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The proposed guideline might suggest that small companies would need to have one employee spend three months a year simply going into data. Bear in mind, this is data the government currently has however does not gather centrally. While I am all in favor of producing tasks, I do not believe forcing small companies to employ staff members to offer information a second time is a worthwhile use of their dollars or tax dollars, since someone has actually got to spend for this.

Data is not complimentary. Organizations will decide it is better to offer independently of GSA, which will enhance the government's expense to purchase, or the small companies will drop out of the federal market altogether, reducing competition. We have currently lost over 100 small specialists in the past 2 years.

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

The GSA schedules have a number of advantages for both suppliers and acquiring agencies. Most significantly, it creates a simpler system that enables contracting officers direct access to the products and services of numerous companies without the requirement of releasing numerous solicitations for each requirement. For small companies with restricted resources, relative inexperience browsing the procurement process, landing on a GSA schedule can be a crucial first action towards protecting the federal government as a client.

The rule needs that firms that hold schedule agreements while other government-wide acquisition contracts report transactional information through an electronic system. While it appears that much of this information is already available to the GSA, the brand-new rule increases the frequency of reporting and broadens what info firms are required to supply. GSA SER Software.

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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 guideline requires is monthly reports from a variety of GSA professionals. This includes both the schedule contractors, along with those who hold IDIQ, indefinite delivery, indefinite quantity specialists, and what we call GWACs, Government-wide Acquisition Contracts, to prepare these regular monthly reports of all federal sales made during the previous month.

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For those specialists who take part in the pilot program, they will be eased from a problem, what we call the rate decreases stipulation, which is another compliance provision that is in GSA agreements. In the general public meeting that GSA held on April 17th, I attended practically. My perception of that conference is that everyone in the room had concerns about the guideline, including GSA's own inspector general.

The proposed guideline raises a variety of issues (GSA Search Engine Ranker Software). The very first, which I am sure you will hear from all our panel members about, is the cost of execution and compliance.



I would suggest that for some specialists, it will take 6 hours for them to figure out which of their IT systems hold the different data elements that GSA has required for this rule. That does not allow whenever for establishing a report, making sure that the report is precise, and training its workers on how they will send that report on a monthly basis.

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This could not potentially enable at any time for the professionals to really evaluate the reports to make sure that the data is appropriate. There is absolutely nothing in the proposed rule that suggests what would take place if the specialists send inaccurate information or if they just remove information due to the fact that it is certainly incorrect.

The 2nd bothersome area is the prospective growth of what we call business sales practice requirements. GSA professionals are needed to submit industrial sales practices prior to contract award and during agreement performance when specific things happen, like if they go to add products to a contractor's increased prices. The proposed rule permits GSA to request CSPs at any time (GSA SER Services).

This needs specialists to go into their data systems and look at real discounts on transactions. I imply, we see news release after press release from the Department of Justice stating that specialists have actually fraudulently offered this information when in truth they just have actually not examined. This is a big concern.

We understand it is going to cost a lot to gather the details, however what is unclear is what benefit GSA is going to receive from the details. And after that lastly, is the personal and proprietary nature of the information. Transactional information prices has actually always been secured by the courts under FOIA, and GSA does not appear to value based upon remarks made at the conference that this is the case.

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GSA recognizes the extra reporting requirement will unquestionably have an expense for affected companies. SBA's Office of Advocacy and GSA's own inspector general noted that price quotes in the proposed guideline appear dramatically understated.

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Intricacy, on the other hand, steps if a policy change will make offering to the government harder or easier. Essentially, will the federal market be basically difficult to comprehend? Or as I often hear from service owners, am I going to require to work with somebody for this? While GSA contents its reporting option will be user- friendly, our experience is that federal government information systems are anything however - GSA Search Engine Ranker Software.

Frequently, however, small organizations use customized and ingenious solutions that in combination with competitive prices make for best worth in procurement instead of lowest rate. While GSA suggests that pricing will just be one consider identifying best value, it provides substantial weight. The words "rate" or "prices" appear 165 times in the regulation, while "best value" only appears seven.

This is like asking merchants selling on Amazon to report to Amazon what it offered on Amazon. This seems to be an ineffective way to gather information. And speaking to the chauffeur behind this guideline, we continue to be concerned about a vision of federal government procurement that looks for to categorize customized services into narrow classifications (GSA SER).

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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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