If you recently had your GSA Schedule Contract canceled due to not meeting the minimum sales requirements, you might have been short changed. Since 2008, the General Services Administration (GSA) has failed to fulfill the Guaranteed Minimum Clause I-FSS-106, as reported by the U. S. House of Representatives’ Committee on Small Business. The clause serves to guarantee contractors within the Multiple Awards Schedules (MAS) Program a minimum of $2,500 in total orders. Should a contractor receive total orders for less than $2,500 at the expiration date of their contract or if cancellation is initiated by the government, GSA is to pay the difference. This minimum guarantee is essentially a payment by the government for the contractor’s promise to deliver the agreed upon goods and services at the agreed upon prices.
For many GSA Schedule Holders, cancelation of their contract comes from not meeting the minimum sales requirements of $25,000 within the first two contract years and $25,000 each year thereafter. Receiving a notice of contract cancelation can be devastating to a contractor that has invested an immense amount of resources in obtaining a MAS contract. Even more devastating is that the government not fulfilling its guarantee.
To remedy the situation, the GSA will begin automatically fulfilling the requirements of the Guaranteed Minimum clause, as well as begin the process of compensating the 1,334 GSA contractors that were short changed.