What is a GSA Schedule Contract and Why You Should Acquire One
What is a GSA Schedule Contract?
A GSA Schedule Contract, sometimes known as a GSA Contract or a GSA List, is a 45 billion dollar government contract. The General Services Administration is the government body that awards these contracts to businesses, non-profit organizations, or institutions. The GSA Schedule Contract essentially allows these companies to market their products and services to the government.
What makes this different from doing regular business is that the GSA Schedule Contract is a long-term contract. For a minimum of five years, a GSA Schedule Contract will allow you to provide an indefinite quantity of products and services to government customers. A GSA Schedule Contract can also be extended three times, meaning that a business or institution could benefit from that $45 billion contract for 20 years.
How can you get a GSA Schedule Contract?
Companies interested in acquiring a GSA Schedule Contract must be running their business for at least 2 years, have at least $150,000 in gross sales, must be TAA compliant, and should also be marketing products or services that match what a GSA Schedule is looking for. Companies should also be willing to comply with the federal government in terms of pricing.
GSA Schedule Contract application can be very daunting, especially for first-timers in the government market. And if your company does not have any staff with experience in acquiring GSA Schedule Contracts, there are a number of government contract consulting bodies that are willing to help simplify the application process for you and your business. The experience can be very time-consuming and your application might get rejected at least once, but the contract can be worth the trouble.
What are the benefits of getting a GSA Schedule Contract?
When a business gets awarded a GSA Schedule Contract, a company is guaranteed to earn at least $45 billion in annual sales. This is because GSA Schedule Contracts can be utilized by all federal government agencies that may be in need of the products and services the business may offer. And because there is no set amount of quantities that can be procured through the contract, federal agencies can order an unlimited number of products or services, ensuring a steady sales flow.
Another reason why GSA Schedule Contracts are beneficial to any business, organization or institution is that there is a reduced pool of competition. Because of how selective the process can be, competition is drastically reduced in the industry a business may operate in. This means that businesses with a GSA Schedule Contract are playing in a field where there is a huge demand, but little supply. Despite the competition, there is also a guarantee that the GSA will utilize the contract as much as possible; procurement officers for federal agencies will be taking advantage of the products and services that companies with a GSA Schedule Contract provide.
One other benefit to acquiring a GSA Schedule Contract is the faster turnaround time for the sales process. The GSA Contract already contains terms and conditions that outline prices and warranties and other necessary agreements that are deemed fair for both the commercial entity and the federal government agency purchasing the products. This eliminates the lengthy negotiation process that often comes with wholesale buying.