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The proposed guideline could suggest that small companies would require to have one staff member spend three months a year simply getting in information. Bear in mind, this is information the government currently has but does not gather centrally. While I am all in favor of producing tasks, I do not think forcing little companies to employ employees to provide data a 2nd time is a rewarding usage of their dollars or tax dollars, because somebody has got to spend for this.

Information is not complimentary. Companies will choose it is better to offer independently of GSA, which will enhance the federal government's cost to buy, or the little businesses will leave of the federal market entirely, reducing competitors. We have actually currently lost over 100 little professionals 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 improve how the federal government buys whatever it buys. I now yield to the ranking member for his opening declaration. Mr. TAKAI. Thank you, Mr. Chairman, and good early morning.

The GSA schedules have a variety of advantages for both suppliers and purchasing firms. Most significantly, it produces an easier system that permits contracting officers direct access to the items and services of many firms without the need of providing numerous solicitations for every single requirement. For little organizations with minimal resources, relative lack of experience navigating the procurement procedure, landing on a GSA schedule can be a crucial very first step towards securing the federal government as a consumer.

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

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

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For those contractors who take part in the pilot program, they will be relieved from a burden, what we call the cost decreases clause, which is another compliance stipulation that remains in GSA contracts. In the general public meeting that GSA held on April 17th, I went to virtually. My perception of that meeting is that everybody in the space had issues about the guideline, consisting of GSA's own inspector general.

The proposed rule raises a variety of concerns (GSA SER Services). The very first, which I am sure you will hear from all our panel members about, is the expense of execution 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 numerous data elements that GSA has actually required for this guideline. That does not allow at any time for establishing a report, guaranteeing that the report is accurate, and training its workers on how they will send that report on a regular monthly basis.

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This could not possibly enable any time for the professionals to actually evaluate the reports to guarantee that the data is appropriate. There is absolutely nothing in the proposed guideline that suggests what would take place if the professionals send inaccurate data or if they merely remove data due to the fact that it is undoubtedly incorrect.

The second problematic area is the prospective growth of what we call industrial sales practice requirements. GSA specialists are needed to send commercial sales practices prior to contract award and throughout agreement performance when particular things take place, like if they go to include items to a professional's increased costs. The proposed rule enables GSA to request for CSPs at any time (GSA SER).

This requires professionals to enter into their data systems and take a look at actual discounts on deals. I indicate, we see news release after press release from the Department of Justice stating that professionals have actually fraudulently offered this info when in reality they simply have not checked. This is a big concern.

We understand it is going to cost a lot to collect the information, however what is not clear is what benefit GSA is going to get from the info. And after that lastly, is the private and proprietary nature of the details. Transactional information prices has actually always been protected by the courts under FOIA, and GSA does not appear to value based upon comments made at the meeting that this is the case.

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As composed, little companies would face increased expenses under the proposed guideline. GSA acknowledges the extra reporting requirement will undoubtedly have an expense for affected organizations. SBA's Office of Advocacy and GSA's own inspector basic kept in mind that price quotes in the proposed guideline appear significantly understated. I know others here today have actually finished more comprehensive measurements of this expense, and I will accept them on supplying those information.

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Complexity, on the other hand, steps if a policy modification will make selling to the government harder or easier. Essentially, will the federal market be basically hard to comprehend? Or as I frequently hear from company owner, am I going to need to work with somebody for this? While GSA contents its reporting option will be user- friendly, our experience is that government information systems are anything.

Often, nevertheless, small companies offer tailored and innovative services that in conjunction with competitive rates produce best worth in procurement rather of least expensive cost. While GSA suggests that pricing will only be one consider identifying best worth, it provides significant weight. The words "rate" or "rates" appear 165 times in the guideline, while "finest worth" just appears 7.

This resembles asking retailers offering on Amazon to report to Amazon what it sold on Amazon. This seems to be an ineffective method to collect data. And speaking to the chauffeur behind this policy, we continue to be worried about a vision of government procurement that looks for to categorize customized services into narrow classifications (GSA SER Software).

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I enjoy to address any concerns. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Union of Federal Government Procurement. Believe it or not, we have time. We can break now however I believe we do have time to get through. As you can see, there are 400 individuals who have disappointed up yet.



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