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The proposed guideline might indicate that small services would need to have one staff member spend three months a year simply entering information. Bear in mind, this is information the government already has however does not gather centrally. While I am all in favor of creating tasks, I do not believe forcing small companies to hire workers to provide information a second time is a rewarding use of their dollars or tax dollars, since someone has actually got to pay for this.

Data is not complimentary. Organizations will decide it is better to sell separately of GSA, which will improve the federal government's cost to purchase, or the small companies will drop out of the federal market entirely, reducing competitors. We have actually already lost over 100 little specialists in the past 2 years.

I look forward to hearing from our witnesses today about the impacts of GSA's proposed rule and any alternative they would suggest to enhance how the federal government buys whatever it purchases. Thank you, Mr. Chairman, and good early morning.

The GSA schedules have a variety of advantages for both suppliers and acquiring agencies. Most significantly, it produces an easier system that allows contracting officers direct access to the product or services of numerous firms without the requirement of issuing several solicitations for each requirement. For little services with limited resources, relative inexperience browsing the procurement procedure, landing on a GSA schedule can be an essential very first action towards protecting the federal government as a client.

The rule requires that firms that hold schedule contracts while other government-wide acquisition agreements report transactional data through an electronic system. While it appears that much of this data is currently readily available to the GSA, the brand-new rule increases the frequency of reporting and expands what details firms are needed to supply. GSA Search Engine Ranker.

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With that, I thank the witnesses for testifying today, and I yield back. Chairman HANNA. Thank you.

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What the rule needs is regular monthly reports from a variety of GSA contractors. This consists of both the schedule professionals, in addition to those who hold IDIQ, indefinite delivery, indefinite amount specialists, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these month-to-month reports of all federal sales made throughout the previous month.

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For those professionals who take part in the pilot program, they will be relieved from a problem, what we call the rate decreases provision, which is another compliance stipulation that is in GSA contracts. In the public meeting that GSA held on April 17th, I went to practically. My understanding of that conference is that everyone in the space had issues about the guideline, consisting of GSA's own inspector general.

There is a records that is supposed to be released of that hearing, but I have actually not yet seen that transcript. The proposed guideline raises a range of concerns. There are four which I would like to deal with briefly today. The very first, which I make sure you will speak with all our panel members about, is the expense of implementation and compliance.



I would recommend that for some contractors, it will take 6 hours for them to determine which of their IT systems hold the various data aspects that GSA has actually required for this rule. That does not enable whenever for establishing a report, making sure that the report is precise, and training its workers on how they will submit that report on a month-to-month basis.

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This could not possibly enable whenever for the contractors to in fact examine the reports to guarantee that the information is correct. There is nothing in the proposed guideline that recommends what would happen if the contractors send incorrect information or if they simply eliminate data due to the fact that it is obviously incorrect.

The 2nd bothersome area is the possible expansion of what we call business sales practice requirements. GSA specialists are required to submit industrial sales practices prior to contract award and during agreement performance when particular things happen, like if they go to include products to a contractor's increased rates. The proposed guideline enables GSA to request CSPs at any time (GSA Search Engine Ranker).

This requires specialists to enter into their information systems and look at real discount rates on transactions. I mean, we see news release after press release from the Department of Justice mentioning that specialists have fraudulently provided this details when in reality they simply have not examined. So this is a huge concern.

We understand it is going to cost a lot to collect the info, but what is not clear is what advantage GSA is going to get from the details. And then finally, is the personal and proprietary nature of the info. Transactional data pricing has always been protected by the courts under FOIA, and GSA does not appear to appreciate based upon remarks made at the conference that this is the case.

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GSA recognizes the extra reporting requirement will certainly have an expense for afflicted businesses. SBA's Workplace of Advocacy and GSA's own inspector general kept in mind that quotes in the proposed guideline appear drastically understated.

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Or as I typically hear from company owners, am I going to need to employ somebody for this? While GSA contents its reporting option will be user- friendly, our experience is that federal government data systems are anything.

Typically, however, small services use customized and ingenious services that in combination with competitive rates produce best value in procurement instead of lowest price. While GSA suggests that prices will only be one factor in determining finest worth, it lends significant weight. The words "rate" or "rates" appear 165 times in the policy, while "best worth" only appears seven.

This resembles asking retailers selling on Amazon to report to Amazon what it offered on Amazon. This appears to be an ineffective method to collect information. Finally, and speaking to the motorist behind this regulation, we continue to be worried about a vision of federal government procurement that looks for to categorize personalized services into narrow categories.

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Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Coalition of Government Procurement. We can break now however I believe we do have time to get through.

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