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What is the GSA?
Other Considerations
Small Businesses' GSA Advocate
Web Resources
What is the GSA?
The General Services
Administration (GSA) is the federal government’s primary
management agency. Among its many responsibilities is to serve as
a procurement office for the federal agencies and more than one
million federal workers. In this role, the GSA oversees the purchase
of a broad array of items, including buildings, products, services,
and technology.
Through one of its subsidiaries—the Federal
Supply Service (FSS)—the GSA negotiates and awards contracts
to private vendors through which federal offices can quicker and
more easily obtain frequently used products and services. Federal
agencies use these contracts to buy products and services without
having to negotiate pricing or terms each time they want to place
an order.
What is a GSA Schedule Contract?
Under the GSA
Schedules (also referred to as Multiple Award Schedules and
Federal Supply Schedules), GSA establishes long-term, government-wide
contracts with commercial firms to provide specific products and
services. Federal buyers currently have access to more than four
million commercial services and products through these contracts.
Depending on a buyer’s needs, these items can be ordered directly
from the contractor or through the GSA’s
Advantage!® online shopping and ordering system. The GSA
Schedule contracts offer advantages both to the buyers and the sellers
of these items:
- Buyers save substantially from not
having to prepare and administer a formal procurement action each
time they need to purchase certain frequently needed products
and services. In addition, buyers are assured they will receive
the contractors’ best prices, a key requirement for companies
that want to sell through the GSA schedules.
- Sellers who obtain a GSA Schedule
contract are assured a minimum amount of sales each year. The
GSA does not award contracts unless the anticipated sales are
expected to exceed $25,000 in the first 24 months, and $25,000
in each subsequent year. Moreover, the contracts are typically
“indefinite-delivery, indefinite-quantity” contracts,
usually for five years and often with “Evergreen options”
for quick and easy renewal. These contracts must be weighed against
the GSA Industrial Funding Fee (IFF) charged to each selected
vendor to support the GSA’s administration activities.
How Does One Obtain a GSA Schedule Contract?
GSA Schedule contracts begin as solicitations, issued as requests
for proposals (RFPs) for a specific product or service. Vendors
wanting to supply the product or service submit formal proposals
in response to the RFP. The GSA may require clarifications of submitted
proposals, but in the end, the government may only accept or
reject a company’s offer—the government may not counter
offer.
When the government decides to accept an offer, a contract is awarded.
The selected vendor receives a contract number and is now free to
accept orders for products covered by the contract. Vendors should
understand that receiving a GSA Schedule contract is only the first
major step in actually making sales—the second step involves
marketing the company and its products/services to federal buyers
that can benefit from them.
Getting Your Products on a GSA Schedule: Three Steps to
Keep in Mind
- Identify Products and Find Solicitations
Vendors must first identify which schedules cover their products
or services. A list can be found at Schedules
& Other Services & Products. Then each vendor needs
to obtain the solicitation from the specific schedule of products
and services they want to offer. It is important to stay current
with schedule solicitations and remember deadlines.
- Determining
Price
The federal government wants the vendor’s best price for
its products/services. Therefore, vendors need to be prepared
to justify the relationship between the price and quality of their
products. If a vendor’s price is lower than average within
the industry, then the company should emphasize its lower cost
to the buyers. On the other hand, if the product/service is more
expensive, the vendor should be able to demonstrate how the product
is superior, thereby justifying the higher price. The key phrase
for pricing is “fair and reasonable.” And remember,
the government may only accept or reject an offered price, not
negotiate for it.
- After Being Awarded a Contract
The awarding of a GSA schedule contract is a notable achievement,
but no guarantee that orders are forthcoming. Once a contract
has been awarded, the vendor must develop a market by finding
and approaching those individuals in government who need the vendor’s
product/service. This step involves informing these potential
buyers that the vendor’s product/service is on a schedule
and now available to meet the agency's needs. It is important
to keep price lists current and properly posted on GSA
Advantage!®. Federal buyers are turning more
and more to GSA Advantage! ® and e-Buy for their procurement
needs. A component of GSA Advantage!®, e-Buy is an
online Request for Quotation (RFQ) tool designed to facilitate
the request for submission of quotations for a wide range of commercial
services and products that are offered by GSA Schedule contractors
who are on GSA Advantage!®
Other Considerations
Variations in Contractual Requirements
Procurement requirements vary depending on cost and quantity. Below
are several examples of variations in purchasing procedures:
- Micro-Purchase Threshold: Products that
cost below $2,500. These products/services can be sold without
a GSA schedule, which makes them an attractive option for vendors
seeking government markets for lower-priced goods and services.
- Maximum-Order Threshold: This
threshold represents the point where it is advantageous for
the ordering office to seek a price reduction. Note that the
maximum order threshold does not represent a maximum dollar
value per task order—instead,
it represents the point at which consideration of further
discounts may be made by the client/customer.
- Orders that fall between the Micro-Purchase
Threshold and the Maximum-Order Threshold: The
government buyer must review the catalogs and pricelists
of at least three Schedule contractors or consider
reasonably available information by using the GSA Advantage! online
shopping service.
- Blanket Purchase Agreements (BPAs): Purchasing
offices may establish BPAs under any schedule contract to
fill repetitive needs for supplies or services. BPAs may
be established with one or more schedule contractors.
Contract Termination
Both vendors and the government have the right to cancel contracts
with thirty days notice. There are several reasons why the government
may choose to cancel a contract:
Violations of contract terms and conditions
- Non-compliance with contract deliverables (failure to report
sales, repeated late reporting of sales, failure
- to remit the Industrial Funding Fee, failure to keep the price
list current, failure to load the price list to GSA Advantage!
- The government no longer has a need for the products and/or
services offered
- Low annual sales (maintaining the contract is not profitable
to the GSA.
There are also reasons why vendors may choose to cancel a GSA
Schedule contract:
- Change in corporate structure or ownership
- Change in business direction
- Low annual sales (maintaining the contract is not profitable
to vendor)
Cancellations are effective 30 calendar days after the other party
receives the written notice of cancellation.
Small Businesses's GSA Advocate
GSA's Office of Small
Business Utilization (SBU) should be the first point of contact
for small business owners interested in doing business with the
federal government, including those who want to learn more about
obtaining a GSA Schedule contract. The SBU advocates for small,
minority, veteran, HUBZone, and women business owners, in part by
making it possible for business owners to meet key contracting experts
and be counseled on the procurement process. Vendors can receive
assistance through any
of the 11 regional SBU offices.
Web Resources
Articles
Public/Government
Sites
Articles
“Selling
Using Multiple Award Schedule (MAS) Contracts”
by Richard White and Steve Charles. This article offers a brief
introduction for companies interested in getting GSA Schedule contracts.
“Sizing
Up the Federal Opportunity” by Steve Charles.
This article provides an excellent introduction to the GSA Schedule
contract system, with in-depth explanations of the contracting process.
The
Steps to Success: How to be a Successful Contractor (PDF
2.7 MB) Download
Acrobat Reader. is a free, online resource for
vendors who are anticipating or have been awarded a GSA Schedule
contract.
“Guidelines
for Marketing a GSA Schedule Contract.” This
article, authored by ItsSimple.biz, includes an in-depth, five-step
approach for marketing a company to federal agencies that purchase
through the GSA system.
“Tapping
Into the Largest Market in the World” by David
I. Sonde. This article examines the ways in which small businesses
and entrepreneurs have greater access today to federal government
GSA schedule contracts than they have had in the past.
“GSA
Schedule Ordering Procedures Under Scrutiny in GAO Bid Protests”
by Gerard F. Doyle. This article summarizes some recent protests
by contractors to the General Accounting Office (GAO) of some GSA
Schedule ordering decisions. While some bid protests are a normal
side effect of any competitive bid process, others are uniquely
related to the GSA Schedule contract system.
“GSA
Schedule Contracts: Opportunities and Obligations.”
This legal article deals specifically with the GSA Federal Supply
Schedule contract obligations and is intended to assist contractors
understand the obligations inherent in a GSA Schedule contract.
“Should
your firm try to win contracts with the federal government? Here
are 7 things you can do in the next 7 days to help you decide”
by Dave Alexander. This article offers immediate help to companies
trying to decide whether or not to enter the federal government
marketplace. The seven tips provided are intended to give companies
access to specific, detailed information about the federal marketplace
and how it works.
“Compete
In The Government Market” by Carly Rohrer. This
article offers advice for Value Added Resellers (VARS) interested
in entering the GSA Schedule contract marketplace, and includes
information on competing for contracts and how to work with Value
Added Distributors (VADs).
Public/Government Sites:
U.S. General Services Administration
GSA Federal Supply Service.
GSA Federal Supply Service (FSS) provides federal customers with
the products, services, and programs to meet their supply, service,
procurement, vehicle purchasing and leasing, travel and transportation,
and personal property management requirements. FSS maintains the
GSA Advantage! e-commerce site.
GSA Vendor Support Center.
This website is vendor support center for the GSA Federal Supply
Service. The site includes the latest news, contact information
and web-based requested assistance, as well as FAQs on a variety
of vendor-GSA related issues. Use of many of the support center’s
resources requires the creation of an account on the website.
Procurement
Technical Assistance Centers (PTACs). There is a nationwide
network of PTACs, centers that offer information and guidance for
businesses interested in entering the government procurement marketplace.
FSS Center for Acquisition
Excellence Virtual Campus. This site provides GSA Schedules
training and seminar information, 24 hours a day, seven days a week.
Registration is required and is free of charge.
GSA
Schedules e-Library. This site is the source for the
latest information on specific GSA Schedules. Schedules e-Library
contains basic ordering guidelines, complete schedule listings,
and a powerful search engine.
FedBizOpps
serves as the single best point-of-entry for federal government
procurement opportunities over $25,000. Visit FedBizOpps regularly
to identify and obtain copies of GSA Schedule solicitations. The
‘Helpful Hints for Using FedBizOpps’ link provides step-by-step
information as to how vendors may search by GSA office, solicitation
number, or keyword to locate and download appropriate Schedule solicitations.
Business Partner Network
(BPN). The Business Partner Network is the single source for vendor
data for the Federal Government. The BPN is a search mechanism that
provides views into several key databases across Federal Agencies.
Central Contractor Registration
(CCR). The CCR is the contractor information repository for conducting
business with the U.S. Federal Government. The CCR collects, validates,
stores and disseminates data in support of agency acquisition missions.
Both current and potential government vendors are required to register
in CCR in order to do be awarded contracts by the government. Vendors
are required to complete a one-time registration to provide basic
information relevant to procurement and financial transactions.
Vendors must update or renew their registration annually to maintain
an active status. Registration requires a DUNS number.
Minority Business Development Agency Contracts Page.
This website offers advice and information for minority-owned companies
interested in government procurement contracts.
GSA
Schedules Success Stories. Read success stories from
companies and government agencies about the benefits of using the
GSA Schedules program.
Sites
Fedmarket.com,
a private company providing government vendor/buyer resources. Considered
a top government contracting resource by public and private organizations
throughout North America, including the Small Business Administration
(SBA) and federally funded procurement organizations, such as Procurement
Technical Assistance Centers (PTACs).
Also check out Fedmarket.com’s online
library of free articles on selling to the federal
government.
Open Ratings Past Performance Evaluation. This fedmarket.com
site offers assistance on ordering evaluation reports from Open
Ratings, Inc. Open Ratings reference reports are often required
for getting on a GSA Schedule, as they offer proof of a potential
supplier’s past financial stability. Fedmarket.com also provides
an Open Ratings tutorial here.
ImmixGroup is
a consulting firm that offers a mix of services to help commercial
technology companies do business in the public sector.
GovCon is
a private firm that assists contractors with government procurements.
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