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For those businesses that would like to sell products and services to the government, entering into the General Services Administration (GSA) Schedules Program could provide many new opportunities when it comes to networking and expanding your business. 

On the other hand, entering into the GSA Schedule, which is an independent U.S. government agency that supports the basic functioning of federal agencies, also brings about unique responsibilities that are important to know. When it comes to being awarded a GSA schedule, you also need to know about factors like compliance and maintenance. The pros of being a GSA contractor are immense, but it’s crucial to know how to handle these factors before they become cons. 

GSA Contract Pros

It goes by many names, either a GSA contract or a GSA schedule, but the main big perk of having a GSA contract is that it streamlines the connection between delivering products/services to a government agency. Other pros to a GSA contract include:

Pre-Approved Cost

Of course, the government also has perks when it comes to GSA contracts. The reason they have GSA schedules in the first place is so they can receive the best value for services. The period of the contract sets pre-negotiated ceiling rates, which makes it easier for the business to earn government agency business. There is no determining whether the price is market competitive. 

Pre-Approved Technical Proficiency

In addition to the GSA approving the pricing, they also approve what your business is capable of when it comes to technical proficiency. When you submit your GSA proposal, you will provide information about your company related to proposed Special Item Numbers (SINs). If you provide the Highly Adaptive Cyber Security (HACS) SIN 132-45, you will receive a technical evaluation to make sure that requirements are met. 

All in all, this permits agencies to enter into relationships with these contractors knowing exactly what kind of work will be performed and what the requirements will be. For GSA contract holders, this makes it so they don’t have to submit separate technical narrative forms in their proposal. 

Accessibility to More Resources

Once a business enters into a GSA schedule, it’s metaphorically like entering into the land of Oz, as they gain access to sites that other businesses would only dream of having access to. GSA contract holders have direct access to agency sites and are able to have a direct dialogue with these agencies in terms of providing services and products. In these site areas, businesses are able to respond to quotes, requests, and questions. 

Access to the “Amazon” of GSA

Marketing is important for any business, and that also goes for GSA contract holders. Via shopping tools like GSA Advantage!, your GSA contract offering can be posted so that a lot of other agencies can see what you offer and whether they want to do business with you. In addition to being able to have a way for people to see your products/services, it’s also a good way to stay on top of what the competition is doing. 

GSA contractors at government building in Washington, DC

GSA Contract Cons

Limited Pricing

A GSA schedule determines a company’s “Most Favored Customer” price, so that the government receives the best possible price. So the GSA schedule is designed to give the government a discount, meaning that typically companies are supposed to charge at or below that MFC price. So that makes it so you can’t really change your pricing and that you’re always giving a discount. 

Updating Compliance and Maintenance

As a GSA contractor, you’ll have to make sure you are up-to-date on pricing and Terms and Conditions in order to remain compliant, which requires some extra energy and work. However, just devoting some more time to this endeavor also has its advantages, meaning more steady business for your company. 

Conclusion

As you can see, there’s a lot to consider when it comes to entering into a GSA schedule. The pros include pre-approved costs, knowing what technical capabilities are needed, and having access to a variety of resources you might not otherwise have if you weren’t a GSA contractor. On the other hand, pre-approved costs means you are restricted with the pricing and you’ll also have to make sure you are up-to-date on compliance and maintenance in order to stay viable. 

When entering into a GSA contract, it’s important to weigh all of the options before moving forward. While GSA contractors may have to spend some extra time and energy toward this endeavor, most times the benefits outweigh all of the cons. Contact Inracks to learn more or to inquire about pricing.

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Inracks LLC
Address: 78 John Glenn Drive
Amherst, New York 14228
Phone: 800-346-7521
Fax: 716-691-8301
Email: customerservice@inracks.com
Website: www.inracks.com

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