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Published Sep 24, 21
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The proposed guideline could indicate that small services would require to have one employee spend three months a year simply getting in information. Remember, this is information the government currently has however does not collect centrally. While I am all in favor of creating jobs, I do not think requiring small companies to employ workers to supply information a 2nd time is a rewarding use of their dollars or tax dollars, since someone has got to pay for this.

Information is not free. Services will choose it is much better to sell separately of GSA, which will improve the federal government's cost to buy, or the small companies will leave of the federal market altogether, decreasing competition. In reality, we have already lost over 100 little contractors in the previous 2 years.

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

The GSA schedules have a variety of advantages for both vendors and acquiring companies. Most significantly, it produces an easier system that permits contracting officers direct access to the products and services of numerous firms without the need of releasing numerous solicitations for every requirement. For small companies with restricted resources, relative lack of experience browsing the procurement procedure, landing on a GSA schedule can be an essential initial step towards securing the federal government as a customer.

The guideline requires that firms that hold schedule contracts while other government-wide acquisition contracts report transactional data through an electronic system. While it appears that much of this data is currently available to the GSA, the brand-new rule increases the frequency of reporting and broadens what information companies are needed to offer. GSA SER Software.

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With that, I thank the witnesses for affirming today, and I yield back. Chairman HANNA. Thank you. If Committee members have an opening declaration, I ask that they be submitted for the record. And as you understand, you have five minutes. We wish to hear what you say, so we will be a little bit-- I will be a bit flexible on that, or try to be.

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What the rule requires is monthly reports from a variety of GSA professionals. This consists of both the schedule contractors, as well as those who hold IDIQ, indefinite shipment, indefinite quantity contractors, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these monthly reports of all federal sales made during the prior month.

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For those specialists who participate in the pilot program, they will be relieved from a burden, what we call the cost reductions clause, which is another compliance stipulation that is in GSA contracts. In the general public conference that GSA held on April 17th, I went to essentially. My perception of that meeting is that everybody in the space had issues about the rule, consisting of GSA's own inspector general.

The proposed guideline raises a variety of concerns (GSA SER Services). The very first, which I am sure you will hear from all our panel members about, is the expense of application and compliance.

I would recommend that for some contractors, it will take 6 hours for them to find out which of their IT systems hold the various data components that GSA has actually required for this guideline. That does not allow at any time for developing a report, ensuring that the report is accurate, and training its personnel on how they will send that report on a regular monthly basis.

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This could not possibly permit any time for the specialists to in fact evaluate the reports to ensure that the data is proper. There is nothing in the proposed guideline that suggests what would take place if the professionals send inaccurate data or if they simply remove data due to the fact that it is clearly incorrect.

The 2nd problematic area is the prospective expansion of what we call commercial sales practice requirements. GSA professionals are required to send business sales practices prior to agreement award and throughout agreement efficiency when particular things take place, like if they go to add items to a professional's increased prices. The proposed rule allows GSA to request for CSPs at any time (GSA SER).

This needs specialists to go into their data systems and take a look at actual discounts on transactions. I indicate, we see news release after news release from the Department of Justice stating that professionals have fraudulently provided this information 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, however what is not clear is what benefit GSA is going to receive from the info. And then lastly, is the confidential and exclusive nature of the info. Transactional information pricing has always been secured by the courts under FOIA, and GSA does not appear to appreciate based upon remarks made at the meeting that this is the case.

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GSA recognizes the extra reporting requirement will certainly have an expense for afflicted organizations. SBA's Office of Advocacy and GSA's own inspector general kept in mind that quotes in the proposed rule appear significantly understated.

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Intricacy, on the other hand, measures if a policy modification will make offering to the federal government harder or easier. Essentially, will the federal market be basically difficult to understand? Or as I typically hear from service owners, am I going to need to employ someone for this? While GSA contents its reporting solution will be user- friendly, our experience is that federal government information systems are anything however - GSA Search Engine Ranker.

Typically, nevertheless, small companies offer tailored and innovative services that in conjunction with competitive prices produce finest worth in procurement rather of most affordable rate. While GSA recommends that prices will just be one factor in figuring out finest worth, it lends significant weight. The words "cost" or "prices" appear 165 times in the guideline, while "best worth" only appears 7.

This resembles asking retailers selling on Amazon to report to Amazon what it offered on Amazon. This appears to be an ineffective way to collect data. And speaking to the chauffeur behind this guideline, we continue to be worried about a vision of federal government procurement that seeks to categorize customized services into narrow classifications (GSA Search Engine Ranker).

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I enjoy to address any concerns. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Union of Government Procurement. Believe it or not, we have time. We can break now but I believe we do have time to get through. As you can see, there are 400 people who have not revealed up.