Each year, the President proposes an annual budget for how the government’s resources should be allocated among its many departments, agencies, and programs.  Congress then appropriates funds through legislation.  Departments and agencies then award much of these appropriations to private businesses that provide the products and services they need in the form of contracts, grants, loans, etc.  While this process is simple enough to teach in middle school civics classrooms around the country, keeping track of, and understanding where and by whom the government’s vast resources are ultimately spent can be a complex task.

Have you looked at your GSA Advantage listing lately? GSA launched its new version of GSA Advantage last month, but not without problems.

In his State of the Union Address two weeks ago, President Obama referred many times to the importance of small businesses and the role they play as the backbone of the American economy.  As a small business owner, you might then wonder why it seems so difficult to enter into a business relationship with the government.  Navigating the complexities of government contracting can be quite challenging for a firm that cannot dedicate personnel and resources to the issue. 

Interested in selling to the government, but not sure a General Services Administration (GSA) Schedule Contract is worth the cost and effort?  Consider the facts: Federal Agencies prefer to buy from GSA Schedules, GSA Schedule sales exceeded $38.8 billion in the 2010 fiscal year, and a Schedule Contracts is potentially a 20 year contract with the world’s largest client.  So, while it is possible for your firm to sell its product or service to the U.S. government without getting on a GSA Schedule Contract, it certainly isn’t advisable in most cases.  A GSA Schedule Contract can quite literally take your firm’s government business to the next level.

Subcontracting is an excellent way for businesses to break into the government market.  If your firm is ready to market and sell its product or service to the government and all of its agencies, subcontracting might be the perfect fit.  Subcontracting offers a blend of sales opportunity and learning experience that makes it an ideal solution for any firm looking to grow into a sizable government contract of its own.

After an eleven-year debate, the U.S. Small Business Administration (SBA) has recently set forth a final ruling designed to expand federal contracting opportunities for women-owned small businesses (WOSBs).  On October 7, 2010, the SBA published this Final Rule to be effective February 4, 2011.  On that future date, qualifying WOSBs will be afforded significant advantages in the competition for government contracts.  Ultimately, the SBA hopes 5% of all Federal contracting dollars buy goods and services provided by WOSBs.

Reps and Certs

As you may know, the Representations and Certifications phase of the Federal contracting process, often expressed as simply ‘Reps and Certs,’ has been making a few headlines recently.  In the past few months the Wall Street Journal, the New York Times, and other publications have documented several cases of companies repaying the government for entering into contracts for which they did not qualify.  These reports of companies abusing federal programs designed to channel government business toward specific classes of small and/or disadvantaged firms have highlighted the importance of the Reps and Certs process.  This spotlight on the issue has also served to amplify the scrutiny under which firms’ claims are verified.

Admittedly, this will not be ground breaking advice nor make your GSA schedule sales skyrocket. But these tips will make it easier for your Federal clients to remember you and make their life easier.  I have heard this requested by numerous federal clients over the years and not long ago I heard it again, so I thought it would be worthwhile to pass along.  The two things many Federal’s ask for are: detailed email signature line and more descriptive information on business cards.

A Quality GSA Schedule Proposal is Essential

A computer hardware distributor recently settled a charge with the Government that it had overcharged on its GSA Schedule contract.  The firm was facing a federal false claims lawsuit by the Department of Justice for failing to provide the government with the best possible price on a hardware contract it signed with GSA in 2000.

The General Services Administration (GSA)  encourages businesses to apply for GSA contracts, especially small businesses.  The Federal government benefits from having many diverse businesses participating in the GSA Schedules program.  While the government welcomes responsible companies into the federal procurement process, they insist on discipline and compliance.