By Tom Basile
Seneca Creek Consulting

Wrong assumption. The GSA schedule or any other multiple award contract is only an invitation to enter the race. The government will not call you. You must make the investment to market your services and products. Having a schedule makes it easier for the customer to buy. However, just because you have a schedule contract does not eliminate competition. Under most circumstances, contracting officers are required to solicit a minimum of three bids for all purchases over $2,500.

However, the larger question is whether the investment in obtaining a GSA schedule is right for your company. Although the investment to make a qualified submission is low (depending on your size) there are certain considerations that need to be taken into account. For example, holding a GSA schedule requires that you establish standard pricing practices. In addition, you are required to provide in-depth historical price and discounting data. Companies that are used to dealing strictly in the commercial world may find some constraints too demanding, limiting, or onerous.

For some companies, perhaps an alternative contracting strategy may be in order. One strategy is to have another company hold your GSA schedule, if your solution consists primarily of product offerings. The benefits are that the third party provides for all administration and payment of the GSA fee for purchases made from schedule; updates the schedule as new offerings become available; and keeps you up-to-date on any changes that may affect your schedule offerings.

Another strategy to consider may be to bid as a prime or subcontractor on selected government-wide acquisition contracts. GWACs typically do not carry some of the strict price control guidelines and reporting requirements as the GSA schedule, but offer a contracting vehicle accessible by multiple agencies. A third option may be to pursue a subcontract relationship with companies that are prime contract holders in the target agencies that your services and products have the best fit.

Before deciding on a contracting strategy, step back a moment and do a self-assessment. Define what you are selling and determine if there is, in fact, demand for this service or product in the federal market. Are you solving a specific problem? If the answer is yes, then decide how you will differentiate your company from the rest of the competition.

The federal government is large. Each agency is unique in the way they do business. Determine which agencies are the best targets for your solution and begin positioning your company for upcoming procurements where you bring value. Identify which companies are currently doing business within your target agencies and assess the viability of teaming.

Once you have determined the buying habits and preferences of your target agencies, you are ready to consider contracting strategies. Perhaps one of your target agencies has a multiple award contract in place and prefers this method over the GSA schedule. If this is the case, then a strategy might be to get on an existing prime contractor’s team. Of course, you will need to have a compelling story for a prime contractor to bring you on their team and more so if the contract is in the post-award stage.

Remember, agencies are mandated to meet small business contracting goals. More and more small business buys are being set aside for sub-categories like service-disabled veteran-owned or minority-owned companies. If you are a small business but do not fit into one of these categories, consider developing a relationship with a quality company that does.

In summary, the goal is to obtain well-defined answers to some of the fundamental questions about your solutions’ fit and focus before you decide on a strategy.

(Tom can be reached at: tbasile@senecacreekconsulting.com.)