Why Federal Buyer are more likely to Use Small Business Contractors that have a GSA Schedule?

  • GSA Schedule /
  • 07th May 2021
  • BY Bob Steger
  • 90
Why Federal Buyer are more likely to Use Small Business Contractors that have a GSA Schedule?

Answer: It makes transactions easier and less risky for federal buyers

Listed below are the ways a GSA Schedule make it easier for a federal buyer to purchase from a small business supplier. The list below shows how a GSA Schedule has an advantage in all six areas purchasing agents care about.

Category Advantage of a GSA Schedule
Risk Reduction -Reduced schedule risk (speed of MAS)
-Lower Protest Risk
-Extensive and deeply experienced acquisition resources
-Use on and Off Ramps
-Defined and controlled pool of available contractors
Savings -Time Savings because Enterprise BPAs can be done in 3-6 months
-Money Savings because of the cost for each days delay.
Flexibility -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
Efficiency -Building with the use of an already established contract
-Contractors already have shown they are determined and responsible
-Contractor have met all required clearances
Value -Contractors have received Training and Support throughout the process (both classroom and on-line)
-GSA Schedule Electronic Tools Assist Market Research, Dissemination of RFQs and Ordering
-Statement of Work (SOW) reviews
-Tech Panel Support
Control -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 have more than $1MM per year in federal sales from their schedule.

Results

Small Businesses selling on the GSA Schedule System account for 37.2% of federal procurement on the GSA Schedule System 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.