What are GSA eligible organizations?
Organizations that would conform to GSA requirements are sometimes called GSA eligible. It really pays off to be one of those GSA eligible organizations. Here is why:
Only qualifying businesses can sell to the government
The government is quite picky when it comes to the selection of vendors that they choose to purchase products and services from. This is for a reason: GSA wants the best for federal agencies, so the typical qualification routine is very scrutinous and time-consuming. To be found eligible to sell on GSA, a company needs to meet certain requirements, some of which are easy to match, and others are quite complicated.
Why cannot everyone sell to the government?
First, as said above, the government wants the best: the best products, the best services, and, of course, the best prices. GSA simply cannot and does not want to deal with minor firms, untrustworthy companies and so on. Second, strict regulations and qualification rules help prevent machinations and fraud on both sides.
Who qualifies to sell to GSA?
GSA wants to have business with solid, trusted companies that already have a name on the open market, and do not carry debts or other financial burdens. Only companies that offer competitive prices can qualify for federal grants and schedules. Also, there are several specific requirements a business must meet in order to be eligible for a GSA Schedule.
GSA ELIGIBILITY
- Your company is properly registered GSA only works with officially registered organizations. This means your company must have a DUNS number, NAICS codes, and enrolled at the System for Award Management (SAM).
- Your company has been on the market for at least 24 months. GSA does not work with startups or newbie firms. Not only must your company have been started no less than two years ago, but it also has to show profits in the last two consecutive years.
- Size of the company Various size companies can qualify and contrary to a common misbelief that says the size of your company does not matter that much, the GSA sets aside a number of government contracts specifically for small businesses.
- You have a minimum revenue of $100,000/year Your company has produced at least 100K annual sales for the past two years. Some specific schedules may require higher revenues.
- Your company stands firmly on the ground Financial stability is a key factor in the assessment of your company credentials for potential GSA enrollment. Not only must your business display positive figures, but you also must not be in debt, have too many loans or have assets frozen by a judicial decree.
- Your company is not affiliated with GSA or federal agencies It is illegal for procurement officers to award a Schedule to a company that is somehow related to the officer herself, GSA or the federal agency that issued the solicitation.
- Your products TAA compliant Every part, detail or unit of your products must be in compliance with the Trade Agreements Act. A product is TAA compliant if half or more of its manufacturing cost comes either from the US or designated countries, or if the product has undergone substantial transformation in the US or designated countries. TAA compliance is discussed here.
- You have good references from past clients One part of determination of eligibility is the Past Performance Evaluation report produced by Open Ratings. The report involves gathering of references and testimonials from clients of the company submitting a GSA application. The Open Ratings agency sends a questionnaire to your previous clients and analyzes the references received. The main point of this research is to make sure the company that would be offering its services to the government has a positive reputation on the market and has a solid record of fulfilling its obligations.
A quick way to see whether your Past Performance score would be adequate, is to ask your existing customers to answer the questionnaire beforehand, and then see if you should improve on anything negative that your client might mention. Price Reporter will be glad to assist you with PPE references, among other things.
And if you merely need to know you have chances with GSA, and if your business is eligible for selling to GSA, please contact us using the form below. We will be happy to help.
Many small business owners who are willing to start their cooperation with the government ask themselves whether they would qualify. After all, small business is a small business, and the GSA Schedule seems and sounds like something really complex and demanding, which it certainly is.
So, if you too are wondering if you qualify for GSA Schedules, please know that you are on the right track. It is very wise to make a deeper research of the entire government contracting sphere, before rushing into it. Indeed, even if you have heard dozens of success stories, that does not necessarily mean that your own affair with the government will be a success too. We recommend taking your time, and investigate the requirements to contractors and the processes behind the GSA contracting system.
- Do you have enough time? Even the initial steps to apply for a GSA Schedule are very time consuming. And managing your current GSA contract requires close attention and investing a lot of time and effort into it. Every day, literally. Does your team have members who can dedicate themselves to managing a GSA Schedule? Can you assign someone to gather the required documents and certificates, and to put up everything together as Federal Acquisition Regulations prescribe? Note that applying for a Schedule is not ordinary filling out a form or two. There are dozens of pages of required information you must provide, as well as and preliminarily gather such data. You have to communicate with GSA officers. You have to compose and submit your pricelists and product catalogs. And then, when you are awarded, the really hard part begins. You have to manage your contract. Are you ready for that?
- Can you offer competitive prices? The government is a special kind of client. It requires one to offer their best prices. The wise thing to do is to monitor the federal market to see what the average prices are in your niche. Can you offer such prices? If yes, would it still be profitable for you? What will you do if competitors lower their prices? Can you afford to compete? Also, can you reasonably justify your prices to the government? What do you normally charge in the open market for your services and products? You must substantiate your pricelist and directly show the value for the government that it gets for the price. In our experience, pricing strategy is one of the most contradictory and complex things in federal contracting.
- Do you have enough experience? Aside from the requirement to stay in business for at least two years before you can apply for a GSA Schedule, you should also prove that you are competent and reliable enough to do business with the government. How does the GSA check this? Through the mechanism of the Past Performance Evaluation and by assessing your previously finished projects and analyzing documents that confirm the quality of your products or services.
- Financial stability
- At least two years in business
- Minimum sales requirement
- TAA compliance
- Labor rates
- etc.
By conducting prior research, you can learn exactly what kind of preparations you will need. Or, you can consult with professional GSA agents such as Price Reporter. We have been helping businesses to ensure they qualify for a GSA Schedule contract for many years. Forewarned means forearmed. And forewarning comes from the in-depth knowledge of the government contracting. With proper knowledge (either your own, or those of the GSA expert) you can greatly improve your chances of successful government business.
