Today Government Charge Card is pleased to publish a piece by Jennifer Schaus. Jennifer is the principal of Jennifer Schaus & Associates, a boutique government consulting firm in Washington, DC with offices in Rome, Italy. The organization helps small, mid-size, Fortune 500, domestic and international firms with government contracting; GSA Schedules to 8a Certification as well as sales, marketing and lobbying.
On Thursday, July 19 the company is hosting a federal contracting networking event at the Kennedy Center – information can be found here: http://jenniferschaus3.eventbrite.com/
Below Jennifer discusses nine questions a company must answer before pursuing a GSA schedule.
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9 Questions to Ask BEFORE You Pursue a GSA Schedule Contract

1. Who are my customers and how do they purchase?
The first step in deciding to pursue a GSA Schedule should be B2G market analysis and ROI study. This market may not make good business sense for your company. Understanding who buys your services/products and HOW they buy is the most important. Some agencies have their own contract vehicles and are not using the GSA Schedule. Do not make the GSA Schedule a liability for your firm.

2. How much of my customers purchases are through the GSA Schedule?
GSA Schedules represent about 7-10% (approx $60 B) of the total Federal Government spend (approx $600 B). Further dissecting your customer base and understanding what they purchase on the Sched, on the open market, through set-asides, sole-source and through other contract vehicles will give you added intelligence.

3. What competitors are on the GSA Schedule & what is their pricing?
GSA Schedules are primarily based on pricing. The government buys direct from the GSA Schedule knowing that they have received the best price for your product/service. Conducting market research on competitors is wise, especially for future procurements through the GSA Schedule – as the GSA Schedule is a price ceiling – you can bid lower than your GSA Schedule rates. Just ensure this does not affect your Price Reduction Clause / MFC.

4. What other marketing tools / advantages does my firm have?
The GSA Schedule is not a silver bullet. Other factors such as small business size and other designations like Veteran Owned, Minority Owned, HUB zone, Alaska Native can also be trump cards in the government contracting business. These designations may get you more traction than a GSA Schedule in some cases. Do not let one of these GSA Schedule firms tell you that you need a GSA Schedule; you do not.

5. Can I meet the sales quota?
Over 60% of GSA Schedule holders do not meet the GSA sales quota of $25k for the first 24 months and $25k each year after. It does not sound like a high quota, but once you jump into this ultra competitive relationship based market with price wars, you will understand why more than half of the vendors are failing. Selling to the government is a long and arduous process. Do NOT wait until you have a GSA Schedule in place to start selling. Again, you do NOT need a Schedule to sell to the government. It is a marketing tool and a contract vehicle.

6. Do I have a sales team to actively market the Schedule?
The GSA Schedule is only a marketing tool. Sales are based on relationships and you will need human bodies who understand your sector as well as how to navigate the B2G marketplace. The average investment is about $100k per year and it takes about 18-24 months to get your first sale. You will need a few folks to actively be knocking on the doors to help you sell. The Schedule will not make your phone ring or your in-box fill with orders.

7. Do I have support staff or a consultant to assist with the administrative responsibilities?
The GSA Schedule comes with ample reporting requirements on each and every order. Additionally, a quarterly fee of .75% of your GSA Schedule sales must be paid back to GSA through the 72-A reporting system. The support staff should also have all documents prepared for a GSA Audit or CAV, Customer Assisted Visit.

8. Am I wiling to disclose the required information and put forth the effort to obtain the Schedule?
The Schedule requires disclosure of your pricing and pricing policies. It also requires publishing your GSA rates (which is available for the world to view on a public website). Getting onto the GSA Schedule is virtually responding to an open RFP. It is a heavy lift and can take about 3-5 months to prepare a compliant proposal. The review process on GSA side can last anywhere from 2-3 months (short side) to over 16 months (some Schedules including Sched 56).

9 Have I read the solicitation and do I understand all of the terms, conditions, compliance requirements & risks?
Obtaining a GSA Schedule comes with risks and rewards. It is a binding contract with many terms and conditions. Ensure you understand exactly what you are signing up for and how it will impact your commercial sales practices (yes, your commercial sales). A GSA Schedule is not for everyone, so beware to not be sold just on the benefits. Get the full picture and read the fine print before you leap.

For more information, please contact Jennifer Schaus, JSchaus@JenniferSchaus.com   www.JenniferSchaus.com