Questions To Ask Before Getting Onto The GSA Schedule
The US Federal Government is risk averse and a contract vehicle can provide additional confidence in the vendor, thus facilitating the procurement decision. The vendor relationship with the government client is essential, as is a trusted solution coupled with relevant past performance and fair pricing. The GSA Schedule, or vendor short list with preapproved pricing can make vendors more attractive. Because they have been vetted not only on price but also past performance and other technical merits, many companies flock to this vehicle. Plus, it is well marketed by GSA. The downside is that more than 60% of the GSA Schedule holders have ZERO sales through their Schedule.
Have I read and understood the solicitation?
Vendors should read the entire solicitation so that they understand the requirements both pre and post award. This is a contract and any shrewd business person should know the terms and conditions they have signed.Does my customer/prospect prefer to use the GSA Schedule?
Successful vendors have a pipeline of opportunities and also have had conversations with the Government prospect. These conversations have led the vendor to pursue the Schedule because it is the preferred tool for the client. Unless you are a large business, or on the larger side of small, the "build it and they will come" strategy is not wise in GSA Schedules. Relationships play an integral role in the sales process and should be in place before pursuing the Schedule.Is my pricing competitive with others on the GSA Schedule?
Public procurement equates to public data. Use it! Vendors should conduct research to not only assess competitors but also partners (ie. joint ventures as well as subcontractor relationships). This market research should absolutely include a detailed pricing analysis. It is important to do this BEFORE getting onto the Schedule, to understand if being on the Schedule would be profitable for your business or not. With smaller margins, vendors will need higher volume to ensure this business decision has return on investment. Do the math!What is the cost of doing business - start to finish - for the GSA Schedule?
Speaking of profits, there is always a cost to doing business. Some companies will prepare the GSA proposal themselves, others will hire consultants, or find the cheapest guy in town. There are costs beyond the preparation. These line items can range from your GSA Schedule sales, marketing, proposal responses, back office compliance, modifications and more. Again, do the homework, do the math!
In conclusion, the GSA Schedule can be a great way to enhance your marketing efforts in the federal contracting arena. The GSA arena however includes more fierce competition with similar rates. The differentiator in this coveted contract vehicle will be your special sauce - the relationship! Check out our 50+ complimentary webinars on GSA Schedules:
https://www.jenniferschaus.com/gsa-schedules