2577-0161 - Supporting Statement

Supporting Statement for Paperwork Reduction Act Submission

Public Housing – Contracting with Resident-Owned Businesses

1. Justification

1. Explain the circumstances that make the 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.

PHAs that enter contracts with resident-owned businesses prior to December 26, 2014 must comply with the requirements/procedures set forth in, 24 CFR §85.36(h), 24 CFR §85.36(i). Contracts with resident-owned businesses entered after December 26, 2014 must comply with 24 CFR part 963; 2 CFR §200.325, 2 CFR §200.326 and other such contract terms that may be applicable to the procurement under the Department’s regulations.

2. Indicate how, 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.

Within the scope of this information collection, PHAs must collect the following information to determine if the entity is an eligible resident-owned business:

• Certified copies of any State, county, or municipal licenses that may be required of the business to engage in the type of business activity for which it was formed. Where applicable, the PHA must obtain a certified copy of its corporate charter or other organizational document that verifies that the business was properly formed in accordance with State law;

• Certification that shows the business is owned by residents, disclosure documents that indicate all owners of the business and each owner’s percentage of the business along with sufficient evidence sufficient that demonstrates to the satisfaction of the PHA that the business has the ability to perform successfully under the terms and conditions of the proposed contract;

• Certification as to the number of contracts awarded, and the dollar amount of each contract award received, under the alternative procurement process; and

• Contract award documents, proof of bonding documents, independent cost estimates and comparable price analyses.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also, describe any consideration of using information technology to reduce burden.

This collection of information does not currently involve use of automated, electronic or other technological collection techniques.

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.

There is no similar information collected elsewhere. As such, there is no duplication.

5. If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods and minimize burden.

This information does not impact small businesses. As such, there is no method to minimize the burden.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is less frequently conducted, as well as any technical or legal obstacles to reducing burden.

If the information is not collected, both the Department and the PHAs will not be in compliance with the regulatory requirements regarding collection of documents specific to contracts entered into with resident-owned businesses.

7. Explain any special circumstances that would cause an information collection to be collected in a manner:

*Requiring respondents to report information to the agency more often than quarterly;

Not Applicable

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

Not Applicable

*Requiring respondents to submit more than an original and two copies of any document;

Not Applicable

*Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than 3 years;

Not Applicable

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

Not Applicable

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

Not Applicable

*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 of data with other agencies for compatible confidential use; or

Not Applicable

*Requiring respondents to submit proprietary trade secrets, 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.

Not Applicable

8. If applicable, provide a copy and identify the date and page number of publication in the Federal 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 on cost and hour burden.

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 recordkeeping, disclosure, or reporting format (if any), and the data elements to be recorded, disclosed, or reported.

• Identify date and page number of the Federal Register notice soliciting comments on the information.

HUD published a Notice of Proposed Information Collection for public comments in the Federal Register, Volume 86, No. 14; Page 6905 on January 25, 2021. The public was given until March 26, 2021, to submit comments on the proposed information collection. HUD received no comments on this proposed collection.

• Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least every 3 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.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

No payment or gift will be made to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for assurance in statute, regulation, or agency policy.

There are no personal, propriety or otherwise sensitive information being collected. PHAs are required to obtain documentation to verify eligibility of the resident-owned business and collect other information related to the contract award itself under the Department’s procurement requirement.

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.

This item is not applicable.

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 hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business.

Although the Department has an inventory of 3,775 PHAs, the Department estimates that only 2 percent of PHAs contract with resident-owned businesses. The number is thought to be low because there are 1) likely to be very few eligible resident-owned businesses or 2) eligible resident-owned businesses may not have the requisite experience to meet requirements for available PHA procurements. This number is less than the previous request due to several PHAs choosing to leave the program. The calculation for burden hours is as follows:

Information Collection	Number of Respondents	*Average Number of Reponses per Respondent	Total Annual Responses	Burden Hours/Minutes per Response	Total Hours	Hourly Cost	Total Annual Cost
2577-0161	76*	1	76	24	1,824	$24.00	$43,776**
Totals	    76 	Total Responses:   76   		Total Hours:  1824    

*The Department estimates that out of a total of 3,775 PHAs only 2 percent or 76 PHAs contract with resident owned business. The calculation is as follows:

76 PHAs x 24 hours = 1,824 hours x $24 p/hr. = $43,776

**Average PHA salary = $51,000 per year; $24.00 per hour

A PHA is required to undertake the following activities under the alternative method of procurement:

• Prepare the contract package (8 hours)

• Prepare the advertisement (4 hours);

• Review the bid documents and award the contract (8 hours);

• Conduct follow-up activities as necessary prior to the start date of the work (4 hours)

The allocation of 24 hours per response is based upon the procurement activities reflected above.

13. Provide an estimate for the total annual cost burden to respondents or record-keepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14).

Notwithstanding requirements set forth in the procurement regulations, PHAs already collect and maintain this information. As such, there is no annual cost burden to respondents or record-keepers resulting from this collection of information.

14. Provide estimates of annualized costs 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 expenses that would not have been incurred without this collection of information. Agencies may also aggregate cost estimates from Items 12, 13, and 14, in a single table.

There is no additional cost to HUD for collection of this information.

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

The burden hours decreased due to an adjustment in the estimation of burden hours.

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.

The information collected by PHAs will not be published or made available to the public.

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-I.

2. Collections of Information Employing Statistical Methods

Not Applicable

Signature of Senior Officer or Designee: X Colette Pollard, Departmental Records Management Officer, Office of Chief Information Officer

Date:

OMB-83-I 10/95