acceptance of its financial assistance award. Previously, recipients were required to submit their fair share objectives within 120 days of acceptance of a financial assistance award. In a review of the EPA DBE Program, the EPA determined that, because MBE and WBE fair share objectives must be agreed upon before funds may be expended for procurement, recipients must submit their fair share objectives sooner in order to ensure that projects are commenced in a timely manner. The rule provides that if EPA does not provide a response within 45 days then the fair share objectives submitted by the recipient are automatically agreed upon.
      
      Reporting and Recordkeeping:
      
      The rule does not impose any additional reporting and recordkeeping requirements on MBE/WBE achievements that are not already covered by the existing ICR under OMB control number 2030-0020 which covers "MBE/WBE Utilization under Federal Grants, Cooperative Agreements, and Interagency Agreements," EPA Form 5700-52A. EPA is proposing to revise the reporting requirements to change the frequency of DBE reporting to annual for all recipients (previously certain recipients reported semiannually), and limiting reporting to financial assistance agreements with funds budgeted for procurements above the simplified acquisition threshold of $150,000. To the extent burden is imposed or reduced, EPA will adjust the burden hours when its existing ICR "General Administrative Requirements for Assistance Programs" (2030-0020) is renewed as well as when the other ICRs which encompass MBE/WBE reporting and recordkeeping are renewed.  

3(e) General Guidelines

      This rulemaking is consistent with OMB's General Guidelines.

3(f) Confidentiality

      Information gathered as part of the certification process that may reasonably be regarded as proprietary or other confidential business information will be safeguarded from disclosure to unauthorized persons, consistent with applicable federal, state and local law. EPA has regulations concerning confidential business information. See 40 CFR Part 2 Subpart B.

3(g) Sensitive Questions

      The requirements do not involve information of a sensitive nature.

4.  THE RESPONDENTS AND THE INFORMATION REQUESTED
      
4(a) Respondents/NAICS Codes

      The respondents to this collection are recipients of EPA financial assistance agreements and entities in the fields of construction, equipment, services and supplies who are intent on being prime contractors or subcontractors on EPA funded projects. The respondents include:

Category of respondents                       		NAICS Code

Architectural, engineering and 
other related services	5413                          

Architectural services (designing
and planning the development of land)	541320

Remediation services and 
other waste management services	56291

Hazardous waste treatment and disposal   		562211
        
Testing laboratories	541380

Wastewater remediation	562211

Construction equipment
(wholesale)	421810

Construction engineering 
services	541330

Computer peripheral equipment	421430

Computer systems design
programming services	541511

Computer systems design services	541512

Highway and street construction							
(includes roadwork)	234110

All other heavy construction	234990

Water sewer and pipeline
construction						234910					

Water treatment equipment			
(wholesale)	421850

Environmental consulting	541620

Management consulting services	541618

Soil testing	562910

Water, supply and irrigation
systems (water filtration)	221310

Sewage treatment facilities	221320

Hazardous waste treatment and
disposal	562211

Long distance trucking of waste	56211

Office supplies	453210

Office machinery and equipment
rental or leasing	532420

4(b) Information Requested

      (i) Data Items, Including Recordkeeping Requirements

      Information requested as a result of the revisions relate to 1) the Contract Administration Forms which are required if there are DBE subcontractors involved in a procurement under 40 CFR 33.302 (d) and (e) (formerly 40 CFR 33.302(f) and (g)), 2) the EPA DBE Self Certification process, and 3) fair share objectives required of certain recipients of EPA financial assistance. 
      
      Contract Administration Forms: EPA Form 6100-3 captures the DBE subcontractor's description of work to be performed and the price of the work submitted to the prime contractor. EPA Form 6100-4 captures the prime contractor's actual and/or anticipated use of identified certified DBE subcontractors and the estimated dollar amount of each subcontract. The information from these forms is used to evaluate whether prime contractors have attempted to use any "bait and switch" tactics in representing they would use MBE/WBE subcontractors without actually doing so; the information will also be used to determine whether any changes in EPA oversight are needed.

      EPA DBE Self-certification: The self-certification process will continue to  provide a means of certification for the following types of firms that cannot be certified by another federal agency: 1) disabled American-owned firms under EPA's 10% statute; 2) private and voluntary organizations controlled by individuals who are socially and economically disadvantaged under EPA's 10% statute; 3) women-owned businesses under EPA's 8% and 10% statutes who cannot get certified under DOT or SBA size criteria or by a State Government, Indian Tribal Government or independent private organization consistent with EPA's 8% or 10% statute as applicable; 4) DBE owned or controlled businesses under EPA's 8% statute (SBA and DOT require a DBE to be owned and controlled by socially and economically disadvantaged individuals (as does EPA's 10% statute)); and 5) entities which are certified under criteria which are inconsistent with EPA's DBE program criteria. It is important to note that to qualify as an MBE or WBE under EPA programs, an entity must establish that it is owned and/or controlled by socially and economically disadvantaged individuals who are of good character and citizens of the United States.
      
      The requirements would allow qualified firms to self-certify under the EPA's DBE program as an MBE or WBE, using the EPA's Small Business Vendor Profile System (SBVPS). Under this approach, firms seeking certification would register in the online SBVPS. Registration in the SBVPS would require the firm to provide their firm name and contact information, federal tax ID, DUNS no., type of business, date of start, annual sales, company size and classification, ethnicity, any other prior certifications. Firms would then self-attest to meeting the eligibility requirements set forth in 40 CFR 33.202 and 33.203. The self-certification provided through the SBVPS would be used to establish the MBE and/or WBE status of applicants and would be legally-binding. This approach is consistent with the certification requirements of other federal agencies (including the SBA in its SDB certification program), does not require submittal of additional information, and does not require EPA review of an application. Note that the EPA could request entities to provide evidence that they meet the eligibility requirements on an as-needed basis. Such entities are responsible for keeping the EPA informed of any changes which may affect the entity's certification, including removing the self-certification from the SBVPS database within 30 days of any changes to the eligibility status.

	Fair Share Objectives:  EPA does not have a formal method to collect the information pertaining to the fair share objectives. However, a recipient of an EPA financial assistance agreement (unless exempt under 40 CFR 33.411) must submit its proposed MBE and WBE fair share objectives and supporting documentation to EPA. The revisions to 40 CFR 33.411 provide an exemption from these requirements for recipients of any single EPA financial assistance agreement in the amount of $1 million or less, or recipients of more than one EPA financial assistance agreement with a combined total of $1 millon or less in any one fiscal year. The rule would require the recipient to determine one objective for MBEs and one for WBEs. The negotiated fair share objectives would be effective for 5 years.

      (ii)  Respondent Activities

	Contract Administration Forms: EPA Form 6100-3 is required to be submitted by the subcontractor and then included by the prime contractor as a part of the bid or proposal package. EPA Form 6100-4 should be submitted by the prime contractor to the recipient as a part of the bid or proposal process.
      
      EPA DBE Certification: Under the rule, qualified firms would be able to self-certify under the EPA's DBE program as an MBE or WBE using the EPA's Small Business Vendor Profile System (SBVPS) at any time by navigating to EPA's Office of Small Business Programs website (http://www2.epa.gov/resources-small-businesses). A firm's self-certification would be effective for three years. An entity would have to re-enter its registration information and self-certify in the EPA SBVPS every three years in order to maintain MBE or WBE status under the DBE program. Entries in the EPA SBVPS older than three years will be automatically removed from the system.

      Fair Share Objectives: A recipient must determine its proposed MBE and WBE fair share objectives according to the requirements of 40 CFR 33.405, and submit its proposed MBE and WBE fair share objectives and supporting documentation to EPA within 90 days after its acceptance of its financial assistance award. 

5.  	THE INFORMATION COLLECTED-AGENCY ACTIVITIES, COLLECTION, METHODOLOGY, AND INFORMATION MANAGEMENT 

      The following section discusses how EPA would collect and manage the information received from respondents under the revisions to Part 33.

5(a) Agency Activities

      Contract Administration Forms: EPA DBE Coordinators would review the contract administration forms to ensure that the prime contractor and subcontractor are in accordance as to the work that will be performed under the contract. The EPA DBE Coordinator will contact the prime contractor and subcontractor and resolve any issues should a discrepancy exist. Pursuant to 40 CFR 33.302, in the event that a DBE subcontractor fails to complete work under the subcontract for any reason, the recipient must require the prime contractor to employ the good faith efforts described in 40 CFR 33.301(h) if soliciting a replacement subcontractor.
      
      EPA DBE Certification: Under the self-certification approach, EPA would maintain its Small Business Vendor Profile System. Firms who self-certify through the SBVPS would be listed in the EPA's SBVPS through the OBSP website. EPA would not evaluate the self-certifications provided, but could request entities to provide evidence that they meet the eligibility requirements on an as-needed basis. Entities are responsible for keeping the EPA informed of any changes which may affect the entity's certification, including removing the self-certification from the SBVPS database within 30 days of any changes to the eligibility status. 
      
      Fair Share Objectives: EPA DBE Coordinators would receive a recipients proposed MBE and WBE fair share objectives within 90 days of the recipient's acceptance of a financial assistance agreement. The EPA DBE Coordinator would respond in writing to the recipient's submission within 45 days of receipt either agreeing with the submission or providing initial comments for further negotiation. If EPA does not provide a response within 45 days, then the fair share objectives submitted by the recipient are automatically agreed upon.

5(b) Collection Methodology and Management
      
      Contract Administration Forms: EPA uses Form 6100-3 and Form 6100-4 to evaluate whether prime contractors have attempted to use any "bait and switch" tactics in representing they would use MBE/WBE subcontractors without actually doing so. EPA will ensure the completeness of collected information by reviewing each submittal. EPA will store the data in the award file maintained by the DBE Coordinator.
      
      EPA DBE Self-certification: EPA will store the registration and self-certification data entered in the EPA's SBVPS within the SBVPS database, which will be updated and maintained on a monthly basis. A program manager will briefly review the self-certification data entered and will update the SBVPS, which may be searched on the EPA's OBSP web site for firms that are self-certified. A firm's self-certification would be effective for three years. An entity would have to re-enter its registration information and self-certify in the EPA SBVPS every three years in order to maintain MBE or WBE status under the DBE program. Entries in the EPA SBVPS older than three years will be automatically removed from the system.
 
      Fair Share Objectives: EPA does not have a formal method to collect the information pertaining to the fair share objectives. However, recipients are required to substantiate their proposed objectives based on data derived from an availability analysis, disparity study, the approved fair share objectives of another EPA recipient, or alternative methods as described in 40 CFR 33.405. In collecting and analyzing information, EPA will ensure the completeness of collected information by reviewing each submittal. EPA will store the data in the award file maintained by the DBE Coordinator. 
      
      For the information collected, EPA will safeguard confidential business information in accordance with 40 CFR Part 2, Subpart B, as discussed in section 3(f) of this document.

5(c) Small Entity Flexibility

      EPA's DBE Program is aimed at providing contracting opportunities for small businesses owned and/or controlled by socially and economically disadvantaged individuals, among others (e.g., historically black colleges and universities) (HBCUs). Therefore, the EPA believes that this rule will impact a substantial number of small entities. However, EPA believes that the effect of the rule on small entities, including small government jurisdictions, is minimal. Accordingly, EPA believes the economic impact of this rule on small entities is minimal.  

      The rule does not affect the total funds or business opportunities available to small businesses that seek to work under EPA financial assistance programs. Additionally, EPA is proposing several revisions to Part 33 that would improve the practical utility of the DBE program and minimize the burden to affected entities, including:
      
 EPA is proposing to remove the requirement to submit the Contract Administrative Form 6100-2.
 EPA is proposing to incorporate an online self-certification process for firms that cannot be certified as MBE or WBE by other federal agencies as a less burdensome collection mechanism.  
 EPA is proposing to increase the threshold in 40 CFR 33.411 for recipients exempted from negotiating fair share objectives in subpart D of Part 33, reducing the number of recipients required to submit fair share objectives. 
 EPA is proposing to change the frequency of DBE reporting to annual for all recipients, and limit reporting to financial assistance agreements with funds budgeted for procurements above the simplified acquisition threshold of $150,000. 

      EPA is unaware of any data which would enable the Agency at this time to measure the distributive effects of the rulemaking proposal on various types of small entities. 

5(d) Collection Schedule

      Contract Administration Forms: EPA Form 6100-3 is collected by the recipient's prime contractor at the time of bid or proposal.  EPA Form 6100-4 is collected by the recipient of the EPA financial assistance agreement at the time of bid or proposal.
      
      EPA DBE Self-certification: The DBE self-certification process is activity based and applies to firms that cannot be certified under another federal agency. Under the rule, an entity will remain on EPA's list of certified MBEs and WBEs in the EPA SBVPS for a period of three years from the date of its self-certification. To remain on EPA's list after three years, an entity would have to re-enter its registration information and self-certify in the EPA SBVPS every three years in order to maintain MBE or WBE status under the DBE program. Entries in the EPA SBVPS older than three years will be automatically removed from the system.
      
      Fair Share Objectives: Under the rule, once a recipient's fair share objectives have been accepted, they would remain in effect for five fiscal years unless there are significant changes to the data supporting the objectives.

6.  	ESTIMATING THE BURDEN AND COST OF THE COLLECTION

6(a) Estimating Respondent Burden 

  EPA DBE Program Contract Administration Forms 6100-3 and 6100-4
     EPA does not anticipate that the revisions to the contract administration forms will lead to any measurable change in burden for forms 6100-3 and 6100-4. However, the EPA is removing the requirement to submit EPA Form 6100-2, which will reduce the overall burden. 
 Affected Public: EPA grant recipients, prime contractors and DBE subcontractors
            
 Number of Respondents: 1,803
            
 Frequency of Response: Once during bid or proposal

 Estimated Average Annual Burden per Response: (1/4) of 1 hour per form

 Estimated total burden: 450.75 hours per year per form (901.5 total hours per year)
  
  EPA DBE Self-Certification:
     EPA estimates that the total burden hours per applicant to complete its DBE certification application with supporting documentation is approximately (1/2) hour. This burden includes the time required to enter the information listed under "EPA DBE Self-Certification" in section 4(b)(i) of this document into the EPA's SBVPS, which is an online web form. The EPA Office of Small Business Program currently receives approximately 25 applications per month from applicants seeking DBE certification, which includes applications from firms that are seeking recertification. The EPA has assumed that these 25 applicants would elect to self-certify through the EPA's SBVPS.
 Affected Public: Firms applying to be certified as DBEs
            	
 Number of Respondents: 25 per month (300 per year)

 Frequency of Response: Once during initial DBE certification and every three years as needed for re-certification

 Estimated Average Annual Burden per Response: (1/2) hour

 Estimated total burden: 150 hours per year

            
  EPA Fair Share Negotiations

The fair share negotiation process will not be affected by the changes in the certification and contract administration forms associated with the EPA DBE program. The respondent burden for this activity is derived from collecting and analyzing the data used to develop fair share objectives. The number of respondents is based on the current number of recipients with active negotiated goals and awards greater than $1 million as of October 2014. There are 143 active negotiated rates. The rule would require each recipient to renegotiate their goals every five years. Therefore the number of respondents required to submit fair share negotiations would average 29 per year. 

Although there are several methods that can be used to calculate fair share objectives, EPA calculated the burden associated with developing an availability analysis as it is the most widely used and laborious methodology. Under the current rule, recipients are required to determine separate MBE and WBE fair share objectives for each of the four procurement categories (8 objectives), with the option to combine the four categories into one weighted objective. The EPA is proposing two separate MBE and WBE fair share objectives, which reduces the number of fair share objectives that must be negotiated recipients from 8 to 2. EPA previously established a burden of 265 hours for the negotiation of 8 objectives, or approximately 33 hours per objective. Therefore, EPA is assuming a burden of 66.25 hours per respondent.

 Affected Public: EPA grant recipients
            
 Number of Respondents: 29 (143/5)
            
 Frequency of Response: Once Every Five Years

 Estimated Average Annual Burden per Response: 66.25 hours

 Estimated total burden: 1,921.25 hours per year 
      
6(b) Estimating Respondent Costs

	Table 6-1 provides the cost estimates for the affected respondents. We used the Bureau of Labor Statistics' 2014 median wage rate for a compliance officer to estimate this cost.

Table 6-1

                              No. of Respondents 
                           Est. Total Burden (hrs.)
                                   Wage Rate
                                  Total Cost
Forms 6100-3, -4
                                     1,803
                                     901.5
                                ((1,803*.25*2)
                                    $31.23
                                    $28,154
                                ($31.23*901.5)
DBE Certification
                                     300 
                                    (25*12)
                                     150 
                                   (300*0.5)
                                    $31.23
                                       
                                    $4,685
                                 ($31.23*150)
Fair Share Negotiations
                                      29
                                   1,921.25
                                  (29*66.25)
                                    $31.23
                                    $60,001
                               ($31.23*1,921.25)
Total
                                      --
                                   2,972.75
                                      --
                                    $92,840

Key Assumptions:

 Some percent of government entities will already have a suitable availability analysis [likely to result in an overestimate of burden and cost].

 Some percent of non-governmental entities will use States' availability analyses [likely to result in an overestimate of burden and cost].
            
 An availability analysis is valid for ten years. This means that a recipient does not need to develop a new availability analysis when their fair share goals are renegotiated (every three years) unless there has been a significant change in the recipient's relevant geographic area [likely to result in an overestimate of burden and cost].
            
 The burden associated with the Fair Share Negotiation process occurs every five years.
            
Based on Table 6-1, the estimated total annual respondent cost is $28,154 for Forms 6100-3, -4; $4,685 for the DBE Self-Certification, and $92,840 for fair share negotiations. 

6(c) Estimating Agency Burden and Cost

 DBE Contract Administration Forms: The Agency estimates that it will take one hour to review each of the contract administration forms, 6100-3 and 6100-4. A DBE Coordinator or Grant Specialist's review of the forms at a GS-13 step four position in Washington, D.C. will cost $86,309.61 per form per year at a rate of $47.87 an hour.

 Hourly Rate: $47.87
 Number of Respondents: 1,803
 Number of Review Hours per form: 1
 Total Burden Hours per form: 1,803
 Total Burden to Review All Forms: 3,606
 Total Cost per form: $86,309.61
 Total Cost to Review All Forms: $172,619

 DBE Self-Certification: Based on experience, EPA estimates that it will take the DBE program manager at a GS-14 level in Washington, DC approximately 0.08 hours to assess the self-certification data entered by applicants and enter it into the SBVPS database. At a salary of $51.43 per hour, the federal cost per year of reviewing the estimated 300 certifications is $1,285.75. 

 Hourly Rate: $51.43
 Number of Respondents: 300 per year
 Number of Review Hours per Respondent: 0.08
 Total Burden Hours: 25 
 Total Cost: $1,285.75
            
 Fair Share Goal Negotiation: Based on experience, EPA estimates that it will take a DBE Coordinator at a GS-12 level in Washington, DC approximately 8 hours to review the documentation (including the availability analysis) and provide feedback associated with the fair share negotiation process. At a salary of $36.60 per hour, the average annual federal cost of negotiating fair share objectives for 29 respondents is $8,491.20.

 Hourly Rate: $36.60
 Number of Respondents: 29
 Number of Review Hours per form: 8 
 Total Burden Hours: 232
 Total Cost: $8,491.20

6(d) Estimating the Respondent Universe and Total Burden and Costs

	Table 6-2 summarizes the total estimated annual burden and cost of this information collection. We estimate that it will require a total of 6,836 hours and cost $275,236 with all costs attributed to labor hours to meet the requirements of the DBE. 

Table 6-2
RESPONDENTS
Number of Respondents
Total Burden Hours
Total Cost
6100-3, -4
1,803
901.5
$28,154
DBE Self-certification
300
150
$4,685
Fair Share Negotiations
29
1,921.25
$60,001

2,132
2,972.75
$92,840

EPA
 
 
 
6100-2, -3, -4
1,803
3,606
$172,619
DBE Self-certification
300
25
$1,285.75
Fair Share Negotiations
29
232
$8,491.20

2,132
3,863
$182,396

TOTAL

6,836
$275,236

Key Assumptions: 

 There are 13 EPA DBE Coordinators. If there are 143 respondents, each Coordinator will negotiate the fair share objectives of an average of 11 recipients every five years.

 The federal salary for a GS-12 employee varies by state. Therefore, the actual agency burden will differ based on the Coordinator's region.

6(e) Bottom Line Burden Hours and Cost Tables

 Respondent Tally
         Annual Burden: 2,972.75 hours
         Annual Cost: $92,840
         
 Agency Tally
         Annual Burden: 3,863 hours
         Annual Cost: $182,396

6(f) Reasons for Change in Burden

	The change in the total number of burden hours and total cost reflects several revisions to the DBE Program requirements. 

      EPA DBE Program Contract Administration Forms 6100-3 and 6100-4. EPA is retaining EPA Forms 6100-3 and 6100-4, but proposing to remove the requirement to submit EPA Form 6100-2. The revised burden reflects the removal of this form and the reduced burden for the agency to maintain and review this form. 

      EPA DBE Certification. EPA currently uses separate "EPA DBE Certification Application" forms depending on the entity seeking to be certified (EPA Form 6100-1a for sole proprietorships, EPA Form 6100-1b for limited liability companies, EPA Form 6100-1c for partnerships, EPA Form 6100-1d for corporations, EPA Form 6100-1e for Alaska Native Corporations (ANCs), EPA Form 6100-1f for Tribally owned concerns, EPA Form 6100-1g for private and voluntary organizations owned by individuals who are socially and economically disadvantaged, EPA Form 6100-1h for concerns owned by Native Hawaiian organizations, and EPA Form 6100-1i for concerns owned by community development corporations). Consistent with the self-certification approach, EPA is removing the requirements to submit the EPA DBE Certification Application forms. The revised burden reflects the removal of the requirements to submit these forms for respondents and the reduced burden for the agency to maintain and review these forms. Instead, the revised burden reflects the time required for facilities to enter their registration information and self-certification as listed under "EPA DBE Self-Certification" in section 4(b)(i) of this document into the EPA's Small Business Vendor Profile System at its OBSP website. 
      
      EPA Fair Share Objectives. The burden from fair share negotiations is based on the activities required for collecting and analyzing data and developing fair share objectives, assuming the use of a sample availability analysis. EPA is proposing to revise the exemption threshold for the fair share objectives under 40 CFR 33.411 from $250,000 to $1 million. The burden has been revised to reflect this change, which revises the number of recipients who would be required to calculate fair share objectives. The number of respondents is based on the current number of recipients with active negotiated goals and awards greater than $1 million as of October 2014 (143). The rule would require each recipient to renegotiate their goals every five years. Therefore the number of respondents required to submit fair share negotiations would average 29 per year. The EPA is also proposing to reduce the number of fair share objectives that must be negotiated from 8 to 2. EPA previously established a burden of 265 hours for the negotiation of 8 objectives, or approximately 33 hours per objective. Therefore, the burden is 66.25 hours per respondent.

6(g) Burden Statement
	
	The annual public reporting and recordkeeping burden for this collection of information is estimated to average 1.4 hours and $44 per response. 

	Burden means the total time, effort, or financial resources 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 systems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with any 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 collection of information unless it displays 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 ICR under Docket ID Number EPA-HQ-OA-2006-0278, which is available for online viewing at www.regulations.gov, or in person viewing at the OEI Docket 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 holidays.  The telephone number for the Reading Room is (202) 566-1744, and the telephone number for the OEI Docket 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 system, 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-OA-2006-0278 and OMB Control Number 2090-NEW in any correspondence.