For 8(a) certified firms that are looking to exacerbate their already very good future business development opportunities, or for firms looking to acquire the 8(a) Certification but would like to super-size the potential, getting on GSA Schedule is often times the best course of action. While the health of the US economy can mean different things for GSA Schedule holders, there is always a huge benefit to it.

GSA Schedule in a Strong Economy
In good times firms with GSA Schedules utilize their schedules to obtain contracts with federal agencies. Fewer firms are looking to the government for business, so this gives firms an opportunity to build relationships with federal agencies. As a result of these long-term relationships, small businesses with over 10 years of contracting experience win contracts greater than 53% of the time.* During a strong economy, M&A (Mergers and Acquisitions) activity heats up and smaller firms become more attractive to larger firms. This is because 65% of acquisitions in the federal contracting space occur so the acquirer can have access to new/federal markets.** Therefore, these established relationships with agency customers becomes the most valuable strategic asset of a small business.

*Grant Thornton Annual Government Contractor Industry Survey Highlights 

**American Express Open Forum: Successful Small Business Contractors Invest More in Time and Money to Pursue Federal Contracts

GSA Schedule as an M&A Asset
A GSA Schedule is one of the few transferable government contracts, and will follow the acquiring company in a business sale.

GSA Schedule During a Normal Economy
The average small business GSA Schedule Holder makes over $1MM per year in federal sales. For the average small business GSA Contract holder, this makes the Federal Government their largest client. GSA Schedules often are the channel by which firm’s segue into additional product offerings and contracting vehicles.

GSA Schedule During a Poor Economy
During past recessions, the federal government attempts to stimulate economic growth by increasing spending. Usually this causes a rush of applications to the GSA Schedule System, which under normal economic conditions only handles several thousand applications per year. This expands wait times past the 4-5 month current processing time. Most firms are generally looking shorter-term to replace 15-25% of their billing, with federal contracts. So, planning ahead is critical for using a GSA Schedule as a defensive strategy.

GSA Schedules
A GSA Schedule could be the best move for your firm to enhance its’ future business development potential, whether you already are 8(a) certified or not. If you do not have an 8(a) Certification at this time, serious consideration should be given on whether to do both at the same time since there is significant cost savings to do so. Either way, I always recommend contacting an industry expert such as Advance GSA, ez8a or Advance 8a. They do not charge for an initial consultation and can even run an analysis of your firm to see what type of impact a GSA Schedule (and/or 8(a) Certification) could provide your business.