Tapping into the Federal Market With a GSA Contract

A GSA schedule is a half-decade contract offering a set pricelist the federal government has agreed to pay for the products and services of a business. The GSA contract is up for renewal every 5 years, at which point it must be renewed. In renewing GSA Contract Services, the business and government re-negotiate the prices to be offered for federal contracting.

Federal bids still have some competition, however a business with a GSA Contract has a large advantage. Often, the only competition would be another company with a GSA contract, or a company that makes a proprietary item. Therefore, competition is reduced dramatically because the prices contained in a schedule which are pre-negotiated at the time of contract award. Usually, the competition is between only businesses on schedule with the GSA, and those without a GSA Contract haven´t a snowballs chance.

A business with a GSA Contract will not achieve sales under the contract without focused, agency-based sales efforts. It does take some time to become an established federal contractor, even with a GSA Contract. However, once trust is established, the GSA Contract alongside a track record of successful contracts will secure a strong position for any company in the federal market.

Contracting officers, or procurement officers, are often required to request proposals from three contractors and select the winning contractor based on best value. However, best value in the federal market does not necessarily mean the lowest price. Put yourself in the place of a contracting officer. They generally are not experts on what they are responsible to procure, they just want to make sure that tax dollars are fairly represented.

The two biggest factors when a CO determines the best value are performance history and price tag. However, there is a lot to be said for end-user influence. It may not be the ideal tax-payer protection, but it is actually a very worthwhile system. Here is why: A company that has their GSA Contract and has worked with Nellis Air Force Base on accomplished projects is likely to win even more bids on that military base. At the end of the day, federal employees just want to avoid being responsible for a horrible waste of taxpayer dollars, and the proven contractor is always the best bet.

The use of a GSA schedule is an efficient buying system, and is becoming increasingly popular among federal purchasers. Administrative costs for offering products or services under GSA schedules are much lower than the costs of dealing with individual contracts. Businesses with a GSA Schedule are given a supreme advantage in competing for projects in the government arena.