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Published Sep 07, 21
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Which is one of the things that significantly increases the expenses. And we are talking here about federal orders. We are not discussing industrial orders. GSA is inquiring on federal orders. That info is within the government. I believe GSA needs to look at its own systems and develop a way that they can use the info currently in their ownership.

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TAKAI. Thank you. Mr. Stanford, some have argued that the GSA will use this brand-new details to make organizations-- force them to lower their rates if they feel the supplier is no longer offering a competitive cost. Little business margins, as numerous of you mentioned, are incredibly low and they, at times, can not manage bulk discounts like the huge business.

Either the small service would leave the federal market if they might no longer bear the little margins to make sure they were lucrative. Or, as in the case for some small companies that rely 80-90 percent of income in the federal market, they would go out of service.

TAKAI. Okay. Thank you (GSA SER Services). And my last concern, and I think many of you discussed this, has to do with the inability of GSA to really figure this thing out themselves due to their old-fashioned computer system. I simply desired to dig a little deeper, and possibly, Mr. Horan, you can invest some time talking about that remark you made in your statement about it would be just much easier for them to update their system so that they can track and keep an eye on the information that they are requesting on their side, rather than leave it to the burden of the small businesses.

HORAN. Yeah. I am not certain it will be simpler, however it will be definitely-- they would need to deal with a few of the exact same complexities that they want to trouble contractors. The point I was attempting to make is that GSA, most likely anticipating the criticism that they are enforcing this responsibility on contractors, took a look at their system and indicated in the role itself the preference to the rule changes that their systems would require modifications since all this information is not included in a single spot and they would have to go through the effort.

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So they were unwilling to take that expenditure in spite of the information being equally available to GSA as the professionals, and want to impose that on specialists. GSA having access to this information though might easily produce a database or modify databases to do exactly what they wish to do.

Mr. TAKAI. Mr. WALDRON. I do not know if it is the paradox of the situation or not, is that GSA is going to have to invest cash to construct systems in any event.

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So why do they not take a look internally and see what is most efficient for them, for the federal government to attempt to find out to handle its own data. Because they are going to have to construct systems. We are talking, when you discuss monthly reporting throughout the GSA Schedules program, you are broaching numerous thousands of transactions, millions and countless information aspects 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 events, security of the private info, you understand, there is even another area, and GSA did not-- I believe the public conference that was hung on the rule, they gained an appreciation of the level of concern throughout market with regard to this concern, and even because context they have specialists supporting their effort.

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And lastly, just a thought on the concern about whether individuals would need to leave, you know, if they are informed lower your cost, we get reports frequently of companies being asked to either lower their cost or get rid of the product from the contract. And the GSA management is taking the position that that is not, and they have, to their credit, have stated that is not the goal here from their viewpoint, however at the working level and the functional level, contracting officers practically daily are asking companies to either lower their rate due to the fact that they discovered a lower rate on a horizontal comparison.

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Mr. TAKAI. Thank you, Mr. Chairman. Chairman HANNA. Do you suggest to say-- is that not in an unusual method collusion, knowing somebody else's cost and calling somebody else and stating-- another bidder for the same product and saying, "You are too high, lower your rate"? I imply, it is a severe word but-- Mr. GSA Search Engine Ranker Services.

I would say it is misdirected. GSA SER Software. I believe it is bad procurement policy because in this problem, you get into the relative conditions, and is someone a licensed reseller; are they not a licensed reseller? Is it a gray market item; is it not? These are things-- due diligent things that GSA requires to be looking at.

And it appears like GSA is focusing a lot on the contract level rate at this level. When the price is paid is at the task order level, which is the level below competition under the agreements. And the focus is more on this instead of let us get the very best, you know, a good rate and a best worth service at the task order level.

How do you improve, enhance, and embrace competitors at the task order level so that the American individuals, client firms get best worth items and options-- business best products and options. Chairman HANNA. So they are requesting something that they are not prepared to take from a group of professionals who will sustain enormous expense and eventually GSA would likewise sustain a massive expense to accept this, and yet already confesses it does not have the capacity truly to utilize it.

WALDRON. I think it is fair to state that a lot more believed requirements to enter into the existing technique. Our members oppose this guideline. We think GSA must begin over from scratch and look internally. Our composed statement consists of a number of various recommendations. I will point to one. GSA performing its own internal pilot of gathering its own info or other information of other firms and seeing how-- to start with, what information components are really essential? And much of what is being collected overlooks the very best value context or the nexus of it and conditions that drive cost (GSA SER Services).

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And to the level they are utilizing it to compare to contract pricing, as I said earlier in the testimony and we make clear in our written testament, that is apples and, I do not understand, watermelons. It is such a complete distinction in terms of the terms and conditions. GSA Search Engine Ranker Services.



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