Benefits of Obtaining a GSA MAS Schedule Contract
A GSA Schedule is a contracting vehicle or a bridge that helps sellers connect with federal buyers in an easy yet regulation compliant manner. Therefore, the true benefit of obtaining a GSA MAS Schedule is that it can increase a firm’s sales by either helping a firm break into the federal contracting market or by providing a firm with a new method in which to sell.
Firms with GSA Schedules on average are more successful at selling to the federal government than their peers. A small business with a GSA schedule has average sales of over $1 million dollars per year from the Schedule alone.
- Helps firms break into the federal marketplace – A GSA Schedule provides a firm with a contracting vehicle giving an easy method for federal buyers to purchase from GSA Schedule Holders. Firms wanting to sell to the government can obtain a GSA Schedule and use the schedule to begin selling small orders to federal agencies.
- Market Research – Federal buyers are generally required to review at least three sources before making a purchasing decision. GSA Advantage, the web porthole in which all GSA Schedule holders list their products is the favorite site for this market research.
- Provides access to GSA eBuy – GSA eBuy is an online solicitation system whereby federal buyers can place items out for bid; however a firm must have a GSA Schedule in order to participate. This opens a whole new avenue in which to break into contracting with a particular agency.
- Increases Subcontracting Opportunities – When a prime contractor uses a GSA Schedule Holder as a subcontractor, items purchased from the GSA schedule at schedule prices are not required to be audited. This saves prime contractors compliance effort. Additionally, holding a GSA Schedule shows the prime contractor that the firm is serious about federal contracting.
- Can lead to an Enhancement of a firm’s value – Our most successful clients often work with a single federal agency where they have established deep roots. In the federal space often times acquisitions occur in order to make inroads into a particular agency. A GSA Schedule allows a small business entrance into these agencies creating root building opportunities and, in some cases, making the firm an acquisition target.
- Helps position a firm to get on other GWACS – Having a GSA Schedule provides the pricing basis for obtaining positions on other GWACS. The GSA MAS pricing can be used when applying for positions on other contracts.
- Allows a firm to quickly add new products and services – When adding a new product or service to an existing GSA MAS Contract, the Schedule holder can submit a modification and add the new product.
- Allows a firm to add non-schedule items provided that the majority of the order – When completing a contract that was originated utilizing a GSA Schedule provided that the majority of the cost of completion of the project was from items purchased from the schedule, other items can be added to the contract provided they do not make up over half the cost.
- Synergies are created between a GSA Schedule and SBA/VA Certification – SBA and VA Certification holders often find an increase in combined benefit by adding a GSA Schedule. The likely cause of this benefit is because during the market research process, the federal buyer identifies a certification holder as being able to meet the needs of the contract and then places the contract out for sole source or set-aside contract and inviting the GSA Schedule / SBA/VA Certification holders to submit their GSA Schedule Offer.
If your firm would like to determine the potential federal market size of your product or service, give us a call or simply hit reply to this email. A GSA Schedule is your first step in entering the federal market place. If you would like for me to run an analysis of your firm to see what type of impact a GSA Schedule could provide your business, give me a call and I am always happy to discuss. Knowing the size of the federal marketplace in your industry is the first step in making a strategic decision as to whether you should view the federal government as a growth area for your business. Give us a call at 303-810-4580.