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Selling to Federal Agencies Using GSA’s Federal Supply Schedules June 17, 2003 The Discussion Panel Jim Czysz, General Services Administration Ph. 888-353-5383 Todd LaMastres, Ernst & Young LLP Ph. 214-969-8484 Teague Newhart, Ernst & Young LLP

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Presentation Transcript
the discussion panel
The Discussion Panel
  • Jim Czysz, General Services Administration

Ph. 888-353-5383

  • Todd LaMastres, Ernst & Young LLP

Ph. 214-969-8484

  • Teague Newhart, Ernst & Young LLP

Ph. 202-327-7591

  • Dawn Greenwood, Federal Supply Service

Ph. 630-527-0648

the agenda
The Agenda
  • Introduction to GSA Federal Supply Schedules
  • How to Become a GSA Schedule Contractor
  • Preparing a Valid Offer to a GSA Solicitation
  • Managing the Risks After Contract Award
  • Marketing Tips
  • Q&A
introduction to gsa federal supply schedules
Introduction to GSA Federal Supply Schedules
  • Multiple Award Schedules
    • Fast, easy, and effective
    • Accessible Government-wide
    • Over 11,000 contracts in place
    • Over 4 million products and services
    • Commercial items
services vs products

Info Technology




MOBIS (Mgmt, Organizational, and Business Improvement Services)

. . . more


Office Equip & Supplies




Energy products

. . . more

Services vs. Products
who buys services and products from schedules
Who Buys Services and Products from Schedules?
  • Executive and Other Federal Agencies are eligible users of the schedules program
  • All eligible users are non-mandatory but highly encouraged by their Command or Management Officials
  • The GSA number is not similar to a registration or license number. It is a valid contract between GSA and the vendor to supply an indefinite quantity of product or future service requirements at agreed upon terms for 20 years (renewed every five years)
top ten federal buyers for small business
DOD – $143B

DOE – $19B

NASA – $11B

GSA – $11B

VA – $6B


DHHS – $5B

USDA – $4B

DOT – $2.5B


Top Ten Federal Buyersfor Small Business
how to become a gsa schedule contractor
Obtain Solicitation from

Complete Solicitation – provide information requested

Submit/Mail to address specified

Evaluation – respond to request for additional info

Negotiation – Successfully negotiate prices, terms, and conditions

Award is made and contract number is assigned

Pre-Award process can take about 6-8 months

How to Become a GSA Schedule Contractor
fedbizopps online source to download solicitations from federal agencies
FedBizOppsOnline source to download solicitations from Federal Agencies
  • General Information
  • Vendors – Find Business Opportunities
  • Vendor Notification Service
  • News
  • PRO-Net
  • SUB-Net
  • Help
preparing a valid offer to a gsa solicitation
Preparing a Valid Offer toa GSA Solicitation
  • Reference: The FSS Reference Guide

  • The offer or proposal is comprised of the following:
    • A Standard Form (SF) 1449
    • The solicitation
    • A commercial price list
    • A Commercial Sales Practices Format (CSP Format)
    • Past Performance Evaluation Report
    • Other data as necessary
sf 1449
SF 1449
  • The cover page to your offer/proposal
  • Each offeror must complete blocks 12, 17, 23, 24, and 30
  • Must be signed by an authorized person of the company
  • When an offer is accepted, SF 1449 is executed by both the Government and the company and becomes part of the contract
the solicitation
The Solicitation
  • Contains numerous clauses that become part of the contract upon award
  • Certain clauses require responses that must be completed --- READ CAREFULLY
commercial price list
Commercial Price List
  • Two copies of your dated (or otherwise identified) commercial pricelist and catalog containing the products you plan to offer must be submitted with your offer
  • Acceptable forms of pricelists include: published printed, computer generated, and copies of internal pricelists
  • The products offered must be marked with the Special Item Number (SIN) under which they fall
  • All other products not offered must be lined out or marked "excluded“, and initialed by offeror.
commercial sales practice format form csp 1
Commercial Sales Practice Format(Form CSP-1)
  • Foundation for contract negotiations
  • Government’s method of assuring “most favored customer” pricing
  • Vendors are not required to grant GSA most favored customer pricing --- only fair and reasonable pricing
commercial sales practice format form csp 122
Commercial Sales Practice Format(Form CSP-1)
  • Essential that CSP Format is current, accurate, and complete as of 14 calendar days prior to proposal submission
  • Must also disclose any changes in your price list(s), discounts and/or discounting policies which occur after the offer is submitted, but before the close of negotiations
failure to provide current accurate and complete data
Failure to Provide Current, Accurate and Complete Data
  • Can lead to penalties under the contract’s Price Adjustment clause
  • Can lead to penalties under the False Claims Act
  • Can lead to noncompliance situations with Price Reductions clause during performance
  • Missed opportunities at negotiations
completion of csp format
Completion of CSP Format
  • CSP Format information is required for each SIN
  • A "customer" is any entity, except the Federal Government, which acquires supplies or services from the Offeror
    • Original equipment manufacturers
    • Value added resellers
    • State and local governments
    • Distributors
    • Educational institutions
    • Dealers
    • National accounts
    • End users
  • “Discount” means a reduction to catalog prices (published or unpublished)
    • Discounts include, but are not limited to, rebates, quantity discounts, purchase option credits, and any other terms or conditionsother than concessions) which reduce the amount of money a customer ultimately pays for goods or services ordered or received
    • Any net price lower than the list price is considered a “discount” by the percentage difference from the list price to the net price
  • “Concession” means a benefit, enhancement or privilege (other than a discount), which either reduces the overall cost of a customer's acquisition or encourages a customer to consummate a purchase
    • Freight allowance
    • Extended warranty
    • Extended price guarantees
    • Free installation
    • Bonus goods
price analysis negotiations
Price Analysis & Negotiations
  • Govt’s objective is to obtain an offeror’s best price
  • Govt price analysis performed to assess price reasonableness and establish Govt negotiation objectives
  • Purpose of negotiations is to resolve differences between the offeror’s proposal and the Govt’s negotiation objectives
conclusion of negotiations
Conclusion of Negotiations
  • Contracting Officer will request proposal revision (i.e., BAFO)
  • The proposal revision confirms the terms and conditions agreed upon between the Government and your authorized negotiator
  • Reach agreement on the "Basis of Award" category of customer on which the Price Reduction clause will be predicated
basis of award customer
“Basis of Award” Customer
  • Agreed upon by Contracting Officer and offeror
  • Can be different for each item on price list
  • Can be a single customer or a category of customers (e.g., National Accounts)
  • For example, if the “Basis of Award” is National Accounts, and this category is currently receiving a 10% discount; should the offeror increase the discount to this category of customer, then the same discount change shall be passed onto the Government
proposal revision should specify at a minimum
“Basis of Award” class of customer

Date negotiations concluded

Discounts or net prices

Delivery terms and period

Economic Price Adjustment threshold

Geographic coverage

Industrial Funding info and point of contact

Installation, maintenance, or training, etc., as offered

Prompt pay discount

Special Item Number(s)

Subcontracting Plan info, if applicable

Warranty provisions

Acceptance or non-acceptance of Government purchase cards above the micropurchase threshold

Proposal Revisionshould specify, at a minimum. . .
upon award
Upon Award
  • The Contracting Officer may return to the contractor a copy of the contract and one copy of the catalog/pricelist as accepted by the Government
  • The contractor may also be furnished with a list of addresses which are to receive a copy of the catalogs/pricelists
  • The Contracting Officer may also provide instructions for submitting electronic contract pricelist data in a prescribed electronic format
managing the risks after award
Managing the Risks After Award
  • Invest the time and money to comply with the rules, regulations, and contract clauses
    • Price Reductions (GSAR 552.238-75)
    • Modifications (GSAR 552.243-72)
    • Economic Price Adjustments (GSAR 552.216-70)
    • Contractor’s Report of Sales (GSAR 552.238-74)
    • Industrial Funding Fee (GSAR 552.238-76)
report of sales
Report of Sales
  • The Contractor must report the quarterly dollar value (in U.S. dollars and rounded to the nearest whole dollar) of all sales under the contract by calendar quarter (i.e., January-March, April-June, July-September, and October-December)
  • The Contractor must report the quarterly dollar value of sales on electronic GSA Form 72A, Contractor's Report of Sales, to the FSS Vendor Support Center (VSC) Website at Internet,
    • The Contractor must report sales separately for each National Stock Number (NSN), Special Item Number (SIN), or subitem.
    • If no sales occur, the Contractor must show zero on the report for each separate NSN, SIN, or subitem.
report of sales36
Report of Sales
  • The Contractor must register with the VSC before using the automated reporting system
    • To register, the Contractor (or its authorized representative) must call the VSC at (703) 305-6235 and provide the necessary information regarding the company, contact name(s), and telephone number(s).
    • Registration can also be done at VSC web page -
    • The VSC will then issue a 72A specific password and provide other information needed to access the reporting system.
    • Instructions for electronic reporting are available at the VSC Website or by calling the above phone number.
  • Each report is due 30 days following the completion of the reporting period --- a close-out report is due within 120 days after the expiration of the contract
industrial funding fee
Industrial Funding Fee
  • The Contractor must pay the GSA an Industrial Funding Fee (IFF) within 30 days after the end of each quarterly reporting period as established in clause 552.238-74, Contractor's Report of Sales
  • The IFF equals 1% of total quarterly sales reported --- soon to be .75%
industrial funding fee38
Industrial Funding Fee
  • The IFF is a customer paid fee to reimburse GSA for the costs of operating the schedules program.
  • The contractor is a collection agent for the IFF.
  • The IFF is included in the award price(s) and reflected in the total amount charged to ordering activities.
post award activities
Post Award Activities
  • Register for passwords to report sales and download Schedule Input Program (SIP) software
  • Prepare and distribute authorized price list
  • Prepare and upload SIP data files
  • Meet with Industrial Operations Analyst (IOA)
  • Perform contract administrative actions
  • Market, market, market, market, market!
marketing tips
Marketing Tips
  • Distribute GSA approved price list
  • Load contract to GSA Advantage!
  • Maximize your web presence --- GSA logo identifiers
  • Links between your website and GSA Advantage!
  • Advertise, market, and promote your new GSA schedule contract
  • Modify your company business cards to prominently reflect your new GSA affiliation
  • Enter into teaming arrangements
  • Look for Blanket Purchase Agreement opportunities
  • Understand and comply with the terms and conditions of the FSS program and your contract
marketing approaches
Marketing Approaches

Market to prospective government customers using the same mediums you use to reach commercial customers, including . . .

  • Print
  • Trade shows
  • Web
  • Sales calls
  • Network
  • Any and all other ways!
marketing approaches con t
Marketing Approaches con’t.

Market to prospective government customers using GSA related vehicles, including . . .

  • Print - MarkeTips

- special publications, e.g., Environmental

Products and Services Guide (EPSG)

  • Trade shows - GSA Expo and Outreach Europe

- PSX Expo

  • Web - GSA Advantage!

- acquisition center databases

marketing approaches con t44
Marketing Approaches con’t.

Work at both you finding customers and customers finding you . . .

  • Maintain profiles in CCR and PRO-Net
  • Research past sales activity in Schedule Sales Query (SSQ) and Federal Procurement Data System (FPDS)
  • Develop and communicate “Best Value” criteria
  • Think “out of the box” to find prospective customers who need your products/services
before you get started answer the following
Before you get started. . . Answer the following. . .
  • Do you have the expertise to administer a Government contract?
  • Do you have the discipline to comply with the requirements of a Government contract?
  • Are you willing to spend time and money at the outset to ensure compliance during performance?
  • Are you willing to create the infrastructure to ensure compliance?
  • If so,then GSA FSS contracts can be a great source for additional revenue.