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Published Oct 13, 21
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The proposed guideline could mean that small companies would need to have one staff member spend three months a year just getting in data. Bear in mind, this is information the federal government already has but does not collect centrally. While I am all in favor of developing jobs, I do not believe requiring small companies to work with employees to offer information a 2nd time is a beneficial usage of their dollars or tax dollars, since someone has actually got to pay for this.

Information is not complimentary. Services will decide it is better to offer separately of GSA, which will enhance the government's expense to purchase, or the small companies will drop out of the federal market completely, reducing competition. We have actually already lost over 100 small contractors in the previous two years.

I anticipate hearing from our witnesses today about the impacts of GSA's proposed rule and any option they would suggest to improve how the government purchases whatever it buys. I now yield to the ranking member for his opening declaration. Mr. TAKAI. Thank you, Mr. Chairman, and good morning.

The GSA schedules have a number of advantages for both suppliers and purchasing agencies. Most significantly, it creates a simpler system that allows contracting officers direct access to the products and services of numerous firms without the requirement of providing several solicitations for every single requirement. For small companies with minimal resources, relative inexperience navigating the procurement process, landing on a GSA schedule can be a crucial primary step towards protecting 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 new rule increases the frequency of reporting and broadens what details companies are needed to offer. GSA SER 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 needs is monthly reports from a range of GSA specialists. This consists of both the schedule specialists, along with those who hold IDIQ, indefinite shipment, indefinite amount professionals, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these month-to-month reports of all federal sales made throughout the prior month.

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For those professionals who get involved in the pilot program, they will be minimized from a concern, what we call the cost decreases stipulation, which is another compliance clause that remains in GSA contracts. In the general public conference that GSA held on April 17th, I attended virtually. My understanding of that conference is that everyone in the space had issues about the guideline, consisting of GSA's own inspector general.

The proposed rule raises a range of issues (GSA Search Engine Ranker Software). The very 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 six hours for them to figure out which of their IT systems hold the different information aspects that GSA has actually required for this rule. That does not permit any time for developing a report, ensuring that the report is precise, and training its personnel on how they will submit that report on a monthly basis.

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This could not possibly allow whenever for the professionals to really examine the reports to make sure that the data is correct. There is nothing in the proposed rule that suggests what would occur if the contractors send incorrect information or if they just eliminate information because it is obviously incorrect.

The second bothersome area is the potential expansion of what we call business sales practice requirements. GSA specialists are needed to send business sales practices prior to agreement award and during agreement efficiency when certain things happen, like if they go to add products to a contractor's increased rates. The proposed rule permits GSA to ask for CSPs at any time (GSA Search Engine Ranker Services).

This needs contractors to enter into their information systems and look at actual discount rates on transactions. I imply, we see press release after news release from the Department of Justice specifying that contractors have fraudulently provided this details when in truth they simply have not examined. So this is a big issue.

We understand it is going to cost a lot to gather the info, but what is not clear is what advantage GSA is going to receive from the information. And then finally, is the personal and exclusive nature of the info. Transactional data rates has constantly been safeguarded by the courts under FOIA, and GSA does not appear to value based on comments made at the conference that this holds true.

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GSA acknowledges the extra reporting requirement will unquestionably have a cost for afflicted services. SBA's Workplace of Advocacy and GSA's own inspector general kept in mind that price quotes in the proposed rule appear significantly understated.

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Or as I frequently hear from service owners, am I going to require to hire someone for this? While GSA contents its reporting solution will be user- friendly, our experience is that government data systems are anything.

Frequently, however, little companies offer customized and innovative options that in conjunction with competitive rates produce finest worth in procurement rather of least expensive cost. While GSA suggests that pricing will only be one consider figuring out finest value, it provides substantial weight. The words "rate" or "prices" appear 165 times in the policy, while "finest value" just appears seven.

This resembles asking sellers offering on Amazon to report to Amazon what it offered on Amazon. This appears to be an ineffective way to collect information. And speaking to the motorist behind this regulation, we continue to be concerned about a vision of federal government procurement that seeks to classify tailored services into narrow categories (GSA Search Engine Ranker Software).

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I more than happy to answer 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 however I think we do have time to get through. As you can see, there are 400 individuals who have actually disappointed up yet.

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