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Organizations Able To Purchase From GSA Schedule Contracts

Contractors often ask which organizations can buy from GSA Schedule contracts.

GSA does publish a document called "Eligibility to Use GSA Sources of Supply and Services" which lists a large number of agencies, groups and international organizations that are eligible to buy from GSA Schedules.

However, the real question should be, "Which organizations are truly worth targeting with my GSA Schedule?"

You should target:

1. Major federal agencies.

2. In some circumstances, state and local governments, and

3. In limited circumstances, federal prime contractors.

Here's a brief overview of each of these customer types:

Major Federal Agencies

This includes the Department of Defense (DoD) and the executive agencies such as the Department of Energy, NASA, etc. This is who the GSA Schedule was primarily designed for, and they are the bulk of the users.

Several years ago, DoD pulled back somewhat from the use of GSA Schedules, especially for hourly rate IT services. This happened in the wake of audits which found their Contracting Officers often failed to follow proper procedures for issuing task orders. Some heads rolled, the perception grew that GSA Schedules were too risky for the Defense Department, and buyers shifted to DoD contracts.

Some recent success stories from my clients indicate that DoD buyers have begun to trickle back. If you still encounter some resistance, you can let the buyer know that you understand their hesitation, and will work with them to ensure that all procedures are followed.

The "civilian agencies" have never hesitated to use GSA Schedules, and are all good potential customers.

State and Local Governments

This is a topic that requires much more attention than can be given here, but there are 3 basic ways a GSA Schedule contractor can sell to state and local governments:

1. If you hold a Group 70 IT Schedule contract, you can sell to state and locals if you have executed the "co-operative purchasing" modification to your contract, or if your contract was awarded containing the clause,

2. If you have executed the "Disaster Recovery" modification to your contract, you can sell to state and local governments that are preparing for or responding to disasters, or

3. You can apply for state-level programs which leverage GSA pricing, such as California's CMAS program.

Federal Prime Contractors

Selling to federal prime contractors under a GSA Schedule can be beneficial but risky.

Prime contractors can become eligible GSA Schedule buyers only if they receive written authorization from a Government Contracting Officer to purchase products or services directly in support of their prime contract.

While this sounds simple, prime contractors have been known to imply that they are authorized to use GSA Schedules without actually producing the paperwork. In cases like this, they could simply be trying to get lower prices.

However, if you provide GSA pricing to a non-eligible buyer, you may unknowingly trigger the "price reduction clause" of your contract, forcing a price reduction to all federal customers. The risk depends upon the way your contract is worded, but it is a very real risk.

If a federal prime contractor states that they are able to buy from GSA contracts, insist they provide a letter from a Government Contracting Officer that specifically references your GSA Schedule contract number.

Summary

Focusing on these three segments will give you the best chance of capturing revenue with your GSA Schedule. They represent the biggest buyers, the biggest budgets, and the organizations most familiar with GSA purchasing.

If you would still like to see GSA's official list of buyers in their "Eligibility to Use GSA Sources of Supply and Services" document, you can find it here.

Please contact us to learn more about this topic.

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