This post is guest written by Jennifer Schaus.
The answer is “it depends”. GSA Schedules are a vendor short list, a marketing tool only and absolutely NOT required to do business with the US Federal Government. While billions of dollars run through the GSA Schedule (mostly DOD & HHS purchases), did you know…
- About 20,000 companies hold GSA Schedules;
- 63% have zero sales through their Schedule;
- GSA Schedules are based on your lowest prices as well as competitor rates (which may be a lot lower);
- GSA Schedules are used only about 10-15% of the time in federal purchases;
- They are ONE OF MANY contract vehicles available.
Although they are ubiquitous across all federal agencies and well marketed (by GSA), companies who hold these contract vehicles still need to market themselves. Having the “build it and they will come” strategy is not a wise unless your pipeline has willing and able (GSA) customers. We suggest meeting or preferably exceeding the requirements as well as have at least 4-5 customers who suggested purchasing from you specifically via the Schedule. There are always exceptions and idiosyncrasies within the various Schedules, but don’t be pushed into the Schedule by someone trying to sell you their services.The push should come from government!
Some key considerations include:
- Do you have 2 full years of solid revenues (preferably not showing any loss)?
- Do you have at least 4-5 FTE’s? (1099 do not count!)
- Do you have 4-5 customers who expressed interest in purchasing from you via the Schedule?
- Have you reviewed competitor pricing and ensured you will be profitable with comparable rates?
- Do you have a dedicated sales rep and contract administrator to cover sales and compliance reporting?
- Do you have sub-contracts and/or direct contracts with the government?
- Do you have relevant and recent past performance that maps to the SIN description?
This is not a requirements matrix and should not be the only factor when determining to pursue the GSA Schedule.The risk adverse federal government is motivated by low prices, trusted entities and past performance. The GSA Schedule is one of many ways to help tick some of these boxes. However, there is no silver bullet, only hard work, grit and perseverance in this ultra competitive market.
Jennifer Schaus is principal of JSchaus & Associates a Washington DC based consulting firm.The organization helps companies that sell to the federal government with a wide range of professional services including market analysis reports, proposal writing, GSA Schedules, SBA 8(a) Certification and contract administration. Clients are mid size and large businesses, domestic and foreign, product, service and software firms.
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