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General Services Administration (GSA) & Schedule Contracts
In the last fiscal year, 78 US federal agencies purchased more than US$40 billion through contracts administered by the US General Services Administration. Here are answers and links about how selling through GSA can help you win business.
Why and What Should I Know About the GSA?
What is GSA?
"Do you have a GSA number?"
How you get a GSA number
What's a GSA Schedule?
Schedule Subcontracting
Where can I learn more?
Marketing and winning with Schedule Contracts
Why and What Should I Know About the GSA?
- The General Services Administration (GSA) is a US federal agency that provides other federal agencies the workspace, products, services, technology, and policy they need to accomplish their missions.
- GSA does not actually purchase items for other departments. It negotiates contract terms and conditions ("schedule contracts", which each have a unique "GSA number" ) that all US government buyers may use.
- Many US government buyers prefer to use GSA's schedule contract programs, which make it easy to buy large quantities or make repetitive purchases of commercial products and services.
- Many state governments base their purchases on a vendor's federal schedule terms and conditions. If you pursue state government sales, your federal GSA contract may be a convenient starting point.
- Many prime contractors or integrators prefer teaming partners that have schedule contracts.
What is GSA?
The GSA Federal Supply Service (FSS) negotiates, awards and administers government-wide ("schedule") contracts for commercial products and services at stated prices for specified periods of time. GSA's Acquisition Centers manage items including automotive, office furniture, scientific equipment, and supplies; paints; chemicals.
GSA's Federal Technology Service procures information
technology products on behalf of the government. Through two Seat Management contracts, US
government agencies can choose a vendor to lease all aspects of the desktop (eg: monitor,
hard drive, support services).
The GSA Public Buildings Service (PBS) plans, constructs, maintains, renovates, leases and operates federal buildings. PBS awards contracts for:
- Design services, on the basis of highest qualifications;
- construction on the lowest responsive and responsible sealed bid;
- space planning and interior design based on a combination of experience and qualifications, understanding of the problem, and price;
- Security, cleaning, environmental maintenance and other services are procured through the PBS divisions in regional GSA offices. Building managers also have the authority to make purchases of supplies and services of up to US$25,000.
"Do you have a GSA number?"
- This is a contract number.
- When government customers ask if you have a "GSA number" or are "GSA approved" they're asking if you have a schedule contract with the GSA Federal Supply Service (FSS).
- Many US government buyers -- including the Department of Defense -- like to use these contracts.
- The contract process takes time (expect about 6 months) and money (many consultants will negotiate and manage your schedule contract for a fee.)
- The marketing process takes time - but high-quality, persistent effort can build long-term clients and strong loyalty over several years.
- The schedule doesn't guarantee sales. It's only a license to hunt! Plan on significant marketing money to reach and win government customers.
How you get a "GSA number"
- You get the number after you have successfully negotiated with GSA the terms and conditions to provide your services or products to US government buyers on a GSA Schedule Contract.
- It's not instant! It takes time - often 4-6 months.
- Once you submit your initial proposal, negotiations begin. GSA's seeks a price equal or better to what you offer your best commercial customer. Presenting your pricing information in a way that facilitates the objective is appreciated. Disclosing key pricing information early will speed negotiations and lower the likelihood of audits in the future. Do consult and expert for advice on how to balance legal compliance with sound business strategy.
What's a GSA Schedule?
- It's a negotiated contract for fixed price, fixed length, indefinite demand, indefinite quantity (ID/IQ), including terms and conditions to offer products or service for government buyers.
- Agencies then contact the vendor directly to buy under those terms.
Schedule Subcontracting
Another option is to place your product or service on another company's schedule, usually a reseller or systems integrator. Teaming with another company can get your product on a schedule more quickly as it is usually easier to add a new product to an existing schedule contract than to negotiate a schedule from scratch. What you gain in speed will cost you in margin, though. Resellers and integrators active in your market niche that hold GSA schedules are listed on the GSA's E-Schedules Library and GSA Advantage!. However, you would want to keep in mind all the routine considerations when choosing a partner.
Where can I learn more?
- Learn online! Visit GSA's Virtual Campus to find out all about schedule contracts and how to use them to your advantage. GSA provides online vendor guides to its schedules and programs. GSA Advantage! -- an online catalogue -- is a source of competitive information for visitors, buyers and vendors looking for products and services...but buyers often order directly from vendor
web sites.
- Take courses!
Marketing
and winning with Schedule Contracts
Many firms provide professional services that help companies succeed in US government contracting - including but not limited to negotiating and administering GSA schedules for a fee.
- Visit and call your customers regularly -- it costs less money to retain them than to find new ones! You want them to remember who you are and what your product is when it is time for them to buy.
- Create a direct marketing campaign just for your federal buyers.
- Know their buying cycle - US Federal government fourth quarter is July - September! - and plan your marketing to meet those year-ennd needs (and dollars!)
- Good professional help can give you a competitive edge.
- Canadian Commercial Corporation (CCC) can endorse your offer to US government, and back-to-back contract with you -- and is required to do that for contracts with the US Department of Defense. CCC can help with document preparation and registration, acts as prime contractor and guarantor for US government sales, advises on and reviews bids and proposals, negotiates and administers contracts, and facilitates invoicing and payment for Canadian firms.
- US Federal Market Consultants
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