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Published Sep 13, 21
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The proposed rule could suggest that small services would need to have one employee invest 3 months a year simply going into information. Keep in mind, this is information the federal government currently has but does not collect centrally. While I am all in favor of developing jobs, I do not believe forcing small businesses to hire employees to supply data a 2nd time is a rewarding use of their dollars or tax dollars, since somebody has actually got to spend for this.

Information is not complimentary. Companies will decide it is 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. We have currently lost over 100 small professionals in the past 2 years.

I eagerly anticipate hearing from our witnesses today about the effects of GSA's proposed guideline and any alternative they would recommend to improve how the government buys whatever it buys. I now accept the ranking member for his opening declaration. Mr. TAKAI. Thank you, Mr. Chairman, and good early morning.

The GSA schedules have a variety of advantages for both suppliers and buying firms. Most notably, it develops an easier system that permits contracting officers direct access to the services and products of various firms without the need of providing several solicitations for each requirement. For little businesses with limited resources, relative inexperience browsing the procurement procedure, landing on a GSA schedule can be an essential first step towards securing the federal government as a customer.

The guideline requires that companies that hold schedule agreements while other government-wide acquisition contracts report transactional data through an electronic system. While it appears that much of this information is already offered to the GSA, the new rule increases the frequency of reporting and broadens what info companies are needed to supply. GSA Search Engine Ranker Services.

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

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What the rule requires is month-to-month reports from a variety of GSA professionals. This includes both the schedule contractors, as well as those who hold IDIQ, indefinite delivery, indefinite quantity 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 specialists who take part in the pilot program, they will be reduced from a burden, what we call the cost reductions provision, which is another compliance stipulation that remains in GSA contracts. In the general public conference that GSA held on April 17th, I went to practically. My understanding of that meeting is that everybody in the space had issues about the guideline, consisting of GSA's own inspector general.

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



I would suggest that for some professionals, it will take 6 hours for them to figure out which of their IT systems hold the various information aspects that GSA has actually required for this guideline. That does not allow any time for developing a report, guaranteeing that the report is precise, and training its personnel on how they will submit that report on a month-to-month basis.

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This might not perhaps enable whenever for the professionals to really evaluate the reports to make sure that the information is right. There is absolutely nothing in the proposed rule that suggests what would occur if the professionals submit incorrect information or if they just eliminate information because it is obviously incorrect.

The 2nd troublesome area is the possible expansion of what we call industrial sales practice requirements. GSA specialists are required to submit industrial sales practices prior to agreement award and during contract performance when certain things occur, like if they go to include products to a specialist's increased rates. The proposed rule permits GSA to request for CSPs at any time (GSA SER Software).

This requires professionals to enter into their information systems and look at actual discounts on transactions. I imply, we see press release after news release from the Department of Justice mentioning that contractors have actually fraudulently provided this information when in reality they just have actually not examined. This is a big issue.

We understand it is going to cost a lot to collect the details, however what is unclear is what benefit GSA is going to receive from the info. And then finally, is the confidential and exclusive nature of the details. Transactional information pricing has always been safeguarded by the courts under FOIA, and GSA does not appear to value based upon remarks made at the meeting that this holds true.

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As written, small services would deal with increased expenses under the proposed rule. GSA acknowledges the extra reporting requirement will undoubtedly have a cost for affected businesses. SBA's Workplace of Advocacy and GSA's own inspector general kept in mind that estimates in the proposed guideline appear dramatically downplayed. I understand others here today have finished more detailed measurements of this expense, and I will delay to them on providing those information.

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

Typically, nevertheless, small companies offer tailored and ingenious options that in combination with competitive rates make for finest worth in procurement instead of most affordable price. While GSA recommends that pricing will just be one consider determining best worth, it provides substantial weight. The words "price" or "prices" appear 165 times in the regulation, while "best worth" just appears 7.

This resembles asking retailers offering on Amazon to report to Amazon what it sold on Amazon. This appears to be an ineffective method to gather data. Finally, and talking to the driver behind this policy, we continue to be concerned about a vision of government procurement that looks for to categorize customized services into narrow classifications.

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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 think we do have time to get through.

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