GSA Schedule
GSA Schedule Competition in Real Life
By Richard White
Jul 30, 2007, 21:58

For political reasons the federal government takes the position that competition for federal contracts is 'full and open". In real life, full and open competition is impractical because it takes far too long to make a purchase and federal contracting offices do not have enough staff to achieve full and open competition.

In fact, GSA schedules limit competition for good reasons; they reduce the cost of purchasing and, more importantly, speed up the purchasing process. Most people who understand federal purchasing issues agree that GSA schedules are in the best interest of the taxpayer. As expressed above, GSA's posture implies that competition takes place when a Request for Quote (RFQ) is issued. In real life, the actual completion takes place way ahead of the issuance of an RFQ. Except for commodities, the competition place when a sales person calls on an end user and sells a company's products or services based on features and benefits, best values considerations, and risk aversion.

More than one company may be engaging the end user but all the competitors on your GSA schedule will not be a factor in most cases. The RFQ issued to those companies working with the end user and others who the end user doesn't know. Often this is only one company; hopefully, yours. In most cases, the companies that have not sold the end user provide the paperwork that the government needs to show competition.

So, as we see it, the most basic issues are as follows:

1. Your company and its sales staff generate the demand with end users for your products and services. The only competitors that you need to worry about are those selling the end user in direct competition with your company. A GSA Schedule contract is a method which allows your business to quickly and easily close a sale that you have already made.
2. The hundreds, or even thousands, of companies on your Schedule are really just names in the database. As we tell our clients, "Only companies with proactive sales people survive in the federal sales game."
3. Your company should hold a GSA Schedule contract in order to close deals. The goal should not be not to use your Schedule contract to help win opportunities which your sales staff hasn't presold. Don't go into a bid opportunity with the mindset that, even though the end user has no idea about your company or its capabilities, you are going to blindly bid on that contract and use your Schedule contract to help seal the deal.
4. When considering whether to enter the federal market, your management must ask whether the company can afford the lead time and expensive of implementing an effective federal sales program. If your company has already implemented such a program and a contracting officer has told your staff that it would make her life easier if your business held a Schedule contract, pursue getting one immediately.

More information on GSA Competition is presented in the White Paper titled "Competition among GSA Schedule Vendors." This free white paper is available at http://www.fedmarket.com/articles/index_wp.shtml.

SPECIAL EVENT!

Date: Friday, August 10, 2007
Time: 9:00 a.m. - 1:00 p.m.
Location: The Federal Sales Academy in Bethesda, Maryland

Fedmarket.com has noticed that GSA has been focusing many of its 2007 marketing efforts on reaching out to the needs of state and local governments. In fact, 2007 was the first year that state and local governments were invited to the GSA Expo in Orlando. In doing so, GSA pushed its attendee, exhibitor and vendor number over 10,000 for the first time in the Expo's 13 years. With recent events in mind, Fedmarket has created a Special Event Forum for current and potential GSA Schedule Holders, sales executives and managers. Details follow:

Capturing State and Local Contracts with Your GSA Schedule

If your company meets one or more of the following criteria, this half-day event is made for you:

• Are you an IT company with an IT70 Schedule?
• Does your organization provide products and services for counter-narcotics activities?
• Does your company supply products or services which could help the government prepare for, or recover from, a natural disaster or terrorist attack?
• Is there a possibility that you could sell your products or services to state or local governments under federal Homeland Security grants?

Fedmarket's Federal Sales Academy Director, Eileen Kent, will cover the following topics:

• What is a GSA Schedule?
• How do I close a deal with a GSA contract?
• Which agencies can buy through the Schedule program?
• What is GSA's position (i.e., why do they want vendors who hold Schedule contracts to be successful with state and local governments)?
• Understanding GSA's "cooperative purchasing" program and how it could open a new market for GSA Schedule holders
• What are coop plans?
• Will state and local governments need my products and services in an emergency?
• How can I search the web for opportunities, names and numbers?
• How does my company sell to state and local governments?
• How can my company win the grant game?

Remember the huge growth in the early days of GSA? According to GSA's estimate, $239 million was purchased by state and local governments through the IT70 Schedule in Fiscal Year 2006. Imagine the growth which will take place in next few years as a result of GSA's marketing push to open up this market. At the Federal Sales Academy, we want you to be among the first to capture the business. We will teach you the secrets to selling to state and local agencies. We want you to already have your foot in the door when these agencies realize how easy it is to buy using GSA Schedules.

At the conclusion of the class, we'll hold a networking event for vendors who want to help each other grow in this marketplace. Therefore, bring plenty of brochures and cards for "teaming" opportunities.

Materials provided: PowerPoint presentation, printed materials, and a CD (which will include links to further business with state and local governments)

Cost: $350 per person

Register Online: - Click Here

For more information or to register by phone call 888-661-4094 x 8.

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If you need help with any other product sales, call or write as follows: (888) 661-4094 ext 8 or sales@thefederalmarketplace.com.