Get To Know the GSA

April 13, 2006

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As previously mentioned, if a product or service is a commercial-type or general-purpose item, there is a good chance that the General Services Administration (GSA) buys it for all government agencies.

GSA, one of the largest agencies of the federal government, helps other agencies acquire the products, services, consulting advice, space, real estate, and vehicles they need from federal and commercial sources. It acts as a catalyst for approximately $66 billion in federal spending annually, which accounts for more than one-fourth of the U.S. government's total procurement dollars.

GSA simplifies government buying and reduces government costs by negotiating large multi-user contracts and by leveraging the volume of the federal market to drive down prices. Federal agencies then place orders against these contracts. Orders are placed in a variety of ways-through GSA customer representatives or catalogs, phone or fax, charge cards, electronic requisitioning, auctions, the Internet, or by contacting suppliers directly. GSA contracts are awarded for a period of five years, with three- to five-year option clauses. Most GSA contracts are for standard services and "commercial off-the-shelf" (COTS) products and equipment in three major areas:

general-purpose supplies, equipment, and services
building construction, repair, maintenance and architectural services
information technology and professional services

GSA contracts are available to both large and small businesses able to provide nationwide or local services and products. GSA contracts are advertised, awarded, and managed by GSA headquarters and regional offices. All GSA contracting opportunities over $25,000 are advertised on the FedBizOpps web site.

So, as you can see, if your business provides commercial products or services, GSA is a potential customer that you want to get to know and learn how to do business with. And, as you can also see, it is easy to understand why GSA is sometimes referred to as the "Sears, Roebuck" for the government.

GSA Service Organizations

The GSA has three service organizations:

Public Buildings Service (PBS) -- This is the largest public real estate organization in the U.S., maintaining more than 330 million square feet of workspace for more than one million federal employees in more than 2,000 cities, with an inventory of 8,300 government-owned buildings and leased properties.
Federal Technology Services (FTS) -- This provides federal agencies with the information technology, network services and professional services.
Federal Supply Service (FSS) -- This provides federal and other customers with the products, services, and programs they need to meet their supply, service, procurement, vehicle purchasing and leasing, travel and transportation, and personal property management requirements. This is done by bringing hundreds of thousands of federal customers together with over 9,000 contractors through FSS's six primary business lines:
- Commercial Acquisition
- Transportation Programs
- Travel Programs
- Vehicle Acquisition & Leasing Services
- Property Management
- GSA Global Supply

Because the GSA's Federal Supply Service, with its business line Commercial Acquisition, is the area that presents the greatest opportunity for small businesses, this is where we will focus our discussion. (For further information on the Public Buildings Service, see this site. To learn more about the Federal Technology Service, see this site.)

Getting on Schedule

Like any business looking to sell its products or services to the government through the GSA, your goal is to get on a "GSA Schedule" and obtain your "GSA number." Here's what that means.

GSA manages what is called the Federal Supply Schedules Program, which has two parts: the Single Award Schedules (SAS) and the Multiple Awards Schedules (MAS).

Single Award Schedules are contracts made for a specific product at a stated price for delivery to a geographical area, as defined in the SAS. The distinguishing principle here is that these contracts are for a specific item only.

The more popular Multiple Award Schedules (MAS) are long-term, government-wide contracts with commercial firms that provide commercial services and products that can be ordered directly by government buyers from GSA Schedule contractors or through GSA Advantage!, GSA's online shopping and ordering system. GSA Schedules cover a vast array of brand name items from office supplies and copier paper to systems furniture and from computers to laboratory equipment as well as a wide range of services, such as accounting, engineering, management, graphic design, and landscaping.

To "get on schedule"--become a GSA Schedule contractor--you must first be awarded a contract. In order to obtain a GSA Schedule contract, you must submit an offer in response to the applicable Schedule solicitation. GSA uses practices similar to those found in the commercial buying arena and awards contracts to responsible companies that offer commercial items falling within the generic descriptions in the Schedules (these descriptions are referred to as Schedule Item Numbers or SINs). Contracting Officers determine that prices are fair and reasonable by comparing the prices or discounts that a company offers the GSA with the prices or discounts that the company offers to its own commercial customers (known as "most favored customer" pricing). In order to make this comparison, GSA requires companies to furnish commercial pricelists and disclose information regarding their pricing/discounting practices during the application process.

Why would government buyers prefer to order via GSA Multiple Award Schedules instead of procuring on the open market? There are some very good reasons. When government buyers place orders against a GSA MAS contract, they are considered to have met federal regulations regarding competition, pricing, and other socio-economic requirements. In addition, government buyers know that to be "on schedule," GSA Schedule contractors have already been screened for quality, responsibility, reliability, and other criteria during the application process; therefore government buying offices save the time, money, and trouble of having to go through that process themselves.

We assume that, at this point, you are seeing some benefits in getting your company "on schedule." Although the process can be somewhat long and complicated, it can be worth it to you and your company. The following discussions provide a step-by-step guide to help you move through the process easier and faster, as well as guidelines for marketing your GSA Schedule contract after you have been selected:

Work Smart

You can get other assistance with the GSA schedules application process. GSA offers Schedule Workshops for businesses looking to become GSA Schedule contractors. To find more information, see this site.

GSA now offers a free online training site for businesses that includes GSA Schedule information at this site.

And, as always, you can consult your local PTAC for help and advice on working through the process.