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The proposed guideline might imply that small companies would require to have one worker spend three months a year simply entering data. Keep in mind, this is information the government currently has however does not gather centrally. While I am all in favor of creating tasks, I do not think requiring small companies to work with workers to offer data a second time is a rewarding use of their dollars or tax dollars, since somebody has got to pay for this.

Information is not complimentary. Organizations will choose it is much better to sell independently of GSA, which will improve the federal government's expense to purchase, or the little companies will drop out of the federal market completely, reducing competition. In fact, we have already lost over 100 small contractors in the past two years.

I anticipate hearing from our witnesses today about the results of GSA's proposed guideline and any alternative they would recommend to enhance how the federal government buys whatever it buys. I now yield to the ranking member for his opening statement. Mr. TAKAI. Thank you, Mr. Chairman, and excellent morning.

The GSA schedules have a variety of benefits for both suppliers and buying companies. Most notably, it develops a simpler system that allows contracting officers direct access to the items and services of various firms without the requirement of releasing multiple solicitations for every single requirement. For small organizations with minimal resources, relative inexperience browsing the procurement process, landing on a GSA schedule can be a crucial primary step towards securing the federal government as a consumer.

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

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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 month-to-month reports from a range of GSA professionals. This includes both the schedule contractors, in addition to those who hold IDIQ, indefinite delivery, indefinite amount specialists, 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 professionals who take part in the pilot program, they will be relieved from a concern, what we call the price decreases provision, which is another compliance clause that is in GSA agreements. In the public conference that GSA held on April 17th, I attended essentially. My understanding of that meeting is that everybody in the space had concerns about the rule, including GSA's own inspector general.

There is a transcript that is supposed to be published 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 would like to address briefly today. The very first, which I make sure you will hear from all our panel members about, is the expense of application and compliance.

I would suggest that for some contractors, it will take 6 hours for them to find out which of their IT systems hold the various data elements that GSA has actually needed for this rule. That does not enable any time for establishing a report, making sure that the report is precise, and training its personnel on how they will submit that report on a month-to-month basis.

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This could not possibly permit any time for the contractors to actually evaluate the reports to ensure that the information is appropriate. There is absolutely nothing in the proposed rule that suggests what would happen if the professionals submit inaccurate data or if they just get rid of information due to the fact that it is undoubtedly incorrect.

The 2nd troublesome location is the potential growth of what we call industrial sales practice requirements. GSA specialists are required to submit industrial sales practices prior to agreement award and during agreement performance when certain things take place, like if they go to include items to a contractor's increased prices. The proposed rule allows GSA to request for CSPs at any time (GSA Search Engine Ranker Software).

This needs contractors to go into their data systems and take a look at actual discount rates on deals. I mean, we see news release after news release from the Department of Justice stating that professionals have actually fraudulently offered this info when in truth they just have actually not checked. This is a huge concern.

We understand it is going to cost a lot to gather the info, however what is not clear is what advantage GSA is going to get from the information. And after that finally, is the private and proprietary nature of the info. Transactional data prices has always been safeguarded by the courts under FOIA, and GSA does not appear to value based upon remarks made at the conference that this holds true.

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GSA recognizes the additional reporting requirement will undoubtedly have a cost for affected services. SBA's Workplace of Advocacy and GSA's own inspector basic kept in mind that estimates in the proposed rule appear considerably downplayed.

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Or as I typically hear from service 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 federal government information systems are anything.

Frequently, however, little businesses use tailored and ingenious solutions that in conjunction with competitive rates make for best value in procurement instead of most affordable price. While GSA recommends that rates will only be one factor in identifying best value, it provides substantial weight. The words "price" or "pricing" appear 165 times in the policy, while "finest value" only appears seven.

This resembles asking sellers offering on Amazon to report to Amazon what it offered on Amazon. This seems to be an ineffective way to gather data. Lastly, and talking to the chauffeur behind this guideline, we continue to be concerned about a vision of government procurement that looks for to categorize customized services into narrow categories.

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I am happy to address any concerns. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Coalition of Federal Government Procurement. Believe it or not, we have time. We can break now however I believe we do have time to survive. As you can see, there are 400 individuals who have actually not revealed up.



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