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Published Sep 10, 21
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And that is one of the things that considerably increases the expenses. And we are talking here about federal orders. We are not discussing commercial orders. GSA is inquiring on federal orders. That details is within the federal government. I think GSA needs to look at its own systems and establish a way that they can use the information currently in their possession.

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Mr. Stanford, some have actually argued that the GSA will utilize this new info to make companies-- require them to decrease their prices if they feel the vendor is no longer using a competitive cost. Little organization margins, as numerous of you discussed, are extremely low and they, at times, can not pay for bulk discount rates like the big companies.

STANFORD. I believe you would have 2 options. Either the small organization would leave the federal market if they might no longer bear the small margins to ensure 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 business.

And my last question, and I think numerous of you mentioned this, has to do with the inability of GSA to truly figure this thing out themselves due to their old-fashioned computer system. I simply wanted to dig a little deeper, and possibly, Mr. Horan, you can spend some time talking about that remark you made in your testimony about it would be just simpler for them to update their system so that they can track and monitor the information that they are asking for on their side, rather than leave it to the problem of the small organizations.

HORAN. Yeah. I am not specific it will be much easier, but it will be certainly-- they would need to deal with some of the exact same complexities that they want 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 an appearance at their system and indicated in the function itself the preference to the rule changes that their systems would require modifications because all this information is not consisted of in a single area and they would have to undergo the effort.

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So they were unwilling to take that expense in spite of the data being similarly readily available to GSA as the contractors, and are prepared to enforce that on contractors. GSA having access to this information though could readily create a database or customize databases to do precisely what they wish to do.

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

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Why do they not take an appearance internally and see what is most effective for them, for the federal government to try to figure out to manage its own data. Due to the fact that they are going to have to develop systems. We are talking, when you discuss monthly reporting throughout the GSA Schedules program, you are talking of numerous thousands of transactions, millions and millions of data elements to be reported, accessed, gathered.

Just a couple other points. With regard to the gain access to, the concern was fantastic about, you understand, with recent occasions, security of the secret information, you know, there is even another area, and GSA did not-- I believe the public conference that was hung on the rule, they got a gratitude of the level of issue across market with regard to this concern, and even because context they have specialists supporting their effort.

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And finally, just a believed on the concern about whether people would have to leave, you know, if they are told lower your rate, we get reports frequently of companies being asked to either lower their price or get rid of the item from the agreement. 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 perspective, however at the working level and the operational level, contracting officers almost daily are asking companies to either lower their price since they discovered a lower cost on a horizontal comparison.

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Do you mean to state-- is that not in a weird way collusion, knowing somebody else's rate and calling someone else and saying-- another bidder for the very same item and stating, "You are too high, lower your cost"? I think it is not great procurement policy since in this issue, you get into the relative terms and conditions, and is someone a licensed reseller; are they not an authorized reseller? These are things-- due persistent 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 job order level, which is the level listed below competitors under the contracts. And the focus is more on this rather than let us get the best, you understand, an excellent cost and a finest value solution at the job order level.

How do you improve, improve, and accept competitors at the job order level so that the American individuals, consumer agencies get best worth products and options-- commercial best items and options. Chairman HANNA. So they are requesting for something that they are not prepared to draw from a group of specialists who will sustain huge expense and eventually GSA would also sustain a huge cost to accept this, and yet currently confesses does not have the capacity really to use it.

Our members oppose this rule. We believe GSA ought to start over from scratch and look internally. GSA performing its own internal pilot of gathering its own info or other details of other companies and seeing how-- first of all, what information aspects are really essential?

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And to the extent they are using it to compare to contract rates, as I stated earlier in the testament and we make clear in our composed testimony, that is apples and, I do not understand, watermelons. It is such a complete distinction in regards to the terms and conditions. GSA Search Engine Ranker Software.

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