GSA is Cutting 8,000 Contracts

The GSA announced on June 7, 2012 that they are cutting 8,000 contracts from the GSA Schedule. The GSA is cutting contracts where outdated items are rarely purchased by the federal government (typewriters, photographic equipment, etc).  Keeping these schedules open was costing the GSA $24 million dollars annually as each schedule is reported to have cost $3,000 per year.  This cost is regardless of whether there was any business activity in those schedules, and there was likely not enough activity to justify keeping them open.

This change will help move these skilled GSA contract administers to other areas decreasing time to obtain a schedule, and allowing the GSA to focus on newer and more innovative products.  In recent years the number of modifications to existing contracts has tripled.  This means that firms who are getting on schedule are adding additional products and services to their schedules, therefore increasing the product offerings.

The GSA has also began to get more serious about enforcing the minimum annual sales of $25,000. A firm with a GSA Contract with no substantial sales is going to be much more likely to have their contract renewal rejected for lack of sales. Another reason for a GSA Schedule renewal option to be rejected is a lack of price list updates, where the products/services are stale and unusable. These two factors usually go hand-in-hand.

Winning Contracts
in the Federal Markets

GSA Resource Pack includes two eBooks, Five Steps to Getting a GSA Contract, and winning in the Federal Market. You’ll also get a free Extended Proposal

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Leave a Reply

Your email address will not be published. Required fields are marked *

Download the Resource Pack

About GSA Focus

We FOCUS on GSA Contract Services! This allows us to offer the best services at an affordable price. We make the GSA Schedule process easy for you!

Related Posts

From the President
Josh Ladick

Weekly GSA News 210903

Weekly GSA News 210903 Weekly video outlining Relevant GSA news that I know small businesses need to know. Sorry it’s not that fancy, but you’ll

Read More »