Is The Gsa Ser Market On The Brink Of Collapse?

Published Aug 28, 21
6 min read

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

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TAKAI. Thank you. Mr. Stanford, some have actually argued that the GSA will use this new information to make businesses-- force them to decrease their rates if they feel the supplier is no longer using a competitive cost. Little service margins, as many of you pointed out, are exceptionally low and they, at times, can not pay for bulk discounts like the big business.

STANFORD. I think you would have 2 alternatives. Either the small organization would leave the federal market if they might no longer bear the small margins to ensure they were successful. Or, as in the case for some little businesses that rely 80-90 percent of profits in the federal market, they would fail.

And my last question, and I believe numerous of you discussed this, has to do with the inability of GSA to actually figure this thing out themselves due to their old-fashioned computer system. I just desired to dig a little much deeper, and maybe, Mr. Horan, you can spend some time talking about that remark you made in your testament about it would be just simpler for them to update their system so that they can track and keep track of the info that they are asking for on their side, rather than leave it to the concern of the small organizations.

HORAN. Yeah. I am not certain it will be much easier, however it will be definitely-- they would need to deal with some of the same complexities that they are willing to trouble professionals. The point I was trying to make is that GSA, most likely preparing for the criticism that they are imposing this commitment on professionals, took a look at their system and suggested in the function itself the choice to the rule changes that their systems would need changes because all this information is not contained in a single spot and they would have to undergo the effort.

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So they were reluctant to take that expenditure despite the data being similarly available to GSA as the specialists, and are prepared to impose that on contractors. GSA having access to this info though might easily produce a database or customize databases to do precisely what they wish to do.

Mr. TAKAI. Mr. WALDRON. I do not understand if it is the paradox of the scenario or not, is that GSA is going to have to invest cash to develop systems in any occasion.

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Why do they not take an appearance internally and see what is most efficient for them, for the federal government to attempt to figure out to handle its own information. Because they are going to have to build systems. We are talking, when you discuss regular monthly reporting across the GSA Schedules program, you are broaching hundreds of countless transactions, millions and millions of data elements to be reported, accessed, collected.

Simply a couple other points. With regard to the gain access to, the question was great about, you know, with recent occasions, security of the confidential information, you know, there is even another location, and GSA did not-- I believe the general public meeting that was held on the guideline, they acquired a gratitude of the level of issue throughout industry with regard to this problem, and even in that context they have professionals supporting their effort.

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And lastly, just a thought on the concern about whether people would need to leave, you understand, if they are told lower your price, we get reports frequently of companies being asked to either lower their cost or remove the product from the agreement. And the GSA leadership is taking the position that that is not, and they have, to their credit, have stated that is not the objective here from their viewpoint, however at the working level and the functional level, contracting officers almost daily are asking business to either lower their rate since they discovered a lower rate on a horizontal comparison.

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Mr. TAKAI. Thank you, Mr. Chairman. Chairman HANNA. Do you imply to say-- is that not in an odd way collusion, knowing another person's cost and calling somebody else and stating-- another bidder for the very same product and stating, "You are too high, lower your price"? I suggest, it is an extreme word but-- Mr. GSA SER Services.

I would state it is misguided. Asia Virtual Solutions. I think it is not good procurement policy due to the fact that in this problem, you enter into the relative terms, and is somebody an authorized reseller; are they not an authorized reseller? Is it a gray market item; is it not? These are things-- due persistent things that GSA needs to be taking a look at.

And it appears like GSA is focusing so much on the contract level rate at this level. When the price is paid is at the job order level, which is the level listed below competitors under the contracts. And the focus is more on this instead of let us get the very best, you understand, an excellent rate and a best worth service at the task order level.

How do you enhance, enhance, and embrace competition at the job order level so that the American individuals, client companies get best worth items and solutions-- commercial finest products and options. Chairman HANNA. So they are asking for something that they are not prepared to take from a group of contractors who will incur huge expenditure and eventually GSA would likewise sustain an enormous expense to accept this, and yet already confesses it does not have the capacity really to use it.

Our members oppose this rule. We think GSA needs to begin over from scratch and look internally. GSA performing its own internal pilot of collecting its own information or other details of other companies and seeing how-- very first of all, what data components are really essential?

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And to the extent they are utilizing it to compare to agreement rates, as I stated earlier in the testimony and we make clear in our composed testimony, that is apples and, I do not understand, watermelons. It is such a total distinction in regards to the conditions. GSA SER Software.