The federal government has changed the way it does business. One of the most visible and REAL examples of that change is GSA Schedule buying.

Rather than bother with full and open competition, federal agencies are spending more and more of their money through task and delivery orders on governmentwide contracts -- especially GSA Schedule contracts. Such orders have become the preferred method of government buying.

In fiscal 2002, such orders comprised about 55 PERCENT of contract transactions over $5 million, according to research firm FSI. That's right, 55 percent! More than half.

As we mentioned in an article last week, GSA Schedule spending rose from 7 percent to 31 percent of total procurement dollars from 1997 through 2002, while full and open competition spending decreased from 57 percent to 41 percent. (“GSA Spending is On the Rise,” Federal Computer Week, April 4, 2003.) If you’re serious about federal sales, it’s almost becoming mandatory to get on one or more GSA Schedules.

If you're serious about federal contracting--if you want to do well--it's becoming nearly mandatory that you get on the Schedule.

Benefits

There are a number of benefits associated with being on the GSA Schedule, including the following:

• Government buyers can purchase your products–-i.e., issue task orders-–with no dollar limit, while avoiding traditional full and open competition procedures.
• Schedule status is like a stamp of approval that will increase your visibility and credibility.
• Schedule status can open up your state and local government opportunities. Congress recently authorized state and local governments to buy IT products and services off the Schedule.
• Low funding (transaction) fee: 1% now, dropping to 0.75% by January 2004.
• Contracting Offices generally dislike full and open competition procurements and have made GSA Schedules their purchasing vehicle of choice.

More Information

When it comes to getting on, where do you start? Here are some resources:

FSS Contractor Guide
http://apps.fss.gsa.gov/contractorguide/

GSA Advantage
https://www.gsaadvantage.gov/advgsa/main_pages/start_page.jsp
(Click on e-Library. Find out which schedules(s) is (are) appropriate for your company. See which of your competitors have GSA schedule contracts.)

You can also contact us: editor@fedmarket.com. We can help.