Maintaining and keeping a GSA contract requires a lot of TLC! It is essentially a “license” to sell to the Federal government, which has high expectations and requirements of its’ vendors. Your GSA contract was awarded with a 5 year base period and 3 potential 5 year extension options, totaling 20 years in all. (note: After 20 years, this contract does turn into a pumpkin! A new contract will need to be awarded to continue with GSA)
As your contract approaches the end of each 5 year period, GSA will offer you the opportunity to extend (aka Renew) your contract for another 5 years. GSA refers to this as either an Option to Extend or An Option to Renew.
It’s VERY important to note, contract renewals are NOT automatic. Just like every other contract update (modification), there is a formal and specific process in place that every contract holder who wishes to renew must follow.
- The Renewal process begins in your inbox. About 8 months prior to your contract expiration date, your CO will email you that it is time to exercise your Option to Extend.
- GSA has an expectation of receiving a response to this email within 30 days. This response is typically referred to as your Letter of Intent (to renew) or LOI. This letter has specific information (of course!) that must be contained within in it. It is not as simple as saying “Hey -we want to extend”!
- Once the GSA has received your LOI it will review your contract. Your Contracting Officer (aka CO) will be looking into such things as:
- Have you have been meeting minimum annual sales requirements ($25,000 /yr)
- Is your contract current
- Is your contract compliant
- Have you been paying your IFF fees
- Any other criteria that is important to the GSA or your CO
- After this contract review, the real fun starts. Your contracting may or may not ask for more supporting documents: explanation of Prior Audit deficiencies, new Past Performance narratives, small business size recertification, TAA compliance documentation, commercial practice or pricing updates. In a nutshell – clarifications to any item that your CO wants clarification on. These clarifications will look different to every contract holder. During this phase, your CO may want reopen discussions about your contract terms and renegotiate parts of your contract.
- If you are successful in navigating through Step 4, congratulations – your GSA contract will be renewed for another 5 years! Be sure to keep your contract current and compliant during these 5 years – it may help your next Renewal go more smoothly.
For help with your upcoming GSA contract renewal, call the experts at Government Contract Services. Our team is experienced with all parts of this process and can shield you from the frustrations that often accompany it! (234) 212-3413