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I hope the GSA will either desert this method and begin over or seriously revamp the guideline prior to it becomes final. This is a problem the Subcommittee will be monitoring and will continue to keep an eye on, and we eagerly anticipate having another chance to meet you if that is essential.

Without objection, so bought. And thank you again. Intro Mr. Chairman and Members of the Committee, my name is Sheila Armstrong.

The Proposed Rule does not use to VA --------------------------------------------------------------------------- FSS agreements in the pilot program. GSA grossly undervalues both execution costs and compliance costs of transactional information reporting.

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Third, it does not appear that GSA is certain how it will utilize the large amount of information that it looks for to collect under the Proposed Guideline, but the potential for down pricing pressure that likely will result from transactional information reporting might have a disproportionate effect on small companies who hardly ever win a "race to the bottom" on rates.

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Line product prices has long been exempt from disclosure under the Liberty of Info Act (FOIA) due to its confidential and exclusive nature. This information likewise is protected from disclosure under the Trade Tricks Act. II. Select Congress Concerning the Proposed Transactional Data Guideline A. Estimated Application and Reporting Expenses of the Transactional Data Guideline GSA approximates that the general public reporting concern for its contractors to initially set up systems for transactional data reporting at 6 hours. 2 This approximated 6 hours includes "the time for reviewing instructions, searching existing information sources, gathering and maintaining the data needed, and finishing and examining the collection of details" as well as "training, compliance systems, negotiations, and audit preparation the new provision may require." 3 GSA approximates that the monthly concern afterwards will average 4 roughly 0.

e - GSA SER. sales) and assumes regular monthly reporting problem increases with vendor sales based on the circulation of sales and obligations within FSS agreements and non-FSS contracts." 6 What GSA permits no time at all for is system improvements that may be required should GSA elect to change the fields of data to be reported as it would have the right to do upon 60 days notification under the Proposed Rule. 7 In addition, these price quotes of six hours for preliminary set-up and 31 minutes monthly for ongoing reporting are grossly undervalued.

Reg. 11625. 3 Id. 4 GSA estimates a variety of two minutes (for contractors with $0 in sales) and 4 hours (for specialists with higher than $50 million in sales). See id. 5 Id. 6 Id. 7 Id. at 11628. 1. Initial Set-Up Likely Will Far Surpass 6 --------------------------------------------------------------------------- Hours GSA approximates that its professionals will invest around six hours to set up its systems to create the regular monthly report needed by the Transactional Data Guideline. 8 This six-hour quote consists of the time that GSA estimates will be needed for examining guidelines, browsing existing databases and other sources of details, and gathering and examining the gathered information. 9 This price quote also includes the effort that GSA prepares for contractors will be required to make to set up modifications to professional training, compliance systems, settlements, and audit preparation-- and probably includes the time and cost required to customize information- event, reporting, and information-technology (IT) systems to accurately and effectively report the information needed by the Proposed Guideline. 10 GSA's own Inspector General's workplace acknowledges that professionals likely will spend far more than six hours to establish business systems for transactional information reporting. 11 As the GSA Office of Inspector General notes in its remarks to the Proposed Guideline: --------------------------------------------------------------------------- 8 Id.

Provided this, we question whether GSA's quote of 6 hours per specialist to configure their --------------------------------------------------------------------------- systems for reporting is precise - GSA Search Engine Ranker Software. 12 12 Id. This six hour estimate should presume that all information fields reside in the exact same IT system and that the report can be set up by someone without consultation with others inside or outside the company.

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In a lot of cases, the systems that house the various fields GSA is requesting in its regular monthly report are not set approximately interact with one another. Appropriately, some contractors will need to by hand assemble the info needed for transactional data reporting, or might need to upgrade their IT systems in --------------------------------------------------------------------------- order to comply (Asia Virtual Solutions).

For some professionals, particularly small businesses, establishing systems to record and report transactional data may involve consultation with specialists outside the company at hourly rates therefore increasing the costs to the professional. These estimated expenses are not factored into GSA's 6 hour quote for established. 13 --------------------------------------------------------------------------- 13 As noted in the ABA's Remarks to the Transactional Data Guideline: The Section suggests that the hours required will in reality be much higher.

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Many contractors may need substantial modifications or upgrades to company systems in order to offer the information looked for by GSA in a type that will permit significant and precise prices contrast as planned. The fields needed by GSA for transactional-data reporting might not reside in the exact same IT system; couple of accounting systems include both manufacturer part number and contractor part number in the very same system when those part numbers vary.

g., products management) to satisfy the requirements of the Proposed Rule. These and other required changes would require coordination amongst functions such as the professionals' IT departments and change management groups along with accountable executives. The time needed just to look for, extract, review, and test such information, and implement system adjustments, will well go beyond six hours.

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The approximated 31 minutes per month does not include any time enabled for continuous maintenance of data, including however not restricted to changes by GSA to the data fields needed as permitted by the Proposed Rule. 14 Given the unknown implications on a specialist should it provide information to GSA that is inaccurate or insufficient, professionals will require to examine the transactional data prior to submission which could take hours depending upon the size of the contract.

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B. GSA's Proposed Expansion of Industrial Sales --------------------------------------------------------------------------- Practice Disclosure Requirements is Unduly Burdensome All GSA professionals must prepare and send CSPs prior to award and at specific key times during performance of a GSA agreement. When a professional looks for to increase prices or add products to the contract GSA needs either new CSPs, or a statement from the specialist that the CSPs have actually not changed considering that the time they were last submitted.

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Due to the prospective financial dangers developed by unreliable CSP disclosures, professionals need to invest substantial time examining sales information and preparing current, precise and total CSPs when they are needed to do so (GSA Search Engine Ranker Services). Even a statement that the CSPs have not changed needs extensive review of transactional sales data to verify that this declaration is right at the time that it is made.

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