The General Services Administration issued the final version of its much-discussed Transactional Data Reporting (TDR) rule; on June 23, 2016, it was published in the Federal Register and will be phased in through a pilot program affecting select schedule and special item numbers. The GSA’s goal is to remove contractors’ difficult reporting requirements and save millions of taxpayer dollars.
The TDR rule also marks the elimination of the Commercial Sales Practices disclosure and Price Reductions Clause.
On the CSP-1 document, a GSA schedule holder was required to disclose each category of customer to whom they offered similar products/services and the discounts each received.
One of the most challenging aspects of PRC compliance required a contractor to monitor their basis of award customer. Any price change made by the schedule holder that disturbed the relationship between the BOA customer pricing, and pricing offered to the GSA, could trigger the PRC.
TDR will instead allow the GSA to track similar prices paid by other federal purchasers. TDR requires contractors to electronically report important data for all purchases through GSA schedules including:
- · price
- · quantity
- · standard part number
- · product description
The new rules capture market intelligence for the GSA. Anne Rung, United States Chief Acquisition Officer, is quoted on gsa.gov: “For the first time, the federal government will be able to access critical procurement information, like prices paid by government customers for a wide variety of commonly acquired products, to potentially drive hundreds of millions of dollars in savings.”
A different point of view is illustrated by the Project on Government Oversight, which notes that most price reductions that resulted in government savings were voluntarily disclosed by contractors, not reductions caught by the government.
POGO writes, “The data collection under the new Transactional Data Reporting Clause will give the government better insight on price variations within the public sector”. However, “the new ‘market intelligence’ granted by the Transactional Data Reporting Clause will be limited to only government sales, and exclude a whole other market with alternative pricing variations that is driven by real market forces. Contractors could potentially begin to offer unfair prices within the federal marketplace, which could become institutionalized and recycled to all agencies without the proper oversight or perspective that commercial-price tracking would provide.”
The implementation of TDR marks a new day for those who buy and sell in the GSA space that will require keeping up with the new rules.
To learn how the TDR rule affects your GSA schedule reporting or application, call Arrowhead Solutions, LLC.