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The proposed guideline might suggest that small businesses would need to have one staff member invest three months a year just getting in information. Remember, this is data the government currently has but does not gather centrally. While I am all in favor of producing jobs, I do not believe forcing small companies to hire staff members to supply data a 2nd time is a worthwhile usage of their dollars or tax dollars, due to the fact that somebody has got to spend for this.

Information is not complimentary. Organizations will choose it is much better to offer separately of GSA, which will improve the government's expense to purchase, or the small companies will drop out of the federal market completely, decreasing competition. We have already lost over 100 small contractors in the past two years.

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

The GSA schedules have a variety of advantages for both suppliers and buying companies. Most notably, it creates a simpler system that permits contracting officers direct access to the services and products of many firms without the need of issuing numerous solicitations for every single requirement. For small companies with restricted resources, relative lack of experience navigating the procurement procedure, landing on a GSA schedule can be an essential primary step towards protecting the federal government as a consumer.

The rule requires that firms that hold schedule contracts while other government-wide acquisition contracts report transactional data through an electronic system. While it appears that much of this data is already available to the GSA, the new rule increases the frequency of reporting and expands what info companies are required to provide. GSA SER Software.

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With that, I thank the witnesses for affirming 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 5 minutes. We wish to hear what you state, so we will be a bit-- I will be a bit versatile on that, or try to be.

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

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For those specialists who take part in the pilot program, they will be alleviated from a problem, what we call the cost reductions provision, which is another compliance clause that remains in GSA agreements. In the public conference that GSA hung on April 17th, I participated in virtually. My perception of that meeting is that everyone in the room had issues about the guideline, consisting of GSA's own inspector general.

The proposed rule raises a variety of concerns (GSA SER Software). The very first, which I am sure you will hear from all our panel members about, is the cost of execution and compliance.



I would suggest that for some contractors, it will take 6 hours for them to figure out which of their IT systems hold the numerous information components that GSA has actually required for this rule. That does not permit whenever for establishing a report, guaranteeing that the report is accurate, and training its personnel on how they will send that report on a monthly basis.

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This could not potentially enable whenever for the professionals to actually examine the reports to guarantee that the data is correct. There is nothing in the proposed rule that recommends what would occur if the specialists submit incorrect data or if they simply get rid of data because it is obviously inaccurate.

The second bothersome area is the possible growth of what we call business sales practice requirements. GSA specialists are needed to submit industrial sales practices prior to contract award and during contract efficiency when certain things happen, like if they go to include products to a professional's increased costs. The proposed rule enables GSA to request for CSPs at any time (GSA Search Engine Ranker).

This requires professionals to enter into their data systems and look at real discount rates on transactions. I indicate, we see news release after press release from the Department of Justice specifying that contractors have fraudulently supplied this details when in truth they just have actually not checked. So this is a big concern.

We understand it is going to cost a lot to gather the details, however what is unclear is what benefit GSA is going to get from the information. And after that lastly, is the confidential and proprietary nature of the information. Transactional data pricing has constantly been protected by the courts under FOIA, and GSA does not appear to appreciate based on comments made at the meeting that this is the case.

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GSA recognizes the extra reporting requirement will undoubtedly have a cost for affected companies. SBA's Workplace of Advocacy and GSA's own inspector general kept in mind that quotes in the proposed rule appear drastically downplayed.

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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 hard to comprehend? Or as I typically hear from organization owners, am I going to need to hire someone for this? While GSA contents its reporting solution will be user- friendly, our experience is that federal government data systems are anything however - GSA SER Software.

Frequently, however, small companies offer customized and ingenious options that in conjunction with competitive prices make for best worth in procurement instead of lowest cost. While GSA recommends that rates will only be one factor in figuring out finest worth, it provides significant weight. The words "cost" or "prices" appear 165 times in the guideline, while "finest worth" only appears 7.

This is like asking sellers offering on Amazon to report to Amazon what it sold on Amazon. This seems to be an inefficient method to collect data. And speaking to the driver behind this regulation, we continue to be concerned about a vision of government procurement that looks for to categorize personalized services into narrow classifications (GSA Search Engine Ranker Services).

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I enjoy to respond to any concerns. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Union of Government Procurement. Think 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 people who have actually not shown up.

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