Information Collection 2133-0018 2008 ss

SUPPORTING STATEMENT FOR
PAPERWORK REDUCTION ACT SUBMISSION UNDER 5 CFR PART 1320
Information Collection: 2133-0018

A.

Justification

1.
Explain the circumstances that make collection of information necessary. Identify any
legal or administrative requirements that necessitate the collection. Attach a copy of the
appropriate section of each statute and regulation mandating or authorizing the collection of
information.
Under 46 USC Ch. 537, the Maritime Administration (MARAD) is authorized to execute
a full faith and credit guarantee by the United States of debt obligations issued to finance or
refinance the construction or reconstruction of vessels. In November 1994 the loan guarantee
program was expanded to permit the issuance of loan guarantees by MARAD for financing
export vessels built in the United States and for shipyard modernization and improvement
projects. Prior to execution of this guarantee, the Secretary of Transportation must, among other
things, make determinations of economic soundness of the project and the financial and
operating capability of the applicant. The information collected is necessary to evaluate an
applicant’s project and capabilities, make the required determinations, and administer any
agreements executed upon approval of loan guarantees.
As part of the Reserve Fund and Financial Agreement executed as part of the award of a
loan guarantee, recipients are required to submit financial information on a semi-annual basis in
accordance with 46 CFR 298.13. This financial information is covered under MARAD
information collection “Uniform Financial Reporting Requirements, OMB No. 2133-0005,”
Form MA-172, and therefore need not be accounted for under the subject collection 2133-0018.
The loan guarantee program is one of MARAD’s primary means of achieving the
Department of Transportation’s strategic goal of encouraging economic growth and trade, and
increases the capability of the transportation system to meet national defense needs.
2.
Indicate how, and by whom, and for what purpose the information is to be used. Except
for a new collection, indicate the actual use the agency has made of the information received
from the current collection.
The information provided is used by individual offices within MARAD to evaluate each
applicant within that office’s sphere of responsibility. To simplify collection and processing,
two separate forms are in use: the MA-163 for use with ship financing projects; and the MA163A for use with shipyard modernization projects. Some of the information on each form is
specific to that type of project while some of the information is required for all projects. The
burden associated with each form is equal. Failure to receive the required information would
hinder MARAD’s ability to evaluate and act upon applications. This would result in certain
projects not being consummated which might otherwise be undertaken. This would have an
adverse impact on the United States maritime industry. Such a result would not be acceptable

since the promotion, development and maintenance of the maritime industry is the stated policy
of 46 U.S.C. Ch. 501.
3.
Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection techniques or other forms of
information technology. Also describe any consideration of using information technology to
reduce burden.
The loan guarantee application material is totally available on the internet via MARAD’s
website. However, while this process is available, as of this date, no applicant has chosen to
submit an application electronically. Electronic submission has not been utilized because
respondents have been reluctant to transmit confidential and sensitive data.
4.
Describe efforts to identify duplication. Show specifically why any similar information
already available cannot be used or modified for use for the purposes described in item 2 above.
Except for audited financial statements, there is no similar data available from any other
source that can be used, or modified for use, by MARAD.
5.
If the collection of information impacts small businesses or other small entities (Item 5 of
OMB Form 83-I), describe any methods used to minimize burden.
The information collected is not expected to have other than a minimal impact upon small
business as the applicants generally exceed the Small Business Administration’s criteria for
small business.
6.
Describ3e the consequence to Federal program or policy activities of the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing
burden.
The basic Loan guarantee application is submitted only when initially seeking a loan
guarantee. The application is essential in determining qualification for benefits. The
consequence to the Federal program or policy activities if the statements were not collected
would be MARAD’s inability to properly administer the program.
7.
Explain any special circumstances that would cause information collected to be
conducted in a manner:
•

requiring respondents to report information to the agency more often than quarterly;

•

requiring respondents to prepare a written response to a collection of information in
fewer than 30 days after receipt of it;

•

requiring respondents to retain records, other than health, medical, government contract,
grant-in-aid, or tax records for more than three years;

•

in connection with statistical survey, that is not designed to produce valid and reliable
results that can be generalized to the universe of study;

•

requiring the use of statistical data classification that has not been reviewed and approved
by OMB;

•

that includes a pledge of confidentiality that is not supported by authority established in
statute or regulation, that is not supported by disclosure and data security policies that are
consistent with the pledge, or which unnecessarily impedes sharing data with other
agencies for compatible confidential use; or

•

requiring respondents to submit proprietary trade secret, or other confidential information
unless the agency can demonstrate that it has instituted procedures to protect the
information’s confidentiality to the extent permitted by law.

With regard to the above, MARAD requires the submission of up to 10 copies of the
initial application. Additional copies are required in order that different offices within MARAD
may provide simultaneous and timely analyses of the application.
8.
If applicable, provide a copy and identify the date and page number of publication in the
Register of the agency's notice required by 5 CFR 1320.8(d), soliciting comments on the
information collection prior to submission to OMB. Summarize public comments received in
response to that notice and describe actions taken by the agency in response to these comments.
Specifically address comments received on cost and hour burden.
•

Describe efforts to consult with persons outside the agency to obtain their views on the
availability of data, frequency of collection, the clarity of instructions and record keeping,
disclosure, or reporting format (if any), and on the data elements to be recorded,
disclosed, or reported.

•

Consultation with representatives of those from whom information is to be obtained or
those who must compile records should occur at least once every three years -even if the
collection of information activity is the same as in prior periods. There may be
circumstances that may preclude consultation in a specific situation. These circumstances
should be explained.

Prior to submission of a loan guarantee application, applicants are encouraged to meet
with MARAD staff to discuss information to be included in the application. At these meetings
agency officials obtain information on the applicant's views on the availability of data, frequency
of collection, and the clarity of instructions. MARAD staff members also communicate with
respondents regarding the basis and reporting consistency of the information submitted.
Revisions to the requirements are routinely discussed with maritime industry officials outside
MARAD.
MARAD published a 60-day Federal Register notice (73 FR 9851) on February 22, 2008,
indicating comments were due on April 22, 2008. No comments were received.

9.
Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
No payments or gifts are provided to respondents.
10.
Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
Under the existing regulation governing the loan guarantee program, the applicant is
provided information relating to confidential treatment of the material supplied to MARAD.
Confidentiality of the submitted information is currently provided for in 46 CFR 298.3(d) and 5
U.S.C. 552. As the information itself is voluntary, the applicant is not required to provide the
information unless the applicant desires to participate in the loan guarantee program.
11.
Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered private.
This justification should include the reasons why the agency considers the questions necessary,
the specific uses to be made of the information, the explanation to be given to persons from
whom the information is requested, and any steps to be taken to obtain their consent.
Not applicable. There are no questions of a sensitive nature.
12.

Provide estimates of the hour burden of the collection of information. The statement
should:
• Indicate the number of respondents, frequency of response, annual hour burden, and an
explanation of how the burden was estimated. Unless directed to do so, agencies should
not conduct special surveys to obtain information on which to base hour burden
estimates. Consultation with a sample (fewer than 10) of potential respondents is
desirable. If the hour burden on respondents is expected to vary widely because of
differences in activity, size, or complexity, show the range of estimated burden and
explain the reasons for the variance. Generally, estimates should not include burden
hours for customary and usual business practices.
• If this request for approval covers more than one form, provide separate hour burden
estimates for each form and aggregate the hour burdens in item 13 of OMB Form 83-I.
• Provide estimates of annualized cost to respondents for the hour burdens for collections
of information, identifying and using appropriate wage rate categories. The cost of
contracting out or paying outside parties for information collection activities should not
be included here. Instead, this cost should be included in item 13.

It is estimated that approximately four respondents will require approximately 70 hours
each to complete an application for loan guarantees.

Responses
Per
Respondent

Number of
Respondents
4

x

2

Total
Responses
Annuallv
=

8

Hours
Per
Response
x

70

Total
Hours
Annually
=

560

A determination of the estimated number of hours required per response was made after
consultation with several Title XI respondents. The number of hours required per response is the
same for both MARAD forms (MA-163, MA-163A).
In addition, it is estimated that employees in each of six separate areas spends eight and
three-quarters hours of their time collecting and assimilating the information submitted with each
response. Therefore, given an average salary of $275 per hour for each of the employees, the
associated burden hour costs per application to the respondent is estimated as follows:
Total
Number of
Hourly
Project
Cost Per
Number of
Total
Employees
Wage
Time
Response
Responses
Cost
8

x

$275

x

8.75 hours =

$19,250 x

8

= $154,000

1 Accountant, Auditor or Bookkeeper
2 Professional and Technical Workers
1 Clerical Worker
1 Manager/Administrator
2 Lawyers
1 Service Worker
13.
Provide an estimate of the total annual cost burden to respondents or recordkeepers
resulting from the collection of information. (Do not include the cost of any hour burden shown
in items 12 and 14).
•

The cost estimate should be split into two components: (a) a total capital and start-up cost
component (annualized over its expected useful life); and (b) a total operation and
maintenance and purchase of services component. The estimates should take into account
costs associated with generating, maintaining and disclosing or providing the
information. Include descriptions of methods used to estimate major cost factors
including system and technology acquisition, expected useful life of capital equipment,
the discount rate(s), and the time period over which costs will be incurred. Capital and
start-up costs include, among other items, preparations for collecting information such as
purchasing computers and software; monitoring, sampling, drilling and testing
equipment; and record storage facilities.

•

If cost estimates are expected to vary widely, agencies should present ranges of cost
burdens and explain the reasons for the variance. The cost of purchasing or contracting

out information collection services should be a part of this cost burden estimate. In
developing cost burden estimates, agencies may consult with a sample of
respondents(fewer than lo), utilize the 60-day pre-OMB submission public comment
process and use existing economic or regulatory impact analysis associated with the
rulemaking containing the information collection, as appropriate.
•

Generally, estimates should not include purchases of equipment or services, or portions
thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with
requirements not associated with the information collection, (3) for reasons other than to
provide information or keep records for the government, or (4) as part of customary and
usual business or private practices.

The estimated annual cost burden to the respondents is as follows:
(a)
Total Capital and Start-Up Costs Estimate: There are no capital or start-up costs
associated with this information collection.
(b)
Total Operation and Maintenance and Purchase of Services Estimate: There are
no operational and maintenance and/or purchase of service costs associated with this information
collection.
14.
Provide estimates of annualized cost to the Federal Government. Also, provide a
description of the method used to estimate cost, which should include quantification of hours,
operational expenses (such as equipment, overhead, printing, and support staff), and any other
expense that would not have been incurred without this collection of information. Agencies also
may aggregate cost estimates from items 12, 13, and 14 in a single table.
The total annual cost to the Federal Government for processing the collection is estimated
as $313,020.
It is estimated that 30 employees in various areas of the Maritime Administration spend
an average of 30 hours of their time collecting and assimilating information submitted with each
application. Therefore, given an average GS-13 salary of $47 per hour for each of the employees
and an overhead cost of 85 percent of the salary, the cost to the Government is estimated as
follows:
Number of
Employees
30

Hourly
Wage

x
$47
Overhead at 85%
Total

x

Project
Time

Cost Per
Response

30 hours =
=
=

$42,300
$35,955
$78,255

Number of
Responses

x

8

Total
Cost

= $626,040

15.
Explain the reasons for any program changes or adjustments reported in items 13 or 14 of
OMB Form 83-1.

In the last three years, MARAD has received an average of four responses, which differs
from the average of 15 responses previously reported.
16.
For collections of information whose results will be published, outline plans for
tabulation and publication. Address any complex analytical techniques that will be used. Provide
the time schedule for the entire project, including beginning and ending dates of the collection of
information, completion of report, publication dates and other actions.
There are no plans to publish the results of this information collection.
17.
If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons that display would be inappropriate.
Not applicable.
18.
Explain each exception to the certification statement identified in Item 19, "Certification
for Paperwork Reduction Act Submissions," of OMB Form 83-1.
Not applicable. There are no exceptions to the certificate statement.