The $2,500-$25,000 small purchase market is large and important from a volume of transaction viewpoint. In this market buyers make the bulk of the basic purchases required to operate federal programs. Buys made in this dollar range do not require public announcement of the opportunity.

A purchase can be made with through a GSA schedule order (assuming the vendor is on the Schedule) or through an open market order with a credit card. When a buyer makes an open market purchase, he must obtain three quotes from small businesses (unless three small businesses cannot be found). Quotes are informal: by telephone, fax, or email.

A GSA schedule is a preferred source of supply (over open market).

Most of this market is set aside for small business. Unless a buyer uses a GSA schedule, the buyer must go to small businesses first and then to a large business if a small business cannot be found.

A GSA schedule is the only way a large business can participate in the market, because the requirement to use a small business is negated if a schedule is used.

When a GSA buy is made it can essentially be sole-source if the product is listed in GSA Advantage. GSA schedule buys are based on "best value" analysis, allowing consideration of value factors other than price, such as warranty terms. GSA professional service buys require three GSA vendor quotes.

Military bases and other federal offices outside Washington, DC may choose not use GSA schedules, due to their preference to buy locally (despite the fact that GSA is a priority source).

Most federal sales are made by making personal sales calls to the end-user. In some instances, the purchasing decision is made by the official buyer. The closer a product/service is to a commodity, and the smaller the purchase, the more likely it is that the official buyer will make the buy decision.

Thus, in this market the official buyer is exceptionally important. The official buyer may select the vendor or work with the end-user to recommend a vendor. The buyer won't know you exist unless you've made the sales call or you have done business with the agency in the past.

Need help reaching official buyers? Check out Fedmarket's Official Federal Buyer CD-rom and Email Lists of Federal, State and Local Official Buyers:

http://www.fedmarket.com/products/federal-buyer-list.shtml

http://www.fedmarket.com/products/federal-state-local-email-list.shtml