GSA certification refers to the process of obtaining a Multiple Award Schedule (MAS) contract from the U.S. General Services Administration (GSA). The GSA is an independent agency of the federal government that oversees the business of the U.S. government. GSA certification allows companies to more easily sell products and services to government agencies at the local, state and federal levels.
The GSA certification process results in being awarded a GSA Schedule contract, which authorizes companies to sell directly to government buyers under pre-negotiated terms and pricing. This eliminates the need to competitively bid on government contracts on a case-by-case basis. Having GSA certification makes it easier for companies to enter the government market and build long-term business relationships with government agencies.
GSA certification provides a stamp of approval that indicates a company offers good value and meets high standards. Government buyers can have confidence in working with GSA-approved contractors. Obtaining GSA certification opens doors for companies and enables participation in the lucrative government sector.
GSA Certification Process
The process to obtain GSA certification involves several key steps:
First, a company must register with the System for Award Management (SAM) and complete any required representations and certifications in SAM (GSA.gov). This establishes the company as an eligible government contractor.
Next, the company submits an offer in response to the GSA Schedule solicitation for their industry (GSA Scheduler). This includes information about the company, proposed products/services, and discounted pricing.
The GSA Contracting Officer reviews the offer to ensure regulatory compliance and that the discounts are “fair and reasonable.” The company may need to provide supporting documentation and negotiate with the Officer.
Once accepted, the offer becomes the company’s GSA Schedule Contract. The company is now GSA certified and eligible for government sales opportunities.
Maintaining GSA certification involves regular reviews and contract renewals, typically every 5 years. The company must remain compliant and competitive.
Benefits of GSA Certification
There are several key benefits to obtaining GSA Schedule certification that make it appealing for companies looking to work with the government:
Access to Government Contracts – The GSA Schedule opens the door to sell products and services to federal government buyers across all agencies. It provides access to a marketplace of opportunities with federal, state, and local entity customers. According to the GSA, the MAS program accounts for 10% of all federal procurement dollars.
Streamlined Procurement – The GSA Schedule pre-qualifies vendors, so buyers don’t have to seek bids for purchases under certain thresholds. This eliminates redundant contracting processes and simplifies purchasing. Acquisitions are expedited through streamlined ordering procedures. Flexible contracting allows for quick turnaround.
Ability to Sell to Government – By obtaining a GSA contract, companies can market their qualified products and services directly to federal buyers. There are opportunities for long-term partnerships and repeat business. In 2020, $37.5 billion in IT purchases were made through GSA acquisition vehicles.
Requirements for GSA Certification
There are several key requirements that a business must meet in order to become GSA certified. These include business requirements, financial requirements, and system requirements.
Some of the main business requirements include:
Financial requirements include:
In terms of system requirements:
Meeting all applicable business, financial, and system requirements is crucial to obtaining and maintaining GSA Schedule certification. Ongoing compliance helps ensure that contractors can fulfill all obligations under their GSA contracts.
Maintaining GSA Certification
Once a company has obtained GSA certification, there are important ongoing compliance requirements to maintain certification. Vendors must ensure they remain eligible and keep their GSA contract updated and active. This involves regular audits and reviews.
To maintain compliance, vendors should follow guidelines outlined in the GSA Schedule contract and stay aware of any revisions or updates. It’s critical to meet all terms and conditions, provide timely and accurate reporting, maintain insurance coverage, and follow pricing procedures such as implementing price reductions. Reviews and audits will assess factors like adherence to contract terms, past performance and customer satisfaction, and whether offered products/services align with the scope of the Schedule.
GSA certified vendors undergo Industrial Operations Analyst (IOA) reviews at least once every 2 years. More frequent and in-depth Contractor Administrative Reviews may also occur to validate contract compliance and prevent issues [1]. Reviews examine factors like timely submission of updates, proper GSA advantage listing, verifying labor categories, and more. It’s important vendors are prepared to provide all requested documentation.
Maintaining GSA certification requires vigilance, organization, and proactive management. Vendors should track key deadlines, audit requirements, and any changes to their GSA contracts. With proper oversight and compliance, companies can continue providing their services to the government through the GSA Schedules program.
GSA Schedules
GSA Schedules, also known as Multiple Award Schedules (MAS), provide pre-negotiated pricing for products and services from certified commercial companies. GSA negotiates the contracts with companies in advance, streamlining the federal procurement process and allowing agencies to acquire goods and services directly from GSA Schedule contract holders (Multiple Award Schedule).
There are over 30 different GSA Schedules covering a wide variety of products and services like office supplies, furniture, IT services, security equipment, and more. Some of the top used GSA Schedules include Schedule 70 for IT products/services, Schedule 84 for total solutions for law enforcement and security, and Schedule 66 for scientific equipment and services (Welcome to GSA eLibrary).
To get on a GSA Schedule, companies must go through a proposal and contract award process. This involves preparing a detailed technical proposal meeting the solicitation requirements and negotiating pricing and terms and conditions. The process can take several months and companies often use consultants and attorneys to assist. Getting on Schedule can provide significant business opportunities but requires an investment of time and resources (How to Get on Schedule).
The key benefits of GSA Schedules include faster purchasing time, lower prices, and reduced administrative costs. Drawbacks include the lengthy and complex process to obtain a Schedule contract and GSA fees. Overall, GSA Schedule contracts provide an effective procurement solution for federal agencies while also opening up business opportunities for companies.
GSA Advantage
GSA Advantage is an online shopping and ordering system that provides access to thousands of contracts from government suppliers. It is an online marketplace managed by the General Services Administration (GSA) that allows federal government agencies to purchase products and services directly from pre-approved commercial vendors. GSA Advantage streamlines the procurement process by providing a central location for government buyers to find and acquire goods and services.
Some key features of GSA Advantage include:
- Access to over 19 million products and services from thousands of GSA-approved vendors
- Advanced search and filtering tools to easily find desired items
- Online ordering, tracking, and management for streamlined procurement
- Discounts on many products below commercial rates
- Support for government purchase cards and electronic invoicing
GSA Advantage enables agencies to avoid time-consuming solicitations and facilitates compliance with acquisition regulations. It provides visibility into government spend while saving time and money in the procurement process.
While registration is limited to federal employees, GSA Advantage serves as a central online marketplace for government agencies to directly purchase from an extensive assortment of approved commercial products and services. The GSA Advantage website offers more details on registration, ordering, and supplier requirements.
GSA Contracts vs Other Contracts
GSA contracts differ from other government contracts in a few key ways:
GSA schedules, also known as Multiple Award Schedules (MAS), provide long-term, government-wide contracts with commercial companies to provide access to over 11 million commercial products and services at volume discount pricing. They streamline the contracting process so agencies can efficiently purchase goods and services directly from pre-vetted vendors. In contrast, other contracts may require more lengthy competitive bidding processes for each purchase (GSA).
GSA acts as a centralized purchasing agent for federal agencies, leveraging the collective buying power of the government to negotiate reduced pricing. Other agency contracts negotiate pricing individually without the economies of scale (GSA).
GSA schedules have already gone through a competitive bidding process to become an approved vendor. Agencies can now purchase goods and services directly without having to re-compete task orders. Other contracts may require additional bidding when issuing task orders (GSA).
Once approved as a GSA schedule contractor, vendors have access to increased federal business opportunities nationwide. Other contracts have more limited scope and eligibility (GSA).
GSA Certification Costs
The costs associated with obtaining and maintaining GSA certification can vary depending on the type of business and services offered. However, there are some standard fees that all applicants can expect to pay.
The application fee to get GSA certified ranges from $250-$5,500 depending on your business’s annual sales. There is also an annual fee to maintain certification that runs between $500-$7,750 per year (View price list).
Many businesses choose to hire professional consultants to assist with the GSA application process. Consultant fees typically range from $6,000-$15,000 for small companies to receive full service assistance (How much does it cost to have a consultant complete GSA application). For large companies, consultant fees may be even higher.
There are additional costs involved once certification is obtained. GSA certified businesses must adhere to specific pricing requirements and negotiate competitive rates. There are also administrative fees deducted from GSA contract sales.
While the upfront investment can be substantial, most businesses find that GSA certification leads to lucrative government contract opportunities that outweigh the costs over the long-term.
Future of GSA Certification
The GSA recently announced several reforms and changes coming to the GSA Schedules program in 2023 and beyond. According to a GSA blog post, the agency is focused on “building a future-ready workforce” by improving training programs and readying contractors for new certifications and contract vehicles.
Some of the key changes highlighted by the GSA include the consolidation and restructuring of Schedules, with the goal of simplifying the process for vendors. The agency is also looking to enhance the customer experience through more digital tools and expanding the products and services available through GSA Advantage.
Additionally, the GSA plans to continue modernizing its approach to acquisition by embracing more agile contracting techniques like Other Transaction Authority agreements. The agency views this as critical for being able to work with non-traditional contractors and startups developing cutting-edge solutions.
While GSA certification will remain important for accessing Schedule contracts, the GSA is clearly focused on making the process more streamlined and accessible. Contractors who want to maintain their GSA status will need to stay updated on the evolving requirements and training opportunities. Overall, it’s an exciting time for the future of GSA acquisition programs according to this GSA blog post.