Maintaining your GSA Schedule is not only a key to success as a contractor, but it’s essential to keeping your contract for up to 20 years. One fear our clients come to us with is losing their GSA Schedule—while this doesn’t happen with minor infractions, a series of missteps can add up. Losing your GSA Schedule can of course significantly impact your business, but understanding the reasons behind cancellations can help you avoid this pitfall.
In this article, we will discuss the common reasons companies lose their GSA Schedules, including non-compliance, inactivity, and subpar performance. We will then provide strategies to prevent these issues, focusing on staying compliant, remaining active in the market, delivering excellent performance, and maintaining clear communication with GSA.
Why Companies Lose their GSA Schedule
Let’s dive into 3 main reasons a GSA Schedule contract could be canceled.
Non-Compliance
Non-compliance is the most common reason by far. Non-compliance with GSA terms and conditions, whether it's regarding pricing, reporting, or other contractual obligations, can quickly land you in hot water. Each GSA Schedule contract comes with specific requirements, including the Trade Agreements Act (TAA), the Price Reductions Clause, and sales reporting. Missing a step or failing to adhere to these conditions can lead to penalties or even cancellation.
Contract Inactivity
Picture your GSA Schedule as a garden—if you neglect it, weeds (or in this case, compliance issues) will start sprouting up. Inactivity, such as failing to meet sales minimums or not actively marketing your offerings to government agencies, can signal to GSA that your Schedule is no longer serving its purpose.
Currently, GSA requires a minimum sales threshold of $25,000 over the first two years and every year thereafter. At the end of the year (December 2024), GSA plans to implement a new minimum sales requirement which is $100,000 for the first 60 months of the contract, and $125,000 for each 60 month period thereafter. While this new structure gives you more time in your first few years, you need to be proactive about bringing in GSA sales and marketing your contract. If you don't meet these sales requirements, GSA might conclude that the Schedule isn't beneficial.
Subpar Contractor Performance
The government expects top-notch service. If your performance falls short or if you consistently underdeliver on contracted goods or services, GSA won't hesitate to pull the plug. Poor performance can include late deliveries, not meeting the quality standards outlined in your contract, or failing to respond to government agency inquiries and orders promptly. GSA monitors performance through tools like the Contractor Performance Assessment Reporting System (CPARS), and negative reviews can jeopardize your schedule.
How to Maintain your GSA Schedule and Avoid Cancellation
Now, let's talk about how you can proactively manage your GSA Schedule to avoid cancellation.
Maintain Contract Compliance
It’s imperative that you keep up-to-date with GSA regulations and ensure that your business practices align with them. To do this, we suggest you regularly review and update your pricing through contract modifications, reporting, and other contractual requirements to stay compliant. Conduct internal audits to ensure adherence to terms like the Price Reductions Clause and TAA. Investing in compliance training for your team can help ensure everyone understands and follows the necessary guidelines.
Effectively Market Your GSA Schedule
A fatal mistake some contractors make is assuming the GSA Schedule will manage itself and the orders will come flowing in. Don't let your GSA Schedule gather dust. Actively promote your offerings to government agencies, participate in GSA Advantage! and other procurement platforms, and continuously seek opportunities to expand your government customer base. You should also attend industry events, engage in networking opportunities, and leverage social media to market your products and services to potential government buyers. Regularly updating your GSA Advantage! listings and ensuring they are attractive and competitive can also help boost your visibility.
Meet and Exceed Contract Deliverables
Aim for excellence in everything you do. Consistently meet or exceed performance expectations, provide exceptional customer service, and promptly address any issues or concerns that arise. To accomplish this, you’ll need to ensure you have strong quality control measures in place, so your products and services meet the standards set forth in your contract.
We also suggest you establish a feedback loop with your government customers to identify areas for improvement and act on them swiftly. As demonstrated through feedback channels such as CPARS, excellent performance not only secures your current contracts but also paves the way for future opportunities. Government customers like to know they can trust a contractor and a stellar past performance record will go far.
Communication is Key
Communication is key in any business relationship, and your relationship with GSA is no exception. Keep the lines of communication open, promptly respond to inquiries or requests for information from GSA, and proactively address any issues or concerns before they escalate. Regularly check in with your GSA Contracting Officer (CO) to ensure you're on the same page and to discuss any potential challenges.
Do You Need Help with GSA Schedule Maintenance?
By staying compliant, active, and maintaining transparent communication with your company and CO, you can steer clear of the pitfalls that lead to cancellation. However, we understand that if you are a smaller firm or don’t have a dedicated contract administrator on your team with experience in federal contracts, it can be very difficult to manage the demands of a GSA Schedule. Many companies choose to hire a GSA Schedule consultant to help them stay on top of all the contracting requirements and remain compliant. If you have questions about your GSA Schedule or want to learn more about GSA Schedule maintenance options, reach out to one of our consultants. We would be happy to help address your compliance gaps so you can successfully maintain and grow your GSA Schedule.
