A very common question we receive as GSA consultants from contractors, especially in their first option period of their GSA Schedule, is “Are there any consequences to no or low GSA sales?” Or “What are some good tips or tricks to generate GSA sales and ensure we are remaining complaint with GSA regulations?” In this blog, we will address the current rules in place for minimum sales on the GSA Schedule, potential repercussions or actions GSA may take if these criteria are not met, and best practices to generate or increase GSA sales and remove any concerns regarding our former mentioned points.
The minimum sales requirement requires GSA Schedule holders to make $100,000 for the first 60 months (5 years) of the contract, and $125,000 for each 60 month period thereafter. This requirement was amended in 2023 to allow more time for contractors to get up and running, and to align the sales requirement periods with the contract option periods. The original requirement was $25,000 in GSA Schedule sales within the first 2 years of their contract, and then $25,000 every year thereafter.
The purpose of the minimum sales requirement is to ensure that once contractors are awarded a GSA Schedule, they do not “fall off the map” so to speak. GSA expects Schedule contractors to be actively searching for and bidding on available opportunities. While GSA understands that it does take some time for contractors to get their feet wet with a contracting vehicle such as the GSA Schedule, there is an expectation to make movement in your first option period, as noted above.
Under the Trump Administration, the Department of Government Efficiency (DOGE) has been encouraging GSA to more strongly enforce certain requirements including the minimum sales requirement. DOGE is looking for areas that can cut costs, and contractors who aren't making enough sales through the Multiple Award Schedule (MAS) Program are now a focus.
As we discuss above, GSA contractors are expected to make $100,000 for the first 60 months (5 years) of the contract, and $125,000 for each 60-month period thereafter. If a contractor is struggling or unable to reach this threshold, what are some potential repercussions that the contractor may expect?
According to I-FSS-639 Contract Sales Criteria: “The Government may cancel the contract in accordance with clause 552.238-73, Cancellation, unless reported sales are at the levels specified in paragraph (a) above.”
GSA does reserve the right to cancel a GSA Schedule (or not extend for the next option period) if these criteria are not met. The decision of whether or not a contract is canceled is generally at the discretion of the Contracting Officer.
While this is intimidating, you now have more time to reach your sales goal with the recent minimum sales requirement amendment, and there are best practices you can follow to increase your sales.
The best way to alleviate any concerns about not meeting the GSA minimum sales requirement is very straightforward—be aware of best practices for generating GSA sales. One of the best methods for this process is creating an effective marketing plan for your GSA Schedule. This can include several actions to make sure your contract is visible to government customers, whether on your website, through capabilities statements, or on your GSA eLibrary page. We’ll dive into more detail on these below.
While it may sound simple, boosting your web presence can be an incredibly useful marketing tool in itself. You’ll want to dedicate a section of your website specifically for government customers, and use this platform to describe solutions that you are able to offer to meet their specialized needs.
It’s also good practice to link your website directly to GSA eLibrary so that government customers can easily find more information about the solutions you are offering.
Another great way to stand out from competitors on the GSA Schedule is to draft a capabilities statement. This is where you can focus on telling your customers how you can help them achieve their mission (instead of spending a lot of time talking about your company's achievements).
A capabilities statement is an effective method for summarizing competencies and capabilities and helps introduce your company to government customers. The table below highlights what should be included with a capabilities statement:
Researching your competition is another useful way to ensure you are marketing your GSA Schedule effectively. GSA offers free insight into contactors’ pricing, terms and conditions, and offerings, so there are multiple ways to go about having a better understanding of what your competitors may be offering. These include:
Within the last year and especially under the Trump Administration, GSA has undergone some notable changes to streamline how it’s managed. As always with government contracting, the best practice for staying on top of these updates and changes is preparation and adaptability. Winvale is here for all your government needs in this growing market. If you need help managing your GSA Schedule, or are interested in getting one, reach out to one of our consultants.