GSA Schedules 101 YOUR MOST COMMON QUESTIONS ANSWERED GSA SCHEDULES 101 0

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Lynn Rose
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1 GSA Schedules 101 YOUR MOST COMMON QUESTIONS ANSWERED GSA SCHEDULES 101 0

2 Unlocking GSA Schedules Doing business with the Federal Government is an attractive proposition. As the world s largest buyer and marketplace, government contracts can present your business with tremendous opportunities for growth. The process isn t easy though. The Federal Government has painstakingly designed a maze of rules, regulations, and requirements. These rules make the Federal procurement process fair and transparent, levelling the playing field and promoting healthy competition. They also make it slow and difficult to navigate. The Federal Government is the single largest buyer in the world, purchasing close to $450 billion dollars in goods and services annually. In our ebook, we answer your top questions on GSA Schedules, helping you navigate whether your business should go down the path of acquiring your first GSA Schedule. Contents Do you need a GSA Schedule Contract? What are GSA Schedules? What are the advantages of GSA Schedules? What can you sell via GSA Schedules? Who can buy from GSA Schedules? What pricing information do you need to provide? How does GSA evaluate proposals? How is GSA Schedule pricing negotiated? Final Insights & More Information GSA SCHEDULES 101 1

3 Do you need a GSA Schedule Contract? If you want to do business with the Federal Government, you will need a contract vehicle. GSA Schedule Contracts are the preferred method of buying for many Federal agencies. Obtaining a GSA Schedule contract allows companies to sell products and services throughout the Federal Government with ease. GSA Schedules are often an entry point for commercial companies new to the Federal market. What are GSA Schedules? GSA Schedules are long-term, government-wide contracts with companies to provide commercial products and services at negotiated prices. Continuous Open Season Your company can submit a proposal in response to GSA s solicitation at any time to obtain this contract. Multiple Award More than one company can be awarded this contract. GSA can award an unlimited number of GSA Schedule contracts, so your company will be one of many. Indefinite Delivery, Indefinite Quantity (IDIQ) GSA Schedules allow an agency to purchase an indefinite quanity of supplies or services at any time during the contract period. Evergreen GSA Schedules can potentially be valid for 20 years. The initial base period is five years and GSA may award up to three five-year option periods. Bottom Line GSA Schedules are a hunting license; not a guarantee of sales. Companies must market GSA Schedules and pursue business just like in the commercial world. GSA SCHEDULES 101 2

What are the advantages of GSA Schedules?

Pre-negotiated contract with established

market as a prime contractor Streamlined

4 What are the advantages of GSA Schedules? GSA Schedules provide advantages to both the Federal Government and contractors. 7 REASONS TO GET A GSA SCHEDULE Government-wide access, allowing you to sell to any agency from a single contract Easy access to a variety of commercial products and services Pre-negotiated contract with established rates Easy way to access the Federal market as a prime contractor Streamlined and quick ordering process for Federal customers Shorter task order award time Competitive advantage over non-schedule holders GSA SCHEDULES 101 3

5 What can you sell via GSA Schedules? You can sell just about anything on GSA Schedules, including over 11 million different commercial products and services. PROFESSIONAL SERVICES (00CORP) IT PRODUCTS & SERVICES (70) LAW ENFORCEMENT & SECURITY (84) FACILITIES MAINTENANCE & MANAGEMENT (03FAC) FURNITURE (71) SCIENTIFIC EQUIPMENT & SERVICES (66) FOR MORE INFORMATION There are many other GSA Schedule areas! For a complete list, visit: Choosing the correct GSA Schedule can be a challenge, as coverage areas can overlap and do not always mirror the commercial world. GSA SCHEDULES 101 4

6 Who can buy from GSA Schedules? GSA Schedules help a wide range of Federal buyers and other organizations purchase goods and services. Just about every agency in the Federal Government Mixed-Ownership Government Corporations and other eligible users (e.g. FDIC, World Bank, IMF, American Red Cross, NATO, WTO) District of Columbia Other government contractors on behalf of the government with specific rules (FAR Part 51) State & Local Governments Cooperative Purchasing (Limited) Disaster Recovery FOR MORE INFORMATION For a list of all eligible users, view the GSA Directive ADM I Eligibility to Use GSA here: Services/OGP_48002I_Oct_2017.pdf. GSA SCHEDULES 101 5

7 What pricing information do you need to provide? The pricing data you present will have a significant impact on how your contract is negotiated. In your analysis of the data and the disclosures you provide to GSA, it is important to understand what story the data tells. This story will become the basis for your GSA pricing and discounts. REQUIRED DISCLOSURES You are required to disclose your complete commercial sales history for the past 12 months, including: Pricing history by customer or class of customer All standard and non-standard discounts Standard terms and conditions along with any concessions offered Exceptions and deviations to standard practices IMPORTANT NOTES GSA considers sales to State and Local Government and sales as a Subcontractor to Federal Primes as Commercial Sales. Failure to disclose current, accurate, and complete commercial sales practices can have results varying from renegotiation of GSA discounts/basis of award to contract cancellation and suspension or debarment. GSA SCHEDULES 101 6

experience providing the proposed service or product Significant project experience to

History An established standard commercial pricing structure Sales history to support

with available credit Retained earnings (not accumulated deficit) Positive debt to equity

Schedule under the Startup Springboard program. For more information, visit: www.gsa.

8 How does GSA evaluate proposals? ELIGIBILITY & EVALUATION CRITERIA Corporate Past Performance Several years of commercial experience providing the proposed service or product Significant project experience to demonstrate past performance Customers willing to vouch for your performance Pricing History An established standard commercial pricing structure Sales history to support proposed GSA prices Financial Capability & Stability Positive net income Line of credit with available credit Retained earnings (not accumulated deficit) Positive debt to equity ratio Positive Dun & Bradstreet report IMPORTANT NOTE Certain exceptions exist for the IT Schedule under the Startup Springboard program. For more information, visit: GSA SCHEDULES 101 7

9 How is GSA Schedule pricing negotiated? Pricing negotiations for GSA Schedules is a critical step in the process. Most Favored Status Best Comparable Customers Market Analysis Propose a discount that is benchmarked to your best customer pricing, not necessarily the lowest price to any customer Specify the following: o Discounts o Terms & Conditions o Concessions Perform a market analysis of comparable awarded GSA rates Negotiation hot spots include IMPORTANT NOTE 1. Identification of the best comparable customer 2. Exceptions to sales practices 3. Escalations, discounts, and markups 4. Financial capability GSA SCHEDULES 101 8

10 Final Insights Selling to the Federal Government can seem like a daunting, and sometimes impossible, undertaking. The labyrinth of Federal rules, regulations, and requirements, however, allows new contractors to bid on an equal footing as long as they know what you re doing. Before deciding whether to embark down the path of acquiring your first GSA Schedule, consider the following points: Be prepared for the process to take time. Do you have the resources to dedicate or should you outsource this effort? Does your company have the financial capabilities? Be prepared to fully disclose your company s commercial sales practices and explain pricing for which GSA may not be eligible GSA solicitations don t tell the whole story. Contracting Officers may ask for additional information that is not stated. You don t know what you don t know. There is a surprising amount of leeway in negotiations. If it s your first time negotiating a GSA Schedule, you may not understand that. GSA SCHEDULES 101 9

Interested in Learning More? For more detail on the information contained in this ebook or to discuss how Aronson can help you get a GSA Schedule, contact our team today. Hope Lane 301.231.

With more than 25 years of broad-based experience in the government contracting arena, she is well-known as one of the industry s most knowledgeable thought leaders in contract-related financial

11 Interested in Learning More? For more detail on the information contained in this ebook or to discuss how Aronson can help you get a GSA Schedule, contact our team today. Hope Lane hlane@aronsonllc.com Hope Lane, CPA, CGMA, leads Aronson s Government Contract Consulting practice. With more than 25 years of broad-based experience in the government contracting arena, she is well-known as one of the industry s most knowledgeable thought leaders in contract-related financial compliance and contract administration. Exclusively focused on government contracting, Hope possesses in-depth understanding and hands-on expertise. Prior to joining Aronson, she served in financial management positions with several regional Federal contractors. Often described by her peers as forwardthinking, Hope is able to go beyond what a client asks for to deliver precisely what they need. Jennifer Aubel jaubel@aronsonllc.com Jennifer Aubel is a principal consultant in Aronson s Government Contract Services Group. She is responsible for leading clients successfully through the GSA lifecycle from obtaining a new GSA Schedule contract through administering ongoing contracts. She works closely with clients to customtailor GSA Schedule solutions that meet current and future organizational needs by developing scope and pricing strategies, maintaining contract compliance, providing audit support, and improving the profitability and versatility of the GSA Schedule contract. About Aronson LLC Aronson LLC provides a comprehensive platform of assurance, tax, and consulting solutions to today's most active industry sectors and successful individuals. For more than 55 years, we have purposefully expanded our service offerings and deepened our industry specialties to better serve the needs of our clients, people, and community. From startup to exit, we help our clients maximize opportunity, minimize risk, and unlock their full potential. For more information about Aronson LLC, please visit or call GSA SCHEDULES

I Have My Sales Data, Now What? Developing GSA Commercial Sales Practices Disclosures

I Have My Sales Data, Now What? Developing GSA Commercial Sales Practices Disclosures Breakout Session #: E05 Jennifer Aubel and Barbara Connell Date: Tuesday, July 26 Time: 2:30pm 3:45pm About Aronson