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And one discussion we frequently have with small companies is whether or not they are all set to take on dealing with the federal government as it is a distinct consumer and this is simply contributing to the discussion that they are not prepared, which is a cost to the government (GSA SER Services).

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TAKAI. Thank you. I yield back. Chairman HANNA. Mr. Horan-- Hardy? Excuse me. Mr. HARDY. Thank you. I excuse being late. Mr. Stanford, in your statement, you had spoken about Amazon as an example of how the GSA-- and I hope somebody has not asked this concern already-- would position the problem on professionals and report contract information although the firm already has actually the data awarded to the agreement.

Being a little service person, I have actually needed to deal with federal contracts prior to. It appears to me that this is just another method of federal government trying to fix their concern rather than look after the problems themselves that they have the details at their hands. Would you accept that in somewhat of that style? I have a little bit more difficult way of stating it, however that is-- Mr.

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Yes. And I think the chairman put it well. It is information that the government already has, and it does appear counterintuitive and there is agreement amongst the panel that this does not make any sense. And there actually-- in the commercial world, it really would not make sense for the person who is functioning as the platform to obtain the products, to then require to be told what those items and services expense.

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Does anybody believe that GSA has possibly undervalued the genuine expense of what this is going to affect the companies? Our members at the Coalition for Government Procurement, we conducted a study and I believe that is one of the greatest locations-- it is the greatest area of detach between government and market on this particular guideline, the burden itself.

The burden goes to increasing costs for the taxpayer and for consumer companies who use GSA. Taking a look at it, we have resolved it in our written testimony. However at the end of the day, based upon our price quotes and our feedback from our members, and we performed a survey where we were going to attempt to use GSA's language that they used in the guideline, in their formula to come up with the numbers based on feedback from our members, it would cost over $800 million just to execute this guideline throughout the GSA Schedules program.

And at the exact same time, GSA showed in the guideline that it would be too expensive for the government or for it to adjust its systems. I believe, if I recall, we were talking in the 10s of millions of dollars, and what they stopped working to, I believe, value, or to their credit, having a public meeting and asking talk about it, they failed to comprehend or value the hundreds of countless dollars that it will cost market who get involved in the GSA Schedules program to comply.

Being a service guy, you know, I work on quotes. I was a general engineering professional, so I put out quotes. All your details that you have that might put you in the competitive movement, they are desiring us to supply that information, which they ask for line product bids.

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HORAN. I agree. I believe it is a substantial concern, and my clients have essentially universally voiced that concern. It is viewed, I believe, in market as competitively sensitive details. The guideline is unclear on how it can be used, or more significantly, I believe, how it will be protected.

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So I think I can say that usually, industry is extremely worried about that, that competitively delicate info will be out there for rivals to obtain. And I think I would likewise add that this info might trigger harm if it is out there to contractors both in the business market and the government market due to the fact that this type of pricing details would be important for commercial competition as well.



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