GSA IT Schedule New Low/No Sales Policy
Last week, I joined the first GSA IT Industry Partnership Meeting Conference Call. This was a great opportunity to hear directly from the leaders of the IT Schedule on new processes, initiatives and goals for the future.
One area that received a lot of discussion during the conference call was the IT Schedule’s new Low/No Sales Initiative. As you probably know, contractors are required to achieve $25,000 in contract sales during their first two years, and $25,000 for each year thereafter, totaling $100,000 in the first five-year contract term. In the past, the sales requirement for the first two years hasn’t been uniformly enforced by GSA, but they do have the right to cancel your contract if you haven’t achieved these sales numbers.
Of the 5,000 IT contractors, about 1,000 of those contracts have had no GSA sales. This is an area of focus for GSA, as they want contractors to be successful, and also want to re-align their resources with the contracts that have had sales and need further support.
Given this, they’ve launched a new initiative to review contracts with low/no sales. They’re initially focusing on contracts with NO sales after two years. If you fall into this group, expect to hear from your Contracting Officer soon regarding this process. Kay Ely, Director of IT Schedule Programs, stated that the goal is not to remove these contracts with no sales, but to have all contractors be successful and meet the sales requirements. They plan to have conversations with the contractor to see what they’ve been doing thus far to pursue opportunities, and evaluate the potential for sales in the future.
Damon McClure, Deputy Director of IT Schedule Operations, further discussed logistics and process. First, the GSA team will conduct outreach and engage contractors in a dynamic conversation about sales prospects, activity and tools available through GSA. From there, GSA makes a decision on whether the contractual relationship is beneficial for both parties. This could result in contract cancellation or continuance, which might be based on a timeline where you expect to garner business. GSA expects that outreach on this new initiative should begin around August.
If you fall into the category of having no sales, definitely be expecting this sort of outreach from your Contracting Officer, and be prepared to offer evidence of the sales you’ve pursued and your plan for achieving sales goals in the future. And if you’re still trying to break into the Government marketplace, please let us know. Winvale offers business development services that include creating a strategic sales plan, marketing, and tactical lead generation.