TDR hits some professional services

Data pilot started on Jan. 1

The Transactional Data Reporting (TDR) pilot program was to go into effect for Professional Engineering Services starting on Jan. 1, 2017, and it is attracting controversy.

The General Services Administration introduced TDR in August 2016 and has been rolling it out to selected vendors on the Multiple-Award Schedules program.

Affected schedules included those for facilities maintenance, hardware superstores, professional audio and video, furnishings and floor coverings, office products, food service and IT equipment, software and services.

Vendors in the program must submit monthly reports on transactional data, including details such as descriptions, part numbers, quantities, and prices paid for the items purchased. The goal is greater transparency in pricing.

In return, the vendors will not have to apply Commercial Sales Practices disclosures and the Price Reductions clause.

Larry Allen, of Allen Federal Partners, considers TDR to be controversial for professional services.

“How (TDR) will work in the complex world of professional services is unknown,” Allen wrote in his blog. “Labor categories, rates, and how they are combined vary substantially from project to project and from contractor to contractor. ...As such, it is truly difficult to see how Professional Services TDR data could be of much value to customers.”

More Information:
Larry Allen’s blog: http://allenfederal.com/week-ahead/

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