A GSA Schedule and 8(a) Certification combination helps firms maximize their federal revenue. If you are interested in becoming 8(a) certified, and your small business is not focused on construction and therefore not eligible for a GSA Schedule, it makes sense to consolidate the effort that it takes to do either separately by doing both at the same time. From a financial standpoint, it is a no brainer as the cost is significantly cheaper to go through the processes together.

In order to know how things work it’s important to look at GSA Schedule specifically, the Financial Qualifications for obtaining a GSA Schedule, as well as the exceptions to the criteria that firms attempting to obtain GSA IT Schedule 70 can utilize (through the IT70 Startup Springboard). There are specific criteria and exceptions which I will go over, and then I will provide some Pro Tips that should aid your firm additionally in a GSA Schedule Submission.

GSA Schedule Financial Criteria

1. Length of Time in Business - 2 Years in business. Generally, this date starts when the firm first starts having commercial sales.

2. Current Profitability - The firm should be profitable on its current interim income statement as well as profitable on its tax return for the prior year.

3. Number of Clients of the Firm - Has your company worked with at least 6 past/current clients that would respond to a Duns & Bradstreet Open Ratings Request? This is to ensure your firm provides high quality goods and/or services.

4. Health of Balance Sheet - The GSA will require that the firm have positive retained earnings. They will also review the amount of capital the firm has to ensure that the firm is capable of completing a contract without running out of funds mid-project.

GSA Schedule IT70 Exception - Startup Springboard

1. Length of Time in Business - Use your executives and key professionals' professional experience to substitute for two years of corporate experience. (This is a substitute for Financial Criteria 1)

2. Use key personnel's project experience to substitute for relevant corporate past performance. (This is a substitute for Financial Criteria 2-3)

3. Provide financial documentation that demonstrates your company's financial responsibility instead of submitting two years of financial statements. (This is a substitute for Financial Criteria 4)

Pro Tips for GSA Schedule:

1. Maintain consistent pricing, invoicing and discounting practices for your current clients.

2. Make sure your balance sheet ties from one year to the next.

3. Before D&B Open Ratings invitations are sent out to your clients, be sure your clients know the purpose. When clients think surveys are part of an internal improvement process, they grade firms much more critically. Low Open Rating scores can greatly reduce the effectiveness of a GSA Schedule Contract.

4. Generally, the stronger the firm’s past financial performance, the easier obtaining a GSA Schedule will become. Therefore, if your firm has the potential to have a future negative cash flow year, it is often best to obtain the GSA Schedule in good years so it is available for the firm if it falls into a deficit situation.

GSA Schedules/8(a) Certifications

A GSA Schedule is your first step in entering the federal marketplace. If you are interested in exploring the type of impact a GSA Schedule and/or 8(a) Certification can provide your business, we recommend contacting a leading industry expert like Advance GSA or ez8a. Knowing the size of the federal marketplace in your industry is a critical part of making a strategic decision as to whether you should view the federal government as a growth area for your business. Advance GSA can be reached at (303)810-4580. They do not charge for an initial consultation.