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The proposed rule could imply that small companies would need to have one worker spend 3 months a year simply going into information. Keep in mind, this is data the federal government currently has however does not gather centrally. While I am all in favor of producing jobs, I do not think requiring small companies to work with staff members to provide data a second time is a beneficial usage of their dollars or tax dollars, because someone has got to spend for this.

Information is not totally free. Businesses will choose it is much better to sell separately of GSA, which will improve the government's cost to buy, or the small companies will leave of the federal market entirely, reducing competition. We have actually already lost over 100 little contractors in the past 2 years.

I eagerly anticipate hearing from our witnesses today about the impacts of GSA's proposed guideline and any alternative they would recommend to improve how the federal government buys whatever it purchases. I now accept the ranking member for his opening statement. Mr. TAKAI. Thank you, Mr. Chairman, and excellent early morning.

The GSA schedules have a number of advantages for both suppliers and buying agencies. Most significantly, it develops a simpler system that allows contracting officers direct access to the product or services of various firms without the requirement of providing numerous solicitations for each requirement. For little businesses with minimal resources, relative inexperience browsing the procurement process, landing on a GSA schedule can be an essential initial step towards protecting the federal government as a client.

The guideline requires that companies that hold schedule contracts while other government-wide acquisition agreements report transactional data through an electronic system. While it appears that much of this data is currently readily available to the GSA, the brand-new rule increases the frequency of reporting and expands what information firms are needed to provide. GSA Search Engine Ranker Services.

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With that, I thank the witnesses for affirming today, and I yield back. Chairman HANNA. Thank you.

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What the guideline requires is month-to-month reports from a range of GSA contractors. This includes both the schedule professionals, along with those who hold IDIQ, indefinite shipment, indefinite amount contractors, and what we call GWACs, Government-wide Acquisition Agreements, to prepare these monthly reports of all federal sales made throughout the previous month.

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For those specialists who get involved in the pilot program, they will be relieved from a concern, what we call the rate reductions clause, which is another compliance clause that is in GSA contracts. In the public meeting that GSA held on April 17th, I went to virtually. My perception of that meeting is that everyone in the space had issues about the rule, including GSA's own inspector general.

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



I would recommend that for some professionals, it will take six hours for them to find out which of their IT systems hold the numerous information elements that GSA has required for this rule. That does not permit whenever for establishing a report, guaranteeing that the report is precise, and training its workers on how they will send that report on a regular monthly basis.

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This might not potentially enable any time for the specialists to really examine the reports to ensure that the data is appropriate. There is nothing in the proposed rule that recommends what would occur if the professionals submit inaccurate information or if they simply get rid of data since it is obviously inaccurate.

The second bothersome area is the potential growth of what we call industrial sales practice requirements. GSA contractors are required to submit business sales practices prior to agreement award and during contract performance when specific things happen, like if they go to include items to a contractor's increased prices. The proposed rule allows GSA to request CSPs at any time (GSA SER Software).

This needs contractors to enter into their data systems and look at actual discounts on transactions. I indicate, we see press release after press release from the Department of Justice specifying that professionals have actually fraudulently offered this info when in truth they just have actually not inspected. So this is a huge issue.

We understand it is going to cost a lot to collect the information, but 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 always been safeguarded by the courts under FOIA, and GSA does not appear to value based on remarks made at the meeting that this holds true.

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GSA recognizes the additional reporting requirement will undoubtedly have a cost for affected organizations. SBA's Office of Advocacy and GSA's own inspector general kept in mind that estimates in the proposed rule appear dramatically understated.

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Or as I frequently hear from organization owners, am I going to need 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.

Often, nevertheless, small companies use tailored and innovative solutions that in conjunction with competitive prices produce finest value in procurement rather of most affordable cost. While GSA suggests that prices will just be one factor in figuring out best worth, it provides significant weight. The words "cost" or "prices" appear 165 times in the policy, while "best worth" just appears seven.

This is like asking merchants offering on Amazon to report to Amazon what it offered on Amazon. This appears to be an ineffective method to gather information. Finally, and speaking with the motorist behind this policy, we continue to be concerned about a vision of federal government procurement that seeks to categorize tailored services into narrow classifications.

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I am pleased to respond to any concerns. Chairman HANNA. Thank you, Mr. Stanford. Next, we have Mr. Roger Waldron, who is president of the Coalition of Government Procurement. Believe it or not, we have time. We can break now but I believe we do have time to survive. As you can see, there are 400 individuals who have not revealed up yet.

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