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The proposed guideline might imply that small organizations would require to have one staff member invest 3 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 developing tasks, I do not believe forcing small companies to hire staff members to provide information a second time is a beneficial usage of their dollars or tax dollars, since somebody has actually got to pay for this.

Information is not totally free. Services will decide it is better to offer individually of GSA, which will improve the federal government's cost to purchase, or the little businesses will drop out of the federal market completely, reducing competition. We have currently lost over 100 little contractors in the past 2 years.

I look forward to hearing from our witnesses today about the results of GSA's proposed rule and any alternative they would recommend to enhance how the government purchases whatever it buys. Thank you, Mr. Chairman, and great morning.

The GSA schedules have a variety of advantages for both vendors and buying firms. Most significantly, it develops a simpler system that allows contracting officers direct access to the products and services of numerous firms without the need of issuing several solicitations for every requirement. For small organizations with restricted resources, relative inexperience navigating the procurement procedure, landing on a GSA schedule can be an essential first action towards protecting the federal government as a consumer.

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

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

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What the guideline needs is month-to-month reports from a range of GSA contractors. This consists of both the schedule contractors, as well as those who hold IDIQ, indefinite delivery, indefinite amount specialists, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these monthly reports of all federal sales made throughout the previous month.

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For those professionals who take part in the pilot program, they will be minimized from a burden, what we call the cost decreases provision, which is another compliance clause that remains in GSA contracts. In the public conference that GSA held on April 17th, I attended virtually. My perception of that conference is that everybody in the room had concerns about the guideline, consisting of GSA's own inspector general.

There is a records that is supposed to be released of that hearing, but I have actually not yet seen that transcript. The proposed guideline raises a variety of concerns. There are four which I want to resolve briefly today. The first, which I make sure you will speak with all our panel members about, is the expense of application and compliance.

I would recommend that for some contractors, it will take 6 hours for them to find out which of their IT systems hold the various data aspects that GSA has needed for this rule. That does not permit any time for developing a report, ensuring 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 allow any time for the contractors to really evaluate the reports to ensure that the information is proper. There is absolutely nothing in the proposed guideline that recommends what would happen if the contractors send inaccurate data or if they merely eliminate information due to the fact that it is obviously inaccurate.

The second problematic location is the possible growth of what we call industrial sales practice requirements. GSA professionals are required to send industrial sales practices prior to contract award and during agreement efficiency when certain things occur, like if they go to add products to a contractor's increased prices. The proposed rule enables GSA to request CSPs at any time (GSA SER Services).

This requires contractors to enter into their data systems and look at real discounts on transactions. I imply, we see news release after press release from the Department of Justice specifying that contractors have fraudulently supplied this information when in reality they just have not checked. This is a huge concern.

We understand it is going to cost a lot to collect the info, but what is unclear is what advantage GSA is going to receive from the details. And then lastly, is the confidential and proprietary nature of the info. Transactional data prices has constantly been secured by the courts under FOIA, and GSA does not appear to appreciate based on remarks made at the conference that this holds true.

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GSA recognizes the additional reporting requirement will undoubtedly have an expense for affected businesses. SBA's Office of Advocacy and GSA's own inspector basic kept in mind that estimates in the proposed guideline appear drastically understated.

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Intricacy, on the other hand, measures if a policy modification will make offering to the federal government harder or easier. Basically, will the federal market be more or less challenging to comprehend? Or as I frequently speak with 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 government information systems are anything but - GSA Search Engine Ranker Software.

Frequently, nevertheless, small companies offer customized and ingenious solutions that in combination with competitive prices make for best value in procurement instead of lowest cost. While GSA suggests that rates will only be one consider figuring out finest value, it lends substantial weight. The words "price" or "pricing" appear 165 times in the regulation, while "best value" only appears seven.

This is like asking sellers offering on Amazon to report to Amazon what it sold on Amazon. This appears to be an ineffective method to gather data. Finally, and speaking to the driver behind this regulation, we continue to be concerned about a vision of government procurement that seeks to classify 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 Federal Government Procurement. We can break now however I believe we do have time to get through.



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