What is a GSA Schedule and how do you get one? 

We like to call GSA the “Amazon” for the US Federal government. It is a catalog of items that GSA has pre-negotiated pricing and terms for all Federal (and some state/local) agencies to purchase from. There are two paths to achieving the power and benefits of GSA sales:
1) secure your business’ own GSA schedule and maintain it
-OR-
2) partner with an effective contractor to actively promote and sell your products on their existing GSA schedule.

We will talk about the benefits and challenges of both approaches below, but first a little on the GSA and GSA Schedules...

The General Services Administration (“GSA”) manages federal property and provides contracting options for government agencies. From the GSA’s own website:

“GSA provides workplaces by constructing, managing, and preserving government buildings and by leasing and managing commercial real estate. GSA's acquisition solutions offer private sector professional services, equipment, supplies, and IT to government organizations and the military. GSA also promotes management best practices and efficient government operations through the development of governmentwide policies.”

One of the ways that GSA builds its catalog of items is by awarding “schedule contracts” to vendors such as Native Instinct to sell their products to GSA buyers. Having your products on a GSA schedule can be an effective way to sell and promote your products.

But first, in order to be eligible for a GSA contract, the GSA states that…








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In order to secure a GSA contract, a firm needs to fully register in all Federal systems such as SAM.gov, apply for the correct schedule of choice, and then market its products. From the GSA Website:

“Firms need to submit an offer and be awarded a Multiple Award Schedule (MAS) contract before they can pursue opportunities restricted to Schedule holders. This process may take several weeks to months to complete [in our experience it realistically takes months to quarters for new firms to accomplish this].”

However, just because you have a schedule doesn’t guarantee any sales. You still have to market your products, actively pursue Federal buyers, maintain your GSA schedule and actively review any GSA opportunities that may be posted for similar/competitor products.

Going back to the two options we laid out in the beginning of this post, let’s talk about the pros and cons of running your own GSA schedule versus partnering with a reseller, such as Native Instinct.

OPTION 1: Maintaining your own GSA Schedule

Advantages

• You control your schedule entirely
  
  

Disadvantages

• You will need dedicated resource(s) to maintain your schedule
• Need team members internally/shared services that understand Federal Acquisition Regulation
• Need sales personnel that understand Federal sales cycle
• Accounts receivable team needs to understand Federal invoicing systems (all different per agency)
• You must complete all Federal registrations, GSA applications, etc, and meet all prerequisite requirements before applying
• Your existing commercial sales will need to always prioritize government pricing on your GSA schedule
• Your team will need to handle routine GSA pricing audits for pricing advantages guaranteed to the government (penalties for this are severe)

  
OPTION 2: Utilize Native Instinct as your Authorized Reseller

Advantages

• Secure a GSA schedule faster through our existing schedule and systems
• We handle the schedule entirely, from initial application through maintenance.
• We carry the cost and burden of maintaining the GSA schedule.
• We serve as the “translation layer” between your existing commercial sales and new government sales including items such as: Payment terms, Fed. Acquisition Regulations, Federal Sales strategy
• Access to our in-house resources for Federal sales strategy and information. We understand Federal sales and GSA sales – our entire organization is postured for this work.
• Our sales personnel respond to and actively pursue government sales through multiple channels – not just GSA
• Our accounts team is responsible for all invoicing and receivables. You get paid on time.
• Your commercial sales and pricing strategy can continue “business as usual” while we handle Federal sales
• We handle all of our own GSA audits/pricing audits. You are at “arm’s length”.
• We handle all GSA schedule changes (pricing, terms, etc)
• You are in control – you can cancel with 30 days’ notice (we aim for this not to happen)

Disadvantages

• None.

   
So if your company would like to enter Federal sales through GSA and other means, contact us today to see if you would be a good fit for our system. We are confident that our team can be value-add to your organization and existing sales team in pursuit of Federal sales!

​Contact us today at [email protected] .

Should you sell to the US Federal Government?
The U.S. Federal Government is the world’s largest consumer. Read that again.

For the current FY (2023) the government has a budget of over $181 billion dollars obligated towards “Acquisition of Assets” and nearly $600 billion dollars obligated to “Contractual Services and Supplies.”

The Feds buy EVERYTHING from pencils to multi-year base support contracts.

Checkout the reference links at the end for more insights into US Federal spending...

If you aren’t selling your products or services to the US Federal government – ask yourself “why?”

Let’s address some common reasons and myths why many manufacturers or companies do not actively offer their products or services to US Federal buyers…

1. Myth 1: The Government doesn’t buy what I make or sell. In our experience, we have sold everything from office supplies (pens, notepads, etc) to highly customized complete systems (such as generators, medical equipment, etc). It is actually very likely that the government buys or needs your products. Just ask us if there’s a market for your product and we will give you an assessment!
2. Myth 2: Government sales are a race to the bottom dollar and the government only buys lower quality products. Certainly – the government is and should be fiscally responsible. Through various procurement methods – the government will always aim to purchase the lowest priced solution to their need. However, in many cases where products have key technological specifications, safety features, productivity advantages, etc – the government will pay fair market value for higher quality technology over inferior “cheaper quality” products. We have completed many sales against competing distributors and manufacturers where our product was higher priced BUT it gave the government the best product for certain critical specifications.
   
   If you are unsure of your pricing and quality differential versus other products in the Federal sector – let us take a look and assess your market!
   
   
3. Myth 3: The Government only buys products made in the USA. This is incorrect. There certainly are some procurements which give purchasing advantage to US-made products, but for the most part – the main guideline to adhere to called Trade Act Authorization (TAA) Compliance. Basically, if your product’s country of origin is not “TAA Approved” then you will not be eligible to the US Federal government.
   
   If you are unsure if your product is “TAA Compliant” – let us help you assess your products!
   
   
4. Myth 4: Federal procurement and contracts are very difficult to understand. This myth is a tough one because for most organizations – it is true. For many of our current suppliers and trade partners, the answer to this myth is “true.” And that is why we serve as the value-add “translation layer” between the Federal buyer and our manufacturers.
   
   To us, Federal Acquisition Regulation (FAR), and the terms which we sell to the US Federal government are very easy to understand because we deal with them every day. As the prime vendor and distributor for many of our busy manufacturers – we serve as a layer of expertise, protection, and business development to the US Federal Market. Our goal is always to “just bring our manufacturer partners purchase orders.”
   
   If you do not have the expertise, time, or resources in your company to handle Federal sales but you desire to sell to the government – then consider letting Native Instinct handle your Federal sales.

In conclusion – the answer to the title question of this post (“Should you sell to the US Federal Government?”) is categorically YES. However, if you have concerns about where to start and how to execute a Federal sales plan – let us explore a relationship where Native Instinct handles your Federal sales through our existing robust customer network, multiple federal supply schedules, and knowledgeable sales team.

Contact us today at [email protected] .

USA Spending: ​https://www.usaspending.gov/explorer/object_class