Often times, when a small business begins the 8a application process, it is a smart move to also go about getting on GSA Schedule simultaneously. Some of the processes involved in both are the same, and there is a significant reduction on what your firm has to do and provide, as well as a significant cost savings if you have wisely enlisted the help of an industry expert. GSA Schedule is a great way to enter the Federal Marketplace. The combination of the 8(a) Certification and GSA Schedule is akin to playing both hard and smart in sports.  

So, I had a friend who was a third-degree black belt in Taekwondo growing up. He could break boards with his hands and do some of the most amazing things. I quickly became interested in joining him, inquiring “how long it would take to be as good as him at Karate?” He said he was originally enrolled when he was five years old. Realizing I didn’t have a prayer at age 14 of ever getting anywhere, I decided not to pursue the opportunity.

The good news is that in the federal marketplace, you can’t quite start out as a “third degree black belt” like my friend, but you can start out somewhere just below that as a second-degree black belt. If that had been the case for me at 14, I probably would have joined my friend.

Background

The OMB (Office of Management and Budget) is wanting the government to reduce administrative burden while achieving consistent pricing. Agencies have worked with OMB to determine that as of the end of FY 2018, 56% of addressable common spending is unaligned, meaning Tier 0. Therefore, they are wanting governmental agencies to use the highest tier contract whenever possible. The crackdown is beginning and agencies will get more and more pressure with each passing year. Those Contracting Tiers are the following:

• Tier 0 - Unaligned spending by the agency, which involves purchasing in a decentralized manner and not conforming to category management principles, including strategic oversight and disciplined consideration of performance data to understand prices paid by other Federal customers or metrics to improve results;

• Tier 1 – Spending managed at the agency-wide level with supporting mandatory-use policies and strong contract management practices, including data analysis, information sharing across the agency, and use of metrics that are defined, tracked and publicized;

• Tier 2 – Spending managed at government-wide level through multi-agency or government-wide solutions that are not BIC solutions but reflect strong contract management practices, including data and information sharing across agencies, and use of cross-agency metrics. (This includes most GSA Schedule Contracts)

• Tier 3 – “Best in Class” Spending managed at the government-wide level through use of BIC solutions that have been identified through a collaborative interagency process by acquisition category experts within the Government as offering the best pricing and terms and conditions within the Federal Marketplace. (This includes non-Tier 2 GSA Schedule Contracts)

A GSA Schedule can be obtained by a competent vendor in approximately five months. A firm therefore does not have to spend a decade moving from a Tier 0 on to a Tier 1 Contractor and then finally make the next leg up to a Tier 2 Contractor. This can literally happen overnight. Making the jump to Tier 3 will likely take some good past performance, however having a Tier 2 contract can be leveraged to obtain a Tier 3 or “Best in Class Contract”. These contracts in some cases can be kingmakers, and there are many instances where firms have acquired another firm with the main objective of obtaining the BIC contracting vehicle.

BIC Contracting Vehicles Currently Include:

BIC Contracting Vehicle / Category / Percentage of Contractors that are Small Business

GSA Alliant/Alliant 2 – GSA - Information Technology - Alliant SB separate contract

Alliant SB/Alliant SB2 – GSA - Information Technology - 75% and 25% large strategic partners

Army CHESS - Information Technology - 50%

Building Maintenance and Operations (BMO) – GSA - Facilities Construction - 81%

City Pair Program (CPP) – GSA - Travel - 12.5%

DLA Direct Delivery Fuels - Transportation and Logistics - 81%

Enterprise Infrastructure Solutions and Networx – GSA - Information Technology - 40%

Human Capital and Training Solutions (HCaTS) – GSA - Human Capital and Training Solutions - 48%

Identity Protection Services (IPS) BPA – GSA - Professional Services - 67%

Janitorial and Sanitation Supplies (JanSan) – GSA - Industrial Products and Services - 94%

Maintenance, Repair and Operations Supplies (MRO) – GSA - Industrial Products and Services - 75%

Next Generation Delivery Services (NGDS) - Transportation and Logistics - None

NITAAC CIO-SP3 (Solutions and Partners 3) - Information Technology - 4%

NITAAC CIO-SP3 SB (Solutions and Partners 3 Small Business - Information Technology - 100%

Office Supplies 3 (OS3) – GSA - Office Management - 96%

Reduced Hazard Training Ammunition (RHTA) - Security and Protection - 50%

Schedule 70 (GSA for Desktops and Laptops) – GSA - Information Technology - 82%

US Government Car Rental Program - Travel - None

GSA Global Supply Requisition Channel – GSA - GSA Global Supply - 84%

8(a) STARS II – GSA - Information Technology - 100%

Body Armor III – GSA - Security and Protection - 100%

Employee Relocation Resource Center (ERRC) – GSA - Travel - 38%

FedRooms – GSA - Travel - 59.6%

FSSI – GSA - Information Technology - None

GSA Fleet Leasing – GSA - Transportation and Logistics - None

If your goal is to one day have a meaningful portion of your firm’s sales come from federal contracting, starting off as a 14 year-old “kid” with a second-degree black belt is not such a bad start. In fact, it is an outstanding way to begin.

A GSA Schedule is seen as a great first step in entering the federal marketplace.  If you are interested in pursuing the 8(a) Certification or getting on GSA Schedule, I recommend contacting the industry experts at ez8a or Advance GSA to take you through the process. Initial consultations are free at both firms.