Selling Products vs. Services on the GSA Schedule: The Requirements
GSA Schedule | 5 Min Read
For businesses seeking to enter the world of government contracts, the General Services Administration (GSA) Multiple Award Schedule (MAS), popularly known as GSA Schedule, provides an excellent opportunity to add sustainable sales to your business. For those of you who are familiar with our previous blogs, you’ll know that getting a GSA Schedule allows for government agencies to procure your products and services at pre-negotiated prices, streamlining the procurement process of other contracting vehicles. However, the requirements to get on a GSA Schedule differ depending on what solutions you have to offer. While the requirements for offering products and services on a GSA Schedule share some similarities, there are also distinct differences.
In this blog, we will delve into some of the requirements for products and services, which are differentiated by Special Item Number (SIN) categories, so you understand what is required of you depending on what solutions you plan to offer the government.
Understanding GSA Schedule Requirements for Products
When considering selling products on a GSA Schedule, businesses must adhere to a set of specific requirements to ensure compliance and eligibility. The first crucial requirement is meeting the Trade Agreements Act (TAA) compliance. This stipulates that the products offered must originate either from the United States or be substantially transformed in a designated TAA-compliant country. The underlying objective is to promote fair trade practices and support domestic industries while ensuring that products meet the necessary quality standards.
Another vital aspect is providing “fair and reasonable” pricing. This requirement fosters competitive pricing for government agencies and ensures they receive the best value for their procurement needs. The main principles of “fair and reasonable” pricing are driven by pricing for “like and similar” goods, historical market pricing, and current available pricing in other contract vehicles. If you opt into Commercial Sales Practices (CSP), this is also determined by your most-favored-customer (MFC) pricing. GSA requires that the prices offered to the government are at least as favorable as the prices given to the business's best commercial customers.
Commercial Pricelist and Product Information
If you are planning on offering products, you will most likely need to provide a commercial pricelist. This is generally a publicly available list (or otherwise available for inspection by customers) that states prices that are currently or were last made to a significant number of buyers.
Moreover, products listed on a GSA Schedule must have a clear and concise product name, description, manufacturer information, and relevant product details, specifications, and part numbers. Accurate and detailed product descriptions are essential to prevent misunderstandings during the procurement process and enable government agencies to make informed purchasing decisions confidently, as ultimately your products will be listed on GSA Advantage!, largely considered the ‘Amazon’ of government procurement, and the information provided during the offer development period is what will ultimately be awarded and published publicly.
Understanding GSA Schedule Requirements for Services
Selling services on a GSA Schedule requires adherence to a distinct set of requirements, catering to the nature of service-oriented offerings. The first critical aspect is providing clear and comprehensive labor category descriptions. These descriptions should outline the minimum years of experience, minimum education, and functional responsibilities. They should also include scope of the services offered, deliverables, and any applicable service-level agreements (SLAs). Transparent and precise descriptions are vital to avoid misunderstandings and ensure that government agencies can easily find the services they need and their offer requirements.
As with the products category, “fair and reasonable” pricing is important and if applicable, the most-favored-customer (MFC) pricing requirement is required as well.
With services, you will generally need to supply an internal market rate sheet, which includes “market prices.” This is defined as current prices that are established in the course of ordinary trade between buyers and sellers, and that can be substantiated through competition or from independent sources.
If you plan to offer non-professional services, then you will need to abide by the Service Contract Labor Standards (SCLS) and identify this in the proposal. You must also be sure you plan to meet the minimum wage rates and fringe benefits requirements outlined by the Department of Labor.
It’s important to note that TAA does still apply to services as well, so you should be checking with your company legal team or lawyer to ensure you are complying with these regulations.
Past Performance Requirements
Additionally, when offering services on a GSA Schedule, businesses must demonstrate evidence of their past performance and experience as outlined in the solicitation requirements. This may include customer testimonials, case studies, or successful project summaries. This is something that is only required for services.
In providing past performance documentation, GSA can validate that your company has a track record of delivering high-quality services, which bolsters a vendor's credibility, and increases the likelihood of securing government contracts. GSA generally views businesses with two or more recent years of experience providing the services offered relevant to offerings, but exceptions such as the Startup Springboard program exist where executive leadership can substitute traditional company experience.
Can You Sell Both Products and Services on a GSA Schedule?
Many businesses offer a combination of products and services and may want to present both on their GSA Schedule. To achieve this, vendors must ensure that each product and service they are offering individually complies with the respective requirements provided in the solicitation. It’s essential to keep separate pricing for products and services, as these offerings often have different pricing structures. This separation allows government agencies to evaluate the cost of each element accurately and compare offerings from different vendors effectively.
We also suggest you check the specific attachments in the MAS solicitation that relates to your offerings. This will help guide you through what exactly is required in your offer, and what you’ll need to include for both products and/or services.
It’s important to note that recent updates to GSA’s systems have been cracking down, and only products can be listed on GSA Advantage! for new offers. However, both products and services must be listed in eLibrary only under your Terms and Conditions textfile of awarded items.
Do You Need Help with Your GSA Schedule?
The GSA Schedule is a vehicle that presents an excellent opportunity for businesses to secure government contracts efficiently for their products and services. Understanding and complying with the specific Schedule solicitation requirements for products, services, or both is crucial to ensure a successful award. No matter what you plan to offer, businesses must provide accurate descriptions, adhere to TAA compliance, and maintain competitive pricing as a baseline.
By exploring the different Large Category and SIN attachments in the solicitation, vendors can gain insight into what distinct requirements are necessary and can begin preparing their offer.
Ultimately, by staying informed about GSA solicitation refreshes and consistently following best practices, businesses can navigate the GSA Schedule process effectively, enhance their chances of securing government contracts, and expand their market presence in the public sector. If you need help getting a GSA Schedule or want to learn more about the requirements related to your offerings, one of our consultants would be happy to help you.
About Tyler Kittle
Tyler Kittle is a Consultant for Winvale. Tyler is a retired Army combat veteran, a former federal careerist, and Cum Laude graduate of American Military University. Utilizing his government contracting experience, Tyler works to establish strong client relations and efficiency in the acquisitions process.