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Aspiring 8a

Why are Federal Buyers More likely to Use Small Business Contractors that have a GSA Schedule?

To put it most simply, it makes transactions exponentially easier and less risky for federal buyers. I have gone into detail the ways a GSA Schedule makes it easier for a federal buyer to purchase from a small business supplier. The list shows how a GSA Schedule has a marked advantage in all six areas purchasing agents care about.


Advantage of a GSA Schedule

Risk Reduction

-Reduced schedule risk (speed of Multiple Award Schedules
-Lower Protest Risk
-Extensive and deeply experienced acquisition resources
-Use On and Off Ramps
-Defined and controlled pool of available contractors


-Time Savings because Enterprise Blanket Purchase Agreements (BPAs) can be done in 3-6 months

-Money Savings because of the cost for each day’s delay


-Ability to use On and Off Ramps (Ability to add/cancel new vendors to BPAs)
-Employ performance metrics with time extension incentives
-Wide selection of contractors
-Discretionary Set-Aside Ability
-Wide array of contract types


-Building with the use of an already established contract

-Contractors already have shown they are determined and responsible

-Contractors have met all required clearances


-Contractors have received Training and Support throughout the process (both classroom and online)
-GSA Schedule Electronic Tools Assist Market Research, Dissemination of RFQs and Ordering
-Statement of Work (SOW) reviews
-Tech Panel Support


-Flexibility in ad agency-specific clauses and provisions
-Agencies retain maximum flexibility for "Best Value" Source Selections
-Recurring requirements can be satisfied with BPAs rather than Agency Indefinite Contracts

This compilation of advantages the GSA Schedule System brings to small business are why the average firm with a GSA Schedule generates well over $1MM per year in federal sales just from their schedule.

Small Businesses selling on the GSA Schedule System account for 37.2% of federal procurement or $13.6B in annual sales. These 12,000 firms therefore average over $1MM each in federal contracts. This compares favorably to the 23.8% of all federal contracting dollars small business have federal government-wide.

If your firm would like to determine the potential federal market size of your product or service, and/or are interested in exploring the future business development potential of a GSA Schedule (alone or coupled with an 8(a) Certification), I always recommend contacting an industry expert such as Advance GSA. They can be reached at (303)810-4580 and do not charge for an initial consultation.


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