Recovery at Commerce Department of Commerce

This document reflects the Department of Commerce’s Supplemental Guidance on the reporting of job creation/retention pursuant to Section 1512 of the American Recovery and Reinvestment Act (ARRA).The following DOC operating units are affected by this guidance: 

• Economic Development Administration (EDA),
• National Institute of Standard and Technology (NIST),
• National Oceanic and Atmospheric Administration (NOAA), and
• National Telecommunications and Information Administration (NTIA).

DOC is asking recipients to report on the numbers of jobs created and/or retained using the full-time equivalent (FTE) methodology described by the Office of Management and Budget (OMB) in Section 5.3 of “Implementing Guidance for the Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Act of 2009” (M-09-21).  For grants to the University community, the DOC accepts the percentage of time worked methodology outlined by OMB (M-09-21, Section 5.3).  These methodologies reflect reasonable and consistent approaches to collection of employment data and have been highlighted in the OMB webinars to members of the Federal and Recipient community.

DOC anticipates that the vast majority of recipients will be able to comply with the FTE methodology.  However, there may be circumstances when a recipient can demonstrate an unreasonable burden would result from using a direct and comprehensive job count.  In such instances, the recipient will be responsible for developing a statistical method for obtaining the required FTE information, based on a representative sample of sub-recipients, and articulating how this method is preferable to implementing a comprehensive job count.

Examples of instances where a statistical method may be a satisfactory alternative may include the following circumstances:

• A recipient may be responsible for administering a substantial amount (e.g., tens of millions of dollars) of Recovery Act funds that are distributed to a multitude of projects (e.g., hundreds), each having a large number of distinct sub-recipients and vendors.  In such instances, the number of sub-recipients and vendors receiving Recovery Act funds may be sufficient in number to support an effort that identifies a representative sample and to use statistical methods that yields valid and robust information on the number of jobs created and jobs retained.

• A recipient may be funding a set of projects where the operating characteristics and nature of the work performed by sub-recipients are equivalent for these projects, so that having detailed job information on a sample might yield reliable statistics to use in developing estimates for the remainder of the population.  An example might be a situation where all of a prime recipient’s contracted sub-recipients working on projects funded by the Recovery Act employ the same type of experienced workforce; are required to perform the same tasks; face the same prices and market conditions; and utilize the same amount of labor in their production practices.

• A recipient may have a pre-existing validated statistical method it has recently used to generate information on direct job effects attributable to the receipt of federal government funds for the same type of projects designated to receive Recovery Act funds.  In this instance, the recipient may consider seeking permission to transfer this direct job estimation method to quantify the direct job effects associated with projects supported by the Recovery Act funds.

Recipients will be required to obtain approval from DOC on the use of a statistical methodology, as well as the specific methodology the recipient is proposing.  In addition, DOC will have to obtain concurrence from OMB prior to preparing a response to the recipient’s request.

Change in Methodology Request Information

If a Prime Recipient requires the use of an alternative methodology for collection job creation/retention data rather than directly collecting specific data from all sub-recipients and vendors, it must submit a written proposal to the funding Bureau containing the following information:

1. A justification as to why an alternate methodology is needed.  This must address the reasons why the direct collection of information from all sub-recipients and vendors is overly costly or burdensome for the Prime Recipient.
   
   
2. A technical description of the proposed methodology.  This should include sufficient detail and supporting documentation of the sample design and estimation procedures so that the validity of the methodology can be assessed.
   
   
3. A statement of the qualifications of the persons who will be carrying out the statistical methodology.
   
   
4. A statement on the length of time the Prime Recipient anticipates making use of the statistical method (e.g., the first effective Section 1512 recipient reporting period; or for an extended period of time, such as the duration of the period during which the project receives Recovery Act funds); and
   
   
5. Point of contact information including telephone and e-mail information for transmitting DOC and OMB response, and any follow-up questions arising during the review of the request.

Recipients seeking to use statistical methods are advised to make use of information contained in OMB’s Guidance on Agency Survey and Statistical Information Collections and Standards and Guidelines for Statistical Surveys. These documents describe professional principles and practices that Federal agencies are required to adhere to and the level of quality and effort expected in all statistical activities, and as such, can serve as a useful guide to recipients of Recovery Act funds.

Process for Change in Methodology Request

The DOC operating unit from which the Prime Recipient received Recovery Act funds will manage the process to accept and review applications from recipients. When the operating unit is satisfied with the methodology, it will transmit the proposal to DOC.  DOC and OMB will approve or decline the request within 20 days from receipt of the request.  All requests must be submitted no later than September 10, 2009.  This will allow DOC and OMB to reach a decision in time for the recipient to either implement the statistical methodology (if request is approved) or pursue a direct and comprehensive approach for gathering job information from sub-recipients and vendors (if request is declined).The reporting deadline for Section 1512 will remain October 10, 2009.