III. Current Action

Office of Management and Budget clearance is being sought for the Producer Price Index Survey.

A description of recent and projected improvements meant to improve data completeness, increase efficiency, and reduce overall respondent burden to the maximum degree possible follows.

A. DisaggregationRecent modifications made to disaggregation (i.e., item selection procedures) help to better define a publication structure that is: (1) Publishable in its entirety, (2) meets user needs, (3) continuous, and (4) permits meaningful classification of current production. In order to obtain and maintain publishability of an entire structure, data are now collected using a method where price quotation selection is spread across predetermined product categories that correspond to the publication cells for a Standard Industrial Classification (SIC). The design of the revised disaggregation method nearly guarantees that the PPI will collect enough price quotations to populate more lightly weighted cells. More heavily weighted (and populated) cells will receive slightly fewer price quotations than would have been selected under the previous method. As a result, indexes constituting the PPI's publication objectives are much more likely to remain published over time. (For a complete description, see ``Change in PPI Publication Structures for Resampled Industries Introduced in January 1997,'' PPI Detailed Report, January 1997.)

B. SamplingRecent modifications made to sampling procedures permit the PPI to update weights of industry indexes without initiating a new set of respondents. This process change is called ``recycling without resampling.'' The PPI has also made it operationally feasible to augment the sample of price quotations for a single product line within an SIC, rather than having to initiate an entirely new set of respondents when such needs arise. These capabilities are major breakthroughs, since they enable the PPI program to reduce both data collection expenses and respondent burden, while permitting efficient reallocation of program resources. Volatile, technologically sophisticated, and neverbeforesampled SICs may now be updated or introduced into the PPI in a timelier manner.

C. PublicationThe PPI mission includes a mandate requiring the program work toward publication, wherever possible, of output price indexes for every fourdigit industry defined by the SIC Manual. Historically, the PPI had been a family of indexes focusing on the mining, manufacturing, agriculture, and forestry sectors. This publication mandate has resulted in expansion of coverage into non goods producing sectors of the economy. PPI sampling and data collection methodology have permitted systematic retrieval of specific serviceindustry classifications, and have resulted in the publication of various fourdigit SIC aggregate indexes, as well as serviceline and detailed servicecategory price indexes. The PPI currently publishes about seventyfive industrybased indexes for servicesector activities. Over the preceding decade, the PPI has introduced indexes encompassing transportation, real estate, health, legal, accounting, and many other servicebased industries. Industry expansion continues on a regular basis, as funding permits. Since 1999, the PPI has introduced price indexes for SIC 6311 (Life insurance carriers), SIC 54 (Food stores), SIC 59 (Retail trade), and SIC 6211 (Security brokers, dealers, and investment banking companies).

D. NAICS ClassificationAt present, sampling and data collection are conducted according to the SIC Manual system of organization. However, the PPI survey has begun to make modifications that will permit smooth conversion to the North American Industrial

Classification System (NAICS).

E. Electronic Data CollectionThe vast majority of data collected by the BLS is confidential respondent information. The BLS is currently developing electronic data collection procedures that will reduce respondent burden and increase efficiency. However, procedures must exist to safeguard respondent information. Transmission of data by e mail presents at least two types of security risks: The data could be intercepted and/or altered by unauthorized persons; and the data are subject to inadvertent disclosure by the use of incorrect group names and accidental forwarding. Complete elimination of email for data collection purposes likely would decrease response and is not a feasible option. The BLS is pursuing technological solutions to increase the security of email transmission. In the interim, however, shortterm restrictions in email use are needed to reduce the risks of disclosing confidential data. Effective November 16, 2001, the BLS authorized the use of email for collection of confidential data through a pilot test conducted by the BLS National Compensation Survey. Policies regarding: (1) Communication of confidential respondent information within the BLS, (2) BLS contacts with government agencies participating in BLS statistical surveys, and, (3) BLS contacts with respondents were also updated. These revised policies permit limited use of email in communications pertaining to confidential respondent information outside the BLS pilot study being conducted by National Compensation Survey. Email
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communication between the BLS and respondents containing confidential data can now occur if the following conditions are met: (1) It is necessary, as a last resort, to obtain a usable response, and the transmission contains the fewest data elements necessary. (2) Purely logistical information, although it could tend to disclose an individual respondent's identification, may be exchanged with individual respondents (or potential respondents) using regular Internet email if doing so promotes the efficiency of survey collection and is acceptable to the respondent. (3) Email must only be used as a data collection mechanism if it is necessary to obtain cooperation from the respondent. (4) No group names are to be used when addressing an email message containing confidential data. Whenever confidential communications occur, the BLS email must include the ``BLS Statement to Respondent in the Use of Electronic Data transmission,'' which states the inherent risks to information confidentiality.

Type of Review: Extension of a currently approved collection.

Agency: Bureau of Labor Statistics.

Title: Producer Price Index Survey.

OMB Number: 12200008.

Affected Public: Business and other forprofit.
Average Estimated Total Total time per total Form respondents Frequency responses response burden (minutes) (hours) BLS 1810A, A1, B, C, C1, and E........ 1,585 Once................... 6,340 120 12,680 BLS 473P.............................. 26,250 Monthly................ 1,260,000 18 378,000

Totals............................ 27,835 ....................... 1,266,340 ......... 390,680

Estimated Total Burden Hours: 390,680 hours.

Total Burden Cost (capital/startup): $0.

Total Burden Cost (operating/maintenance): $0.

Comments submitted in response to this notice will be summarized and/or included in the request for Office of Management and Budget approval of the information collection request; they also will become a matter of public record.

Signed at Washington, DC, this 7th day of December, 2001. Jesus Salinas,
Acting Chief, Division of Management Systems, Bureau of Labor Statistics.
[FR Doc. 0130892 Filed 121301; 8:45 am] BILLING CODE 451024P

FOR FURTHER INFORMATION CONTACT

Amy A. Hobby, BLS Clearance Officer, telephone number 2026917628. (See Addresses section.)