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Published Aug 20, 21
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GSA is looking for information on federal orders. That info is within the government. I think GSA needs to look at its own systems and establish a method that they can make use of the info currently in their possession (GSA Search Engine Ranker Services).

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Mr. Stanford, some have argued that the GSA will utilize this new information to make services-- force them to lower their rates if they feel the supplier is no longer offering a competitive cost. Little company margins, as numerous of you discussed, are very low and they, at times, can not afford bulk discounts like the huge companies.

Either the little organization would leave the federal market if they could no longer bear the little margins to make sure they were rewarding. Or, as in the case for some small services that rely 80-90 percent of earnings in the federal market, they would go out of organization.

TAKAI. Okay. Thank you (GSA Search Engine Ranker). And my last question, and I believe numerous of you discussed this, pertains to the failure of GSA to really figure this thing out themselves due to their old computer system. So I simply desired to dig a little much deeper, and possibly, Mr. Horan, you can invest a long time talking about that remark you made in your statement about it would be just simpler for them to update their system so that they can track and keep track of the info that they are requesting on their side, instead of leave it to the concern of the little organizations.

HORAN. Yeah. I am not specific it will be much easier, however it will be certainly-- they would have to deal with some of the exact same intricacies that they want to trouble professionals. But the point I was trying to make is that GSA, likely preparing for the criticism that they are imposing this responsibility on professionals, had a look at their system and showed in the function itself the choice to the guideline modifications that their systems would require modifications since all this data is not consisted of in a single spot and they would need to go through the effort.

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So they hesitated to take that expenditure in spite of the information being equally available to GSA as the specialists, and want to impose that on specialists. GSA having access to this information though might readily develop a database or customize databases to do precisely what they desire to do.

Mr. TAKAI. Mr. WALDRON. I do not understand if it is the paradox of the circumstance or not, is that GSA is going to have to spend money to construct systems in any event.

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So why do they not have a look internally and see what is most efficient for them, for the government to attempt to determine to handle its own data. Because they are going to have to develop systems. We are talking, when you speak about month-to-month reporting throughout the GSA Schedules program, you are talking of hundreds of countless deals, millions and countless data elements to be reported, accessed, gathered.

Simply a couple other points. With regard to the gain access to, the question was terrific about, you understand, with recent events, security of the secret information, you understand, there is even another area, and GSA did not-- I think the general public meeting that was hung on the rule, they acquired a gratitude of the level of issue throughout market with regard to this issue, and even in that context they have professionals supporting their effort.

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And finally, simply a believed on the question about whether people would need to leave, you know, if they are told lower your rate, we get reports regularly of business being asked to either lower their price or get rid of the product from the agreement. And the GSA leadership is taking the position that that is not, and they have, to their credit, have stated that is not the goal here from their point of view, however at the working level and the operational level, contracting officers almost daily are asking business to either lower their price because they discovered a lower price on a horizontal contrast.

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Mr. TAKAI. Thank you, Mr. Chairman. Chairman HANNA. Do you imply to state-- is that not in a strange way collusion, knowing another person's price and calling somebody else and stating-- another bidder for the exact same item and saying, "You are too high, lower your cost"? I mean, it is a harsh word however-- Mr. GSA SER.

I would say it is misdirected. GSA SER Services. I believe it is bad procurement policy because in this concern, you enter into the relative terms and conditions, and is somebody a licensed reseller; are they not a licensed reseller? Is it a gray market item; is it not? These are things-- due diligent things that GSA needs to be looking at.

And it looks like GSA is focusing so much on the agreement level price at this level. When the cost is paid is at the task order level, which is the level listed below competitors under the contracts. And the focus is more on this instead of let us get the very best, you understand, an excellent price and a best value solution at the task order level.

How do you enhance, simplify, and embrace competition at the task order level so that the American individuals, consumer agencies get finest value items and options-- business finest items and options. Chairman HANNA. So they are requesting something that they are not prepared to take from a group of specialists who will incur massive expenditure and ultimately GSA would likewise incur an enormous expenditure to accept this, and yet already confesses does not have the capacity actually to use it.

Our members oppose this guideline. We think GSA must start over from scratch and look internally. GSA performing its own internal pilot of collecting its own details or other info of other agencies and seeing how-- very first of all, what data elements are really crucial?

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And to the extent they are using it to compare to contract rates, as I stated earlier in the testimony and we make clear in our written testament, that is apples and, I do not know, watermelons. It is such a total difference in terms of the terms and conditions. GSA SER Services.

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