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The proposed guideline might mean that small services would require to have one worker spend 3 months a year just getting in data. Bear in mind, this is data the federal government already has however does not gather centrally. While I am all in favor of producing jobs, I do not believe requiring small companies to employ employees to provide data a second time is a beneficial use of their dollars or tax dollars, since someone has actually got to spend for this.

Information is not complimentary. Services will decide it is much better to sell independently of GSA, which will enhance the government's expense to purchase, or the small companies will drop out of the federal market altogether, reducing competition. We have currently lost over 100 little contractors in the past 2 years.

I look forward to hearing from our witnesses today about the impacts of GSA's proposed guideline and any option they would recommend to improve how the government purchases whatever it purchases. Thank you, Mr. Chairman, and great early morning.

The GSA schedules have a number of benefits for both vendors and purchasing agencies. Most notably, it creates a simpler system that permits contracting officers direct access to the product or services of various companies without the requirement of issuing several solicitations for every single requirement. For small companies with minimal resources, relative lack of experience navigating the procurement process, landing on a GSA schedule can be an essential initial step towards securing the federal government as a customer.

The rule needs that firms that hold schedule agreements while other government-wide acquisition agreements report transactional information through an electronic system. While it appears that much of this data is already offered to the GSA, the new guideline increases the frequency of reporting and expands what info firms are required to offer. GSA Search Engine Ranker 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 know, you have 5 minutes. We want to hear what you say, so we will be a bit-- I will be a little bit flexible on that, or try to be.

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What the guideline requires is monthly reports from a variety of GSA specialists. This consists of both the schedule specialists, as well as those who hold IDIQ, indefinite delivery, 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 professionals who take part in the pilot program, they will be alleviated from a concern, what we call the cost decreases clause, which is another compliance clause that is in GSA agreements. In the general public meeting that GSA hung on April 17th, I attended essentially. My perception of that meeting is that everybody in the space had concerns about the guideline, including GSA's own inspector general.

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



I would suggest that for some specialists, it will take 6 hours for them to find out which of their IT systems hold the different data elements that GSA has required for this guideline. That does not enable any time for establishing a report, ensuring that the report is accurate, and training its personnel on how they will send that report on a regular monthly basis.

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This might not perhaps allow whenever for the contractors to in fact evaluate the reports to ensure that the data is appropriate. There is absolutely nothing in the proposed rule that recommends what would happen if the professionals send inaccurate data or if they simply remove information due to the fact that it is undoubtedly inaccurate.

The 2nd troublesome area is the prospective expansion of what we call commercial sales practice requirements. GSA specialists are needed to send business sales practices prior to agreement award and during contract performance when certain things occur, like if they go to add items to a professional's increased costs. The proposed rule allows GSA to request for CSPs at any time (GSA SER Software).

This needs specialists to enter into their data systems and take a look at real discounts on deals. I mean, we see press release after news release from the Department of Justice stating that professionals have fraudulently provided this info when in truth they simply have not inspected. So this is a big issue.

We understand it is going to cost a lot to collect the details, however what is unclear is what advantage GSA is going to receive from the information. And then finally, is the personal and proprietary nature of the information. Transactional data pricing has actually always been safeguarded by the courts under FOIA, and GSA does not appear to appreciate based on remarks made at the conference that this is the case.

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As written, small companies would deal with increased costs under the proposed rule. GSA acknowledges the extra reporting requirement will certainly have a cost for afflicted companies. SBA's Workplace of Advocacy and GSA's own inspector general noted that estimates in the proposed rule appear dramatically downplayed. I know others here today have completed more comprehensive measurements of this cost, and I will postpone to them on providing those information.

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Or as I typically hear from service owners, am I going to require to employ someone for this? While GSA contents its reporting service will be user- friendly, our experience is that federal government data systems are anything.

Frequently, however, small companies offer tailored and ingenious services that in combination with competitive pricing produce best value in procurement instead of least expensive cost. While GSA suggests that rates will only be one element in identifying best value, it provides considerable weight. The words "cost" or "prices" appear 165 times in the policy, while "best value" just appears seven.

This resembles asking merchants offering on Amazon to report to Amazon what it sold on Amazon. This seems to be an inefficient way to collect information. Lastly, and speaking to the chauffeur behind this policy, we continue to be concerned about a vision of federal government procurement that seeks to classify personalized services into narrow classifications.

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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 Coalition of Federal Government Procurement. Think it or not, we have time. We can break now but I think we do have time to survive. As you can see, there are 400 individuals who have not shown up.

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