In years past, this was a loose obligation, where GSA Contracts were rarely cancelled as a result of a lack of GSA Sales. In recent years, this has been a much more important requirement. Many GSA Contractors have now lost their contract from the Sales Criteria.

Well, the GSA is now sending automated emails to GSA Contract Holders to notify them of their status as it relates to the Annual Sales Criteria. There is an annual sales requirement for all GSA Contract holders of $25,000 (required in first 2 years, and each subsequent year).

Late last year the GSA has stated that they intend to cancel thousands of current GSA Contracts in an effort to minimize their administrative requirements. Lack of sales has been the most utilized rationale in my experience. These automated emails show that the GSA is now keeping better track of this, and they are going to be holding their Vendors to this criteria.

Here is the cited requirement:

 CONTRACT SALES CRITERIA (I-FSS-639) (MAR 2002)

• A contract will not be awarded unless anticipated sales are expected to exceed $25,000 within the first 24 months following contract award, and are expected to exceed $25,000 in sales each 12-month period thereafter.

• The government may cancel the contract in accordance with clause 552.238-73, Cancellation, unless reported sales are at the levels specified in paragraph (a) above.