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The proposed guideline could indicate that little services would require to have one staff member invest 3 months a year simply entering information. Keep in mind, this is information the government currently has however does not gather centrally. While I am all in favor of producing tasks, I do not believe requiring small businesses to work with staff members to offer information a 2nd time is a rewarding use of their dollars or tax dollars, due to the fact that somebody has actually got to spend for this.

Data is not free. Services will choose it is better to offer separately of GSA, which will enhance the government's expense to buy, or the small companies will drop out of the federal market entirely, reducing competitors. In truth, we have already lost over 100 little specialists 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 improve how the federal government purchases whatever it purchases. Thank you, Mr. Chairman, and excellent morning.

The GSA schedules have a number of benefits for both vendors and acquiring companies. Most significantly, it develops an easier system that permits contracting officers direct access to the services and products of many companies without the need of issuing several solicitations for each requirement. For small companies with limited resources, relative inexperience navigating the procurement process, landing on a GSA schedule can be an essential first step towards securing the federal government as a customer.

The guideline needs that firms 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 readily available to the GSA, the new guideline increases the frequency of reporting and expands what information companies are needed to offer. GSA Search Engine Ranker Services.

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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 declaration, I ask that they be sent for the record. And as you understand, you have five minutes. We wish to hear what you say, so we will be a little bit-- I will be a bit flexible on that, or try to be.

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What the rule requires is month-to-month reports from a range of GSA contractors. This includes both the schedule contractors, in addition to those who hold IDIQ, indefinite shipment, indefinite quantity specialists, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these regular monthly reports of all federal sales made throughout the previous month.

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For those contractors who take part in the pilot program, they will be minimized from a problem, what we call the rate decreases stipulation, which is another compliance stipulation that remains in GSA contracts. In the public conference that GSA held on April 17th, I went to practically. My understanding of that conference is that everyone in the room had concerns about the rule, consisting of GSA's own inspector general.

There is a transcript 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 issues. There are four which I wish to resolve briefly today. The first, which I make sure you will speak with all our panel members about, is the expense of execution and compliance.



I would recommend that for some professionals, it will take six hours for them to find out which of their IT systems hold the various information components that GSA has required for this guideline. That does not allow any time for developing a report, guaranteeing that the report is accurate, and training its workers on how they will send that report on a monthly basis.

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This might not perhaps permit at any time for the contractors to really examine the reports to guarantee that the information is proper. There is nothing in the proposed rule that recommends what would take place if the contractors submit inaccurate data or if they merely get rid of information due to the fact that it is obviously incorrect.

The 2nd bothersome location is the possible expansion of what we call industrial sales practice requirements. GSA contractors are needed to send business sales practices prior to contract award and during agreement performance when particular things occur, like if they go to add products to a contractor's increased rates. The proposed rule allows GSA to request CSPs at any time (GSA Search Engine Ranker Services).

This requires contractors to go into their information systems and look at real discounts on deals. I suggest, we see press release after news release from the Department of Justice mentioning that contractors have actually fraudulently offered this info when in reality they just have actually not examined. So this is a big concern.

We understand it is going to cost a lot to collect the information, however what is unclear is what benefit GSA is going to get from the details. And then finally, is the personal and exclusive nature of the info. Transactional information rates has constantly been secured by the courts under FOIA, and GSA does not appear to value based upon comments made at the conference that this is the case.

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GSA recognizes the extra reporting requirement will undoubtedly have a cost for afflicted organizations. SBA's Workplace of Advocacy and GSA's own inspector basic kept in mind that estimates in the proposed guideline appear considerably understated.

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Intricacy, on the other hand, steps if a policy modification will make offering to the federal government harder or easier. Essentially, will the federal market be basically hard to understand? Or as I frequently hear from entrepreneur, am I going to require to work with someone for this? While GSA contents its reporting solution will be user- friendly, our experience is that government data systems are anything however - GSA Search Engine Ranker Services.

Often, nevertheless, little services use customized and innovative services that in conjunction with competitive pricing make for finest worth in procurement instead of least expensive cost. While GSA recommends that pricing will only be one factor in identifying finest value, it provides substantial weight. The words "rate" or "pricing" appear 165 times in the policy, while "finest value" only appears 7.

This resembles asking merchants offering on Amazon to report to Amazon what it offered on Amazon. This seems to be an inefficient way to collect information. Lastly, and speaking with the chauffeur behind this guideline, we continue to be worried about a vision of government procurement that seeks to categorize tailored services into narrow classifications.

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I am happy to address any questions. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Union of Government Procurement. Believe it or not, we have time. We can break now but I think we do have time to get through. As you can see, there are 400 people who have actually not revealed up.

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