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GSA is looking for info on federal orders. That info is within the federal government. I think GSA requires to look at its own systems and develop a method that they can make use of the info currently in their ownership (GSA SER Software).

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Mr. Stanford, some have argued that the GSA will utilize this new info to make companies-- force them to lower their prices if they feel the vendor is no longer using a competitive cost. Small business margins, as many of you pointed out, are extremely low and they, at times, can not manage bulk discount rates like the big business.

Either the little company would leave the federal market if they might no longer bear the little margins to make sure they were rewarding. Or, as in the case for some small companies that rely 80-90 percent of earnings in the federal market, they would go out of organization.

And my last concern, and I think numerous of you mentioned this, has to do with the failure of GSA to really figure this thing out themselves due to their old-fashioned computer system. I simply wanted to dig a little much deeper, and perhaps, Mr. Horan, you can spend some time talking about that remark you made in your testimony about it would be just easier for them to upgrade their system so that they can track and keep an eye on the info that they are asking for on their side, rather than leave it to the problem of the little businesses.

I am not certain it will be simpler, however it will be definitely-- they would have to face some of the very same intricacies that they are prepared to enforce on professionals. The point I was trying to make is that GSA, most likely anticipating the criticism that they are imposing this responsibility on specialists, took a look at their system and showed in the role itself the preference to the rule changes that their systems would need modifications due to the fact that all this data is not contained in a single area and they would have to undergo the effort.

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They were unwilling to take that cost in spite of the data being similarly available to GSA as the professionals, and are prepared to enforce that on specialists. GSA having access to this info though might easily develop a database or modify databases to do exactly what they wish to do.

They are simply reluctant to incur that expenditure. Mr. TAKAI. Any person have any more remarks regarding this specific question? Mr. WALDRON. Yes. I do not know if it is the paradox of the scenario or not, is that GSA is going to need to spend cash to develop systems in any event.

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So why do they not have a look internally and see what is most efficient for them, for the federal government to try to find out to manage its own data. Because they are going to need to develop systems. We are talking, when you discuss regular monthly reporting throughout the GSA Schedules program, you are broaching hundreds of thousands of transactions, millions and countless data elements to be reported, accessed, collected.



Simply a couple other points. With regard to the access, the concern was terrific about, you understand, with recent occasions, security of the secret information, you know, there is even another area, and GSA did not-- I believe the general public conference that was hung on the rule, they gained a gratitude of the level of concern throughout market with regard to this issue, and even in that context they have contractors supporting their effort.

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And lastly, just a believed on the question about whether people would need to leave, you know, if they are informed lower your price, we get reports frequently of business being asked to either lower their cost or remove the item from the contract. And the GSA management is taking the position that that is not, and they have, to their credit, have stated that is not the goal here from their viewpoint, but at the working level and the functional level, contracting officers nearly daily are asking business to either lower their rate due to the fact that they found a lower price on a horizontal contrast.

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Do you mean to state-- is that not in an unusual way collusion, understanding someone else's price and calling somebody else and stating-- another bidder for the exact same item and saying, "You are too high, lower your cost"? I believe it is not great procurement policy due to the fact that in this issue, you get into the relative terms and conditions, and is someone an authorized reseller; are they not a licensed reseller? These are things-- due thorough things that GSA requires to be looking at.

And it seems like GSA is focusing a lot on the contract level price at this level. When the rate is paid is at the task order level, which is the level listed below competitors under the agreements. And the focus is more on this instead of let us get the very best, you know, a great price and a finest value service at the task order level.

How do you improve, streamline, and embrace competitors at the job order level so that the American individuals, customer companies get finest worth products and options-- commercial best products and options. Chairman HANNA. They are asking for something that they are not prepared to take from a group of contractors who will incur enormous expense and eventually GSA would also sustain a massive cost to accept this, and yet currently confesses it does not have the capacity actually to use it.

Our members oppose this guideline. We believe GSA ought to begin over from scratch and look internally. GSA conducting its own internal pilot of collecting its own info or other information of other agencies and seeing how-- first of all, what data elements are actually essential?

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And to the extent they are using it to compare to contract prices, as I stated earlier in the testament and we make clear in our composed testimony, that is apples and, I do not know, watermelons. It is such a complete difference in regards to the terms and conditions. GSA SER Services.

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