GSA Schedule for Strong, Medium and Weak Economies

By: Admin | Date: 2020-05-01

GSA Schedule in Strong Economy

In good time’s firms with GSA Schedules utilize their schedules to obtain contracts with federal agencies.  Less firms are looking to the government so this gives firms an opportunity to build relationships with federal agencies.  As a result of these long-term relationships small businesses with over 10 years of contracting experience win contracts greater than 53% of the time.*  During a strong economy M&A activity heats up and smaller firms become more attractive to larger firms.  This is because 65% of acquisitions in the federal contracting space occur so the acquirer can have access to new/federal markets.**  Therefore these established relationships with agency customers can becomes the most valuable strategic asset of a small business.

-GSA Schedule as an M&A Asset

A GSA Schedule is one of the few transferable government contracts, and will follow the acquiring company in a business sale.

GSA During Normal Economy

The average small business GSA Schedule Holder has over $1MM per year in federal sales.  For the average small business GSA Contract holder this makes the Federal Government their largest client.  GSA Schedules often are the channel by which firm’s segue into additional product offerings and contracting vehicles.

GSA During Poor Economy

During past recessions the federal government attempts to stimulate economic growth by increasing spending.  Usually this causes a rush of application to the GSA Schedule System which under normal economic conditions only handles several thousand applications per year.  This expands wait times past the four-five month current processing time.  Most firms are generally looking shorter-term to replace 15-25% of their billing with federal contracts.  So planning ahead is critical for using a GSA Schedule as a defensive strategy.


            

*Grant ThortonAnnual Government Contractor Industry Survey Highlights

**American Express Open Forum:  Successful Small Business Contractors Invest More in Time and Money to Pursue Federal Contracts

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