GSA Contracts Everything You Need To Know

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1 GSA Contracts Everything You Need To Know View this as an E-Book at:

2 ABOUT ME: Josh Ladick Josh Ladick is President of GSA Focus, Inc. We are focused on getting companies onto GSA Schedules and Maintaining those Contracts once awarded. GSA Focus strives to be the best GSA Contract solution in the industry through efficient and adaptable processes, a strong knowledge of GSA Contracts, and uncompromising customer service. Follow Josh on Connect on LinkedIn:

3 TABLE OF CONTENTS: 1. Definitions & Acronyms 2. What is a GSA Contract? 3. How to Get a GSA Contract 4. Maintaining Your GSA Contract

4 CHAPTER 1: Definition & Acronyms

5 GSA Contracts Definitions & Acronyms GSA Schedule SIN FAR Solicitation SAM MFC / BOA CO

6 GSA Contracts Definitions & Acronyms GSA General Services Administration Schedule (link) GSA Category - by industry or group of industries SIN Special Item Number - Subcategory of a Schedule FAR (link) Federal Acquisition Regulation GIANT Document Solicitation (link) GSA Document for each Schedule SAM (link) System for Award Management was ORCA/CCR MFC / BOA Most Favored Customer Basis of Award CO Contracting Officer, GSA Contact OR Fed Buyer

7 CHAPTER 2: What is a GSA Contract? GSA & Contractor s Point of View As the acquisition arm of the federal government, the GSA streamlines the process of connecting Contractors to federal buyers through GSA Contracts to: 1. Eliminate redundancy in the buying process 2. Pre-approve contractors 3. Pre-negotiate prices Note: A GSA Contract is for 20 Years (5 year options x4) $25,000 Annual sales requirement IDIQ - No guaranteed sales, just a big advantage License to Hunt

8 CHAPTER 2: What is a GSA Contract? GSA & Contractor s Point of View As the acquisition arm of the federal government, the GSA streamlines the process of connecting Contractors to federal buyers through GSA Contracts to: 1. Eliminate redundancy in the buying process 2. Pre-approve contractors 3. Pre-negotiate prices Federal Buyers Point of View 1. Job Security 2. Simpler Buying Solution 3. Lower Liability

9 CHAPTER 3: How to get a GSA Contract? (The 6-Step Process) Prepare Offer Submit & Wait for Review Clarifications Negotiations Award Post-Award

10 GSA Contracts How to get a GSA Contract 1. Prepare Offer Solicitation Between pages Instructions / T&C Heavily cites FAR Confusing / Contradictory Usually documents in an offer Commercial Sales Practices Commercial Price List Proposed Price List Summary of Offer Readiness Assessment Financials Digital Certificate Pathway to Success Open Ratings Sam Record Letters of Supply (products) Labor Category Descriptions (services) Invoices / Contracts / SOW s Crosswalks Agent Authorization Letter (consultant) Cover Letter (good practice) Factors 1-2 OR Sections 1-3 SCA Matrix Professional Compensation Plan Uncompensated Overtime

11 GSA Contracts How to get a GSA Contract 2. Submit & Wait for Review E-Offer System (link) Required to submit electronically Must have Digital Certificate Review Time 3-6 months, sometimes longer Depends on which schedule Submit Offer Accepted Rejected Clarifications Rejection Around 75 90% of Offers Must resubmit with revisions/explanations Back of the Line (usually, but not always) Still Progress

12 GSA Contracts How to get a GSA Contract 3. Clarifications Normal part of the process, and occur when the CO determines that there are only minor deficiencies with your offer documents. GSA CO will have questions Internal Due Diligence (Dig Deeper) Solicitation Refresh Usually several rounds (2-4) Advanced Financial Analysis P/L Statement has a Loss Debt - Current Ratio on Balance Sheet 2 Weeks

13 GSA Contracts How to get a GSA Contract 4. Negotiations One hour phone conference between GSA CO and your company to cover 3 main areas: 1. Assure your company understands primary Terms and Conditions of the Solicitation 2. Negotiate the Prices and/or General Discount Can Leverage Education/Experience 3. Negotiate other Concessions to the GSA Volume/Quantity Discount Prompt Pay Discount Freight Terms

14 GSA Contracts How to get a GSA Contract 5. Award Awarded your GSA Number Open for Business Celebrate!

15 GSA Contracts How to get a GSA Contract 6. Post-Award But there is still much to be done, you are now at a new starting point. 1. SIP Registration 2. SIP Upload GSAAdvantage! & E-Library Contract / Company Information Product uploads Text File 3. GSA e-buy Exclusive Bidding Area Notifications within your SIN(s) 4. Marketing Plan Bid Searching Proposal Writing Agency Selection Cold Calling & ing

16 CHAPTER 4: Maintaining Your GSA Contract Modifications Compliance CAV Visit (Audit)

17 GSA Contracts GSA Contract Compliance Modifications If Acquiring a GSA Contract is a Marathon, then Modifications are a 5K. A Modification (Mod) is any revision to your GSA Contract after Award, Including: Adding Products/Services Deleting Products/Services Price Increases/Decreases Administrative Changes More The process involves the preparation of a small document package, usually 5-8 documents. Mods are submitted through E-Offer, and are reviewed by your GSA Contracting Officer (CO) After a Mod is approved, you must make changes on GSAAdvantage! shortly after.

18 GSA Contracts GSA Contract Compliance Compliance: Key Points 1. As your Commercial Rates change, you must adjust your GSA Contract Price Reductions Clause If the discount offered to your Basis of Award (BOA) changes, then your GSA Discount must adjust accordingly. Scenario: You choose All Commercial Customers as your BOA with a 1% Discount. Your GSA Discount was negotiated to 2%. After 6 months, you have an opportunity to land a huge commercial customer, but will need to offer a 3% discount. Problem: Your company is contractually obligated to offer the GSA a better discount than your BOA by one percentage point. Consequences: If you proceed, then the Price Reductions Clause is triggered, and the GSA considers this to mean that your GSA Discount was changed to 4% the day of the transaction. If the GSA discovers this, you may have to cut a check to each federal customer since the transaction date for the difference. What s the Point? Wrap your head around the Price Reductions Clause, and prepare for these scenarios. (link)

19 GSA Contracts GSA Contract Compliance Compliance: Key Points 2. Understanding the Industrial Funding Fee (IFF) The final negotiated price list will reflect a 0.75% increase to all products and services. You will charge federal buyers these prices, and pay the GSA 0.75% of all sales every quarter. This IFF is paid by the federal buyer, and passes through your company. 3. Put systems in place to separate GSA transactions from all others Every quarter, you will be required to report your GSA sales. You will pay the GSA the IFF based on that reported total. You want to make sure that you pay ONLY on GSA sales, and Open Market sales do not sneak in there: Cutting a bigger check than required Liability Considered selling items not on contract

20 GSA Contracts GSA Contract Compliance CAV Visit (Audit) Onsite visit by a regional GSA Agent for several purposes: 1. Assess the level of compliance with the GSA Terms and Conditions. Require Invoices for past year both GSA and Commercial TAA Compliance 2. Examine tracking processes: Identify potential problems and pitfalls, assist with questions or concerns. 3. Assist in Business Development Generally two times during each 5 year contract term. Output Contractors Report Card

21 Are you looking to increase your Federal Sales through a GSA Contract? Get Started Today! Complete our Get Started web form Or call GSA Focus at (760) View this as an E-Book at:

GSA Contracts. Everything You Need To Know. Download this as an E-Book (with active links) at:

GSA Contracts. Everything You Need To Know. Download this as an E-Book (with active links) at: GSA Contracts Everything You Need To Know Download this as an E-Book (with active links) at: http://goo.gl/wtrmh ABOUT ME: Josh Ladick Josh Ladick is President of GSA Focus, Inc. We are focused on getting

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