Presented at NCMA's World Congress 2016 Presenters: Baker Tilly's Jeff Clayton, Principal and Rob Austin, CFCM, Director The General Services Administration (GSA) released the final version of its “Transactional Data Reporting” rule on June 23, 2016, impacting a number of GSA Schedules and special item numbers, as well as other governmentwide contracts. This presentation will explore the details of this new regulation, including some remaining questions and how contractors should prepare for compliance. www.bakertilly.com/governmentcontractors

2. GSA’s Transactional
Data Rule – What You
Need to Know
Breakout Session #: A11
Jeff Clayton and Rob Austin
Date: Monday, July 25
Time: 11:15am–12:30pm

3. GSA Begins Pilot Program for
Transactional Data Reporting
(TDR)
From the Final Rule announced on June 23rd:
– “GSA will introduce a new Transactional Data Reporting clause
to its FSS contracts in phases, beginning with a pilot for select
Schedules and Special Item Numbers. Participating vendors will
no longer be subject to the existing requirements for
Commercial Sales Practices (CSP) disclosures and Price
Reductions clause (PRC) basis of award monitoring, resulting in
a substantial burden reduction… These actions represent the
most significant change to the Schedules program in the past
two decades.”
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4. Polling Question Instructions
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Text JEFFREYCLAYT124 to the five-digit
number 22333 to join session
Text your answer to 22333. Only one response per
poll.
– Standard text messaging rates apply
– No spamming
– Completely anonymous
Questions during the presentation?
Text them to 22333

5. Polling Question
Which of your speakers is an
avid record/vinyl and music
memorabilia collector ?
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6. Where did you travel from?
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7. Would you rather learn about
TDR requirements or head to
lunch?
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8. Introduction
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Rob Austin, CFCM
Director
Jeff Clayton
Principal

9. Agenda
• Overview of TDR pilot program
• New Pricing Model for GSA
• Remaining Questions
• Best Practices for Compliance
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10. Overview of TDR Pilot Program –
Affected Contracts
• Will be piloted on select GSA Schedules
– 03FAC Facilities Maintenance and Management
– 51V Hardware Superstore
– 58I Professional Audio/Video
– 72 Furnishing and Floor Coverings
– 73 Food Service
– 75 Office Products
– 00CORP PSS (PES SINs only)
– 70 IT (Equipment, Software, and COMSATCOM
SINs only)
• Also available for other GWACs and IDIQs
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11. Overview of TDR Pilot Program –
Required Fields
• Contractors will submit monthly reports
with the following information:
– Contract or BPA number
– Delivery / task order number / PIID
– Non-federal entity
– Description of deliverable
– Manufacturer name and part number
– Unit measure
– Quantity of item sold
– UPC
– Price paid per unit and total price
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12. Contractor
• No longer required to
submit CSP disclosures
• Relieved from Basis of
Award monitoring
obligations under the (PRC)
Government
• Greater visibility into prices
paid for products and
services at the order level
• Allows for a more dynamic
pricing model to ensure
competitive prices relative to
other vendors
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Overview of TDR Pilot Program –
Key Benefits

13. Polling Question
Do you hold one of Contracts / SINs affected
by the TDR pilot?
A. Yes
B. No
C. Not yet, but we intend to soon
D. N/A (e.g., Government, Media)
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14. New Pricing Model for GSA
• Previously, CSP disclosures positioned
GSA to receive favorable prices compared
to commercial customers (“vertical” model)
• New data-based model looks only at prices
achieved in the Government marketplace
(“horizontal” model)
• Contractors subjected to horizontal pricing
comparisons understand how these
reviews can impact pricing negotiations
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15. New Pricing Model for GSA
• GSA Acquisition Manual (GSAM) is being
updated to emphasize the use of this price
data during negotiations
– The language still states that the Government is
looking for the “best value”, not simply the lowest
price
• GSA still retains the right to request
additional information, including other than
certified cost and pricing data
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16. Remaining Questions –
Pricing Negotiations
• While GSAM updates are forthcoming,
uncertainty remains regarding how COs
will use this information, and how/if they
will be able to account for:
– Items with limited (or zero) sales
– Fixed-price orders
– Services, particularly those without standardized
labor categories
– Differing terms and conditions
• For PSS and IT70 Contractors with both
affected and non-affected SINs, what is
required for non-affected SINs?
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17. Remaining Questions –
OIG’s Role
• While the OIG will no longer be reviewing
CSP disclosures and PRC monitoring
policies for these Contracts / SINs, they
have indicated they will be reviewing the
transactional data
• GSA OIG may still request commercial
pricing data during pre-award audits
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18. Remaining Questions –
Public Data File
• GSA has indicated it intends to make some
of this data available to the public
– Data file would include information that would
otherwise be available through FOIA
• Potential open access to purchase price
information under FSS contracts could
have a significant impact on government
and commercial markets
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19. Polling Question
Based on what you knew of the rule before
today, or based on our discussion today, do
you believe the TDR is:
A. An improvement for Government
B. An improvement for companies selling
through the Schedules?
C. An improvement for both parties?
D. Neither
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20. Best Practices –
Complying with the TDR
• Ensure that systems / processes enable
monthly reporting that is timely and
accurately
• Identify system(s) necessary to capture the
data and maintain its integrity
• Think strategically about how this reporting
will impact pricing and sales objectives
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21. Best Practices –
Pricing Policies
• Continue to be mindful of commercial sales
practices
– Commercial data or policies may still be
requested by the CO or OIG and could impact
pricing objectives
• Consider government discounting policies
as well
– Discounted government sales at low prices may
cause GSA to push for lower baseline contract
prices
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22. Questions?
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23. Jeff Clayton, Principal
jeff.clayton@bakertilly.com
Jeff Clayton is a principal in the Government
Contractor Advisory Services Practice at Baker
Tilly. He has more than seventeen years
experience providing a broad range of pricing
(GSA/VA Schedules and other commercial item
contracts), contract compliance and
dispute/litigation related services to government
contractors and their legal counsel. Jeff has
extensive experience working with contractors
and their counsel during Office of Inspector
General (OIG) audits, Department of Justice
(DOJ) investigations, and in defense of qui tam
suits brought under the False Claims Act.
Rob Austin, Director
rob.austin@bakertilly.com
Rob is a director in the Government
Contractor Advisory Services Practice at
Baker Tilly. He has more than ten years
of experience providing specialized
pricing, compliance, negotiation, audit
and litigation support services to
government contractors across a variety
of industries Rob significant experience
supporting FSS contractors through the
Mandatory Disclosure program and
providing litigation support in support
Federal False Claims Act allegations.
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