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11 Benefits of GSA and Why GSA MAS is a Gold Standard in Government Contracting

A Gold Standard in Government
Contracting – 11 Benefits of GSA MAS

While the General Services Administration (GSA) may not be widely known outside of the government contracting community, it has played a prominent role in managing government policy, real estate, and acquisition since 1949.

GSA’s acquisition branch runs the largest government contracting vehicle, the GSA Multiple Award Schedule (MAS) Contract. The GSA MAS Contract, which is frequently referred to as the GSA Schedule or GSA Contract, is part of the Federal Supply Schedule (FSS).

GSA MAS – Unlocking Efficiency & Cost Savings

The Federal Supply Schedule was created to streamline the government procurement process. It consists of nine VA Schedules for medical services, supplies, and equipment, as well as the GSA Multiple Award Schedule for non-medical related products and services.

The purpose of the Federal Supply Schedule, and GSA MAS by extension, is to leverage the buying power of the federal government to ensure government buyers receive the best value for products and services paid for by taxpayer dollars.

The GSA Schedule is one of, if not the longest-standing and most widely used contract vehicles in the federal government. There are several reasons why the GSA Schedule has not only survived, but thrived through decades of administration changes.

Below we’ve highlighted the top 11 benefits of GSA’s flagship contract that have contributed to it becoming a gold standard in government contracting. While this list is specific to the GSA Multiple Award Schedule, many of these factors also apply to the VA Schedules.

11 Benefits of GSA MAS
in Government Contracting

  1. Largest Government Contracting Vehicle
  2. Pre-Vetted Contractors & Pre-Negotiated Pricing
  3. Streamlines the Government Contracting Process
  4. Government-Wide Usage
  5. Broad Range of Offerings
  6. Self-Funded Government Contracting
  7. Long-Term Contract
  8. Allows for Multiple Contract Types
  9. Base Contract for Other Federal Programs & State Contracts
  10. Meets Category Management Goals of Efficiency & Savings
  11. Proven Ability to Adapt & Evolve

1

Largest Government Contracting Vehicle and Growing

If a significant jump in sales is any indication, government buyers are increasingly turning to the GSA MAS Contract for their procurement needs. GSA Schedule sales have exceeded $30 billion annually since fiscal year 2004. In fiscal year 2022, sales crossed the $40 billion threshold and then quickly jumped to over $50 billion in fiscal year 2024.

The GSA MAS Contract is the largest federal contract in terms of:

  • Sales – More than $30 Billion in Annual Sales Since FY 2004
  • Number of Awardees – Currently More than 13,500 Awardees
  • Number of Government Buyers – Approximately 50+ Federal Agencies, In addition to State & Local Buyers
  • Breadth of Products and Services – Millions of Products and Professional Services Across 300+ Categories
2

Pre-Vetted Contractors & Pre-Negotiated Pricing

Obtaining a GSA MAS Contract to sell to government buyers is not a quick and easy process. The process is lengthy because GSA is essentially conducting due diligence on behalf of all federal agencies.

GSA must scrutinize each proposal and thoroughly vet the company or organization submitting the proposal. This includes reviewing financial stability and past performance. GSA must also negotiate pricing, terms, and conditions, to include a determination of fair and reasonable pricing. The result is a GSA MAS Contract that sets pre-negotiated pricing, terms, and conditions for government buyers. This is an important and significant benefit of GSA.

3

Streamlines the Government Contracting Process

For contractors, obtaining a GSA MAS Contract is not a quick or easy process. However, once the contract is awarded, sales can progress quickly.

In fact, many government buyers prefer using the GSA MAS Contract because orders under the GSA Schedule are subject to a special, streamlined process detailed in the Federal Acquisition Regulation (FAR) 8.404 and 8.405. This streamlined process is due in part by GSA pre-negotiating pricing, terms, and conditions prior to the award of a GSA Contract, which allows for the simplified ordering procedures.

Ultimately, the streamlined government contracting process benefits GSA and industry.

4

Government-Wide Usage

The GSA MAS Contract was created to streamline the federal procurement process, so it can be used by any federal agency. You can lookup agencies and explore eligible users on GSA’s website here.

There are also several programs, such as Cooperative Purchasing and Disaster Recovery, that expand usage of the GSA Schedule to state and local government buyers under certain circumstances.

5

Broad Range of Offerings

The GSA MAS Contract offers government buyers a broader range of products and professional services than any other federal contract vehicle. Products and services under the GSA Schedule are broken down into 12 categories.

Click on the links below to explore the offerings covered under each category:

6

Self-Funded Government Contracting

An often overlooked benefit of GSA, is that the Schedules program is largely self-funded. Government purchases through GSA MAS Contracts are subject to a .75% Industrial Funding Fee (IFF), which serves to fund the widely used contract.

In fact, according to GSA’s website, only 1% of the agency’s total funding is through direct congressional appropriations. This provides the program with insulation against certain events, such as short term government shutdowns.

7

Long-term Contract

In the world of government contracting, the GSA Schedule holds the top spot for longest contract term.

Governmentwide Acquisition Contracts (GWACs) and Multiple Award, Indefinite Delivery/Indefinite Quantity (ID/IQ) Contracts typically cap out at a ten-year period of performance. While these types of contracts are considered long term, they are still just half the term of a GSA MAS Contract. The potential period of performance for all GSA MAS Contracts is 20 years, a 5-year base with three five-year extension options.

Why does the length of a contract term matter? Long term contracts provide stability. They also save industry and government the time and resources typically needed for new proposal development, review, and negotiation.

8

Allows for Multiple Contract Types

While the GSA MAS Contract does not currently allow for all contract types, it does allow for Firm Fixed Price (FFP), Labor-Hour (LH), or Time-and-Material (T&M) type orders. Contractors can take advantage of Firm Fixed Price options to provide a more competitive offer to prospective buyers that are more risk averse.

9

Base Contract for Other Federal Programs & State Contracts

The GSA MAS Contract can be used as a gateway to other federal and state government opportunities. If your company is looking to obtain a state contract like the Texas Multiple Award Contract (TXMAS), one of the requirements is to have a “base contract.” The GSA MAS Contract is the most commonly used base contract.

A GSA MAS Contract also provides contractors access to FEDMall, an ecommerce platform run by the Defense Logistics Agency (DLA), and the Department of Defense (DoD) Enterprise Software Initiative (ESI).

10

Meets Category Management Goals of Efficiency & Savings

Category Management is a purchasing strategy that involves grouping products and services into categories, and then developing an efficient purchasing strategy for each category.

One major component of Category Management is conducting purchases strategically as a single enterprise. In that sense, GSA has been employing elements of Category Management for decades. One of the goals of the Federal Supply Schedule is to leverage the buying power of the federal government, as a whole, to negotiate better pricing.

In 2014, Category Management was employed as a government-wide initiative. One of the primary missions of Government-Wide Category Management is to promote spending through procurement solutions that achieve strategic savings, reduce duplicative contracts, and improve the efficiency of government procurement.

In fiscal year 2020, the GSA Schedule was overhauled and restructured to align with Government-Wide Category Management. Today, the GSA Schedule qualifies as a Tier 2 contract solution, the second highest ranking that meets vigorous Category Management standards. Parts of the GSA Schedule receive the top tier ranking of a Best-in-Class solution.

11

Proven Ability to Adapt & Evolve

The GSA Multiple Award Schedule that exists today is vastly different than the program of four decades ago, or even five years ago. Notable earlier changes include extending the term from one year to a potential 20 years, and opening the solicitation to continuous on-ramping. The creation of programs like Cooperative Purchasing and Disaster Recovery expanded usage of the contract to state and local government.

The Consolidation in fiscal year 2020 was one of the most transformative changes to the GSA Schedule Program. It took what were formerly 24 individual GSA Schedules and combined them into one GSA Multiple Award Schedule broken down into Large Categories, Subcategories, and Special Item Numbers.

The Consolidation ultimately helped reduce the burden of contract administration for both government and industry, while making it easier for government buyers. The Consolidation also served to restructure the GSA Schedule to align with Government-Wide Category Management.

Another great benefit of the GSA Schedule is the flexibility to expand the scope of the contract to meet the government’s new or changing needs. Products and services under the GSA Schedule are categorized under more than 300 Special Item Numbers (SINs). GSA has the ability to expand the scope of existing SINs or create new SINs. This is important because SINs help government buyers quickly identify companies that are positioned to meet their specialty needs. SINs also serve a key role in establishing additional requirements for vendors who want to offer specialty products or services.

These are just a few examples of how the GSA Schedule program has adapted and evolved over time to improve efficiency in government contracting and meet the changing needs of government.

GSA MAS: An Efficient Government Contracting Vehicle to Achieve Best Value

The eleven factors above are just a few reasons why the GSA Schedule plays such a vital role in government procurement.

Here at FEDSched, we’ve been helping clients navigate nearly four decades of changes to the GSA Schedule program. Through this time, we’ve seen firsthand how the General Services Administration has regularly and successfully adapted the GSA Schedule to improve efficiency and meet the changing needs of government and market conditions.

Ultimately, it is GSA’s continuous strive for excellence that has helped cement the GSA MAS Contract as a staple in government contracting.

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Since 1986, Federal Schedules, Inc. (FEDSched) has served as a leading GSA Contract consultant. Our team of government contract experts have helped businesses of all sizes and industries successfully obtain, manage, and grow their GSA and VA Schedule Contracts. FEDSched provides an unrivaled level of expertise and guidance businesses can trust to navigate the intricacies of the GSA Schedule Contract and stand out in the federal market space.

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