[8275] in Commercialization & Privatization of the Internet
Re: EDGAR and A-130
daemon@ATHENA.MIT.EDU (Steve Haynes)
Fri Nov 12 15:53:14 1993
Date: Fri, 12 Nov 1993 14:47:49 -0600
From: shaynes@research.westlaw.com (Steve Haynes)
To: com-priv@psi.com, love@essential.org
Cc: shaynes@research.westlaw.comshaynes
On Fri, 12 Nov 1993 01:46:21 -0500, Jamie Love said (in part):
> A few comments are in order. Haynes says that the EDGAR
> dissemination experiment funded by NSF is "arguablly
> _contrary_" to A-130, since private sources for SEC
> materials are or will be available. Steve, are you saying
> that in your judgement, A-130 prohibits agencies to publish
> government information products or services simply because
> private sector products or services exist? ... In what
> sense do you believe that the NSF EDGAR grant is contrary to
> A-130?
In fact, Jamie later in his message alluded to the provisions in
A-130 that are contrary to the NSF action. First, however, I do
not say that A-130 "_prohibits_ agencies to publish government
information products or services simply because private sector
products or services exist" (emphasis added)." A-130 does not
have the force of law. However, to the extent that agencies fall
under OMB, or must work with OMB, obviously they ignore A-130 at
their peril.
The specific language in A-130 (as revised) that pertains reads
as follows:
"3. Section 8b. Information Systems and Information Technology
Management Policy."
...
"(4) Use of Information Systems and Acquisition of Information
Technology.
...
"The use of the term 'information technology,' which includes
equipment, software, services, and telecommunications, recognizes
the growing trend in the public and private sectors to
'outsource' a variety of information technology activities.
Increasingly, agencies acquire a 'solution' from the private
sector instead of just the hardware. Policies pertaining the use
of information technology use the term 'information systems'
which includes automated and manual information processing
processes."
* * * * *
"(4) Use of Information Systems and Acquisition of
Information Technology. Agencies shall:
"(a) Ensure that existing and planned information systems do not
unnecessarily duplicate information systems available from other
agencies or from the private sector;"
* * * * *
The language speaks for itself. The intent of the EDGAR project
was to permit -- even encourage -- a multitude of private sector
points of dissemination of the EDGAR data. The NSF grant sweeps
aside all prior decisions on the part of the SEC and on the part
of Congress when the EDGAR program was initially funded. We
haven't even let the marketplace work out the pricing for these
materials. Jamie points to vendors' pricing of prior SEC-related
materials because he cannot say what the EDGAR data would be
priced at.
These prior materials are priced so high in part because there is
limited demand for them and partly because of the high costs of
acquire and convert this material to machine-readable form. Now
we are facing a situation where the cost of acquisition is
_fixed_ without regard to the volume of materials, and marginal
cost of conversion is negligible (except for those vendors who
choose to add value to the raw data). If there is indeed a large
demand among that great information-using public for 10-Ks, 10-Qs
and annual reports, that demand will lead to several vendors
supporting the files (and the search software). Surely Jamie
does not believe that $12-20 per hour -- as with Compuserve or
America Online -- is an exorbitant price to pay. If demand for
this material exists, these lower priced information providers
will come into the EDGAR market. But let the marketplace speak
first, Jamie, before skewing the entire process with a government
grant-funded free service.
It is as if the government in the 1950's had looked forward to
the cost of color televisions, decided they were going to be too
expensive, and funded the placement of color TVs in every home
for free. No one would argue that that was a proper function of
government. A-130 says it is equally an improper function of
government when it comes to information.
* Stephen L. Haynes Internet: shaynes@research.westlaw.com
* Manager, WESTLAW Research MCI Mail: 221-3969
* & Development Compuserve: 76236,3547
* West Publishing Company Phone: 612/687-5770
* 610 Opperman Drive Fax: 612/687-7907
* Eagan, MN 55123
