In This Chapter

“The sun never sets on the British Empire.” This saying refers to the fact that Britain once had colonies all around the world. So as the earth rotated, the sun continually shone on British territory. Similarly, the sun never sets on the array of opportunities for you to sell your products and services to the federal government (and state and locals, too!) through General Services Administration (GSA) contracts. This set of contracts is without end and (generally) without closing dates.

In this chapter, discover why you should be interested in this way of selling your products to the government, how to register your company as a seller, and how to figure out where you fit in this wide and varied marketplace. Also explore the pros and cons of using your own internal resources to get on the schedules or outsourcing to one of several firms specializing in getting companies on schedules.

The General Services Administration (GSA), www.gsa.gov, is what amounts to the government’s “designated purchasing agent.” GSA buys virtually anything you can imagine and undoubtedly some things you have no idea even exist.

The role of GSA (rarely “the GSA”) is to bring order and efficiency to the acquisition of all the products and services the government requires to carry out its mission.

GSA acquires its products and services through a variety of contracting vehicles. For example, it has helped government agencies of all stripes buy telecommunications services through a series of three long-term Indefinite Delivery/Indefinite Quantity (ID/ IQ) contracts. These were and are highly prized as they allow the winners an inside track in delivering telecom services. Beware, however, that an ID/IQ contract is just that. The quantities and the delivery dates are indefinite. Therefore, getting an ID/IQ contract is simply a hunting license; it allows you to hunt specific transactions. But note, having a license is much better than not having a license!

If you think that’s all GSA is, wait! There’s more! GSA is the government’s landlord and leases 7,100 buildings for use by various government entities. GSA is also at the forefront of the acquisition of “green” vehicles. So GSA is a lot more than just schedule contracts.

The formal name for this set of contract vehicles is “General Services Administration Schedule Contracts.” But you won’t hear that mouthful in the halls of any company with success in this area. You may hear GSA or schedule or similar terms. They are also known as Multiple Award Schedules and Federal Supply Schedules, but they all mean the same thing.

Your prospective customers may ask you, “What’s your GSA?” “Do you have a GSA?” “Are you on GSA?” These questions are asking if your company can provide your products or services under an existing GSA Schedule Contract.

The fact is that small businesses are attractive not only to the large prime contractors (see Chapter 9 for goals for small business participation) but also to government buyers of all types. Be aware that they usually have their own targets for getting small business participation. The single best way is to “get on GSA.”

You’ll know you’ve arrived as a legitimate participant in this way of converting “maybes” into revenue dollars when you can follow the lingo and customs without missing a beat.

The variety of transactions under this family of contracts is truly staggering. Imagine you’re working at a government installation under a contract with Agency XYZ. As you came into the building this morning, most likely, there was some sort of security, either industrial security or special security, because of the nature of the work at that facility. The guard at the door, who either signed you in or verified that you had a picture badge, is probably hired under a GSA contract. The building is probably leased by GSA. The computer on your desk was probably bought under a GSA Schedule Contract. The telecom services were obtained under a GSA contract. Almost everything in the building was bought under a GSA contract. The variety of products and services is as wide as all outdoors.

Your competition is often not savvy about operating in the GSA world. Here’s a stark statistic: of the approximately 46 million businesses in the United States, only about 400,000 are registered to do business with the government. That’s less than 1 percent of total businesses. Compare that with the variety of products the government must buy and the volume with which they must buy them, and you’ll likely ask, “Why?”

One reason is that these businesses don’t know how good the government can be as a customer. Another reason is that they don’t know how to get started. But now you do.

Getting a GSA schedule has another advantage, which is coming into play more each year as the government opens up its buying power, including quantity discounts, to purchases by other governments. State and local governments account for about 14 percent of the Gross National Product.

State and local government entities are now eligible to purchase from GSA schedule contracts under the Cooperative Purchasing and Disaster Recovery Purchasing programs. If you’re selling to S&L, they need to know to review the conditions under which each program may be used. If you’re experienced with these restrictions, you can make a real friend with your S&L customer and help him buy from your GSA schedule.

As if you needed more, one final reason why you need to get into the GSA game is: low cost and low risk. Experienced leaders of small businesses agree that the single best, most cost-effective way to break into the government market is via the GSA schedule route. You can and should try other ways, such as being a supplier to a prime contractor or a subcontractor to a prime contractor. Those other ways can work. But day in and day out, the vehicle of choice of savvy small businesses is the GSA schedule route.

There is a clear path to getting your company registered as one eligible to do business with the government. This list is as of the publication date, so don’t be discouraged if the now-current list isn’t exactly like this one. “Persistence is the essence of success,” so be persistent in getting your company registered. Use the GSA website, which is very user-friendly (once you have the jargon down pat).

To do business with the government, you must first register with the Central Contractor Registration (CCR). Go to www.ccr.gov to begin. You’ll be asked to enter a series of numbers to identify yourself. There are seven numbers unique to your company, and you’ll need four other numbers which come from a master list of possibilities. A description of these numbers follows.

Let’s start with the four numbers you’ll choose from a master list for each type of number.

Now here are the seven (whew!) numbers you’ll need to register with the CCR.

First get all eleven numbers from the previous section, because you’ll need all of them to complete your registration.

Then go to the CCR website, www.ccr.gov. Begin the registration process by following the instructions on the home page. At press time, this first step was in the upper left corner and labeled “Start New Registration.” From here, follow the clear instructions the site provides.

With all this volume and all these different products and services, how can you ever find your niche? The short answer is the same as the answer to, “How do you get to Carnegie Hall?” Practice, Practice, Practice.

There is no substitute for experience. No matter how long you sit and watch other companies be successful in getting government contracts, you’ll never get your own unless you try. Get off the sidelines, and get into the game. A very wise person in this business, someone who’s forgotten more about government contracting than most of us will ever know, observed, “You can’t win unless you bid.” Take that as a serious, if completely obvious, observation.

Begin by getting registered as a government contractor, as described earlier. Start exploring the www.fbo. gov website for opportunities. Search by geography; search by NAICS Code; search by agency; and focus on an agency you think could use your products or services.

Talk to other companies (preferably not your direct competitors) and see how they have been successful. Offer to share your knowledge in exchange for the same from them. Find a company you’re comfortable dealing with and share the one-time expenses of getting started.

This last question is a thorny one. Do you rely only upon in-house resources to obtain your GSA schedule contracts, or do you cry uncle and turn over at least part of your marketing efforts to outside sources?

Appendix B contains a selected list of the providers of services. Among those providers you’ll find the “Assist with GSA Schedule Contracts.” Remember to rely on prudence when selecting any company from this list. Specialists providing assistance in getting GSA schedules, who have been in business for a while, have demonstrated value to their customers. They could not be in business after 10 or 15 years unless they’ve earned their fees. Whether those same companies can earn their fees for you is for you to decide. Nevertheless, do your homework before paying any fees, and let the buyer beware!

The Least You Need to Know