For new and experienced GSA Schedule contract holders, juggling the task of acquiring and managing orders from another larger purchaser like the government can be daunting. Especially when there's a specific number of sales you need to meet to comply with the minimum sales requirement.
The supply chain disruptions and the pandemic have caused a lot of concerns across the world as businesses ground to a halt and little of any industry was without some level of impact. GSA, and more broadly the federal government at large, were not without an impact of their own. In 2021, GSA issued relief for the GSA Schedule sales requirement, but when that ended, there was a need for a more long term solution. Now in 2023, GSA plans to update the requirement so contractors have the full option period (60 months) to meet the minimum sales requirement through their GSA Schedule. Even with the added flexibility, this requirement can still be a common concern for contractors, so here’s what you need to know about the minimum sales requirement and practices you can put in place to meet it successfully.
What is the GSA Minimum Sales Requirement?
The minimum sales requirement used to require GSA Schedule contractors to make $25,000 in GSA Schedule sales within the first 2 years of their contract, and then must $25,000 every year thereafter. With the upcoming Multiple Award Schedule (MAS) Solicitation Refresh #18, GSA plans to revise Clause I-FSS-639 to change the time period for consideration of sales to a standardized 60 months (5 years), which is the same timeframe as each option period.
In this timeframe, contractors will need to make $100,000 for the first 60 months of the contract, and $125,000 for each 60 month period thereafter. This change is anticipated to take place before the end of December 2024.
For any organization that has had business with the government in the past, we can quickly realize that the requirement of $100k in the first option period, and then $125,000 in each option period thereafter is not necessarily insurmountable. If it was, then GSA would be cancelling contracts left and right. However, those numbers can seem overwhelming at first, especially for a new GSA contractor.
Finding Business as a GSA Schedule Holder
There are places to look for business, and as a Schedule holder you may receive direct communication through GSA eBuy and other channels from government agencies under your North American Industry Classification (NAICS) Code and Special Item Number (SIN) requesting either a bid on a contract (i.e. RFQ - Request for Quote or RFP – Request for Proposal) or information from you as a vendor (i.e. an RFI – Request for Information).
While at times you may receive orders directly or receive RFIS, RFQs and RFPs, you will definitely need to be prepared to actively market your GSA Schedule products and services to the government. Arguably one of the first steps to take in marketing to the government, especially if you have held a GSA Schedule for several years, is to ensure you are making the most out of your contract and taking charge.
One main site you can search for contracting opportunities is SAM.gov. You can use the "contract opportunities" section on this site and filter opportunities by keywords, notice type, dates, place of performance, etc. You can also use GSA eBuy to respond to direct requests (as mentioned above) and proactively search for opportunities. GSA eBuy only lists opportunities under your SIN so it's easier to filter for relevant options.
Each of the platforms provides countless opportunities for GSA Schedule holders to search their approved NAICS Code as well as the approved SINs that the government is advertising a need for.
How to Market Your GSA Schedule
In addition to searching for opportunities, is making your solutions more visible to government customers. The first thing you can do is verify your current catalog of products and services in GSA eLibrary is up to date, as this is published directly to GSA Advantage!.
GSA Advantage! is the premier ordering platform for the federal government and authorized access purchasers for its ease of use and reduction of the administrative burden of providing individual contracts for Government Purchasing Card (GPC) holders to source products for their agency’s needs. What is more is that GPC holders have a micro-purchase threshold of individual purchases up to $10,000 in each procurement, a good chunk of the contractor’s minimum sales requirement (that is if they place and order that large). To learn more about how to maximize your GSA Advantage! listing, check out our blog on GSA Advantage! best practices.
We also suggest you take the time to tailor your Capabilities Statements and a section of your website to cater to government customers. Each agency has their own mission and needs, and it's important you stay tuned into your target customers.
Setting Yourself Apart from the Competition
Another avenue of approach is to set yourself apart from the competition where possible. Determine if your business qualifies for any small business set-asides. The Small Business Association’s (SBA’s) set-asides apply to GSA Schedules and provide opportunities to become more competitive by certifying as one or more of the following: 8(a) Business Development, Women-Owned, Veteran Owned, Service-Disabled Veteran-Owned, or HUBZone.
You can also look to add additional designations such as opting into Disaster Purchasing or Cooperative Purchasing (if eligible), so you can also sell to state, local, tribal, and educational entities with your GSA Schedule.
Becoming a Successful GSA Schedule Holder
There are several opportunities for success as a GSA Schedule contract holder, but you must maintain a proactive approach. Maintaining the updated minimum sales requirement will give you more time and flexibility for making sales within the 5 year option period, but it also means you can't necessarily sit back and watch the orders come in.
If you want to learn more about marketing your GSA contract and becoming a successful contractor, you can check out our other blogs on these topics:
- GSA Schedule Marketing 101
- How Government Contractors Can Stand Out from their Competition
- 5 Tips to Becoming a Successful GSA Contractor
If you have questions or need help managing your GSA contract, one of our consultants would be happy to help you.
