Indirect Cost Rate Proposals, Payments to Small Business Subcontractors, and Bankruptcy Notifications - FAR Sections Affected: 52.216-7, 52.216-15, 52.242-4, 52.242-5 and 52.242-13

Forms and Documents

Document Name	Status
9000-0069 PRA Supporting Statement Part A 6.3.25.docx Supporting Statement A	2025-06-16

IC Document Collections

IC ID	Document Title	Status
44230	Indirect Costs -- FAR 52.216-7, 52.216-15, and 52.242-4	Modified
254071	Payments to Small Business Subcontractors -- FAR 52.242-5	Modified
237335	Bankruptcy--52.242-13	Modified

ICR Details

OMB Control No: 9000-0069	ICR Reference No: 202506-9000-003
Status: Received in OIRA	Previous ICR Reference No: 202206-9000-001
Agency/Subagency: FAR	Agency Tracking No:
Title: Indirect Cost Rate Proposals, Payments to Small Business Subcontractors, and Bankruptcy Notifications - FAR Sections Affected: 52.216-7, 52.216-15, 52.242-4, 52.242-5 and 52.242-13
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 06/16/2025

	Requested	Previously Approved
Expiration Date	36 Months From Approved	07/31/2025
Responses	6,265	6,265
Time Burden (Hours)	1,504,083	1,504,083
Cost Burden (Dollars)	112,791,583	93,240,677

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Abstract: This clearance covers the information that contractors must submit to comply with the following FAR requirements: a. FAR 52.216-7, Allowable Cost and Payment. This clause requires the contractor to submit an adequate final indirect cost rate proposal to the contracting officer and the auditor within the 6-month period following the expiration of each of its fiscal years. The proposed rates shall be based on the contractor’s actual cost experience for that period. Paragraphs (d)(2)(iii) and (iv) of this clause provide a list of the data required to be submitted. The data is customary business financial information that the contractor can access from its automated business systems. b. FAR 52.216-15, Predetermined Indirect Cost Rates. This clause repeats the requirement in the clause at FAR 52.216-7, paragraph (d), for the contractor to submit an adequate final indirect cost rate proposal, however it does not impose any additional reporting requirements. c. FAR 52.242-4, Certification of Final Indirect Costs. This clause requires the contractor’s final indirect cost rate proposal to be certified to establish or modify the rates used to reimburse the contractor for the costs of performing under the contract. The supporting cost data are the cost accounting information normally prepared by organizations under sound management and accounting practices. This clause is incorporated into all solicitations and contracts that provide for establishment of final indirect cost rates, but the Department of Energy may provide an alternate clause for its Management and Operating contracts. d. FAR 52.242-5, Payments to Small Business Subcontractors. This clause requires the prime contractor to self-report to the contracting officer when the prime contractor makes late or reduced payments to small business subcontractors. The notice shall include the reason(s) for making the reduced or untimely payment. e. FAR 52.242-13, Bankruptcy. This clause requires contractors to notify the contracting officer within five days after initiating the proceedings relating to bankruptcy filing.

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 14447	04/02/2025
30-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 25271	06/16/2025
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Bankruptcy--52.242-13
Indirect Costs -- FAR 52.216-7, 52.216-15, and 52.242-4
Payments to Small Business Subcontractors -- FAR 52.242-5

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	6,265	6,265	0	0	0	0
Annual Time Burden (Hours)	1,504,083	1,504,083	0	0	0	0
Annual Cost Burden (Dollars)	112,791,583	93,240,677	0	19,550,906	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

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Annual Cost to Federal Government: $15,301,363

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 06/16/2025

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