GSA By The Numbers

The feds usually spend about $500B every year on contracts.  This year that number is nearly $1.2 Trillion and that means significant increases across all contracting vehicles – including GSA. Every sale over micro-purchase (recently increased to $10,000 max) requires some kind of competed contract vehicle to meet the requirements of the Federal Acquisition Regulations (FAR).

Between June of 2017 and June 2018 over $39 Billion of federal spending went through GSA schedules.  As of November 1st there are 17,289 active schedule holders held by 14,346 companies (some companies have multiple schedules). Looking at the Budget for 2019, sales are could exceed $50 Billion – That would be record since GSA sales in 2017 were down to $32 Billion.

Now for the real news… GSA reports $39B in sales between June 2017 and June 2018 was won by around 7,756 companies… That means 9,533 schedule holders are under-performing – on pace for less than $25,000 per year – the minimum required by GSA to keep the schedule.  So, the winners are averaging over $5 Million in federal sales through their GSA schedules and the rest of the companies are in the process of failing and failing miserably.

Why? Simple: GSA doesn’t sell for you, you need to sell your GSA.

GSA schedules are by far the easiest contract vehicles to obtain and very useful as tools for obtaining federal sales – BUT they don’t bring sales by themselves. In fact, GSA gives new companies TWO years to make the first $25k… You have to ask yourself why? I’ll tell you… it’s because it isn’t easy and you need to get out there and go after business- not just wait for orders from GSA Advantage or opportunities to hit GSA eBuy. You need to get proactive and go after these people.

Getting in front of federal decision makers is the key to GSA success. If you can’t succeed in FY2019, you will never have a better shot. You need to identify buyers in your market, get to them and make sure you are one of the qualified GSA schedule holders they remember when they need what you sell.

 

in Federal Contracting by Aisha H. Leave a comment
About the author: Aisha H.

Aisha has been working exclusively in the federal market space with isiFederal, providing research and finance expertise in addition to being the Business Process Manager and assistant to CEO. She's no stranger to unpredictable, demanding environments--her past work experience includes auditing, teaching English at the Berlitz School of Language, and working for the Grand Hyatt in Dubai.

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