Small Businesses and GSA Schedules
From GOVSALESWIKI
Installment [ 41 ] Small Businesses and GSA Schedules By Richard White
Our small business readers frequently inquire, "Can a small business obtain a General Service Administration (GSA) schedule and what would cause us to be turned down by GSA?" Small businesses considering the federal market tend to think that GSA is only interested in large companies with government experience. This common misconception is not true. GSA is open to negotiating a schedule contract with any commercial company regardless of its size and government experience. The Federal Acquisition Regulations encourage government buyers to seek full and open competition. Provided that a small business offers fair and reasonable government prices, its GSA offer should be afforded the same consideration that a larger corporation is given.
With respect to government work, there are several factors that weigh in favor of small businesses. The federal government is very interested in doing more business with small companies because it recognizes that contract bundling tends to shut out the smaller companies. For political reasons, federal officials actively look to do work with small companies that may not necessarily have federal experience. Furthermore, federal buyers have learned that small companies tend to bring innovative solutions to the federal sector.
On the other hand, there are two primary reasons that GSA may reject a GSA schedule proposal submitted by a small business. The reasons are as follows:
- Your balance sheet shows that your company is at risk of not meeting its short-term financial obligations; and/or
- You are a new start-up company or you are proposing to do business in an industry in which you have no prior experience. In either case, your business does not have a proven track record of performing the type of service or providing the product you intend to offer to GSA. Note that a start-up company may, under several GSA solicitations, use prior management experience in lieu of providing a corporate experience profile for a new start-up company.
Many small businesses fear that their pricing will not be competitive with those offered by larger companies. Small companies shouldn't fear; as a starting point for negotiation, your prices will be presumed by GSA to be fair and reasonable if you can successfully prove that you have sold your products or services, at your disclosed prices, in the commercial marketplace. GSA is seeking prices equal to or better than those given to your most favored commercial customer. In GSA's examination of your pricing, your company's commercial prices are the basis for GSA price negotiations, not those of your competitors.
In summary, do not allow the fears that your company is too small or that your pricing is not competitive dissuade you from considering obtaining a GSA schedule contract. A GSA schedule contract is a tremendous asset for smaller companies hoping to generate new income streams.