Supporting Statement_8.24.22

Department of Transportation

SUPPORTING STATEMENT

REQUEST FOR TRANSFER OF OWNERSHIP, REGISTRY, AND FLAG, OR CHARTER, LEASE, OR MORTGAGE OF U.S. CITIZEN OWNED DOCUMENTED VESSELS

General Instructions

A Supporting Statement, including a copy of the published notices to the public required by 5 CFR 1320.5(a)(1)(iv) and its actual date of publication in the Federal Register, must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below and must contain the information specified. If an item is not applicable, provide a brief explanation. OMB reserves the right to require the submission of additional information with respect to any request for approval.

INTRODUCTION

This is to request the Office of Management and Budget’s (OMB) three-year approval clearance for the information collection entitled, Request for Transfer of Ownership, Registry, and Flag, or Charter, Lease, or Mortgage of U.S. Citizen Owned Documented Vessels (OMB Control No. 2133-0006, which is currently due to expire on August 31, 2022. MARAD is requesting renewal of this collection without change. There were no program changes or adjustments reported in items 13 or 14 of OMB Form 83-I.

A. JUSTIFICATION

1. Circumstances that make collection of information necessary.

Pursuant to 46 U.S.C. 56101 and 56103, the Maritime Administration (MARAD) is required to approve the sale, transfer, charter, lease, or mortgage of U.S. documented vessels to non-citizens; the transfer of such vessels to foreign registry and flag; or the transfer of foreign flag vessels by their owners as required by various contractual requirements.

This information collection is in support of the Department of Transportation's strategic goal for National Security by retaining vessels under U.S. documentation, ownership or control for purposes of national defense, maintenance of an adequate merchant marine, foreign policy considerations or national interests.

2. How, by whom, and for what purpose is the information used.

The information is used by MARAD when there is a prospective foreign transfer of a U.S.-flag vessel. The information collected assists in determining whether the vessel proposed for transfer will be subject to retention under the U.S.-flag statutory regulations.

When the Office of Sealift Support receives applications, they are reviewed by various MARAD specialists ensuring all required information with the required documentation, are adequate, and the applicants have met all approval criteria. MARAD then coordinates with the U.S. Department of Defense, and the U.S. Transportation Command, to obtain the required clearances before approval is granted.

3. Extent of automated information collection.

Consideration has been given to using improved information technology to reduce public burden by allowing the submission of applications electronically, utilizing electronic signatures. Applicants may submit applications via email and facsimile.

4. Efforts to identify duplication.

We have been unable to identify duplication of this collection. Search of the Catalog of Federal Domestic Assistance has not shown any similar maritime programs or information needs.

5. Efforts to minimize the burden on small businesses.

The application format has been developed in such a manner as to minimize the burden on small businesses and individuals.

6. Impact of less frequent collection of information.

MARAD requires the collection only when a vessel owner submits an application for a prospective foreign transfer of a U.S.-flag vessel. Without this data collection, MARAD would be unable to make a determination as to whether the vessel is needed for continued operation under U.S.-flag and would not be able to monitor the status of the U.S. Merchant Marine nor submit annual reports to Congress.

7. Special circumstances.

There are no special circumstances that require the collection of information to be conducted in a manner described above.

8. Compliance with 5 CFR 1320.8:

MARAD published a 60-day notice and request for comments on this information collection in the Federal Register on May 12, 2022 (87 FR 21294), indicating comments should be submitted on or before July 11, 2022. In addition, a 30-day notice and request for comments was published in the Federal Register (87 FR 43933) on July 22, 2022 indicating comments should be submitted on or before August 22, 2022.

9. Payments or gifts to respondents.

This item is not applicable since MARAD does not make payments or gifts of any kind to any respondent.

10. Assurance of confidentiality.

The information requested is not of a confidential nature and no assurance of confidentiality need be given.

11. Justification for collection of sensitive information.

No information of a sensitive nature is required.

12. Estimate of burden hours for information requested.

As required by 46 U.S.C. 56101 and 56103, MARAD has authority to approve the sale, charter, lease, etc., of U.S.-flag vessels to non-citizens, and for the transfer of said vessels to foreign registry and flag. The applications must be filed by the registered owner if the vessel is being transferred to foreign registry or if being sold for scrapping in a foreign country. Rarely is more than one application received more than once a year from the same applicant. When this does occur, it is generally in the form of multiple applications, such as the foreign transfer of four or five barges to the same purchaser. In such instances, the processing fee is adjusted to more accurately reflect the time it takes to process the applications.

It takes each applicant approximately 2 hours to complete and forward their application to MARAD for approval. It takes approximately 85 applicants a total of 170 hours response time. Therefore, it is estimated that the total annual burden hours are as follows:

Form MA-29, Request for Transfer of Ownership, Registry, and Flag, or Charter of U.S. Documented Vessels
Number of Respondents	Responses Per Respondent	Total Responses Annually	Hours Per Response	Total Hours
80	1	80	2	160
MA-29A, Request for Transfer of Ownership, Registry, and Flag, or Charter of U.S. Citizen-owned Undocumented or Foreign Flagged Vessels
Number of Respondents	Responses Per Respondent	Total Responses Annually	Hours Per Response	Total Hours
0	1	0	2	0
MA-29B, Request for Transfer of Ownership, Registry, and Flag, or Charter of Foreign Flag Vessel Under Maritime Administration Contract with Foreign Owner
Number of Respondents	Responses Per Respondent	Total Responses Annually	Hours Per Response	Total Hours
5	1	5	2	10
		Annual Burden Hours Cost	Hourly Cost for Administrative Assistant
		170	$32.15	$5,465.50
		Annual Burden Cost	Benefit Multiplier	Total Cost
		$5,465.50	1.4	$7,651.70

The $32.15 was taken from the BLS May 2021 Occupational Employment and Wages for a 43-6011, Executive Secretaries and Executive Assistant (Mean Hourly Wage)

13. Estimate of total annual costs to respondents.

The estimated annual cost burden to the 85 respondents who submit one response each requiring two hours per response is as follows:

1. Total Capital and Start-Up Costs Estimate: There are no capital or start-up costs associated with this informa­tion collection.
   
   

2. Total Operation and Maintenance and Purchase of Services Estimate: None

14. Provide Estimate of cost to the Federal government.

The total annual cost to the Federal Government for processing the collection is estimated as follows:

One-time Costs: None

Annual Costs: $68,310.76

It is estimated that specialists within the Office of Sealift Support spends a total of seven hours performing the following tasks:

• Reviewing applications and notifying program offices

• Recording, preparing clearance forms and internal action memoranda

• Updating records, notifying applicant

• Transmitting Contracts/Orders

It is estimated that one MARAD program specialist, from the Office of Sealift Support and one attorney (GS-14) from the Office of Chief Counsel will review the applications for clearance and authorization of transfer totaling 10 hours.

It is estimated that one program official (Program Manager, GS-14 step 4) from the Department of Defense, U.S. TRANSCOM, spends a total of two hours conducting a final review and clearance of applications at an hourly rate of $66.53.

Total Annual Cost to Federal Government: $68,310.76

Annual Cost
Number of Employees	Hourly	Project Time	Cost Per Application
1 MA GS-12/6	$50.22	3	$150.66
1 MA GS-14/7	$72.58	4	$290.32
1 DOD GS-14/4	$66.53	2	$133.06
	Cost Per Application	Benefit Multiplier	Total
	$574.04	1.4	$803.66
	Total Cost Per Application	Number of Annual Responses	Cost Total
	$803.66	85	$68,311

*Hourly rates for GS employees were verified by using the Office of Personnel Management (OPM) Salary table (incorporating a locality payment of 31.53% for the locality area of Washington-Baltimore-Northern Virginia, DC-MD-VA-WV-PA).

15. Explain the Explanation of program changes or adjustments.

There were no program changes or adjustments reported in items 13 or 14 of OMB Form 83-I.

16. Publication of results of data collection.

There are no plans to publish the results of the information collection for statistical purposes.

17. Approval for not displaying the expiration date of OMB approval.

MARAD is not seeking such an approval.

18. Exceptions to certification statement.

There are no exceptions to the certification statement.

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