Want to succeed as a GSA contractor? Here’s the key: master compliance, pricing, record-keeping, and performance management. This article breaks down the 10 traits that top-performing contractors use to secure federal contracts and maintain strong relationships with government agencies.

Quick Takeaways:

• Compliance: Stay on top of federal regulations, reporting, and contract updates.
• Pricing Strategy: Use smart discount structures and track market trends to stay competitive.
• Record Keeping: Maintain well-organized, audit-ready documentation.
• Order Management: Use automated systems for smooth order processing and delivery.
• Government Marketing: Tailor your strategy to federal buyers and fiscal cycles.
• Performance Tracking: Monitor metrics like CPARS ratings and delivery schedules.
• Team Building: Collaborate with strong internal teams and external partners.
• Contract Updates: Keep your GSA Schedule current with timely modifications.
• Risk Planning: Proactively address compliance, sales, and financial risks.
• Skills Development: Invest in certifications and ongoing training.

These traits are essential for maintaining contracts, meeting sales targets, and thriving in the competitive federal marketplace.

How to Succeed with GSA Schedule Contracts | Neil interviews expert Josh Ladick (GSA Focus)

1. Compliance Management

For GSA contractors, staying compliant isn’t just a box to check – it’s the backbone of maintaining federal contracts and relationships. Navigating the strict requirements outlined in the FAR demands a well-organized compliance system.

Here’s how successful contractors manage compliance effectively:

Ethics and Internal Controls

A strong code of ethics and reliable internal controls are non-negotiable. These measures help monitor and prevent violations of federal laws, such as fraud, conflicts of interest, and bribery. By addressing potential issues early, contractors can avoid costly mistakes and maintain trust with federal partners.

Reporting and Documentation

Timely and accurate reporting is a hallmark of top-performing contractors. For instance, contract action reports must be submitted within three business days of an award. Staying on top of these deadlines ensures smooth compliance evaluations.

Contract Maintenance

Keeping contracts in good standing requires regular updates to critical documentation. This includes:

• Commercial Sales Practices (CSP) updates
• Trade Agreements Act (TAA) compliance
• System for Award Management (SAM) registration
• Labor qualifications documentation

"Remaining compliant with GSA terms and conditions takes consistent effort and is one of the biggest challenges that our clients face. It’s crucial that you have a good understanding of what rules apply to you and what actions you need to take to keep your contract in good standing." – Winvale

When compliance issues arise, don’t delay action. Open communication with oversight bodies, like the Office of Inspector General (OIG), is essential. For guidance on reporting requirements, contractors can contact the OIG at OIGCounsel@gsaig.gov.

Be Ready for Contractor Assessment Visits (CAVs)

CAVs are thorough reviews conducted by Industrial Operations Analysts. These visits focus on sales data, invoices, and pricing practices, making preparation critical. Regularly reviewing your compliance processes can help ensure you’re always ready for these assessments.

2. Price Planning and Analysis

To thrive in federal markets, contractors need more than just compliance – they must craft pricing strategies that ensure profitability. With GSA Schedule spending surpassing $45 billion annually, having a solid approach to pricing isn’t just helpful; it’s critical for long-term success.

Understanding Price Ceilings

GSA Schedule pricing follows a ceiling rate system. This means contractors set pre-negotiated maximum prices that they cannot exceed. To maintain healthy profit margins, careful planning is essential when setting these rates.

Strategic Discount Structures

Top-performing contractors often employ well-thought-out discount strategies that safeguard their Basis of Award (BOA) relationship while encouraging customer loyalty. Here’s how they approach discounts:

Leveraging Market Intelligence

Staying competitive means staying informed. Successful contractors use advanced tools to gain insights into pricing trends and procurement opportunities:

• Price Reporter Dashboard
  This tool offers detailed pricing data for transactions on platforms like GSA Advantage and FedMall. Tim Evans, Government Segment Marketing Manager at Fisher Scientific, highlights its value:

  "Since 2009, Price Reporter has provided Fisher Scientific timely competitive item-level GSA pricing data allowing us to identify opportunities and threats. Their customer service focus is solid."

• System for Award Management (SAM)
  SAM is another powerful resource, offering access to federal procurement databases. Contractors use it to track procurement trends and uncover new opportunities.

Price Adjustment Strategies

Economic Price Adjustments (EPA) clauses are key to maintaining profitability in a dynamic market. Contractors use these strategies to adapt:

• Keep thorough documentation of market conditions affecting costs.
• Maintain accurate records of commercial pricing practices.
• Avoid offering undocumented discounts, which could lead to compliance issues.

These adjustments not only help sustain profitability but also ensure pricing records are audit-ready.

Importance of Documentation

Every pricing decision, adjustment, and market analysis should be backed by clear documentation. This is critical for justifying pricing strategies and discount structures.

The Shift to Transactional Data Reporting (TDR)

The GSA is moving toward Transactional Data Reporting (TDR), a system designed to improve transparency in pricing data. While this shift demands contractors keep detailed transaction records, it also provides greater flexibility in how they approach pricing strategies.

3. Record Keeping Standards

Just like strategic pricing and compliance, maintaining thorough and accurate records is a cornerstone of managing government contracts effectively. For GSA contracting, detailed record keeping isn’t just helpful – it’s a necessity. Leading contractors rely on advanced digital systems to stay organized, efficient, and ready for audits. Here’s how they implement these standards.

Digital Documentation Management

Modern GSA contractors lean on digital tools to manage their records in line with FAR Subpart 4.7 guidelines. These systems ensure document integrity – keeping signatures, graphics, and other critical elements intact – while also enabling quick access for audits or reviews.

Record Retention Requirements

GSA contractors must adhere to specific retention periods for different types of records. Here’s a breakdown:

Security and Access Controls

Protecting records is as important as keeping them. Contractors use robust security measures, such as:

• Enterprise-grade, reliable storage solutions
• Secure data transfer protocols
• Detailed access logs and permissions to control who can view or modify records

Indexing and Retrieval

Efficient indexing is critical for quick access, especially during audits. A clear example is the case of JANA, Inc. v. U.S., where poor record keeping caused significant complications during a Defense Contract Audit Agency review.

Documentation Best Practices

The Federal Acquisition Regulation (FAR) sets clear expectations for documentation. According to FAR 4.703(a):

"Contractors shall make available records, which includes books, documents, accounting procedures and practices, and other data, regardless of type and regardless of whether such items are in written form, in the form of computer data, or in any other form, and other supporting evidence to satisfy contract negotiation, administration, and audit requirements of the contracting agencies and the Comptroller General".

Audit Preparation

To stay audit-ready, contractors focus on:

• Conducting regular internal audits and verifying document accessibility
• Ensuring compliance with retention timelines
• Addressing any gaps in documentation promptly

Electronic Record Management

Top-performing contractors ensure their electronic record systems:

• Preserve the integrity of documents
• Include reliable backup solutions
• Enable fast and efficient retrieval
• Meet federal electronic record-keeping standards

4. Order Management

Managing orders efficiently is a cornerstone for success as a GSA contractor. Leading contractors rely on automated systems to process, track, and fulfill purchase orders while adhering to GSA regulations.

Electronic Transaction Systems

Many top-performing contractors use the GSA Vendor Portal (VP) or Electronic Data Interchange (EDI) to handle orders. For contractors managing over 50 orders per month, EDI simplifies operations by using standardized transaction formats:

These tools form the backbone of a streamlined order management process.

Performance Metrics

Contractors aim to meet the following benchmarks:

• Shipment/Backorder Status: At least 95% reporting accuracy
• On-time Delivery: Over 75% of orders delivered as promised
• Order Cancellation Rate: Less than 15%

These metrics guide contractors in optimizing their processes and addressing potential issues proactively.

Proactive Order Management

Success in order management comes from staying ahead of potential challenges. Here’s how contractors stay proactive:

• Daily Monitoring: Use EDI or the PO Portal to update order statuses regularly.
• Accurate Catalogs: Keep product information current to avoid backorders.
• Timely Communication: Notify government buyers immediately of any delivery delays or issues.
• Detailed Records: Maintain thorough documentation of all order-related communications.

Quality Control Measures

Proactive management is supported by strong quality control practices. Contractors implement robust tracking systems, conduct regular internal audits, and document every step of inspection and acceptance procedures to ensure compliance and accuracy.

Open Market Items Management

Handling open market items requires a distinct approach to maintain efficiency. This includes clearly identifying such items, using specialized tracking systems, ensuring proper staff training, and accurately coding these products in accounting systems.

Invoice Management

Effective invoicing is another critical aspect of order management. Contractors follow these steps:

• Align invoices with project milestones and deliverables.
• Keep delivery confirmations and acceptance documentation organized.
• Ensure invoices comply with the Prompt Payment Act, which generally requires federal agencies to pay small businesses within 30 days.

Technology Integration

Modern order management systems are a game-changer. These systems automate status updates, track performance metrics, generate compliance reports, maintain audit trails, and integrate seamlessly with GSA’s electronic systems, ensuring smooth operations at every step.

5. Government Marketing

To excel as a GSA contractor, it’s essential to understand that marketing to federal buyers requires a very specific strategy. Federal procurement operates differently from the private sector, demanding a tailored approach that incorporates both digital tactics and relationship-building efforts. Let’s break down the key elements of this process.

Strategic Timing and Budgets

Federal spending follows a predictable cycle, offering unique opportunities throughout the year. Here’s how contractors can align their efforts with the government’s fiscal calendar:

This timing-focused strategy pairs well with targeted outreach and digital marketing initiatives.

Optimizing Your Digital Presence

A strong online presence is critical when marketing to federal agencies. Make sure your GSA Advantage! listings are polished, update wage categories in the GSA eLibrary, and refresh your SAM.gov profile to meet federal catalog standards. These updates ensure your services are easy to find and aligned with federal requirements.

It’s worth noting that federal contracts amounted to nearly $760 billion in FY 2023, with the Department of Defense alone accounting for about $400 billion. This highlights the immense opportunity available to well-prepared contractors.

Data-Driven Market Research

Effective marketing starts with understanding your audience, and for federal buyers, that means digging into the data. Contractors often rely on tools like:

• USASpending.gov: Analyze agency spending patterns to identify trends and opportunities.
• Schedule Sales Query Plus: Gain insights into your competitors and refine your strategy.

Crafting Agency-Specific Messaging

Federal buyers respond to messaging that’s tailored to their unique needs. Here are three ways to make your marketing materials stand out:

• Capabilities Statements: Highlight your compliance certifications, past performance, and solutions that directly address an agency’s challenges.
• Thought Leadership: Publish white papers, case studies, and host webinars to showcase your expertise in solving government-specific problems.
• Enhanced Digital Experiences: Create responsive landing pages that are visually appealing and meet federal accessibility standards.

Building Strong Relationships

Relationships are the backbone of federal contracting success. Contractors who prioritize connections often see greater results. Some effective strategies include:

• Attending agency-specific industry days to network with key decision-makers.
• Participating in small business networking events to expand your reach.
• Partnering with prime contractors for subcontracting opportunities.
• Engaging with agency programs and initiatives through approved channels.

Compliance-Driven Messaging

When marketing to federal buyers, it’s essential to emphasize compliance and value. Your materials should communicate:

• Risk Mitigation: Showcase your compliance programs to reassure agencies.
• Past Performance: Highlight successful projects that demonstrate your capabilities.
• Alignment with Agency Goals: Position your solutions as part of their modernization efforts.
• Clear Value: Provide transparent pricing and demonstrate a strong return on investment.

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6. Performance Tracking

Tracking performance is crucial for staying compliant with contracts and achieving long-term success. By keeping an eye on key performance indicators (KPIs), contractors can make informed decisions and consistently refine their operations.

Key Performance Metrics

For GSA contractors, performance tracking revolves around several important areas:

These metrics provide a foundation for tracking service quality, financial health, and operational effectiveness.

CPARS Management

The Contractor Performance Assessment Reporting System (CPARS) evaluates contractors in four critical areas:

1. Quality of Service Delivery
   Ensures the contractor meets or exceeds service expectations.
2. Schedule Adherence
   Tracks whether deadlines and milestones are met on time.
3. Cost Control Effectiveness
   Measures how well budgets are managed.
4. Management Capabilities
   Assesses the contractor’s ability to handle responsibilities effectively.

Financial Performance Monitoring

Keeping a close watch on financial indicators is essential. Some key practices include:

• Regularly reporting cash flow with 12-month projections.
• Comparing indirect rates against targets to identify variances.
• Analyzing revenue by organization and project manager to spot trends.
• Reviewing profitability across different contract types to understand margins.

Proactive Performance Management

High-performing contractors adopt strategies to address issues before they escalate. These include:

• Early Issue Detection
  Monitor project metrics like budget variances, milestone progress, and resource allocation to catch problems early.
• Comprehensive Documentation
  Maintain detailed records of contract activities to resolve disputes quickly and provide clear performance evidence.
• Continuous Improvement
  Use feedback loops, including regular performance reviews and customer surveys, to identify areas for process refinement.

Protecting Performance Ratings

To safeguard strong performance ratings, contractors should:

• Engage evaluators early to address potential concerns.
• Submit detailed rebuttals within the 60-day comment window when necessary.
• Keep communication open with agency representatives to build trust and transparency.
• Document all performance-related discussions and outcomes to maintain a clear record.

7. Team Building

Building strong teams – both within your organization and with external partners – is essential for managing contracts effectively and ensuring scalability. This approach builds on the principles of order and compliance already discussed.

Contractor Team Arrangements (CTAs)

CTAs allow multiple contractors to combine their strengths while maintaining their individual government contracts. Here’s a quick breakdown of how CTAs work:

Essential Elements of a CTA Agreement

To set up an effective CTA, the agreement should include:

• Team Member Information: Clearly list all participating contractors, including their contract numbers, contact details, and authorized representatives.
• Role Definition: Specify the responsibilities of each contractor, with particular focus on the lead contractor’s role in coordination and client communication.
• Operational Framework: Define procedures for:
  • Order processing and workflow
  • Invoice and payment handling
  • Communication protocols within the team
  • Safeguarding confidential information
  • Replacing team members if needed

Best Practices for Team Management

Internal Team Development

• Train team members on contract requirements to ensure compliance.
• Schedule regular performance reviews to monitor progress.
• Maintain open and clear lines of communication to avoid misunderstandings.

Collaborating with Partners

• Review partnerships regularly to ensure alignment with goals.
• Use shared project management tools for better coordination.
• Establish standardized processes for resolving conflicts quickly and effectively.

Managing Risks in Team Operations

Managing large-scale contracts comes with its challenges, but a well-organized team can help reduce risks. Here’s how:

• Keep detailed records of team decisions to ensure accountability.
• Regularly monitor team performance to address any issues early.
• Implement quality control measures across all team activities to maintain high standards.

8. Contract Updates

Keeping your Schedule contracts up to date isn’t just about following the rules – it’s a smart move to ensure uninterrupted access to federal opportunities. Staying on top of contract updates strengthens your position in the federal marketplace and builds on effective compliance and order management practices.

Types of Contract Modifications

Contract updates generally fall into a few main categories:

Best Practices for Managing Updates

A proactive and structured approach can make managing updates much smoother. Here’s how successful contractors handle it:

• Monitor GSA’s Updates: Regularly check for changes to offerings or requirements.
• Act on Mass Modifications Quickly: Sign within the 90-day window to avoid disruptions.
• Keep Listings Current: Update your GSA Advantage! catalog and eLibrary entries within 30 days of any changes.
• Document Everything: Maintain thorough records, especially for pricing adjustments, with clear justifications.
• Stay Organized: Ensure authorized negotiator details are always accurate and up to date.

Common Pitfalls to Avoid

Even small mistakes can slow down the contract update process. Watch out for these common issues:

• Incomplete Documentation: Missing or weak records can lead to delays in approval.
• Poor Timing: Submitting too many modifications at once can overwhelm the system and cause bottlenecks.
• Lack of Communication: Not keeping your Contracting Officer informed can stall progress.

Strategic Modification Planning

To stay ahead in the federal marketplace, consider these strategies:

• Focus on high-impact updates first to maximize your competitive edge.
• Prepare for the upcoming FAS Catalog Platform expansion scheduled for FY2025.
• Work closely with your Industrial Operations Analyst to streamline the process and address any challenges effectively.

9. Risk Planning

Staying ahead of potential risks is essential as sales requirements tighten and compliance standards shift within the federal marketplace. Solid compliance practices and performance tracking lay the groundwork for effective risk management, ensuring long-term success.

Key Risk Areas

Financial Risk Management

Starting in December 2024, the GSA will introduce stricter sales benchmarks: $100,000 within the first 60 months and $125,000 for each subsequent 60-month period. This is a significant increase from the current $25,000 requirement in the first two years. To meet these new thresholds, contractors need to adopt reliable sales tracking systems and actively engage with federal buyers to sustain and grow their sales pipeline.

Compliance Risk Prevention

"Meeting compliance standards is the most important step to keeping your GSA Schedule contract in good standing and setting yourself up for success." – Patrick Morgans, Lead Consultant, Winvale

Top-performing contractors focus on staying ahead of compliance risks by:

• Keeping detailed documentation of financial transactions, TAA compliance, labor qualifications, and discount relationships to avoid potential issues.
• Preparing for Industrial Operations Analyst (IOA) assessments with thorough financial records and clear audit trails.
• Maintaining accurate and comprehensive sales data alongside compliance records to ensure readiness for any review.

Performance Monitoring

The most successful contractors keep a close eye on:

• Progress toward meeting minimum sales thresholds.
• Customer feedback and satisfaction levels.
• Timely responses to government inquiries.
• Adherence to delivery schedules and contract terms.

These efforts help ensure a proactive approach to risk, supporting steady growth and success in federal contracting.

Risk Mitigation Best Practices

• Conduct quarterly internal compliance reviews to identify and address potential issues early.
• Keep open lines of communication with your GSA Contracting Officer to stay informed and aligned.
• Provide regular training for staff to ensure they are up-to-date on compliance requirements.
• Use advanced sales tracking systems to monitor performance effectively.
• Develop clear escalation procedures to handle issues promptly and efficiently.

10. Skills Development

GSA contractors place a strong emphasis on continuous training to maintain a competitive edge. Just like compliance and performance tracking, staying on top of training is essential for tackling the challenges of federal contracting. By combining solid compliance practices with regular skills development, contractors can keep up with the ever-changing federal requirements.

Core Certification Programs

The Federal Acquisition Institute (FAI) provides three key certifications that contractors often pursue to sharpen their expertise:

Training Resources

In addition to these certifications, contractors tap into several resources to stay informed and up-to-date. Platforms like GSA Interact, Defense Acquisition University (DAU), Contractor Acquisition University (CAU), and the National Contract Management Association (NCMA) offer access to valuable training materials and certification courses. The Federal Acquisition Service Training (FAST) series, hosted by GSA, provides specialized training sessions. These FAST sessions can even earn participants up to 3 Continuous Learning Points.

Compliance Training

Federal contractors also benefit from training provided by the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), which focuses on compliance essentials.

Professional Development Strategy

Top-performing contractors take a structured approach to professional growth. They schedule regular training sessions and closely track certification progress. This organized strategy not only enhances individual skills but also strengthens the overall operational effectiveness of their contracting efforts.

Conclusion

Thriving in federal contracting requires a deep understanding of essential traits and a readiness to adjust to new trends like artificial intelligence and stricter cybersecurity measures. A well-organized structure and a commitment to quality are key drivers of success, as shown by CPARS ratings, which highlight the strong performance of leading contractors.

The federal market is shifting, creating new opportunities in areas such as:

These areas highlight the need for contractors to adapt their strategies to align with the evolving landscape. Industry experts also stress the importance of strategic planning. Stephanie Hagan from Winvale advises:

"With these strategies, you can hopefully begin to build a strong marketing plan, pipeline, and know how to network with government customers and search for opportunities".

To succeed as a GSA contractor, focus on the following:

• Ensuring strict compliance while remaining adaptable to regulatory updates.
• Consistently delivering high-quality work to secure strong CPARS ratings.
• Building long-term relationships with federal agencies.
• Embracing new technologies and keeping up with procurement trends.
• Committing to ongoing professional growth and certifications.

The most successful contractors are those who stay agile, responding quickly to changes in regulations, technology, and market needs. By strengthening these core practices and staying open to innovation, contractors can secure a strong position in the federal marketplace.

FAQs

What are the biggest compliance challenges for GSA contractors, and how can they overcome them?

GSA contractors often encounter hurdles when it comes to staying compliant. Common trouble spots include keeping documentation accurate, following strict pricing guidelines, meeting labor and product standards, and hitting required sales thresholds. If not handled carefully, these challenges can lead to expensive mistakes.

To tackle these issues, contractors should stay informed about the latest GSA regulations, routinely review and organize their records, and ensure their teams receive comprehensive compliance training. Using digital tools and compliance software can also simplify workflows, reduce errors, and help maintain consistent alignment with GSA requirements.

What’s the best way for GSA contractors to create a pricing strategy that stays competitive and ensures profitability?

To create a pricing strategy that strikes the right balance between staying competitive and ensuring profitability, GSA contractors need to focus on a few critical aspects. Start by familiarizing yourself with GSA pricing rules, which include requirements for fair and reasonable pricing as well as the inclusion of Economic Price Adjustment (EPA) clauses.

Next, dive into thorough market research. Use tools like GSA Advantage and GSA eLibrary to analyze competitor pricing, spot trends, and establish benchmarks. This will give you a clearer picture of where your pricing stands in the market.

When setting your pricing, establish well-defined discount structures and approach price increases carefully. Always factor in EPA clauses and any contractual restrictions that might apply. Equally important is maintaining precise documentation and being prepared for audits to ensure full compliance with GSA regulations.

By blending market research with strategic planning, contractors can develop pricing that not only secures contracts but also safeguards profitability.

How can GSA contractors build strong relationships with federal agencies and improve their CPARS ratings?

To strengthen relationships with federal agencies and boost CPARS ratings, GSA contractors should emphasize clear, consistent communication and ensure they deliver top-notch work on time. Tackling challenges proactively and seeking feedback from agency representatives can go a long way in building trust and fostering collaboration.

Equally important is strict adherence to regulations, maintaining ethical standards, and consistently going above and beyond expectations. Engaging with the government contracting community and building positive connections with agency officials can also help enhance a contractor’s reputation. By consistently delivering exceptional performance, contractors not only improve their CPARS ratings but also position themselves for more opportunities in the future.

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