How to Make the Most of Your GSA Schedule Contract
By Bill Gormley

The U.S. government is the largest consumer in the country, spending nearly $560 billion each fiscal year on contracts. It’s probably the most complex consumer as well. Different types of agencies–defense, civilian and intelligence–have different types of needs to help meet different mission requirements and objectives.

Doing business with the government requires an understanding of these unique needs and challenges, as well as an appreciation and understanding of the nuances involved in doing business with such a vast consumer. It also requires a good amount of logistical know-how, and following a handful of “must do” steps.

If you’re reading this article, chances are you’re already on the GSA (General Services Administration) Schedule. The GSA establishes long-term, government wide contracts with commercial firms to give customers access to millions of state-of-the-art products and services at volume discount pricing. Getting a GSA contract, and getting on the GSA

Schedule of contracts, is a good choice. The lowest-cost way for a commercial supplier to enter into government contracting is to get onto the GSA Schedule. Doing so enables you to enter into a buying environment rather than just a contracting environment. (If you have not yet done this, now’s the time. Visit gsa.gov for more information about getting on the GSA Schedule.)

Understanding GSA in 2008 and Beyond
Let’s face it: GSA got rocked in 2007. From congressional hearings to contract disputes and more, GSA had its share of being in the spotlight last year.

This year, however, you’ll see a shift in focus back to its benefits and advantages. This year you’ll see:

• Expanded offerings, which have the potential to bring contract holders into new markets
• Companies that had left the program coming back into the GSA fold, and more companies joining the program for the first time

A handful of trends will drive these changes, not the least of which is a new administration. In fact, with an actual FY08 budget in place and a new administration on tap, you’re likely to see a larger and quicker flow in government spending, as agencies and programs spend the money they’ve been allocated.

What does this mean for you, the contract holder? It means the requirements will be there for the bidding. Your job is to be prepared.

Here are some truths you may not know about the GSA Schedule that can maximize your exposure within GSA and increase the chances of winning that bid.

1. CHANGE IS GOOD–AND ENCOURAGED.
In winning any kind of business– commercial or government–flexibility is key. You may not know just how flexible you can be in your bidding process, as well as in overall schedule contract maintenance–i.e., changes and tweaks you can make to your contract during its duration.

For example, did you know you can add and delete services and products from your contract at any time? This holds true whether you provide office supplies, technology, office furniture, cleaning services or vehicles. This means:

• If you upgrade your technology or your product offerings, you can change your contract.
• If you change your service offerings in any way, you can change your contract.
• If you acquire a company and expand your services and products, you can change your contract.

This flexibility helps both the contractor and the federal buyer. For you, the contractor, it ensures you can always offer the latest technology and services to what may potentially be your largest customer; it means you can stay up-to-date and competitive. This flexibility means your contracts are not stagnant–you’re not boxed in.

For the government buyer, it means having the chance to buy the newest services and technologies. It means the customer is not locked in to a particular version of a product or a particular level of service. From the customer perspective, this flexibility means they’re guaranteed continuous improvements. It’s the proverbial win-win.

2.BPA TOOLS ARE YOUR FRIEND.
Blanket Purchase Agreements (BPAs) are one of the most powerful vehicles for a contractor selling to the government. If you’re providing services or products through a BPA, make sure your sales team is aware of all the tools they can use to sell within the schedule program. “Spot pricing” is one of the greatest advantages your BPA can offer. Through spot pricing, you can readjust your price at any time, in any size order. Why? Your BPA contract permits you to refer to three ingredients when setting your price: inventory, sales goals and market penetration. This means you have a fair and reasonable discount, but you can reduce it at any time.

Say, for example, you have a high inventory; that can affect your price. If you’re below your sales goal, the contract allows you to change your price. Or, if you want to get into a particular market segment–if it’s a new segment for you or you’ve been previously unsuccessful getting into this market, you can adjust your discount accordingly.

Many contractors believe their contract discount is set in stone. On the contrary. You should view your schedule discount as the ceiling price–you can always go lower.

Speaking of pricing … pay attention to your Economic Price Adjustment (EPA) negotiation agreement and execute it on time. Make sure it’s in line with your commercial business prices.

Something else to be aware of with regard to your BPA contract: A BPA is designed to keep the contractor focused. It includes a 30-day cancellation provision. In a traditional environment, the government won’t cancel your contract. Some companies take advantage of that.

According to a BPA agreement, however, the government customer can cancel. Look at the terms and conditions of your BPA. You need someone on your staff monitoring it to ensure the necessary level of service is being met.

3. YOU’VE GOT MORE FLEXIBILITY THAN YOU THINK.
You already knew (or if you didn’t, you just learned) that you can change your schedule contract discount at any time, and add or remove services and products at any time. Your contract flexibility does not stop there.

Chances are you’ll be asked for a firm-fixed price, unless you can show that you cannot accurately estimate the extent or the duration of the work. With the green light there, you’ll be asked to provide a time-and-materials estimate– with a ceiling price. This significantly enhances your pricing options even beyond those mentioned above, by allowing you to work under a fixed price or a time-and-materials price, depending on the product or service provided.

4.YOU CAN USE THE SCHEDULES E-LIBRARY TO YOUR ADVANTAGE.
When you’re awarded a GSA Schedule contract, your company name, contract number, service/product, point-of-contact information and more is automatically listed within the Schedules e-Library on the GSA website. The Schedules e-Library provides a listing of the latest contract award information for the GSA and Veterans Affairs (VA) Schedules, as well as Government wide Acquisition Contracts (GWACs).

Once you have a GSA Schedule contract, there is nothing you need to do to get this listing. However, there’s more you can do to take advantage of it once you’re there.

First, make sure all the information is correct. Also make sure your keywords are accurate. Government customers can search by keyword, contract number, Special Item Number (SIN), GWAC category, etc. There will also be a direct link to your website.Make sure it works.

Customers can also search by socioeconomic status. In other words, if you’re a small, disadvantaged, women-owned and/or veteran-owned business, it’s in your best interests to ensure this information is available and accurate.

State and local government customers have direct access to your contract information as well, as the Schedules e-Library identifies those contractors participating in Cooperative Purchasing and/or Disaster Recovery Purchasing. (More on state and local government in No. 9.)

5. GSA ADVANTAGE!® CAN GIVE YOU AN ADVANTAGE.
The Schedules e-Library provides a direct link to GSA Advantage! This is essentially an electronic shopping and ordering system for the government– an online catalog. Government customers look here frequently, so once you’ve got a GSA Schedule contract, make sure your company and product information is available through GSA Advantage!

Unlike the Schedules e-Library, your information is not automatically listed here; you must populate GSA Advantage! yourself. Many times, business owners get so caught up in celebrating their contract award(s), they forget to take advantage of this free marketing opportunity. Populate GSA Advantage! You’ll get more exposure and will have a better chance of getting noticed.

6.E-BUY IS AN E-MUST.
The Schedules e-Library also provides a direct link to e-Buy, which is a component of GSA Advantage! It is an online Request for Quotation (RFQ) tool, designed to help both the contractor and the buyer get a broader–yet more targeted– response to a service or product request.

It works by sending you an automatic notification when an RFQ has been issued in your service or product area. For example, if an office within the Department of Health and Human Services needs copier maintenance, copier companies participating in e-Buy are automatically e-mailed that RFQ.

Before we go any further, let’s define our terms:

• An RFP is a Request for Proposal. An RFP eventually becomes a “contract.”
• It takes about 268 days for the federal government to award an RFP.
• An RFQ eventually becomes a purchase order (PO), or a “buy.”. It takes between 30 and 45 days for an RFQ to be awarded.

The advantage of e-Buy is immediate notification of an RFQ–which can turn into a PO within 45 days. When dealing with the government, it’s one of the fastest ways to win a bid.

7. YOU CAN, AND SHOULD, EXHIBIT AT GSA EXPO.
If you haven’t been to GSA Expo, go. It is the GSA’s annual conference where thousands of federal, state and local, and military employees gather to see what kinds of services and products they might need to help them better achieve mission success.

Once you’ve attended an Expo and understand the lay of the land, take advantage of the opportunity afforded only to GSA Schedule and GSA GWAC holders and secure a booth.

In most cases, booth space sells out in less than an hour. If you’ve got a booth at GSA Expo, you have the opportunity to reach as many as 14,000 people in two days. It’s one of the most highly targeted audiences you’ll come across. It will be well worth your investment. GSA Expo is an annual event, held in the spring. You can find more information at expo.gsa.gov.

8.GSA OFFERS FREE MARKETING.
As you already know, getting your schedule contract(s) means you have the opportunity to compete. Getting the attention of the government buyer–and winning the order–is an entirely different proposition. You still need strong sales and marketing tactics and teams.

GSA’s bimonthly magazine, MarkeTips, covers acquisition programs, training and upcoming events. As a GSA schedule holder, you are entitled to free advertising in this publication. The wait for ad space is usually quite long–but it’s free advertising. Hard to beat that.

9. YOU MAY HAVE INCREASED ACCESS TO STATE AND LOCAL GOVERNMENT.
The state and local government market is enormous–larger than the federal market and potentially growing to over $25 billion this year, according to FedSources.

Today, state and local governments use Schedule 70. In recent months, however, states have been looking more favorably at GSA as a way to help offset their decline in revenue base yet expand buying options. GSA and the states are both pushing for open, cooperative purchasing across all schedules in 2008.

If all schedules are opened for the states to use, this means GSA Schedule holders have the opportunity to be in front of a vast audience they have not been privy to before. To prepare for this, you should stay informed of the policy and political landscape, and make sure your company is aligned to target and support a new state and local market.

10.GSA IS GOING GREEN.
Going green is a major objective in government, and its importance is only expected to increase. Agencies are feeling pressure from within and outside government to make eco-friendly choices.

The GSA has set up an Environmental Aisle as part of GSA Advantage! to help buyers more easily find “green” choices among the thousands of schedule offerings. According to GSA, “Customers are encouraged to purchase products designated for preferred procurement: biobased and recycled content, ENERGYSTAR and FEMP qualified, water-efficient, and non-ozone depleting materials.” Green is good. Get yourself green, and get yourself set up in the Environmental Aisle. You won’t regret it. Bottom-Line Advice: Stand out When’s the last time you heard someone say, “This contract is going great”? It’s probably been a long time, if ever. We hear a lot about contracts that go wrong, or integrators that do not provide what was promised.

There is a way to stand out among the thousands of other suppliers on the GSA Schedule contract. In addition to preparing for upcoming trends by following the above advice, the number one way to get noticed is: Prove yourself. Demonstrate your ability to be a stable provider. Show that you’re experienced and you’re engaged in government for the long haul by having a strong business development team. There’s a long runway before acquisitions take off. Show that you’re reliable, trustworthy, and will provide whatever support will be necessary now and for the foreseeable future. Once you prove yourself, business will come to you.

Bill Gormley is president and chief executive officer of the Washington Management Group, the leading GSA Schedule contract and VA Schedule contract consulting services firm in the nation. For more information on Washington Management Group, go to www.washmg.com.