2020 was a tough year. Many businesses have lost significant revenue sources and must now look to filling the sales funnel through other means. Other businesses have experienced growth and need resources to sustain their profit numbers beyond Covid. So, what about a GSA contract?
First, What is a GSA Contract? A GSA contract can be described as a long-term “license” to sell goods and services to Federal agencies. Pricing and terms that you offer to Federal agencies is pre-negotiated in advance of the contract award. Federal agencies don’t HAVE to buy through the GSA contract but many do because of negotiated pricing and easy access to vendors.
Is Your business Eligible for a GSA contract? If you can answer yes to each of the following, then your business should consider a GSA contract:
- Your business has been in business for at least 2 years (if your business is an IT business, this doesn’t apply)
- Your business has healthy financials
- The products or services you sell are products and services found within the GSA contract (Team Government Contract Services can help you determine this!)
- You have past sales invoices for products you sell and/or past performance summaries for services you sell
- Products you want to sell to the federal government are TAA compliant
If your business is eligible to submit for a GSA contract and your business is ready to begin selling to Federal agencies or expand current Federal sales, then here are 5 reasons to consider a GSA contract:
- Federal agencies are given an annual budget every fiscal year (October – September). Agencies use these dollars for everything from office supplies, new computers, custom software, agency vehicles, building repairs/upgrades and so on. Much of the Federal budget will be spent directly with businesses with GSA contracts.
- Getting a GSA contract is not quick or easy. In fact, the process of getting a GSA contract has proven too daunting for many businesses to take on (if this is the case, call us!). But for those businesses that persevere, the rewards often prove worth it. A GSA contract affords exclusive contract opportunities only to GSA contract holders. This includes everything from one-time purchase opportunities to multi-year contract opportunities.
- Have you heard of GSA Advantage? No? Imagine a website, exclusive to Federal agencies, where your products are listed, Amazon style, to buyers. GSA Advantage and the GSA eLibrary are go to sources for Federal buyers. Buyers can reach out directly to the GSA contract holders listed within these resources.
- Maybe you have bid for and won/not won a government contract before. The experience is not one you will likely forget…it’s painful! Through the magic of pre-negotiated pricing, GSA contract holders don’t have as many hoops to jump through when responding to a request for quote from Federal buyers. Buyers have fewer bids to review (remember the reduced competition?!) which reduces the time between bid and award.
- Again, getting a GSA contract takes effort. Once awarded, your business may hold this contract for 20 years (initial award is for 5 years, with 3- 5 year options to extend). Assuming you are meeting minimum sales and following the rules, your business can have access to the billions of dollars of Federal budget, in a reduced competition playing field, on Federal exclusive buying platforms, with less hassle for 20 years! That’s a long time to grow and improve your federal sales and profits.
For more information about GSA contracts and if one might be right for your business, call Government Contract Services, Inc. at: (234) 212-3400.