Government Contracting Opportunities beyond GSA Contracts

Posted by Irv on May 24th, 2006

What are the Drawbacks of GSA Contracts?

Billions of dollars in government contracts are secured through the General Services Administration, or GSA. Many companies rely solely on the GSA Schedule as a resource, but there are a wealth of other government contracting opportunities that will help you maximize your government revenue. There are often misconceptions about the GSA Schedule and GSA contracts. Below you will find some tips to help clarify why you should secure non-GSA contracts in addition to the GSA contracts you have secured.

Compared to other contracts, GSA contracts often have lower profit margins due to how services are priced and an increased level of competition.
You will still need to market your services strategically–even if you have secured GSA contracts, agencies won’t necessarily know about your services or contact you for new contracts.
GSA contracts are very specific. There is a set price for specific products, quantities, etc. so there isn’t much room for flexibility.
The initial setup of GSA contracts is very expensive. Many companies hire consultants for assistance, which can cost thousands of dollars.
There are only a certain number of vendors allowed per GSA Schedule product or service.
Not every government agency can buy from the GSA Schedule.

Government Contract Opportunities to Overcome GSA Drawbacks

There are many other government contracting opportunities in addition to GSA contracts. To maximize your revenue, you will first need to know when other government contracting opportunities are available. Then you’ll need to get a hold of business intelligence that will help you strategize to win those contracts.

Consider an electronic notification service that alerts you to government contract opportunities at the federal, state and local levels and in education purchasing offices. This ensures that you receive notifications on all government contracting opportunities so you can expand your business to agencies that don’t buy off of the GSA. Electronic notification about bids, RFPs, grants, award data, etc can be customized so that you are notified only about business opportunities that apply to your company. Think about how much time it would take to hand-locate all of the government bids, RFPs and other notices that are published in numerous sources every day. An electronic notification service is a cost-effective way to save time and resources so you can better spend time winning more government contracts.

A marketing strategy will be a vital component to your government business plan. Marketing campaigns that create awareness of your services will be important in expanding your new business and maintaining relationships with previous clients. One way to develop a marketing campaign is to locate important personnel and decision-makers that may influence the buying process for services you offer. Use that contact list as a marketing campaign list. This will help you build relationships and network with the right people who can help you win more government contracts.

Finally, you will need to know as much as possible about the government marketplace to make intelligent business decisions. For example, you will need to investigate the intelligence behind each bid or RFP, such as information on which buyers and agencies have purchased your services in the past and how deeply your competition has penetrated the market. You should also find out when government contracts for your services will be up for renewal - and where your services may be needed in the future - so you can better forecast your sales and broaden your market.

More Information from Government Contracting Best Practices
Learn the basics of GSA contracts. Dig into further federal government acquisition resources, and make sure you’re finding all the federal government contracts available for bid.