The following clause is contained in every GSA Schedule contract in one form or another:

A contract will not be awarded unless anticipated sales are expected to exceed at least $25,000 within the first 24 months following contract award, and are expected to exceed $25,000 in sales each 12-month period thereafter. The government may cancel the contract if these sales goals are not met.

Small businesses, particularly those not certified under a preference program, often have difficulty gaining traction in the federal market. GSA cancels many contracts with small businesses under the minimum $25,000 in annual sales clause.

Small businesses come to the federal market with the hope that a GSA schedule contract will result in orders. A Schedule contract may result in orders for commodities but this is not the norm. Complex products and professional services must be sold to federal end users based on value. This, in turn, requires a marketing plan (call list) and sales calls.

A GSA sales program requires a dollar investment commensurate with the size of the business, projected federal revenue, and the type of product service being sold. Don't be surprised when the termination call comes in Year 3. Develop and implement a sales plan to avoid the call and get a return on the original investment in your GSA proposal.

NEW! Contractor Guide to Stimulus Spending

Contractors: According to an analysis by the Congressional Budget Office, more than 74% of the stimulus package money will be spent within the next 18 months. Fedmarket.com is offering a Contractor Guide to Stimulus Spending to assist your company in identifying federal contracting opportunities and increase your revenue.

With this product, you will gain insights into:

• Stimulus spending through the use of an easy to understand overview of how funds will be distributed
• Department by department allocation of funds and amount allocated
• How much funding will be allocated to each individual state
• Project and contract level information as it becomes available

Stimulus spending is a work in progress. Agencies are expected to expand spending authorities into contracts in the next year; some contacts will materialize in the next 3 months.

Fedmarket.com will act as an aggregate of stimulus contracting information. As information becomes available we will report new findings to you, along with enhancements that will include contact data for the contracting officers and end users responsible for the contracts.

Click here for more information, or call (888) 661 - 4094, press 2 for sales.

Fedmarket.com is offering complimentary downloads of a new book entitled GSA Schedules: The Shortest Path to Federal Contract Dollars. Paperback copies of the book may be purchased at Fedmarket.com.

To download your free copy of GSA Schedules: The Shortest Path to Federal Contract Dollars, click here.

If you are still not a GSA vendor, come write your GSA proposal in our 3-day GSA eLab.

If you have a friend or colleague who would be interested in this book, click here

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Call Fedmarket's sales staff at (888)661-4094, and press 2 if you have questions concerning these or any other products or services Fedmarket offers. E -mail inquiries may be sent to the following: sales@thefederalmarketplace.com.