The GSA Minimum Sales Requirement is a contractual obligation imposed by the General Services Administration on all Multiple Award Schedule (MAS) contractors. It mandates that a contractor must generate a minimum amount of sales through their GSA Schedule contract within a specified timeframe in order to maintain the contract in good standing. This requirement is outlined in the GSA Schedule contract clause I-FSS-639, which helps GSA ensure that awarded contracts are actively used and that administrative resources are allocated efficiently.
If a contractor fails to meet the minimum sales threshold, GSA reserves the right to initiate contract cancellation. The requirement applies to all contractors regardless of company size, industry, or socioeconomic status.
Purpose and Importance
The Minimum Sales Requirement serves several important purposes in the GSA MAS program:
- It ensures that awarded contractors are actively engaged in the federal marketplace and fulfilling a real procurement need.
- It helps GSA maintain an efficient, streamlined catalog of vendors by removing underutilized or inactive contracts.
- It reduces the administrative burden on GSA Contracting Officers, Industrial Operations Analysts (IOAs), and acquisition platforms like GSA Advantage! by eliminating dormant contracts.
- It encourages contractors to market their offerings, respond to opportunities, and use their contract as a strategic sales channel.
GSA invests significant time and resources in awarding, managing, and monitoring Schedule contracts. The minimum sales threshold is one way to ensure that these contracts deliver value to both the government and the taxpayer.
Sales Threshold and Timeline
The current GSA MAS contract clause sets the minimum sales requirement at:
$25,000 in total sales through the GSA contract within the first five years of the contract.
After the initial five-year base period, contractors must then generate at least $25,000 in sales during each subsequent five-year option period to remain eligible for extension.
This threshold applies to cumulative sales across all orders placed through the GSA Schedule, including:
- Purchases made through GSA Advantage!
- Orders issued via GSA eBuy
- Agency task or delivery orders placed under the contract
These sales are tracked through quarterly reports submitted by the contractor via the FAS Sales Reporting Portal and must include only GSA-authorized transactions—not open market or non-Schedule sales.
How Sales Are Tracked and Reported
Contractors are required to report sales and pay the Industrial Funding Fee (IFF) on a quarterly basis. These reports are submitted through the FAS Sales Reporting Portal, and the reported figures are used by GSA to monitor compliance with the minimum sales requirement.
To ensure accurate tracking and compliance, contractors must:
- Submit timely and accurate sales reports for each quarter of contract activity
- Include only eligible GSA Schedule sales — sales tied to awarded SINs and subject to Schedule pricing and terms
- Pay the corresponding Industrial Funding Fee (0.75%) on reported sales
- Keep internal records and invoices to verify reported transactions in the event of an audit or IOA assessment
- Review contract modifications regularly to ensure that newly added products or services are correctly reported
Failure to report sales accurately or on time may not only trigger compliance issues but also complicate GSA’s evaluation of whether the contractor is meeting the minimum sales requirement.
Consequences of Non-Compliance
If a contractor fails to meet the minimum sales threshold, GSA will typically notify them in writing and provide an opportunity to respond. Contractors may be asked to explain the shortfall and describe any efforts made to market the contract.
If sales remain below the required threshold and no compelling justification is provided, GSA may initiate cancellation of the contract. This action is generally taken to maintain efficiency in contract administration and ensure the MAS program reflects active, productive vendors.
However, cancellation for low sales is not always automatic. In some cases, especially for new entrants, niche industries, or emerging service categories, Contracting Officers may consider:
- The contractor’s marketing strategy and sales pipeline
- Agency interest in the contractor’s offerings
- Recent award of new SINs that have not yet produced orders
- Participation in small business or socioeconomic set-aside programs
If the contractor can demonstrate potential for future contract usage or evidence of active business development, GSA may choose to maintain the contract for a limited time with close monitoring.
Strategies for Meeting the Sales Requirement
Contractors should view the minimum sales requirement not as a hurdle but as a baseline target that drives proactive engagement with the federal market. By aligning internal resources and outreach strategies, vendors can more easily meet and exceed the threshold.
Recommended strategies include:
- Actively marketing your GSA contract to federal agencies through direct outreach, targeted email campaigns, and participation in government trade shows or webinars
- Optimizing your GSA Advantage! catalog with accurate product descriptions, high-quality images, keywords, and up-to-date pricing
- Responding regularly to eBuy RFQs to increase visibility and compete on upcoming opportunities
- Partnering with larger contractors or system integrators to participate in subcontracting or Contractor Team Arrangements (CTAs)
- Engaging with GSA Small Business Specialists and agency procurement officers to build relationships and identify upcoming needs
By taking a proactive approach and viewing the GSA contract as a strategic channel—not just a listing—contractors can build consistent sales volume and grow their government business.
Conclusion
The GSA Minimum Sales Requirement ensures that awarded MAS contracts are used actively and productively within the federal marketplace. For contractors, meeting the $25,000 threshold is not just about compliance—it is a signal of market engagement, relevance, and contract value. Vendors who plan ahead, market strategically, and align their offerings with agency demand are well positioned to meet this requirement and build a sustainable presence on the GSA Schedule.
