DFC-002 - Supporting Statement

DFC-002
OMB-3015-[XXX]
Request for Registration for Political Risk Insurance
SUPPORTING STATEMENT FOR APPROVAL
A.

Justification

1.

Legal authority for this information collection is found in the Better Utilization of
Investments Leading to Development Act of 2018 (the “BUILD ACT”), Public Law 115254. Investors are required to register their intention to apply for political risk insurance
prior to making an irrevocable investment. DFC-002 serves as proof of this intention and
investments made prior to the submission of DFC-002 may be ineligible for DFC political
risk insurance coverage from the United States International Development Corporation
(“DFC”).

2.

The Registration for Political Risk Insurance will be used by the agency to screen investors
and projects for political risk insurance. Investors will be asked to register their intention to
apply for insurance prior to making an irrevocable investment. DFC–002 will serve as
proof of this intention and any investments made prior to the submission of a DFC–002
may be ineligible for political risk from the agency.

3.

This form is completed with the use of a web-based application. This provides a secure
and efficient means for applicants to transmit the required information to the agency.

4.

The information collection is not duplicated elsewhere. The information is not already
available in any other electronic form and would not be requested by another federal
agency since it is applicable solely to DFC’s insurance program.

5.

The burden of collecting information does not vary with the size of the business requesting
registration for DFC political risk insurance. DFC officers make a special effort, either in
person or by telephone, to assist small businesses in completing the DFC-002.

6.

DFC-002 will enable DFC to make that determination at an early stage, before DFC and
the applicant have invested significant time in pursuing coverage that the applicant may be
unqualified to receive. This information will also enable DFC to compare the level of
interest and development of an applicant at the registration stage against the application
stage. This information also enables the DFC to compare the level of interest and
development of a project at the registration stage (DFC-002) against the application stage
(DFC-003). This information allows the DFC to collect information to evaluate the
effectiveness of the political risk insurance products in meeting the DFC’s mission, and to
adjust its programs as necessary. The DFC would not be able to fulfill its mandate to
evaluate projects if this information were not collected.

1

7.

No special circumstances exist that require the information collection to be conducted in a
manner inconsistent with the guidelines of the Paperwork Reduction Act and OMB’s
implementing regulations.

8.

The first Federal Register Notice was published on March 22, 2019 (84 FR 10843). The
agency did not receive any public comments in response to this notice. The second Federal
Register Notice was published on June 21, 2019 in 84 FR 29249. OPIC reached out to a
limited number of previous applicants to receive feedback.

9.

No payments or gifts are offered to respondents.

10.

When trade secrets or confidential commercial or financial information are submitted to the
agency in this collection, they will be held in confidence to the extent permitted by
applicable law including the Freedom of Information Act (“FOIA”) at 5 U.S.C. section
552(b)(4) and the agency’s implementing regulations at 22 C.F.R. Part 706. Personal
information belonging to an individual will not be released under the FOIA unless the
information is already public or if the public interest is greater than the private interest
under 5 U.S.C. section 552(b)(6).

11.

Not applicable. None of the questions on this form are sensitive in nature.

12.

The estimated hourly burden of collecting this information from respondents is as follows:
175
respondents
x1
per respondent
=175
total annual responses
x 0.50
average time for applicant to complete one response (1/2 hour per
response)
=87.5
total respondent hours
x $75.00
per hour for personnel, record keeping, overhead
$6,562.5
total costs to respondents
Respondents only complete the form once per request for insurance.

13.

The estimated annualized cost to respondents is as follows:
a. Total capital and startup costs: $0
b. Total operation and maintenance costs: $0

All costs associated with the form are part of normal cost of doing business. Since all
submissions will be electronic and stored on the DFC’s secure servers, there will be no postage
costs.
14.

The estimated annualized cost to the Federal Government is as follows:
175
x1
175

respondents per year
per respondent
total annual responses

2

x 0.50
87.5
x $56.15
$4,913.13

average hours to review one response
total federal hours
GS-14/1 (DCB) hourly wage
total cost to Federal government

15.

This is a new information collection.

16.

Not applicable. Information provided in the application is not published.

17.

Not applicable. The OMB expiration date will be printed on each form.

18.

Not applicable. No exceptions are being requested on the certification statement.

3