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Tag: TDR

Not everyone is sold on the Transactional Data Reporting (TDR) pilot

Almost five years ago GSA launched the Transactional Data Reporting (TDR) pilot to replace the Price Reduction Clause (PRC). GSA’s goal is to use the data received, to obtain better pricing from contractors. GSA calls TDR a success, critics are not so quick to agree. (Federal News Network May 10, 2021)

Jeff Koses, GSA’s senior procurement executive said, “GSA has successfully demonstrated the value of TDR under the existing scope of the pilot. It has shown steady progress over the past four years, met most of the pilot’s objectives in the most recent year, and has made the necessary investments to leverage TDR’s potential in the years to come. We will continue to make improvements, especially in contracting officer usage.” However, Koses made no mention of using the TDR information in 2019 or 2020 (ibid).

Some argue that TDR works on paper, but not in reality. Many contracting officers are reluctant to use the data for decision-making. One industry expert went so far as to say, “I have not experienced any negotiations based on TDR data in order to form an opinion.” Others have suggested that the data is incomplete and that GSA has no strategy to back the pilot. (ibid)

One consultant pointed out that as more companies participate in TDR, the IG’s ability to audit prices before an award is made is more difficult. She noted, “under the TDR pilot, the population of auditable contracts has ostensibly been cut in half. When you remove the major resellers and the integrators, what remains are largely professional service contractors and products companies under Schedules 84 (Law Enforcement), 71 (Furniture), and 66 (Scientific). The audit threshold for annual sales is also reduced due to the smaller pool of contracts from which the OIG is selecting. Small businesses who would never have been a blip on the OIG’s radar are now at much higher risk of pre-award audit.” (ibid)

Another complication is GSA’s move toward unpriced contracts under Section 876 of the 2018 National Defense Authorization Act. The Act makes the Price Reduction Clause as well as TDR less necessary because the burden is on vendors to provide the lowest price possible as part of contract negotiations. (ibid)

Koses said GSA will refine and consider:

  • The ability of Federal Supply Schedule contracting officers to use transactional data for price negotiations in lieu of commercial sales practices and price reduction clause disclosures
  • The impact of an expanded data collection on GSA’s ability to use the data it currently collects
  • The impact on current/future GSA schedule contract holders
  • Communication to industry partners
  • Training and tools for category managers not impacted by TDR
  • Possible impacts on other FAS initiatives such as the National Defense Authorization Act (ibid)

So when will the pilot move to production? The waters remain murky. Whether the IG will move from the production stage should be made more clear when the Inspector General report on the TDR pilot is released, in the coming weeks. Vendors should be ready to invest in systems to collect and report pricing data, should the TDR pilot go into production.

Questions concerning how to collect and report pricing data? Give us a call.

New Year, New Mass Mod

At the start of the new year, GSA plans to issue a Mass Modification that will update Schedule contracts to mirror the new consolidated Multiple Award Schedule (MAS) for products and services. The new Multiple Award schedule was released this past October 1st. (GSA Interact, November 25, 2019)

The single Schedule solicitation promotes a simplified format, terms, and conditions along with new categories and Special Item Numbers (SINs). The new Schedule should make it easier for contractors to offer products and services and for agencies to find them. (ibid)

When the Mass Mod is issued, all current Schedule holder’s terms and conditions will align with the new consolidated MAS. The new consolidated MAS solicitation and category attachments are posted on BETA.SAM.gov. Attachments incorporate additional instructions and requirements specific to each large category, subcategory, or SIN. The new consolidated MAS solicitation includes:

  • Solicitation
  • Available Offerings Summary Document
  • Regulations Incorporated by Reference

The Available Offerings and Requirements page on GSA.gov contains templates and attachments for the solicitation. Instructions for each template can be found on Beta.Sam.gov; however individual documents will be housed on GSA.gov. (ibid)

So what do you need to do go get ready? GSA recommends attending one of the following webinars:

Session One:

Date: Thursday, December 19, 2019

Time: 2:30 – 3:30 PM EST

Registration Link: can be found by clicking here.

Session Two:

Date: Thursday, January 9, 2020

Time: 3:00 – 4:00 PM EST

Registration Link: can be found by clicking here. (ibid)

Individuals unable to attend either of the two webinars can find recordings on Interact. In addition, there is an Overview of MAS Consolidation and Consolidated Solicitation Advance Notice training recordings which can be reviewed at any time.

To understand the New Offerings structure, individuals should review the solicitation to understand where specific offerings will fall under the new large categories, subcategories, and SINs. In addition, review of the advance notice for the release of the MAS solicitation, for an overview of clauses, available offerings, and a matrix of clauses included in MAS. (ibid)

GSA recommends questions be submitted to your assigned contracting officer (CO) or the Multiple Award Schedule Program Management Office (MAS PMO) at MASPMO@gsa.gov. (ibid)

Once in receipt of the upcoming Mass Mod, we recommend you review it immediately. Note any exceptions. When responding to the Mass Mod, contractors will be presented with each clause in the consolidated Schedule and may either accept the clause or request an exception. Each exception must include a written justification and be negotiated with the CO. (Contractors should not take exception to clauses that do not apply to them.)

All responses to the Mass Mod are due before July 31, 2020. Those not responding by the due date will find their offerings unavailable on GSA eTools. The contract number, period of performance, products, and services offered as well as the assigned CO will not change as a result of accepting the Mass Mod. (ibid)

Concerns about the Mass Mod and whether or how an exception might affect your current Schedule? Concerned with how to justify an exception? Give us a call.

TDR Pilot Still Flying

GSA is extending the Transactional Data Reporting (TDR) pilot program for an additional year, giving everyone ample time to work on the pilot while preparing for the upcoming Schedule consolidation.  The TDR pilot program collects pricing data, including cost to the government for services and products sold under GSA contracts. Ultimately, TDR will replace GSA’s Commercial Sales Practices. (Federal Computer Week, August 19, 2019)

TDR was implemented as a noncompulsory, three-year pilot that included eight schedules and their associated SINs. GSA created TDR to reduce bureaucratic burden and increase transparency by requiring monthly reporting of transactional sales data from government-wide contracts, including Multiple Award Schedules contracts. Ultimately, TDR promotes smarter purchasing by federal agencies by allowing expedited and more comprehensive data to assure best value. (ibid)

The GSA Office of Inspector General (OIG) issued a report last summer pointing out that the TDR pilot will not produce a quantifiable measurement. According to the OIG, data is not available for use and there are no performance targets. The IG asked GSA to set performance targets for each metric used and to verify the data is available and valid. (ibid) GSA and the FAS Commissioner Alan Thomas stated that the pilot was just getting ramped up and that some tweaks might be necessary based on the OIG report. However, the extension to the TDR pilot will allow more time for additional data gathering. According to Roger Waldron, president for the Coalition for Government Procurement, the extra time will give the pilot stability while allowing the price reductions clause to be removed. (ibid)

GSA will review the pilot at the end of fiscal year 2020 and at that time determine whether to cancel or expand the program to all GSA Schedule SINs. (ibid)

Still wondering how you can take part in the TDR pilot or how GSAs multiple schedule consolidation might work in your favor? Give us a call.

 

Nervous about TDR? Drop Out or Don’t Even Join the Pilot!

Transactional Data Reporting now voluntary for contractors

Any contractor that has received multiple-award schedule contracts and special item numbers can now opt out of participating in the TDR pilot. To remind you, the TDR rule allows the agency to collect transactional-level data, which informs buying strategies and purchases.

Mary Davie, acting deputy commissioner of FAS explains that “GSA is altering TDR’s implementation to give new offerers and contractors approaching an option period the choice to adopt TDR….” For those contractors who were previously required to accept TDR, GSA is extending them the option to execute a one-time reverse modification to undo this action and work with their contracting officer to revert back to operating under the structure and tracking requirements of the price reduction clause.

Jack St. John, GSA chief of staff, said the modification of the TDR rule supports agency efforts to transition the current administration’s priorities into acquisition policies.

GSA Interact published the full announcement and further information. If you’d like assistance in reversing your TDR option, contact us at 301-913-5000 or mbotello@ezgsa.com.

Effectiveness of TDR is TBD

GSA Responds to Criticisms of TDR

The new pilot program for Transactional Data Reporting has met widespread criticism, leading many to question its supposed benefits.

GSA wrote the Transactional Data Reporting (TDR) requirement as an alternative to the Price Reduction Clause (PRC) and Commercial Services Practices (CSP) provision, in response to contractor complaints. The CSP provision requires government contractors to inform GSA of any discounts they offer to commercial partners. Meanwhile, the PRC requires contractors to offer government clients discounts equal to those given to commercial customers, as determined by the contract itself.

Because vendors tend to loathe these clauses, the TDR requirement generated widespread enthusiasm before its June launch. However, since then, it has met with criticism from the contractor side and has included anecdotal evidence of contracting officers still requesting CSP, or CSP-esque information from contractors enrolled in the TDR pilot.

Kevin Youell Page, the deputy commissioner of the Federal Acquisitions Service has publicly stated that “We haven’t really heard from anyone that this has specifically happened.” Most of the criticism appears based more on worries that COs could still require these, as well as general apprehension. Nonetheless, Youell Page is trying to answer feedback and reform the program. FAS has set up an email address exclusively for questions, comments, and concerns about the program; worked closely with the inspector general’s office to alleviate confusion; and continues a cross-country campaign to train and educate contractors and stakeholders.

This is a dramatic shift, made more  so by the risks associated with the new administration. GSA has only committed to a three-year pilot, and as yet the Trump administration has not moved to support TDR. This creates concerns about the liability of participating contractors for PRC and CSP data after the pilot ends.