GSA is the U.S. General Services Administration, a cabinet-level federal agency.  Under the GSA Schedule program, the Federal Acquisition Service negotiates contracts which authorized buyers order from at pre-negotiated prices and terms.  

A U.S. Government buyer has a wide array of contract types available for purchase of goods and services. This includes sealed bidding, simplified acquisition, negotiated procurements, and "other than full and open competition", also known as sole source.

However, one of the easiest procedures is use of the GSA multiple award schedule.

Since it is pre-negotiated, a GSA Schedule allows a buyer to conduct a competition more efficiently and expeditiously than through virtually any other competitive procedure. GSA Schedules are also based on a company's commercial sales and discounting practices, making them the most "commercial-like" of any government contracts.

A Government buyer (called an "ordering activity"), must survey, "at least three schedule contractors through the GSA Advantage on-line shopping service, or by reviewing the catalogs or pricelists of at least three schedule contractors." (see FAR Part 8.405-1)

The ordering activity does not necessarily need to choose the least expensive vendor, but may consider other factors in determining which vendor provides the best value. These factors can include past performance, warranty, quality, and delivery terms. 

Since best value is not based solely on price, it allows the ordering activity some latitude in choosing a vendor. Once a determination of best value is made, the Government issues a purchase order against the contract and the order is fulfilled by the contract holder per the Schedule terms and conditions.

The procedures for purchasing services which require a statement of work are slightly more complex. (see FAR Part 8.405-2)

Please see our summary of eligible buyers.

Firms may provide "spot discounts" to federal Government customers under their GSA Schedule without incurring permanent price reductions on the contract.  This gives contractors added flexibility in addressing competitive situations in the Government market. 

Yes.  Federal sales are based on the Federal Acquisition Regulations (FAR), which replace the Uniform Commercial Code (UCC) when companies sell to the U.S. Government. 

The Government has made major efforts to make their buying rules more "commercial-like". The GSA Schedule even allows a contractor to incorporate some of their commercial terms and conditions into the contract (EX: warranty, software license, etc.). 

However, there are still many unique regulations in place when selling to the Government.  Examples include rules regarding taxation, shipping charges, records retention, intellectual property issues and price change notification.

Any company that sells to the Government must be aware of all the FAR clauses that govern the sale.

This is very important topic, and can be complex at times. Each Schedule contract is negotiated individually by GSA, and the specific obligations to monitor pricing policy changes should be laid out in a document called the Final Pricing Revision. You should consult this document to help answer this question.

Since the GSA Schedule is based on a company's commercial sales and discounting policies, it is crucial for contractors to set up a system to monitor their commercial sales practices over the contract lifecycle.

The IFF is a quarterly contract management fee which must be paid back to GSA by the contractor.  The IFF equals 0.75% of sales made under the GSA Schedule contract.  The Industrial Funding Fee supports the GSA branch that negotiates all GSA Schedules. 

A teaming agreement allows two GSA Schedule contractors to jointly approach a Government customer and receive one Government purchase order for their products.  This "one face to the Government" approach allows the Government to purchase complex multi-vendor systems without issuing a large RFP.  One teaming partner acts as the lead in the relationship, accepting payment from and invoicing the Government, and paying the other partner their share.

Under such teaming agreements, each contractor still pays its own Industrial Funding Fee.

A BPA is an agreement entered into by the Government and a contractor, allowing the Government to issue multiple task orders to a vendor after an initial best value determination has been made.  They are entered into with a particular agency, department, etc., and often require the contractor to give a discount even deeper than the GSA Schedule discount in recognition of the flexibility that a BPA offers.

Located at www.GSAAdavantage.gov, this is the Government's e-commerce site for GSA Schedules. Every company that holds a GSA Schedule must list their products on this site, where they can be purchased via secure credit card orders by a Contracting Officer.

GSA Advantage allows even the smallest companies to get their products and services in front of U.S. Government buyers across the globe.

For additional information on this program, see our GSA Advantage consulting page.

A GSA Schedule is one of the best ways to get a foothold in federal contracting, allowing a company to adapt many standard practices to the federal market.  The GSA Schedule is a very "commercial-like" contract, at least when compared to more complex options such as cost reimbursement contracting.

However, there are still a number of unique elements that need to be understood before a firm submits an offer for a Schedule contract. Finding a good consultant will help to ensure that your company enters this market with a minimum of risk and the best chance to increase your federal sales.

Rozycki Associates provides assistance to companies in all stages of the GSA Schedule process, from planning, through negotiation and post-award management.