The ugly truth is that 90% of “in-house” attempts end up rejected by the GSA after their first submission. If you are considering tackling your GSA Contract project “in-house”, you will want to prepare yourself for the potential expenses and possible outcomes. Performing a crude Return On Investment (ROI) analysis is key, so let’s discuss the average “in-house” process, expenses, and the expected time-frames.
Many small to medium business owners choose to delegate the GSA Contract project to a top-level manager, or they simply attempt to tackle the project themselves. It is fair to estimate that the employee qualified to handle such a task will earn a minimum of $40 K per year, conservatively. As a newcomer to the process, a minimum of 6 months can be expected to be spent completing the initial package for submission to the GSA.
Using that employee’s salary as a gauge, just this time spent will cost a small to medium sized business a minimum of $20,000. Keeping in mind that nine out of ten “in-house” attempts end up rejected by the GSA after their first submission, it is clear that this is an unnecessary waste of the employees time and the company’s money.
Due to the arduous nature of GSA Contract acquisition, the first-timer employee working on the GSA Contract project has no choice but to neglect their actual job responsibilities and, in doing so, sacrifices the true objectives of their position within the company.
In the rare circumstance that the employee is successful, and the initial submission package is not rejected, the employee is often surprised when they receive a modification package 3 months later. This modification package typically takes an in-house employee and additional 2 months to complete and re-submit, which, from the calculations discussed above, will cost the business another $5,000. Due to this modification resubmission and review, the success rate drops and an increasingly rare chance of ultimate success going “in-house” is developed.
If the resubmission is accepted, an employee can then expect to spend, at minimum, an additional 2 months to finalize the documentation and educate his or herself on the system administration. In summation, the final estimated time for an employee to acquire a GSA contract often exceeds one year, and will cost a small to medium sized company at least $30,000 in wages and an additional $10,000 in taxes and benefits, resulting in a grand total of $40,000, conservatively.
In short, if you are considering going “in-house” with your GSA Contract Acquisition, you need to examine whether your company can bear the manpower and expense of an employees full years salary to undertake the task. Many business-owners fail to investigate the process properly and take the project upon themselves. Most often, the decision to go “in-house” eliminates the company’s opportunity to get a GSA Contract. Once the contract is rejected, a company has already spent all the time and resources they have available for the project. Going “in-house” can be tragic for a small to medium sized business, keeping a company from their single biggest spending customer, the federal government.
Here are additional considerations to review when deciding whether to go “In-House” or use a GSA Contract Specialist:
- Time – Consider the revenue your company is missing out on by not using a GSA Contract expert and acquiring your contract as soon as possible. The sooner you acquire a GSA Contract, the sooner you are able to tap into the federal revenue stream.
- The Delicate Nature of Pricelists – you or your “in-house employee” will not know how to properly analyze the multifaceted pricepoint strategy involved in acquiring your GSA Contract. Hitting the pricepoints that make you money, but keep you competitive in the federal market is a vital part of the process. Without the necessary experience and strategy applied in your price list preparation, you may lose thousands of dollars over the first few years of federal contracting. We make sure your GSA Contract pricing benefits your company, and will equip you for negotiations.
- Liability – Attempting to submit your GSA Contract to the Federal Government while not understanding all of the legal aspects involved can be quite irresponsible and dangerous. Without consulting an experienced Contract Specialist, you effectively leave your company susceptible to some scary consequences. With the amount of legislation in place, and it’s constantly changing nature, you limit your risk and liability by hiring a GSA Contract specialist.
- Contract Upkeep and Employee Turnover- Once your contract is acquired, it must be maintained. GSA Contract upkeep is best handled by an expert, as it is usually extremely frustrating and troublesome for a greenhorn. If your “in-house” contract is delegated to an employee, you must consider the employee’s normal job duties and the fact that the employee will most likely leave your company eventually.
In summary, acquiring a GSA Contract is similar to building a house. You can probably build a house if you stop everything you are doing to study and learn carpentry. Most people realize that it’s better to let an expert build your house so you can work where your talents and experience are already developed, maximizing your time and earning potential. There are many tricks that carpenters use to build a house stronger and quicker. a carpenter knows the process of building a house. First the foundation, then framing, and finally putting up walls. When a company tries to acquire a GSA Contract themselves, they do not know the logical or natural order of the process. Using a GSA Contract Specialist is not only the most responsible, legally safe means of acquiring your contract, but a specialist can achieve your contract in a shorter time-frame and at a lower cost for your company.
8/20/2120: There was a lively LinkedIn discussion continuing this topic – http://lnkd.in/2dqaj5