Avoid these Common Mistakes When Managing Your GSA Schedule

Whether you know this already or are just coming to understand it, obtaining your GSA Schedule contract is only the beginning. Proper maintenance of your GSA Schedule serves as the very foundation of your contract, and it's important to keep an eye on it before things go wrong and you run into compliance issues. Some of the most common compliance mistakes we see as consultants are the ones that can slip by without notice until they make it into GSA’s hands like delivery delays, forgetting to remit your Industrial Funding Fee (IFF), or sales reporting mishaps.

However, with careful planning and proactive measures, you can steer clear of these pitfalls and set yourself up for long-term success in maintaining your GSA Schedule. So, let’s talk about the common mistakes you can make in managing your GSA Schedule and how you can avoid them.

Why GSA Schedule Compliance Matters 

GSA wants to know that for every product and service offered through GSA Schedules, the contractors are following their terms and conditions and providing the best value. As a contract holder, it’s your responsibility to remain compliant, and it can be overwhelming to keep track of especially if you are a new contract holder or don’t have someone on your team who is familiar with GSA Schedule maintenance. Non-compliance can lead to contract cancellations, financial penalties, and removal of your GSA Schedule pricelist. Therefore, it’s important you understand the requirements associated with your GSA Schedule.

Common Mistakes in Managing Your GSA Schedule

There’s a lot to keep track of when it comes to your GSA Schedule—but what are contractors missing the most? Here’s a list of the most common pitfalls when maintaining compliance so you can be sure to avoid these mistakes.

• Non-Compliant Offerings: One of the biggest pitfalls is offering products that do not meet the requirements of the Trade Agreements Act or TAA. This can be a pretty big deal. There are certain countries where your products cannot be “substantially transformed” such as China, India, Russia, etc.
• Misleading Representation: This means you painted a false picture of your product or service. For example, if a product is falsely labeled ”Made in America.”
• Delivery Delays: Delivery delays can be difficult, especially with supply chain issues. It's important to be clear and communicate delivery times especially if it’s delayed, and prioritize these deliveries for the sake of compliance.
• Unauthorized Offerings: Before you can sell a product through your GSA Schedule, you need to get the manufacturer's stamp of approval found through the Verified Products Portal or VPP or through a Letter of Supply. Everything listed and every detail requested needs to go through the evaluation process to ensure every box is checked.
• Equivalency Issues: Some products hold special status in government procurement, like Ability One products designed to employ individuals with disabilities. Selling items that are essentially the same as these products without proper authorization can raise red flags.
• TDR Reporting Mishaps: Transactional Data Reporting or TDR requires contractors to report sales data directly to the government monthly. Failing to comply with reporting requirements can result in headaches, penalties, and compliance audits.
• IFF Remittance: Industrial Funding Fee or IFF payment accurately and on time is critical. Failure to accurately report sales and remit the IFF can result in contract disputes and financial liabilities.

Tips for Avoiding these Common GSA Schedule Maintenance Mistakes 

To avoid these common pitfalls listed above, here are some things to consider.

• Ensuring TAA Compliance: Verify that all products offered under the GSA Schedule comply with the requirements of the Trade Agreements Act. We also suggest you have a system in place to verify a new product or if the manufacturer location has changed. This can be a tricky area of compliance, so if you have doubts or questions we suggest you talk to your legal counsel.
• Accurate Product Labeling: Make sure that each and every one of your products are correctly labeled with their TAA-compliant country of origin to avoid misrepresentation and legal issues.
• Timely Deliveries: Prioritize your government customers within your supply chain process to ensure that they will always get their deliveries according to the contract timeline. GSA is cracking down on delivery status in the Purchase Order (PO) portal, so be sure to keep it updated as well.
• Verified Products Portal Authorization: Make sure your product’s manufacturer is approved in the VPP before you start selling them through your GSA Schedule, or you have a Letter of Supply.
• Understanding Equivalency: Make sure you understand clearly how your products differ from Ability One products to avoid any problems with equivalency.
• Adhering to TDR Reporting: If your contract is under TDR, follow of the reporting requirements of Transactional Data Reporting to maintain contract compliance, and ensure you are reporting monthly not quarterly. Commercial Sales Practices (CSP) are reported quarterly, and TDR is monthly. TDR reporting requirements are changing soon, so it’s important to stay on top of these updates.
• IFF Remittance: Maintain accurate and easily referenceable records of all of your GSA contract sales and ensure timely remittance of the Industrial Funding Fee. Additionally, it’s important to understand what a GSA sale is so you know you are reporting the right numbers and remitting the correct fee.

Do You Need Help with Your GSA Schedule?

Managing your GSA Schedule offers a lot of opportunities for your business, but it isn’t necessarily an easy task. By knowing the usual maintenance pitfalls and using smart strategies to tackle them, you will be able to handle the complexities of GSA Schedules and take full advantage of your contract.

However, if you are new to the world of GSA or don’t have the resources or bandwidth to manage your GSA Schedule successfully on your own, consider hiring a consultant to help you do the heavy lifting.

For more information regarding GSA compliance and maintenance, check out our blogs "Top 9 Compliance Risks that Can Affect Your GSA Schedule" and " I Have a GSA Schedule Contract--Now What?” If you want to stay up to date on the latest government contracting news and insights, check out our blog, our resources section, or sign-up for our monthly newsletter. If you have any questions about your GSA Schedule and want to learn about your options for maintenance support, one of our consultants would be happy to help you.