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GSA Schedule contracts can be quite useful for some engineering firms, and less useful --- even counterproductive --- for others. There are several GSA Schedules that many engineering firms have obtained --- the Professional Engineering Services Schedule; the Facilities Maintenance & Management Schedule; the Environmental Schedule; Logistics Worldwide; and several others. If you are trying to decide whether to obtain a GSA Schedule contract for your engineering firm, you might find this slideshow to be helpful. It describes the types of engineering services that can be performed under GSA Schedule contracts; presents some pros and cons to consider; and describes some research you can perform right now to help make a decision.
Citation preview
GSA Schedule
Contracts for Engineering
Services
»Should your firm obtain one? July 5, 2013
Presented by:
Dave Alexander
(978) 369-1140 ~ [email protected]
www.LincolnStrategies.com
© 2013 Lincoln Strategies, LLC
www.LincolnStrategies.com
Topics
Many engineering firms have GSA Schedule contracts.
These contracts have advantages and disadvantages for engineering firms.
Would a GSA Schedule contract make sense for your engineering firm?
1
www.LincolnStrategies.com
Topics
Many engineering firms have GSA Schedule contracts.
These contracts have advantages and disadvantages for engineering firms.
Would a GSA Schedule contract make sense for your engineering firm?
2
www.LincolnStrategies.com
Topics
Many engineering firms have GSA Schedule contracts.
These contracts have advantages and disadvantages for engineering firms.
Would a GSA Schedule contract make sense for your engineering firm?
3
www.LincolnStrategies.com
Contents
4
A. GSA Schedule contracts: the basics
B. Many engineering firms have them
C. Key advantages and disadvantages
D. Should your engineering firm get one? Suggestions
to help you make a decision
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A. What are GSA Schedule contracts?
6
1. Contract type
2. Relationships
3. Ceilings, length, geography
4. Users
5. Scope: what types of engineering services?
6. Schedules and SINs
7. Comparisons to contracts issued by GSA’s Public
Buildings Service
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A: What are GSA Schedule contracts?
1. Task order contracts
7
IDIQ Indefinite Delivery, Indefinite Quantity
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A: What are GSA Schedule contracts?
1. Task order contracts
The Contract specifies…
Scope of services.
Labor categories.
Authorized T&M rates by labor
category.
Authorized ODCs and
rates/prices.
Period (5-20 years).
Price escalation.
Terms and conditions.
8
www.LincolnStrategies.com
A: What are GSA Schedule contracts?
1. Task order contracts
The Contract specifies…
Scope of services.
Labor categories.
Authorized T&M rates by labor
category.
Authorized ODCs and
rates/prices.
Period (5-20 years).
Price escalation.
Terms and conditions.
Each Task Order specifies…
Services, deliverables, timelines.
T&M rates or fixed price.
Terms and conditions—but cannot
supersede terms and conditions in
GSA Schedule Contract.
9
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A: What are GSA Schedule contracts?
2. Relationships
10
Example of Federal
Agency Client
GSA
Contractor
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A: What are GSA Schedule contracts?
2. Relationships
11
Issue Task Order to GSA Contractor
Perform services; send invoices
Pay invoices (remit to Contractor)
Example of Federal
Agency Client
GSA
Contractor
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A: What are GSA Schedule contracts?
2. Relationships
12
Issue Task Order to GSA Contractor
Perform services; send invoices
Pay invoices (remit to Contractor)
Example of Federal
Agency Client
GSA
Contractor
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A: What are GSA Schedule contracts?
2. Relationships
13
Issue Task Order to GSA Contractor
Perform services; send invoices
Pay invoices (remit to Contractor)
Example of Federal
Agency Client
GSA
Contractor
Delegations? Approval of
choice of GSA Contractor?
Interagency $ transfers?
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A: What are GSA Schedule contracts?
3. Ceilings, time limits, geographic limits
Ceilings?
• No limit on size or number of GSA Task Orders.
• No aggregate limits.
14
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A: What are GSA Schedule contracts?
3. Ceilings, time limits, geographic limits
Ceilings?
• No limit on size or number of GSA Task Orders.
• No aggregate limits.
Time limits?
• 5 year Base Period.
• 3 successive 5-year Option Periods.
15
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A: What are GSA Schedule contracts?
3. Ceilings, time limits, geographic limits
Ceilings?
• No limit on size or number of GSA Task Orders.
• No aggregate limits.
Time limits?
• 5 year Base Period.
• 3 successive 5-year Option Periods.
Geographic limits?
• Option of contractor.
• Domestic, overseas, or both.
16
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A: What are GSA Schedule contracts?
4. Who can use GSA Schedule contracts?
17
All Fed. Gov’t. Agencies
Civilian, military.
All branches: Executive, Legislative, Judicial.
Mixed ownership corporations (e.g., Millennium Corp.).
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A: What are GSA Schedule contracts?
4. Who can use GSA Schedule contracts?
18
All Fed. Gov’t. Agencies
Civilian, military.
All branches: Executive, Legislative, Judicial.
Mixed ownership corporations (e.g., Millennium Corp.).
States, Municipalities
Two GSA Schedules (IT and Law Enforcement) are always available to states, municipalities.
All other GSA Schedules are available under limited circumstances (e.g., disaster recovery; certain public health missions).
www.LincolnStrategies.com
A: What are GSA Schedule contracts?
4. Who can use GSA Schedule contracts?
19
All Fed. Gov’t. Agencies
Civilian, military.
All branches: Executive, Legislative, Judicial.
Mixed ownership corporations (e.g., Millennium Corp.).
States, Municipalities
Two GSA Schedules (IT and Law Enforcement) are always available to states, municipalities.
All other GSA Schedules are available under certain circumstances (e.g., disaster recovery; certain public health missions).
Other Entities, under limited conditions, e.g.:
International orgs. and others eligible under Section 607 of the Foreign Assistance Act.
District of Columbia.
Other federal contractors, under cost-reimbursable contracts, and when specifically authorized.
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A: What are GSA Schedule contracts?
5. Scope
What types of services can engineering firms
provide under GSA Schedule contracts?
20
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A: What are GSA Schedule contracts?
5. Scope
21
Wide range of
services…
A few examples: Planning, requirements analyses
Design, prototyping
Test and evaluation
Integrated logistics support
Construction management
Energy efficiency consulting
Energy audits
Building commissioning
“Smart Building” consulting
Facilities maintenance & management
consulting
Environmental studies, remediation
Training
www.LincolnStrategies.com
A: What are GSA Schedule contracts?
5. Scope
22
…but the Brooks Act
imposes limits for
services associated
with real property.
Brooks Act: Services covered by the Brooks Act
cannot be performed under GSA
Schedule contracts.
In brief summary, Brooks Act
applies to engineering and
architectural services associated
with real property that, as defined
by State law, if applicable, can only
be performed by licensed
engineers and architects.
Also covers certain incidental
services (e.g., surveying associated
with the site of a building).
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A: What are GSA Schedule contracts?
6. “Schedules” and “SINs”
There are more than 40 different GSA
“Schedules.”
Each Schedule contains a related grouping of
goods and services.
23
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A: What are GSA Schedule contracts?
6. “Schedules” and “SINs”
Example
24
GSA Schedule 871:
“Professional Engineering
Services”
This Schedule covers a
wide range of civil,
mechanical, electrical,
and chemical engineering
services.
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A: What are GSA Schedule contracts?
6. “Schedules” and “SINs”
Example
25
GSA Schedule 871:
“Professional Engineering
Services”
This Schedule covers a
wide range of civil,
mechanical, electrical,
and chemical engineering
services.
This Schedule’s Scope of Work is
broken out into many “Special Item
Numbers” (SINs).
www.LincolnStrategies.com
A: What are GSA Schedule contracts?
6. “Schedules” and “SINs”
Example
26
GSA Schedule 871:
“Professional Engineering
Services”
This Schedule covers a
wide range of civil,
mechanical, electrical,
and chemical engineering
services.
SIN 871-1: Strategic Planning for
Technology
Programs/Activities
SIN 871-2: Concept Dev.;
Requirements
Analysis
SIN 871-3: System Design,
Engineering &
Integration
SIN 871-4: Test & Evaluation
SIN 871-5: Integrated Logistics
Support
SIN 871-6: Acquisition and Life
Cycle Management
SIN 871-7: Construction
Management (CM)
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A: What are GSA Schedule contracts?
7. Which GSA Schedules do engineering
firms typically obtain?
27
871: Professional Engineering Services
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A: What are GSA Schedule contracts?
7. Which GSA Schedules do engineering
firms typically obtain?
28
871: Professional Engineering Services
03FAC: Facilities Maint. & Mgmt. (includes
energy consulting)
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A: What are GSA Schedule contracts?
7. Which GSA Schedules do engineering
firms typically obtain?
29
871: Professional Engineering Services
03FAC: Facilities Maint. & Mngmt. (includes energy)
874-V: Logistics Worldwide (LOGWORLD)
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A: What are GSA Schedule contracts?
7. Which GSA Schedules do engineering
firms typically obtain?
30
871: Professional Engineering Services
03FAC: Facilities Maint. & Mngmt. (includes energy)
874-V: Logistics Worldwide (LOGWORLD)
899: Environmental Services.
www.LincolnStrategies.com
A: What are GSA Schedule contracts?
7. Which GSA Schedules do engineering
firms typically obtain?
31
871: Professional Engineering Services
03FAC: Facilities Maint. & Mngmt. (includes energy)
874-V: Logistics Worldwide (LOGWORLD)
899: Environmental Svcs.
(Mission Oriented
Business Integrated
Services)
874: MOBIS
www.LincolnStrategies.com 32
Scope Items (SINs)—examples:
Civil, Mech., Elec., Chem.
Full range of engineering life cycle
Construction management
Building commissioning
Does not include services subject
to the Brooks Act
GSA Schedule 871:
Professional Engineering
Services
www.LincolnStrategies.com 33
Scope Items (SINs)—examples:
Energy management program
support
Energy audits
Energy management & resource
efficiency planning
Water conservation
Building commissioning
Facilities maintenance consulting
services
“Smart Buildings” systems
integration
Facilities management consulting
services
GSA Schedule 03FAC:
Facilities Maintenance &
Management Services
www.LincolnStrategies.com 34
Scope Items (SINs)—examples:
Planning, acquisition and
management of logistics systems
Expert advice, assistance,
guidance, management related to
logistics support
Operational support services
Training
GSA Schedule 874-V:
Logistics Worldwide
(LOGWORLD)
www.LincolnStrategies.com 35
Scope Items (SINs)—examples:
Studies, analyses (e.g., NEPA
related)
Remediation and reclamation
Materials and waste recycling and
disposal services
Environmental training
GIS services
Advisory services (e.g., hotlines)
Some exclusions (e.g., asbestos;
radioactive) GSA Schedule 899:
Environmental Services
www.LincolnStrategies.com 36
Scope Items (SINs)—examples:
Wide range of management
consulting services
Facilitation
Training
Program & project management
Often used for planning
In some sense, the “oldest” and
best known of the GSA Schedule
contracts
GSA Schedule 874:
Mission Oriented Business
Integrated Services
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A: What are GSA Schedule contracts?
8. Different than contracts issued by
GSA’s Public Buildings Service
37
GSA’s Public Buildings Service (PBS Contracts)
GSA’s Federal Acquisition Service (GSA Schedule Contracts)
Scope • A/E, construction, other services related to buildings.
• Many services subject to Brooks Act.
Hundreds of types of services; not limited to real property.
Does not include A/E services subject to Brooks Act (e.g., facility design).
Selection Process
• Some: SF 330; Qualifications-Based Selection.
• Others: Traditional RFPs; variations (e.g., 2-Phase).
• Deadlines for responses.
• All: RFPs; “Fair & Reasonable” pricing; technical acceptability.
• Firms do not compete against each other. • No deadlines (“Evergreen”).
# of Awards Varies; both single and multiple awards. Multiple awards (no limit).
Contract Term Varies; typically 1-5 years. 5-20 years.
Set-Asides Sometimes. Exceedingly rare.
Task Order or Definitive
Both. Task Order only.
Ceilings Almost always. Never.
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B. Many engineering firms have GSA
Schedule contracts
38
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A few examples
Examples of firms
that hold GSA
Schedule contracts
Selected GSA Schedules
Professional
Engineering Services
Facilities Maintenance
& Management
Logistics Worldwide
(LOGWORLD)
Environmental
Services
Mission Oriented
Business Integrated
Services
AECOM ■ ■ ■ ■ ■
Arup ■
Carter & Burgess ■ ■ ■ ■
CDM ■ ■ ■
CH2M Hill ■ ■ ■ ■ ■
EMCOR ■
Fluor ■
Jacobs Engineering ■ ■ ■ ■ ■
Stantec ■
TRC Companies ■
Tetra Tech ■ ■ ■ ■ ■
URS ■ ■ ■ ■
Woolpert ■ ■ ■ ■
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C. Key Advantages and Disadvantages
of GSA Schedule contracts
40
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1. Key Advantages
41
You will win a contract.
There is no limit on the number of contracts that GSA can issue.
Chances are exceedingly high that you will obtain a GSA Schedule
contract if you submit a responsive proposal with fair and reasonable
pricing.
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1. Key Advantages
42
The investment is relatively small.
The RFPs for GSA contracts are a bit complex, but each step is
reasonably easy to take.
There are strict page limits. GSA is not looking for a novel.
Pricing is generally based on fixed hourly rates. The instructions can be
hard to understand, but the required analyses are straightforward.
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1. Key Advantages
43
A GSA contract can help firms enter
the federal market for the first time.
Obtaining a GSA contract can be an excellent way to enter the federal
government market for the first time.
With a few exceptions, GSA RFPs do not require offerors to have any
previous government experience.
Specialized accounting systems and approved indirect rates are not
required. (Cost-plus contracting is not used.)
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1. Key Advantages
44
GSA contracts can help firms
diversify in the federal market.
If your firm is already active in the federal market and you are looking to
diversify within it, a GSA Schedule contract can be a useful tool.
Consider a case in which an engineering firm has expertise in
Engineering Areas A and B. The firm has a lot of federal government
clients for “A;” but all of the firm’s experience in “B” is with private sector
clients.
It can be hard for your firm to win a federal contract in Area “B” because
of your lack of federal “past performance” for that area.
Your firm can obtain a GSA Schedule contract for Area B even if none of
your prior experience in Area B is with federal government clients.
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1. Key Advantages
45
Your GSA Schedule contract can be
broad or narrow: it’s your choice.
Some firms find it strategically advantageous to offer only a narrow set of
services under their GSA contracts.
Other firms’ GSA contracts include many specialty areas and even hold
multiple GSA contracts. For example, AECOM currently holds 8 GSA
Schedule contracts.
Firms also can obtain a GSA “Consolidated” Schedule contract: a single
contract that includes scope of work areas from two or more GSA
Schedules. For example, Michael Baker Jr., Inc., holds such a contract,
and it covers Scope of Work items from 5 separate GSA Schedules.
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1. Key Advantages
46
Small firms are welcome.
GSA welcomes the participation of small firms.
The key is to ensure that the proposal demonstrates that the firm can
perform a reasonably broad range of services within each Special Item
Number (SIN) included in the proposal.
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1. Key Advantages
47
The customer base is huge.
Any federal government department or agency will be able to order
services under your GSA contract.
Under some circumstances, State and municipal government can order
services directly from firms with GSA contracts—for example for help in
recovering from natural disasters: The State of New Jersey will use GSA
Schedule contractors to support its response to Superstorm Sandy.
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1. Key Advantages
48
GSA contracts are preferred by many
federal buyers.
Many federal buyers prefer to use GSA Schedule contracts, because
doing so reduces paperwork burdens compared to most other options.
When using a GSA Schedule contract to “get” to a firm, a potential
federal client can obtain several benefits, including:
─ Rapid project startup.
─ No size limits on projects.
─ No middlemen—a federal agency does not have to transfer funding
to GSA in order to use a GSA Schedule contract.
─ Full credit towards its socioeconomic contracting goals if the agency
issues a task order to a qualifying firm (e.g., a veteran owned small
business firm).
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2. Key Disadvantages
49
x Certain types of engineering work is
out of bounds.
As noted earlier in this briefing package, architectural and engineering
design services associated with real property cannot be performed,
because that work is covered by the Brooks Act.
For example, under a GSA Schedule contract a firm can help federal
agencies plan how to retrofit buildings for greater energy efficiency,
perform construction management tasks during the construction phase,
or provide commissioning services for the new systems—but cannot
create stamped drawings during the design phase.
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2. Key Disadvantages
50
x Administrative and compliance
burdens.
GSA Schedule contracts impose the typical administrative and
compliance burdens associated with virtually all federal contracts (e.g.,
Equal Opportunity reporting requirements).
GSA Schedule contracts also impose unique administration
requirements, e.g.:
─ Collection, tracking, and reporting of Industrial Funding Fee.
─ Administration of Economic Price Adjustment clause.
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2. Key Disadvantages
51
x Unique price monitoring
requirements.
GSA contracts include the “Price Reductions Clause.”
Under this provision, if a firm offers additional discounts to certain
commercial customers, the firm might have to reduce its prices under its
GSA contract by a proportionate amount for the time in which the
commercial discounts are in place. (Hint: Properly structured, the pricing
section of a GSA proposal can help limit the overall impact of the Price
Reductions Clause.)
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2. Key Disadvantages
52
x No guarantee of sales.
Many firms sell millions of dollars of work per year under their GSA
contracts, but others make few or no sales.
A firm’s success will depend on how much time and effort are devoted to
marketing and direct sales.
Note: There is a minimum guarantee in each GSA Schedule contract
($2,500), which generally is paid only if the government cancels the
contract due to the contractor’s continued lack of sales.
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D. Should your engineering firm obtain
a GSA Schedule contract?
»Suggestions to help you make a decision.
53
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Do not inadvertently use a weak rationale.
54
We need a GSA contract in order to do work with the
federal government, right?
Incorrect premise.
There are many other ways in which an
engineering firm can perform work for the
federal government, either as a prime
contractor or a subcontractor.
www.LincolnStrategies.com
Do not inadvertently use a weak rationale.
55
We need a GSA contract in order to do work with the
federal government, right?
Incorrect premise.
There are many other ways in which an
engineering firm can perform work for the
federal government, either as a prime
contractor or a subcontractor.
Our competitors have GSA contracts. If it makes sense
for them, it probably will make sense for us.
“Me too” fallacy.
What your competitors do might suggest
courses of action that you should consider
in light of your firm’s own circumstances.
But merely imitating your competitors’
moves is not a good strategy.
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Do not inadvertently use a weak rationale.
56
We need a GSA contract in order to do work with the
federal government, right?
Incorrect premise.
There are many other ways in which an
engineering firm can perform work for the
federal government, either as a prime
contractor or a subcontractor.
Our competitors have GSA contracts. If it makes sense
for them, it probably will make sense for us.
“Me too” fallacy.
What your competitors do might suggest
courses of action that you should consider
in light of your firm’s own circumstances.
But merely imitating your competitors’
moves is not a good strategy.
Let’s get a GSA contract and add it to our quiver. Even if we ultimately do not use it,
what’s the harm?
Let me count the ways.
Re-read the section of this briefing that
summarize administration and compliance.
Do not take on a GSA Schedule contract if
you are not prepared to incur significant
burdens.
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Does your firm have a strong rationale for
obtaining a GSA Schedule contract?
57
Which of our strategic or tactical goals might GSA Schedule Contracts help us achieve?
What are the pros and cons of GSA Schedule contracts for our firm?
On balance, is it likely that the net advantages of GSA Schedule contracts would be large enough to warrant obtaining one for our firm?
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D. Should your engineering firm get a
GSA Schedule contract?
»Suggestions to help you make a decision.
58
www.LincolnStrategies.com 59
As you assess whether obtaining a GSA
Schedule contract makes sense for your
engineering firm, here is some
additional research you can do to help
inform your decision-making.
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Review Statements of Work.
Review the SOWs of all GSA Schedule contracts that are of
potential interest to your firm. Cast a wide net.
You can find them at the “Schedules e-Library” portion of the
GSA web site:
www.gsaelibrary.gsa.gov
As an alternative, contact the author of this briefing package
for a list.
60
www.LincolnStrategies.com
Any matches?
Are there any Special Item Numbers (SINs) that cover the
types of services that are relevant to your firm’s federal
marketing goals?
61
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Get a snapshot of sales in the relevant
areas.
After you find specific SOW areas of potential interest to your
firm, see whether sales in these areas are robust.
The easiest way to examine overall sales in each GSA scope
area is to go to the “Schedules Sales Query” (SSQ) portion of
GSA’s website: http://ssq.gsa.gov.
62
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Research your competitors’ GSA
Schedule contracts.
Knowing how your competitors use their GSA contracts can be useful in:
– Assessing whether such a contract might be a good fit for your firm.
– Sizing up the competition.
For any firm with a GSA contract, the SSQ can tell you how much they’ve sold of each type of service under their GSA contracts.
The USASpending.gov website offers information on individual sales under a firm’s GSA contract (e.g., identifies the customer agency). But there are gaps in the data.
63
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Review key contractual clauses.
Before you decide whether to pursue a GSA contract, ask
whether your firm could live with the various clauses that will
appear in the contract, such as the Price Reductions Clause.
You can find these clauses in GSA RFPs, and documents to
which they refer (some clauses are incorporated by
reference).
64
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Assess your ability to sell task orders.
Many firms obtain GSA Schedule contracts and never make
any sales under them.
Does your firm have the ability to sell task orders to federal
government agencies?
– Relationships, or the ability to develop and nurture them.
– Knowledge of how to make task order sales, or the willingness to invest
in gaining this knowledge.
– Willingness to invest resources in marketing the contract and making
direct sales.
65
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Confer with others.
Do you have—or can you develop—contacts in other firms
that have GSA Schedule contracts?
Confer with consultants, others, with knowledge of GSA
Schedule contracts.
Ask contacts in the federal government, e.g.:
– Current federal clients under other contract vehicles. Would they use a
GSA Schedule contract if you had one? Why or why not?
– Prospective federal clients. If a GSA Schedule contract were available,
would this significantly improve your odds of selling work to these
prospective clients?
66
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Questions, comments?
67
Lincoln Strategies provides insightful, practical services to help
firms create and sustain competitive advantages in the federal
government market. Our clients include high value-added
professional services firms and manufacturers. We have helped
dozens of engineering firms obtain GSA Schedule contracts, and
have done the same for many other types of firms. We also
provide market research, strategic planning services, consulting,
and proposal support focused on the federal market.
For further information or if you have questions, please contact
the firm’s Principal, Dave Alexander.
Telephone: (978) 369-1140
E-mail: [email protected]
Web: www.LincolnStrategies.com