[idz_accordion title=”What is a GSA contract ?” icon=”icon-briefcase” autoclose=”true” openfirst=”false” openall=”false” clicktoclose=”true”]As the catalyst for $50 billion in federal spending, making up over 10 percent of overall federal procurement spending, the GSA Schedules Program is an attractive tool for commercial enterprises looking to capitalize on US Federal market opportunities.

Businesses, non-profit organizations, and educational institutions can obtain a GSA Schedule Contract to sell products or services to government customers. While GSA Schedule Contracts are primarily used to sell to federal agencies,in certain cases they can also be used to sell to state and local government.

For industries, these contracts allow organizations to more easily sell to federal entities as GSA has already determined pricing on supplies and services to be fair and reasonable as part of contract award. Put another way, you are invited to participate in an exclusive network of government approved providers who receive preference from agencies looking for a quick and easy way to meet their needs. For the Federal Government, GSA Schedule Contracts represent a long term partnership with industry as contracts have 4, 5 year options terms, up to 20 years total.

While the advantages are clear, the path to acquiring and maintaining a contract is a bit mirkier. Organizations spend much time and effort researching and learning about the program, but often fail at securing a contract and, perhaps even worse, acquire one, but fail to understand how to properly maintain the contract and the impact it has for the organization overall.

[idz_accordion title=”What other aliases does a GSA Contract go by ?” icon=”icon-wheel”]

[idz_heading tag=”h4″ class=”normal”] GSA Schedule Contract….Also known as…[/idz_heading]

The GSA Schedule Contract is often referred to by different names. Companies that are trying to understand what the GSA Schedule Contract is can be confused by its multiple aliases. All of the terms listed below can be used to refer to the GSA Schedule Contract.
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  • GSA Contract
  • GSA Schedule
  • GSA Schedule Contract
  • GSA Schedules Program
  • Federal Supply Schedule (FSS)
  • Federal Acquisition Service (FAS)
  • GSA Multiple Award Schedule (MAS) Program
  • GSA Number
  • GSA List
  • GSA Approved

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[idz_accordion title=”What are the benefits of a GSA Schedule Contract ?” icon=”icon-watertap-plumbing”]

GSA contracts increase the productivity and capacity of scarce acquisition resources, which pushes government agencies to look at all available contract vehicles when looking to make a procurement of any size. With its wide variety of offerings, the GSA Schedule has become one of the government’s premiere contract vehicles. In total, the GSA schedules program makes up about $50 billion a year in spending.

By holding a GSA Schedule, contractors reduce their competitors to include only other contractors that hold GSA Schedule contracts as well. As points of differentiation are then decreased, some costs (such as proposal-writing costs) can decrease as well. By holding a GSA Schedule contract, companies do not have to bid on as many publicly posted opportunities as they would have to otherwise. Using their GSA Schedule contract, their sales staff can close a deal quickly instead of trudging through the government’s long procurement cycle.

The GSA Schedules program is often the first major federal government contract vehicle that companies obtain, as many GWACs as well as state and local contracting vehicles require companies to use either a GSA Schedule or a GSA Schedule channel partner. This helps reduce administration fees and overall management for state and local governments. It also helps state and local governments do more with decreasing budgets. Some GSA Schedules also have state and local government cooperative purchasing agreements. The Information Technology (Schedule 70) and Total Solutions for Law Enforcement (Schedule 84) Schedules allow GSA schedule contractors of those specific Schedules to offer GSA Schedule pricing to state and local government.

The GSA Schedules program also has a “members only” government opportunity board. The opportunities posted are by government agencies specific looking to make procurements from GSA Schedule contract holders. These opportunities are typically posted every three to seven days. Compared to the months it takes to make procurements on the open market, these GSA Schedule opportunities are extremely advantageous.

[idz_accordion title=”Can I sell to the government without a GSA schedule ?” icon=”icon-watertap-plumbing”]

The answer, put simply, is yes. Yes, you can sell to the government and participate in government bids without a GSA schedule. But, it may not be beneficial to you.

Many government agencies are required to make the majority of government procurements using the GSA Schedule along with other Government-wide Acquisition Contracts (GWACs). The GSA schedule is the general start point for many government contractors who are looking to do business with the government.

If organizations don’t want to manage a GSA Schedule, they do have another option. Some organizations are able to offer their solutions through a GSA channel partner, essentially using another company’s GSA Schedule. This removes the problem of management problem and allows for new organizations to try their hand in government marketplace, hopefully building success before obtaining a GSA Schedule of their own. This has been proven as an especially beneficial method for companies in the information technology industry.

Selling to the government without a GSA Schedule is possible, but it unnecessarily complicates the process by adding many avoidable obstacles. Those hurdles alone can cause enough frustration as to cause many companies to turn away from the government marketplace. Though not totally necessary, the GSA Schedules program is a great way to facilitate entry into the government marketplace.

[idz_accordion title=”Should we go it alone or hire a consultant / GSA Schedule Consultant ?” icon=”icon-bullhorn”]

Getting a GSA Schedule does NOT guarantee you will get any business. However, getting on the GSA Schedule can be essential to boosting your government business. Many agencies will not do business with you without a GSA Contract. Can you qualify yourself? The technical answer is certainly yes. However, consider what you don’t know. On the surface, this may seem like a very straightforward process. When the rubber meets the road, you may find that it will not be the case.

In terms of lost time, pulled resources, and missed opportunities, it typically costs a company more in the long run to handle the GSA Schedule proposal process in-house. Before making a decision, consider these core reasons for outsourcing the process of obtaining a GSA Schedule Contract to an experienced consultant.

Time & Cost

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  • Time and cost go hand in hand. The longer your company is without a GSA Schedule Contract, the higher the cost of missed opportunities. Obtaining a contract award is the most time-consuming component of selling to the government. The preparation and negotiation process is complex. In fact, many businesses will spend a year or more developing their proposal.
  • Pulling resources from other priorities, as well as a prolonged process (and sometimes unsuccessful negotiations) due to a lack of familiarity with the process, are all significant costs associated with obtaining a government contract—GSA Schedule Contracts included.

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Rejection Risk

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  • Beyond costing you time, inexperience can result in errors that cause your proposal to be rejected. According to GSA, 60% of all offers are initially rejected. While you may resubmit your proposal at any time, it is essentially placed “back in line” to undergo the review process again. With GSA experiencing an overload in new offers, once your proposal is submitted, you may wait up to twelve months before your offer is reviewed again. Can your company afford the potential loss of business during the time it takes to correct your proposal, resubmit, and await review?

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Expertise

A GSA Schedule Consultant not only understands the nuances of the GSA Schedule program, but government contracting in general. What this means is not only can they fully grasp contract requirements, understand how to interpret commercial sales practices of a wide assortment of products and services, translate that into a winning offer that achieves contract award, maximize margins, and limit compliance risk—this individual is able to describe how the contract fits within the wider context of government contracting.

Not only are they an expert in the GSA Schedule Program, but he/she can also describe trends in acquisition policy, provide feedback on where the government contracting is going, and can give at least cursory guidance on how best to proceed should alternate contracting vehicles be required for a government bid.

[idz_accordion title=” How long does it take to obtain a GSA Contract ?” icon=”icon-microphonealt”]

As government procurement consultants, we are often asked how long it will take for a company to get on the GSA. Unfortunately, the politically correct answer is not necessarily one that you want to hear: It depends! However, the length of the time frame does depend upon two main factors; be sure to consider them as you set a reasonable timeline. It’s important to remember that qualifying for a GSA Schedule is not just completing an ‘application’. It’s so much more, and we think it’s vital that companies understand this process.

What Schedule(s) Are You Seeking?

Some GSA Schedules move much more quickly than the others. IT70 with a services offering only, for example, is by far the fastest-moving with a time frame of three months (from submission to award). If, however, you offer non cloud-based software, the mandatory End-User License Agreement (EULA) review will add, at minimum, another month to this time frame. Product heavy schedules and professional services take even longer to process and implement. You should anticipate a time frame of 10-12 months from submission to award.

How Quickly Can You Pull the Necessary Information?

The GSA Schedule offer preparation process tends to be a complex ordeal, and unfortunately some of the required information can be difficult to pull: past performance documents, pricing support, mandatory registrations, and customer surveys are just a few examples of items that you may be expected to pull. And, keep in mind that your ability to find and present each piece of information will continue to take, and add, time needed to complete this process.

Can you Accelerate the Processing Time?

There are two key methods for accelerating the processing of your GSA offer.

The first is to work with someone familiar with the GSA world and its different solicitations and regulations. An experienced and proven consultant can give guidance on exactly what is expected and needed from you, what the requirements are (in detail), what pieces of information and relevant and applicable, and so on. If your company is of the “time is money” philosophy, then this strategy is ideal for you.

The other method you can implement to speed up the offer process is to find a potential GSA buyer, and then to agree to send a Letter of Expedite to the GSA: this letter must say that there is an urgent and compelling need to purchase from your company off the GSA vehicle. However, this method is not guaranteed.

Which Option Is for You?

Though a Letter of Expedite may seem the faster, cheaper, more convenient option, it is not guaranteed that you will be successful. Though it may be worth a try, it is not to say that this option covers all your bases. In fact, understanding the process comes from knowledge of the process, its time frame and its requirements. For this depth of understanding, GSA consultants are your best option. Though it may be a larger monetary investment, its return is much more long-term.

[idz_accordion title=” Who is eligible to buy from the GSA Schedules ?” icon=”icon-police”]

This is a very common, yet important question. A GSA document titled “ADM 4800.2H” officially details who is eligible to purchase from an GSA contract. In GSA terms, it dictates and assigns eligibility to utilize GSA sources of supply. In addition to determining eligibility for using schedule contracts, the ADM 4800.2H also provides a contractor with an encompassing list of potential customers.

GSA ADM 4800.2H also discusses several programs allowing State and Local Governments to purchase through the GSA contract. Keep in mind that some State and Local Government programs apply only to specific schedules and have different eligibility requirements. For the latest version of the ADM 4800.2H contact ClearCoast. We will be happy to email it to you.

[idz_accordion title=”How ‘big’ is the GSA Schedules market ?” icon=”icon-flashlight”]

The GSA Schedules program is one of the premier contract vehicles across the Federal Government. It provides access to over 12 million items across a variety of “schedules,” or categories of supply/service. In total, the GSA schedules program makes up about $50 billion a year in spending. In addition:

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  • Eighty percent (80%) of GSA Multiple Award Schedule (MAS) contractors are small businesses who represent 36 percent (36%) of sales.
  • GSA had over 19,000 MAS contracts in Fiscal Year 2012.
  • Approximately 40 percent (40%) of the 19,000 GSA MAS contracts generate sales.

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The GSA program allows the government to procure commercial items from the marketplace through an expedited and simplified procedure, at a significant cost savings. The GSA contract is not a traditional contract—having the contract does not automatically mean business; rather, it provides you the opportunity to sell to the government under the program. One way to think of the GSA contract is like being granted a “fishing license.” GSA provides the “license” (or contract) while you provide the boat, the rod and reel, the expertise, the bait, etc. There are plenty of fish out there, but you need to catch them. GSA doesn’t drop them in the boat for you.

Based on data collected over the past several years, GSA has identified the following agencies and military branches as the largest customers to make purchases through the MAS program:

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  • Department of Agriculture
  • Department of Defense
  • Department of the Army
  • Department of Education
  • Department of Energy
  • Department of Health and Human Services
  • Department of Homeland Security
  • Department of Justice
  • Department of Labor
  • Department of State
  • Department of the Air Force
  • Department of the Coast Guard
  • Department Of The Interior
  • Department of the Navy
  • Department of Veterans Affairs
  • Marine Corps

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[idz_accordion title=”How can a company obtain a VA Schedule contract ?” icon=”icon-certificatealt”]

As with GSA Schedule Contracts, procurements through VA contracting are streamlined because pricing, terms, and conditions have been pre-negotiated. In order to obtain a VA Contract a company must submit a proposal in response to the appropriate VA Schedule solicitation for the VA’s consideration. For planning purposes, companies should note that the review period can take approximately a year; this does not include the time it takes your company to prepare the proposal.

VA Contracts

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  • VA Professional and Allied Healthcare Staffing Services Schedule 621 I
  • VA Medical Laboratory Testing and Analysis Services 621 II
  • VA Pharmaceuticals & Drugs 65 I B
  • VA Medical Equipment & Supplies 65 II A
  • VA Dental Equipment and Supplies 65 II C
  • VA Patient Mobility Devices 65 II F (Wheelchairs, Scooters, and Walkers)
  • VA X-Ray Equipment and Supplies 65 V A
  • VA Invitro Diagnostics, Reagents, Test Kits & Test Sets 65 VII
  • VA Clinical Analyzers, Laboratory, Cost-Per-Test 66 III

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[idz_accordion title=”What is TAA ?” icon=”icon-bandwidth”]

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Trade Agreements Act & GSA

GSA Schedule Contracts are subject to the Trade Agreements Act (TAA), meaning all products listed on the GSA Schedule Contract be manufactured or “substantially transformed” in a “designated country”. The designated countries are composed of:
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  • World Trade Organization Government Procurement Agreement Countries
  • Free Trade Agreement Countries
  • Least Developed Countries
  • Caribbean Basin Countries

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TAA Designated Country List*

Afghanistan Japan
Angola Kiribati
Antigua and Barbuda Korea (Republic of)
Armenia Laos
Aruba Latvia
Australia Lesotho
Austria Liechtenstein
Bahamas Liberia
Bahrain Lithuania
Bangladesh Luxembourg
Barbados Madagascar
Belgium Malawi
Belize Mali
Benin Malta
Bhutan Mauritania
Bonaire Mexico
British Virgin Islands Montserrat
Bulgaria Morocco
Burkina Faso Mozambique
Burundi Nepal
Cambodia Netherlands
Canada Nicaragua
Central African Republic Niger
Chad Norway
Chile Oman
Colombia Panama
Comoros Peru
Costa Rica Poland
Croatia Portugal
Curacao Romania
Cyprus Rwanda
Czech Republic Saba
Democratic Republic of Congo Samoa
Denmark Sao Tome and Principe
Djibouti Senegal
Dominica Sierra Leone
Dominican Republic Singapore
El Salvador Sint Eustatius
Equatorial Guinea Sint Maarten
Eritrea Slovak Republic
Estonia Slovenia
Ethiopia Solomon Islands
Finland Somalia
France South Sudan
Gambia Spain
Germany St. Kitts and Nevis
Greece St. Lucia
Grenada St. Vincent & the Grenadines
Guatemala Sweden
Guinea Switzerland
Guinea-Bissau Taiwan (Penghu, Kinmen & Matsu)
Guyana Tanzania
Haiti Timor-Leste
Honduras Togo
Hong Kong Trinidad and Tobago
Hungary Tuvalu
Iceland Uganda
Ireland United Kingdom
Israel Vanuatu
Italy Yemen
Jamaica Zambia

*Updated: November 2014. Federal Acquisition Regulation (FAR) 52.225-5, Trade Agreements.

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