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Published Aug 20, 21
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I hope the GSA will either desert this technique and start over or seriously remodel the rule prior to it becomes last. This is a problem the Subcommittee will be keeping track of and will continue to monitor, and we anticipate having another chance to fulfill with you if that is very important.

Without objection, so ordered. This hearing is now adjourned. And thank you once again. [Whereupon, at 11:33 a. m., the Subcommittee was adjourned.] A P P E N D I X [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] 1. Introduction Mr. Chairman and Members of the Committee, my name is Sheila Armstrong.

The Proposed Guideline does not apply to VA --------------------------------------------------------------------------- FSS contracts in the pilot program. The issues with the Proposed Guideline are many. The four that I am going to discuss today are especially relevant to small companies. GSA grossly underestimates both execution expenses and compliance costs of transactional information reporting.

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Third, it does not appear that GSA is particular how it will use the abundant quantity of data that it looks for to collect under the Proposed Guideline, but the potential for down rates pressure that likely will arise from transactional information reporting may have an out of proportion impact on little companies who seldom win a "race to the bottom" on pricing.

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This data likewise is secured from disclosure under the Trade Secrets Act. Select Congress Relating To the Proposed Transactional Data Guideline A. Approximated Implementation and Reporting Expenses of the Transactional Data Rule GSA approximates that the public reporting burden for its contractors to initially set up systems for transactional data reporting at 6 hours. 3 GSA estimates that the month-to-month problem thereafter will balance 4 around 0.

e - GSA SER Software. sales) and presumes monthly reporting concern rises with vendor sales based upon the distribution of sales and obligations within FSS contracts and non-FSS agreements." 6 What GSA enables no time for is system enhancements that might be required needs to GSA elect to alter the fields of information to be reported as it would deserve to do upon 60 days notification under the Proposed Guideline. 7 In addition, these price quotes of 6 hours for preliminary set-up and 31 minutes per month for ongoing reporting are grossly undervalued.

Reg. 11625. 3 Id. 4 GSA approximates a series of 2 minutes (for contractors with $0 in sales) and four hours (for professionals with greater than $50 million in sales). See id. 5 Id. 6 Id. 7 Id. at 11628. 1. Initial Set-Up Likely Will Far Exceed Six --------------------------------------------------------------------------- Hours GSA estimates that its specialists will spend around six hours to establish its systems to generate the month-to-month report required by the Transactional Data Guideline. 8 This six-hour estimate includes the time that GSA estimates will be required for examining guidelines, browsing existing databases and other sources of details, and gathering and reviewing the collected information. 9 This price quote also includes the effort that GSA anticipates contractors will be needed to make to institute changes to professional training, compliance systems, negotiations, and audit preparation-- and presumably includes the time and expenditure required to customize information- event, reporting, and information-technology (IT) systems to accurately and effectively report the information required by the Proposed Rule. 10 GSA's own Inspector General's office acknowledges that contractors likely will spend far more than six hours to establish business systems for transactional data reporting. 11 As the GSA Workplace of Inspector General notes in its remarks to the Proposed Guideline: --------------------------------------------------------------------------- 8 Id.

Given this, we question whether GSA's estimate of 6 hours per specialist to configure their --------------------------------------------------------------------------- systems for reporting is accurate - GSA SER Services. 12 12 Id. This six hour quote need to assume that all information fields reside in the very same IT system and that the report can be established by one individual without assessment with others inside or outside the company.

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In a lot of cases, the systems that house the various fields GSA is asking for in its month-to-month report are not set as much as interact with one another. Appropriately, some professionals will require to manually compile the information needed for transactional information reporting, or may require to upgrade their IT systems in --------------------------------------------------------------------------- order to comply (GSA SER Software).

For some contractors, especially small companies, setting up systems to capture and report transactional information might include consultation with specialists outside the company at per hour rates therefore increasing the costs to the contractor. These approximated costs are not factored into GSA's six hour price quote for set up. 13 --------------------------------------------------------------------------- 13 As kept in mind in the ABA's Remarks to the Transactional Data Guideline: The Area recommends that the hours needed will in fact be much greater.

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Lots of specialists might need considerable changes or upgrades to company systems in order to provide the data sought by GSA in a type that will enable for significant and accurate prices comparison as meant. The fields required by GSA for transactional-data reporting may not reside in the same IT system; couple of accounting systems include both maker part number and contractor part number in the exact same system when those part numbers vary.

g., materials management) to fulfill the requirements of the Proposed Rule. These and other needed changes would require coordination among functions such as the contractors' IT departments and alter management teams in addition to responsible executives. The time required just to look for, extract, evaluation, and test such information, and carry out system adjustments, will well surpass 6 hours.

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Additionally, the estimated 31 minutes per month does not include any time permitted for continuous maintenance of data, consisting of but not restricted to changes by GSA to the information fields needed as allowed by the Proposed Guideline. 14 Offered the unidentified ramifications on a contractor should it offer data to GSA that is inaccurate or incomplete, specialists will need to review the transactional information prior to submission which might take hours depending upon the size of the contract.

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--------------------------------------------------------------------------- 14 80 Fed. Reg. 11628. B. GSA's Proposed Expansion of Industrial Sales --------------------------------------------------------------------------- Practice Disclosure Requirements is Unduly Burdensome All GSA contractors must prepare and send CSPs prior to award and at particular essential times during efficiency of a GSA agreement. For instance, when a specialist looks for to increase prices or include items to the contract GSA requires either new CSPs, or a declaration from the contractor that the CSPs have not changed considering that the time they were last submitted.

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Due to the prospective financial risks developed by unreliable CSP disclosures, specialists should invest considerable time evaluating sales data and preparing current, precise and total CSPs when they are required to do so (GSA SER). Even a statement that the CSPs have not altered needs comprehensive evaluation of transactional sales data to validate that this statement is correct at the time that it is made.