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Published Oct 03, 21
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The proposed guideline could suggest that small companies would need to have one worker invest three months a year simply going into data. Bear in mind, this is data the federal government currently has but does not collect centrally. While I am all in favor of producing jobs, I do not believe forcing small companies to employ workers to provide information a 2nd time is a beneficial use of their dollars or tax dollars, since someone has got to pay for this.

Information is not complimentary. Companies will decide it is better to sell separately of GSA, which will enhance the government's cost to purchase, or the small companies will leave of the federal market completely, reducing competition. We have actually already lost over 100 little contractors in the past 2 years.

I look forward to hearing from our witnesses today about the effects of GSA's proposed guideline and any alternative they would suggest to enhance how the government buys whatever it buys. Thank you, Mr. Chairman, and good morning.

The GSA schedules have a number of advantages for both vendors and acquiring companies. Most significantly, it produces an easier system that allows contracting officers direct access to the product or services of numerous companies without the requirement of releasing multiple solicitations for every single requirement. For small companies with minimal resources, relative inexperience browsing the procurement process, landing on a GSA schedule can be a crucial very first action towards securing the federal government as a client.

The guideline needs that companies that hold schedule contracts while other government-wide acquisition contracts report transactional information through an electronic system. While it appears that much of this information is currently available to the GSA, the brand-new guideline increases the frequency of reporting and broadens what info firms are required to provide. GSA SER Software.

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With that, I thank the witnesses for testifying today, and I yield back. Chairman HANNA. Thank you. If Committee members have an opening statement, I ask that they be sent for the record. And as you know, you have 5 minutes. We desire to hear what you say, so we will be a bit-- I will be a little bit versatile on that, or try to be.

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What the guideline needs is regular monthly reports from a range of GSA specialists. This consists of both the schedule contractors, as well as those who hold IDIQ, indefinite shipment, indefinite quantity contractors, and what we call GWACs, Government-wide Acquisition Contracts, 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 clause, which is another compliance clause that remains in GSA contracts. In the general public conference that GSA hung on April 17th, I went to virtually. My understanding of that meeting is that everybody in the room had issues about the rule, including GSA's own inspector general.

There is a transcript that is supposed to be released of that hearing, however I have not yet seen that transcript. The proposed guideline raises a variety of concerns. There are 4 which I wish to resolve briefly today. The first, which I am sure you will speak with all our panel members about, is the expense of implementation and compliance.



I would suggest that for some specialists, it will take six hours for them to figure out which of their IT systems hold the numerous information elements that GSA has needed for this rule. That does not enable any time for establishing a report, making sure that the report is precise, and training its workers on how they will submit that report on a month-to-month basis.

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This could not perhaps enable at any time for the professionals to in fact examine the reports to guarantee that the information is right. There is nothing in the proposed rule that recommends what would occur if the specialists submit incorrect data or if they just remove information because it is certainly incorrect.

The second bothersome location is the prospective growth of what we call business sales practice requirements. GSA contractors are required to submit industrial sales practices prior to agreement award and during agreement efficiency when specific things occur, like if they go to include items to a specialist's increased costs. The proposed rule allows GSA to request CSPs at any time (GSA SER Services).

This requires specialists to go into their information systems and look at actual discounts on deals. I indicate, we see press release after news release from the Department of Justice mentioning that professionals have actually fraudulently provided this info when in reality they simply have actually not inspected. So this is a huge issue.

We understand it is going to cost a lot to gather the information, however what is unclear is what advantage GSA is going to receive from the details. And then lastly, is the personal and exclusive nature of the info. Transactional information rates has actually always been protected by the courts under FOIA, and GSA does not appear to value based on comments made at the meeting that this holds true.

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As written, small companies would face increased expenses under the proposed guideline. GSA recognizes the additional reporting requirement will undoubtedly have an expense for affected businesses. SBA's Office of Advocacy and GSA's own inspector general kept in mind that estimates in the proposed rule appear significantly understated. I understand others here today have completed more detailed measurements of this expense, and I will defer to them on offering those details.

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Or as I often hear from organization owners, am I going to need to work with someone for this? While GSA contents its reporting option will be user- friendly, our experience is that government data systems are anything.

Frequently, nevertheless, small companies provide tailored and ingenious services that in combination with competitive prices produce best worth in procurement instead of most affordable price. While GSA recommends that pricing will only be one consider identifying best value, it lends considerable weight. The words "cost" or "prices" appear 165 times in the regulation, while "finest value" just appears seven.

This is like asking retailers selling on Amazon to report to Amazon what it offered on Amazon. This appears to be an ineffective way to gather data. And speaking to the chauffeur behind this policy, we continue to be worried about a vision of government procurement that seeks to categorize personalized services into narrow classifications (GSA SER).

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Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Coalition of Federal Government Procurement. We can break now however I believe we do have time to get through.

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