A GSA schedule is a five-year agreement that establishes a pre-negotiated price list for the products and services a business offers to the federal government. This GSA contract requires renewal every five years, during which the company and the government reassess the pricing for government contracting. While competition for government bids still exists, a company holding a GSA contract possesses a significant advantage. Often, the primary competition will be other businesses with GSA contracts or companies offering highly specialized items. This pre-negotiated pricing at the time of contract award effectively reduces competition. In many instances, the competition is solely among businesses with GSA contracts, leaving those without one at a considerable disadvantage from the outset. However, simply holding a GSA contract does not guarantee sales; focused sales efforts targeting specific agencies are crucial. Establishing oneself as a recognized federal contractor takes time, even with a GSA contract. Once a company has a proven track record of successful contracts alongside its GSA schedule, it secures a strong position within the federal market. Federal buyers, or procurement officers, are typically required to solicit proposals from at least three contractors and select the winning vendor based on the “best value” principle.

It’s important to note that “best value” does not solely equate to the lowest price. Consider the perspective of a contracting officer. They are often not experts in the specific items or services they need to procure but are responsible for ensuring taxpayer dollars are used responsibly. The two most influential factors a contracting officer considers when determining best value are a vendor’s past performance history and their proposed price. However, the preference of the end-user also carries significant weight. While this system may not be a perfect safeguard for taxpayer funds, it is generally a functional one. Here’s why: A company that holds a GSA contract and has a history of successful projects with an agency like Nellis Air Force Base is likely to win subsequent projects at that same base. Ultimately, federal employees prioritize avoiding responsibility for wasting taxpayer money, and a contractor with a proven track record is often perceived as the safest choice. The GSA contract system provides an efficient procurement method that is gaining popularity among federal purchasers. The administrative costs associated with fulfilling contracts under GSA schedules are considerably lower than those involved in managing individual contracts. Consequently, companies with a GSA Schedule gain a substantial competitive edge when bidding for opportunities in the federal market.