You’re new to the world of government contracting, I get it. You’re probably here because you know the industry is lucrative but you’re not too sure where to start. What are the different types of contracts? How do I get a contract? How do I market myself? These are all excellent questions that we’ll cover in this article. More specifically, we will cover the world of GSA contracts, one of the most popular kind among US government contractors, with the average GSA contract holder making $3M per year.
GSA Schedule 70.
The GSA Schedule 70 is a contract that goes to commercial technology vendors. GSA stands for the U.S. General Services Administration, which is primarily responsible for handing out these government contracts. This department is responsible for federal property and handing awarding GSA schedule 70 contracts. GSA contracts provide fast, flexible, and cost-effective procurement solutions, while also representing 21% of all contracts awarded.
They can be indefinite in nature, meaning a company may be able to reap the benefits from a single contract for multiple years on end, but the awarding process may be time consuming competitive.
What are ‘Commercial Technology Vendors?’
We know that GSA Schedule 70 contracts go to commercial technology vendors, but what does this mean? Commercial technology vendors can be quite a broad term, but it generally refers to companies that sell technology. This technology can be code, a type of vehicle, or even a form of consulting. Commercial technology vendors exist everywhere, and there are quite a few of them who acquired these GSA Schedule 70 contracts for a myriad of different kinds of tech from cybersecurity to artificial intelligence to developing decentralized ledgers (blockchain). Some major examples of GSA holders including Boeing and Lockheed Martin, with the former making planes for the U.S. government and the latter helping with defense systems.
Similarly, at DIGITALSPEC, we hold contracts regarding cybersecurity, application development and cloud computing.
What do GSA agents look for when awarding contracts?
- Past Performance
This is perhaps the single most important metric, not just for GSA contracts but US government contracts in general, and this where new companies can run in a ‘chicken-and-egg’ problem.
Past performance involves an analysis of the applicant company’s prior experience with government contracts. Now, as a beginner with little to no contracts under one’s belt, you can see why this would be a problem. So what do you do?
Cheat… sort of. Many companies that start out in the GovCon sector will find strategic partners by offering them access to contracts they would be ineligible for otherwise, owing to the former’s special status which the latter may not have. For example, let’s say you are a SB8A (small business association certified) NHO (native Hawaiian organization) like DIGITALSPEC. You could then find a company like Amazon and partner with it, with the latter willing to partner because it wouldn’t have access to small business contracts otherwise.
- Designation
There are several different types of GSA contracts, with some ‘set-aside’ for small businesses. These contracts can be further insulated from large companies and competition in support minorities by making contracts available to companies with ‘special’ designations, such as ‘Native Hawaiian Owned’ or ‘Native Alaskan Owned’ enterprises. How does this apply to you?
Well, if you are a Hawaiian owned company and SB8A status, you may be better of seeking out contracts for set aside for that designation because only a small subset of all contracting companies would be eligible for it, thus increasing the chances of winning that contract.
For a complete list of special designation, visit the GSA website here.
How many GSA contract categories are there?
There are 12 MAS (multiple award schedule) categories, as shown by the chart below:
What are the requirements for qualifying for the GSA contract?
The GSA requires contractors to meet a number of requirements before applying. You can learn about them in detail by visiting the GSA website, but here’s a few points to keep in mind as you get started:
- Must Meet Minimum Qualifying Sales: You must generate at least $25,000 in sales within the first 2 years of your GSA Schedule contract and at least $25,000 each year thereafter.
- Takes Time to Secure a Contract: The average time it takes to secure a contract is between 18-24 months (according to the SBA).
- Your GSA Contract Can be Cancelled: The government may cancel your schedule contract in accordance with clause 552.238-73 for failure to meet minimum sales criteria specified above.
How to find GSA contracts?
There are a number of databases you can use to find federal contracts to bid on, such as Dynamic Small Business Search (DSBS), U.S. General Services Administration (GSA), SubNet and many more. You can find a list of databases here. Your best odds will be for contracts that compliment your company’s designation/special status, expertise, and past performance.
To learn more about DIGITALSPEC, be sure to visit DIGITALSPEC.net or email us at support@digitalspec.net.
