As the number of Women-Owned Small Business (WOSB) certifications continues to grow, it is becoming increasingly challenging for new WOSB firms to differentiate themselves. One effective strategy for standing out is obtaining a General Services Administration (GSA) Schedule.
The latest data highlights the impact of combining WOSB status with a GSA Schedule. In fiscal year 2023, WOSBs with a GSA Schedule collectively earned over $16.7 Billion, with an average of $4.4 Million per firm. This is significantly higher than WOSBs without a GSA Schedule, which averaged approximately $2.4 million in federal contracts. This difference underscores the competitive advantage of GSA Schedule visibility, leading to higher sales—on average, nearly double for firms with a GSA Schedule.
The table reveals several insights that can be encouraging for small businesses, especially Women-Owned Small Businesses (WOSBs), considering a GSA Schedule:
Higher Revenue Potential: In both 2022 and 2023, WOSBs with a GSA Schedule significantly outperformed those without in terms of average contract revenue. For example, in 2023, WOSBs with a GSA Schedule earned an average of $4.4 Million per firm, compared to $2.4 Million for those without. This illustrates that having a GSA Schedule could potentially double the contract revenue a WOSB can access through federal opportunities.
Growing Market Demand: The total federal dollars awarded to WOSBs increased from approximately $28 Billion in 2022 to over $30 Billion in 2023, suggesting growing federal demand for services and products from WOSBs. This upward trend in WOSB spending presents a growing pool of opportunities that small businesses can tap into by obtaining a GSA Schedule.
Strategic Differentiation: With more WOSBs entering the federal marketplace, a GSA Schedule can help firms stand out. Only a subset of WOSBs (between 29% and 30% in both 2022 and 2023) held a GSA Schedule, giving them a unique advantage in visibility and credibility. This strategic positioning allows these businesses to gain priority consideration from contracting officers who often start their vendor searches with GSA-listed firms.
Improved Access to Prime Contracts: Federal contracting officers often prefer working with vendors on GSA platforms like GSA Advantage and GSA eLibrary. Small businesses with a GSA Schedule gain access to these platforms, where they can more easily reach federal buyers, enhancing their chances of winning prime contracts. The data suggests that small businesses on GSA Schedules have the opportunity for a “first look” from contracting officers, who are mandated to meet WOSB spending goals, making it easier for these businesses to secure contracts.
Steady Success Despite Competition: While the number of WOSBs with a GSA Schedule decreased slightly from 3,840 in 2022 to 3,788 in 2023, their average earnings per firm actually increased. This suggests that even with minor shifts in the number of competitors, the value of contracts for those on a GSA Schedule remains resilient and growing. For small businesses, this is an encouraging sign that pursuing a GSA Schedule can lead to sustainable growth, even as the market evolves.
Consistent Growth in GSA Schedule Premium: The data shows that the total “premium” for WOSBs with a GSA Schedule grew from $5.8 million in 2022 to $6.8 million in 2023. This premium represents the added revenue that these firms with GSA Schedules collectively gained over those without it, highlighting the financial benefits of securing a GSA Schedule.
Obtaining a GSA Schedule can be a game-changer for Women-Owned Small Businesses looking to increase their federal contracting success. With the potential to double revenue and gain priority access to federal buyers, a GSA Schedule is a powerful tool for standing out in a competitive marketplace. If you think that securing a GSA Schedule could be a part of your marketing and growth strategy, I always recommend contacting an industry expert such as Advance GSA or ez8a to help guide you through the process, setting you up for success. Neither charge for an initial consultation.
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