As reported in earlier installments, the federal government's use of multi-vendor contracts to buy products and services is steadily increasing. Getting on the GSA Schedule is one of the few ways a small and medium-sized company can compete with experienced federal contractors. We have recently discussed some of the obstacles businesses face in obtaining a GSA Schedule contract. The difficulties are compounded by the fact that GSA is becoming less supportive of small businesses. Theories abound as to the reasons for the recent shift in GSA's attitude towards small businesses. This installment will look at some of the possible explanations for this shift.
Most would agree that GSA is not intentionally biased against small businesses. The agency instead appears to be trying to ensure its financial survival. Small businesses, as a general rule, do not initially generate large GSA Schedule revenues and they have a particularly hard time winning federal contracts if they are new to the market. In fact, it can often take one to two years of pre-selling the federal government before a small business sees its first GSA Schedule order. It has therefore been speculated that small businesses are being turned away by GSA in favor of larger businesses (i.e., those that generate more revenue in the form of payment of GSA's Industrial Funding Fee).
More specifically, GSA will not openly reject small business proposals based on the size of the vendor's business alone. GSA's bias is evidenced in a much more subtle manner. The following demonstrate GSA's increasing bias towards small businesses:
- The recent requirement, in some GSA Schedule solicitations, that a company must be in business for a set number of years before its offer will be considered
- The increasing number of proposal rejections based on insufficient past and projected sales for an item being offered.
- The increasing frequency of proposal rejections when, in the past, contracting officers would have requested that the vendor modify or amend its offer
- GSA's implementation of more stringent and rigid price negotiation policies
In the short term, we suggest that small businesses hang tough in their negotiations with GSA. It should be noted that all offers can be re-submitted. In the long term, small businesses should call their congressional representatives to voice their concerns.
Fedmarket.com's is working to help small businesses succeed in the government marketplace.
The Federal Sales Academy - Federal agencies and congressional officials do not tell the public about the realities of federal sales because it is not in their best interests to do so. In fact, this type of seminar can start a company down the wrong path and divert them from the tough work of direct sales. Our speakers will address the realities and expose the truth about doing business with the government. Check out the courses we have coming up this fall.
Products - We have an extensive line of products for vendors selling to the government. Take advantage of our staff's knowledge in federal contracting, contact us and tell us what you're looking for, we are here to direct you to the product that best suits your budget and business plan. Call us at 888-661-4094 ext. 8.
Struggling with Your GSA Schedule Proposal?
GSA proposal preparation is a complex, frustrating and expensive undertaking. Fedmarket.com offers inexpensive solutions designed specifically for small businesses.
GSA Schedule eLab - Develop your GSA Proposal in 3 days at our eLab. Fedmarket provides you with a Request for Information (RFI) prior to your arrival at our eLab. You are instructed to bring the requested corporate data with you to the course. Attendees should, with the assistance of our GSA staff, complete their GSA offer prior to the end of the eLab's third day.
Electronic GSA Wizard - GSA Wizard is a proprietary software product, developed by Fedmarket.com, which assists individuals and companies in preparing GSA schedule proposals. The product was designed specifically for companies that decide to prepare proposals on their own.
GSA Proposal Preparation - A cost-sensitive alternative to our full-service option. We prepare the offer for you using corporate data and information you provide to us. We return an electronic copy of the completed proposal for you to submit and negotiate on your own.
Fedmarket.com's Full Service GSA Solutions:
GSA in a Day - We travel to your office and expedite the proposal preparation process.
Full-service GSA Consulting - We offer professional services to companies interested in obtaining a GSA schedule contract. Fedmarket's specialists prepare everything for you. We handle the entire process - - from GSA proposal preparation through contract negotiation and award. Call 301.652-9504 ext. 26 for a quote.
If you need help with any other product sales, call or write as follows: (888) 661-4094 ext 8 or sales@fedmarket.com.
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