Update: See this recent post:

https://www.gsascheduleservices.com/blog/gsa-contract-cancellation/

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Long before the GSA introduced the Demand Based Model in 2012, they were figuring out ways to address the massive backlog in offers. This backlog led to a tripling of offer review times, and the GSA was no longer able to meet the goal of a 3 month review. The solution is widely agreed upon by top GSA executives, and they are right: Trim the operational costs associated with GSA Contract holders that are not yielding. It is built right into the GSA Solicitation that each Contractor must meet a minimum of $25,000 in GSA sales annually or they are at risk of GSA Contract cancellation [I-FSS-639 (b)].

GSA Enforces an Old Policy

In 2012, the GSA grew teeth with this requirement, and many contractors have lost (or are losing) their Contract, or are facing GSA Contract cancellation, as a result. Once the Demand Based Model was introduced, this initiative took on even greater importance to their goal, and GSA Contracting Officers are canceling contracts left-and-right.

One client is in jeopardy of losing their contract, even though they are the only company in their state offering their services on a GSA Contract. It would be very strategic for the GSA to prolong their contract, to have a chance at winning future projects, but they are threatening cancellation.

How to Avoid GSA Contract Cancellation

Whether a GSA Contract holder is coming up for renewal or not, they are at risk of losing their contract if they have not met the required sales goal, or even if major compliance issues have been found.

The solution to avoid GSA Contract cancellation is the same for all Contractors with zero or low sales numbers, Grow your sales! This doesn’t happen overnight, but there are options for you to expedite the process. We can assist in the development and implementation of your Federal Marketing Plan, using proven techniques to locate and win opportunities. CONTACT US TODAY to learn more about this option, or you can learn more about our approach towards winning in the federal market.

I have seen cases where a GSA Contracting Officer has granted renewal for a Contractor with a solid marketing plan in place to increase sales. This means that even if your renewal is looming, and your CO has already threatened cancellation, your GSA Contract can be salvaged and kept.

Why Not Let Your GSA Contract Cancel or Expire?

Don’t lose the GSA Contract you worked so hard to acquire. It may not have been the magic bullet you thought it was in getting federal sales, but it is still a great and strategic asset to your company. In this flat economy, the government is the best customer to have, and a GSA Contract is one of the most beneficial tools you can have. Get serious about winning in the federal market, or your company may not be diversified. This is a very important topic for the future of your company, so please burn some brain matter on this.