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Published Jul 29, 21
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Citing the expense of upgrading its information systems, GSA is proposing to ask suppliers to report to GSA the information of what was bought through GSA. This resembles asking retailers selling through Amazon to report to Amazon what it offered, through Amazon. GSA Search Engine Ranker. To take this example one action even more, Amazon would then utilize that info to promote rates to other consumers, on Amazon.

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While not an ideal comparison, GSA in many methods operates as an Amazon-like part of the acquisition procedure. GSA SER. The intent behind this guideline is seeking to make a best-in-class contracting market. GSA has decided to pass on investing in an information collection system that might gather this info immediately.

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II (GSA Search Engine Ranker Software). The Rule Enforces a Significant, Underestimated, and Unnecessary Burden GSA approximates that it will take 6 hours for a specialist to achieve all jobs required to comprehend the reporting requirements, prepare its systems and workers, and develop the procedures required for creating the required reports, and a typical 31 minutes per month for continuous reporting. GSA SER Software. 2 GSA does not provide enough detail to evaluate how these price quotes are flawed, but essentially every notified party who has weighed in on these estimates thinks they are unreliable.

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Reg. 11625. The Small Company Administration's Office of Advocacy reports that small organizations and their representatives are concerned that GSA "under estimates the burden and resources." 3 The Council of Defense and Space Industry Associations sees the quotes as "grossly underestimated,"as failing to "represent pricey adjustments to info systems that will be needed to accurately and entirely capture the data aspects needed by the guideline"or to "adequately account for the time required to carry out quality assurance on draft submissions and examination into potential information anomalies that often emerge with transactional information reporting." 4 Based on its experience with pre-award audits of specialist systems, the GSA Workplace of Inspector General "concern [s] whether GSA's quote of 6 hours per professional to configure their systems for reporting is accurate"and "contend [s] the predicted problem of monthly reporting as 0.

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Otherwise, the professional will risk an allegation of scams under the False Claims Act, as has held true with essentially every other kind of rate or expense reports submitted by a contractor to the government. Significantly for this hearing, small companies will bear the biggest part of this problem-- GSA estimated that out of 15,738 suppliers holding contracts that would go through this Guideline, 12,590 are small organizations. GSA SER Software.

Reg. 11625. III. The Anticipated Benefit is Poorly Defined, and Not --------------------------------------------------------------------------- Likely to be Recognized GSA anticipates that the transactional data will "enhance GSA's capability to carry out meaningful cost analysis and more efficiently and effectively validate fair and affordable rates"on its agreements and will permit federal government buyers "to compare rates prior to putting orders." 8 GSA likewise recognizes a point really essential to industry-- that rate paid is only of lots of "information points"in identifying the very best value to the federal government. 9 Equally important are other factors to consider, "such as overall expense, preferred efficiency levels, shipment schedule, special terms and conditions, time considerations, and client complete satisfaction." 10 We can also add consumer service, product support services, warranty, and other terms to this list.

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According to GSA's own analysis, this problem imposed on contractors will offer the government with just one of the essential info points-- transactional rate-- without any means to obtain the other details points needed to examine rate (GSA Search Engine Ranker). Without access to, and factor to consider of, this other important details, the price details is of little value at best and can be extremely deceptive at worst.

In my view, the inability of the Rule to capture these other non-price factors could be especially damaging to small companies. Small companies often run as value-added resellers or otherwise differentiate themselves in the competitive market based on the worth they contribute to a deal, such as client and product service capability, that is not recorded by transaction price.

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