GSA Contracts - GSA Focus

GSA Contracts Everything You Need To Know

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ABOUT ME: Josh Ladick

Josh Ladick is President of GSA Focus, Inc. We are focused on getting companies onto GSA Schedules and Maintaining those Contracts once awarded. GSA Focus strives to be the best GSA Contract solution in the industry through efficient and adaptable processes, a strong knowledge of GSA Contracts, and uncompromising customer service. Follow Josh on Twitter: @joshladick Connect on LinkedIn: www.linkedin.com/in/joshladick

GSA Focus, Inc. | gsafocus.com | 760-550-9320

TABLE OF CONTENTS: 1. Definitions & Acronyms 2. What is a GSA Contract? 3. How to Get a GSA Contract 4. Maintaining Your GSA Contract


CHAPTER 1:

Definition & Acronyms


GSA Contracts – Definitions & Acronyms

GSA Schedule SIN FAR Solicitation SAM MFC / BOA CO


GSA Contracts – Definitions & Acronyms

GSA General Services Administration

Schedule

(link)

GSA Category - by industry or group of industries

SIN Special Item Number - Subcategory of a Schedule

FAR

(link)

Federal Acquisition Regulation – GIANT Document

Solicitation

(link)

GSA Document for each Schedule

SAM

(link)

System for Award Management – was ORCA/CCR

MFC / BOA Most Favored Customer – Basis of Award

CO Contracting Officer, GSA Contact OR Fed Buyer


CHAPTER 2:

What is a GSA Contract? GSA & Contractor’s Point of View As the acquisition arm of the federal government, the GSA streamlines the process of connecting Contractors to federal buyers through GSA Contracts to: 1. Eliminate redundancy in the buying process 2. Pre-approve contractors 3. Pre-negotiate prices Note: • • • •

A GSA Contract is for 20 Years (5 year options x4) $25,000 Annual sales requirement IDIQ - No guaranteed sales, just a big advantage “License to Hunt”


CHAPTER 2:

What is a GSA Contract? GSA & Contractor’s Point of View As the acquisition arm of the federal government, the GSA streamlines the process of connecting Contractors to federal buyers through GSA Contracts to: 1. Eliminate redundancy in the buying process 2. Pre-approve contractors 3. Pre-negotiate prices

Federal Buyers Point of View 1. Job Security 2. Simpler Buying Solution 3. Lower Liability


CHAPTER 3:

How to get a GSA Contract? (The 6-Step Process)

Prepare Offer Submit & Wait for Review Clarifications

Negotiations Award Post-Award GSA Focus, Inc. | gsafocus.com | 760-550-9320

GSA Contracts – How to get a GSA Contract

1. Prepare Offer • Solicitation • Between 100-200 pages • Instructions / T&C • Heavily cites FAR • Confusing / Contradictory • Usually 19-25 documents in an offer • • • • • • • • • • • • • • • • • • • •

Commercial Sales Practices Commercial Price List Proposed Price List Summary of Offer Readiness Assessment Financials Digital Certificate Pathway to Success Open Ratings Sam Record Letters of Supply (products) Labor Category Descriptions (services) Invoices / Contracts / SOW’s Crosswalks Agent Authorization Letter (consultant) Cover Letter (good practice) Factors 1-2 OR Sections 1-3 SCA Matrix Professional Compensation Plan Uncompensated Overtime



2. Submit & Wait for Review •

E-Offer System (link) • Required to submit electronically • Must have Digital Certificate

•

Review Time • 3-6 months, sometimes longer • Depends on which schedule

Submit Offer Accepted 

Rejected 

Clarifications •

Rejection • Around 75 – 90% of Offers • Must resubmit with revisions/explanations • Back of the Line (usually, but not always) • Still Progress



3. Clarifications Normal part of the process, and occur when the CO determines that there are only minor deficiencies with your offer documents. • • • •

GSA CO will have questions Internal Due Diligence (Dig Deeper) Solicitation Refresh Usually several rounds (2-4)

• Advanced Financial Analysis • P/L Statement has a Loss • Debt - Current Ratio on Balance Sheet • 2 Weeks



4. Negotiations One hour phone conference between GSA CO and your company to cover 3 main areas: 1. Assure your company understands primary Terms and Conditions of the Solicitation 2. Negotiate the Prices and/or General Discount • Can Leverage Education/Experience

3. Negotiate other Concessions to the GSA • Volume/Quantity Discount • Prompt Pay Discount • Freight Terms



5. Award • Awarded your GSA Number • Open for Business • Celebrate!



6. Post-Award But there is still much to be done, you are now at a new starting point. 1. SIP Registration 2. SIP Upload GSAAdvantage! & E-Library • Contract / Company Information • Product uploads • Text File

3. GSA e-Buy • Exclusive Bidding Area • Email Notifications within your SIN(s) 4. Marketing Plan • Bid Searching • Proposal Writing • Agency Selection • Cold Calling & Emailing


CHAPTER 4:

Maintaining Your GSA Contract Modifications Compliance CAV Visit (Audit)


GSA Contracts – GSA Contract Compliance

Modifications • If Acquiring a GSA Contract is a Marathon, then Modifications are a 5K.

• A Modification (Mod) is any revision to your GSA Contract after Award, Including: • • • • •

Adding Products/Services Deleting Products/Services Price Increases/Decreases Administrative Changes More …

• The process involves the preparation of a small document package, usually 5-8 documents.

• Mods are submitted through E-Offer, and are reviewed by your GSA Contracting Officer (CO) • After a Mod is approved, you must make changes on GSAAdvantage! shortly after.



Compliance: Key Points 1. As your Commercial Rates change, you must adjust your GSA Contract Price Reductions Clause – If the discount offered to your Basis of Award (BOA) changes, then your GSA Discount must adjust accordingly. Scenario: You choose “All Commercial Customers” as your BOA with a 1% Discount. Your GSA Discount was negotiated to 2%. After 6 months, you have an opportunity to land a huge commercial customer, but will need to offer a 3% discount. Problem: Your company is contractually obligated to offer the GSA a better discount than your BOA by one percentage point.

Consequences: If you proceed, then the Price Reductions Clause is triggered, and the GSA considers this to mean that your GSA Discount was changed to 4% the day of the transaction. If the GSA discovers this, you may have to cut a check to each federal customer since the transaction date for the difference. What’s the Point? Wrap your head around the Price Reductions Clause, and prepare for these scenarios. (link)



Compliance: Key Points 2. Understanding the Industrial Funding Fee (IFF) The final negotiated price list will reflect a 0.75% increase to all products and services. You will charge federal buyers these prices, and pay the GSA 0.75% of all sales every quarter. This IFF is paid by the federal buyer, and passes through your company.

3. Put systems in place to separate GSA transactions from all others Every quarter, you will be required to report your GSA sales. You will pay the GSA the IFF based on that reported total. You want to make sure that you pay ONLY on GSA sales, and Open Market sales do not sneak in there: • •

Cutting a bigger check than required Liability – Considered selling items not on contract



CAV Visit (Audit) Onsite visit by a regional GSA Agent for several purposes:

1. Assess the level of compliance with the GSA Terms and Conditions. • •

Require Invoices for past year – both GSA and Commercial TAA Compliance

2. Examine tracking processes: Identify potential problems and pitfalls, assist with questions or concerns. 3. Assist in Business Development • Generally two times during each 5 year contract term. • Output

Contractors Report Card


Are you looking to increase your Federal Sales through a GSA Contract?

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View this as an E-Book at: http://goo.gl/PJBR2 GSA Focus, Inc. | gsafocus.com | 760-550-9320