Why Companies Lose Their GSA Schedule and How to Prevent It

Securing a General Services Administration (GSA) Schedule can be transformative for businesses, providing access to a vast market of government contracts. However, maintaining a GSA Schedule requires rigorous adherence to various compliance standards. 

Many companies lose their GSA schedules due to avoidable errors and oversights. This article delves into the reasons behind the loss of GSA Schedules and outlines effective strategies to prevent such losses, with insights from expert GSA Contract Consultants.

Understanding the GSA Schedule

What is a GSA Schedule?

The General Services Administration (GSA) Schedule, also known as the Federal Supply Schedule, is a long-term government-wide contract that enables businesses to sell products and services directly to government agencies. This schedule simplifies the procurement process and provides businesses with a reliable revenue stream from federal sales.

Importance of Maintaining a GSA Schedule

Maintaining a GSA Schedule is crucial for businesses looking to capitalize on government contracts. The loss of a GSA Schedule not only eliminates a significant revenue source but also damages the company's reputation and its chances of winning future government contracts.

Key Benefits of a GSA Schedule:

• Streamlined procurement process.
• Access to a broad market of government buyers.
• Competitive edge in federal contracting.

Also read: How to Market Your GSA Schedule?

Why Companies Lose Their GSA Schedule

1. Non-Compliance with Contract Terms

Non-compliance with the terms of the GSA contract is the most prevalent reason for losing a GSA Schedule. GSA contracts come with strict terms regarding pricing, product availability, delivery schedules, and performance standards. Deviations from these terms can lead to serious consequences, including schedule termination.

Common Compliance Failures:

• Not offering agreed-upon discounts.
• Failure to update prices in GSA Advantage! accurately.
• Consistently missing delivery deadlines.

Also check our article: How to Optimize Your GSA Schedule Pricelist

2. Inadequate Reporting and Documentation

Accurate and timely reporting is a cornerstone of maintaining a GSA Schedule. GSA requires companies to submit regular reports on sales and transactions under the schedule. Inadequate or inaccurate reporting can result in severe penalties and even schedule cancellation.

Frequent Reporting Issues:

• Incomplete or incorrect sales reports.
• Poor documentation of discounts and rebates.
• Missing or delayed quarterly reports.

3. Poor Performance Reviews

The Contractor Performance Assessment Reporting System (CPARS) evaluates contractor performance, and poor reviews can jeopardize a company's GSA Schedule. High standards in performance and customer service are essential to maintaining a positive CPARS rating and retaining the schedule.

Indicators of Poor Performance:

• Persistent customer complaints.
• Failure to meet contractual obligations.
• Low scores in CPARS evaluations.

4. Failure to Update Administrative Changes

Administrative changes, such as changes in company name, address, or key personnel, must be promptly reported to GSA. Failure to update these changes can result in non-compliance and potential schedule termination.

Examples of Administrative Oversights:

• Not updating contact or address information.
• Ignoring changes in company ownership or structure.
• Failing to report changes in banking information.

5. Ignoring GSA Audits

GSA conducts audits to ensure compliance with contract terms. Companies that do not cooperate with these audits or fail to rectify issues identified during audits risk losing their GSA Schedule.

Common Audit Issues:

• Non-cooperation during the audit process.
• Failure to address discrepancies found during audits.
• Inadequate or delayed response to audit findings.

6. Pricing Misalignment

GSA requires companies to offer their "most favored customer" pricing, meaning the prices on the GSA Schedule must be as favorable as the best prices offered to any customer under similar terms and conditions. Misalignment in pricing or failure to honor pricing commitments can lead to contract violations.

Pricing Pitfalls:

• Not offering the lowest price available to other customers.
• Misrepresentation of pricing strategies.
• Inconsistent pricing updates on GSA platforms.

7. Poor Communication with GSA

Effective communication with GSA is critical. Companies that fail to maintain clear and proactive communication regarding changes, compliance issues, or performance problems may find themselves at risk of losing their schedule.

Communication Breakdowns:

• Ignoring GSA inquiries or notifications.
• Delayed responses to GSA requests for information.
• Lack of clarity in communications about compliance or performance issues.

How to Prevent Losing Your GSA Schedule

1. Engage a GSA Contract Consultant

A GSA Contract Service Provider like us can be invaluable in helping companies navigate the complexities of maintaining a GSA Schedule. These experts provide crucial guidance on compliance, reporting, audit preparation, and overall contract management.

Benefits of a GSA Contract Consultant:

• Expert advice on contract management and compliance.
• Assistance with accurate reporting and documentation.
• Support during GSA audits and performance reviews.

2. Regular Compliance Training

Regular compliance training ensures that staff understand and adhere to GSA requirements. Training should cover critical areas such as reporting obligations, performance standards, pricing strategies, and administrative updates to avoid inadvertent non-compliance.

Key Areas for Compliance Training:

• Detailed understanding of GSA contract terms.
• Accurate sales and discount reporting.
• Performance standards and metrics.

3. Implement Robust Reporting Systems

Invest in robust reporting systems to accurately track sales, discounts, and other contract-related activities. Effective reporting systems ensure compliance with GSA requirements and help in avoiding penalties.

Best Practices for Reporting:

• Use automated sales tracking software.
• Conduct regular internal audits of reporting processes.
• Maintain clear documentation of discounts and rebates.

4. Monitor Performance Metrics

Regular monitoring of performance metrics is essential to ensure compliance with GSA standards. Addressing issues promptly helps in maintaining a high-performance rating and positive feedback in CPARS and other evaluation systems.

Tips for Performance Monitoring:

• Establish clear performance benchmarks.
• Conduct periodic reviews of service delivery.
• Actively solicit feedback from federal customers.

5. Stay Updated on GSA Requirements

GSA requirements and guidelines can change over time. Staying informed about updates by subscribing to GSA newsletters, attending GSA training sessions, and consulting with your GSA Contract Consultant ensures compliance with current standards.

How to Stay Updated:

• Regularly visit GSA's official website for news and updates.
• Engage in consultations with a GSA Contract Consultant.
• Participate in industry webinars and training programs
• Maintain GSA requirement documents.

6. Cooperate During GSA Audits

Prepare for GSA audits by maintaining accurate records and being cooperative. Address any issues identified during audits promptly to avoid penalties and schedule termination.

Steps for Effective Audit Preparation:

• Keep detailed records of all contract-related activities.
• Develop a comprehensive response plan for audit findings.
• Engage a GSA Contract Consultant for audit support.

7. Regularly Review and Update Pricing

Ensure that pricing strategies are aligned with GSA requirements and reflect the best available customer pricing. Regular reviews and updates to pricing structures help maintain compliance and avoid pricing-related violations.

Pricing Review Strategies:

• Periodic pricing audits to ensure alignment with GSA standards.
• Transparent pricing documentation and updates.
• Regular communication with GSA regarding pricing changes.

8. Maintain Clear Communication with GSA

Develop and maintain clear communication channels with GSA to address any compliance or performance issues promptly. Proactive communication helps in building a positive relationship with GSA and avoiding misunderstandings.

Communication Tips:

• Respond promptly to GSA inquiries and notifications.
• Keep GSA informed about any significant changes or issues.
• Provide clear and concise information in all communications.

Conclusion

Losing a GSA Schedule can have significant financial and reputational repercussions for a business. Understanding the common reasons for schedule termination and implementing preventive measures can help companies maintain their GSA Schedules and continue to benefit from government contracts. Engaging a GSA Contract Consultant, investing in compliance training, and staying updated on GSA requirements are essential steps to ensure long-term success in the government contracting space.

For more insights into managing GSA Schedules and maintaining compliance, visit the GSA's official website or consult with a qualified GSA Contract Consultant.

Call to Action

Ready to secure and maintain your GSA Schedule? Contact Advance GSA today for expert consulting and support in navigating the complexities of GSA contracting. Our experienced GSA Contract Consultants are here to help you achieve success in government contracting.