Obtaining a GSA MAS Contract - The Government Contract for Small Business

Introduction

Stop me if you’ve heard this one before: Government contracts are too complicated for small businesses. You need to be a large corporation with a dedicated team of experts to even stand a chance, right?

It’s a common misconception, but here’s the truth: the General Services Administration (GSA) Multiple Award Schedule (MAS) contract isn’t just for large corporations. In fact, it’s one of the best ways for small businesses to enter the lucrative world of government contracting, providing consistent revenue opportunities and a steady stream of clients.

The process may seem intimidating at first, but with the right guidance, your small business can qualify for a GSA MAS contract. By the end of this article, you’ll understand what a GSA MAS contract is, how it can benefit your business, and what steps you need to take to secure one.

Recent Sales Figures and Small Business Success

Small businesses have found remarkable success through GSA MAS contracts. In FY 2023, the GSA awarded more than $41 billion in MAS contract sales. Of that, nearly 40% went to small businesses, representing around $16 billion in sales. This shows the immense opportunity available to small businesses within the government contracting space.

Many small companies have grown substantially after securing GSA MAS contracts. For example, businesses providing IT services, professional consulting, and office supplies have reported steady revenue growth due to consistent government purchasing. GSA MAS contracts often become a reliable stream of income that helps small businesses expand their operations, hire more employees, and increase market visibility.

What Is a GSA MAS Contract?

The GSA Multiple Award Schedule (MAS) contract is essentially a long-term agreement between businesses and the U.S. government. It allows the government to purchase goods and services from pre-approved companies at pre-negotiated prices. Think of it as a marketplace, but specifically for federal agencies. If your small business holds a GSA MAS contract, you are eligible to sell directly to these agencies through an established, trusted system.

But what makes the GSA MAS contract stand out for small businesses?

1. Consistent Revenue Opportunities
   Government agencies spend billions every year through GSA MAS contracts, which means your business could tap into a vast, steady stream of opportunities. Once your business is listed on the GSA schedule, government buyers can find you easily and purchase directly from you, often without a lengthy bidding process.
2. Credibility and Visibility
   Securing a GSA MAS contract puts your business on the map. It signals to potential buyers that your company has met strict standards and can be trusted to deliver high-quality products or services. This credibility can also help you stand out when competing for other private sector or state government contracts.
3. Long-Term Relationship
   GSA MAS contracts typically last five years, with the option for renewal. This long-term partnership allows small businesses to build a reliable client base, offering stability and the potential to grow steadily over time.

With these benefits in mind, it’s easy to see why so many small businesses aim for a GSA MAS contract. But the next step is understanding whether your business qualifies.

Eligibility Criteria for Small Businesses

Before applying for a GSA MAS contract, it’s important to know whether your small business meets the basic eligibility requirements. While the process is accessible to many, there are key criteria your business must satisfy to qualify.

1. Established Business History
   The GSA typically prefers businesses with at least two years of operational experience. This shows that your company has a proven track record of delivering products or services reliably. If your business is newer, you may need to focus on building a solid portfolio before applying.
2. Financial Stability
   Your business must demonstrate financial stability. This includes having a positive financial history, good credit ratings, and the ability to handle the payment terms and contract obligations. The GSA needs assurance that your business won’t encounter cash flow issues while fulfilling orders for government agencies.
3. Commercial Sales Practices
   To qualify, your business must have commercial customers. The GSA will review your commercial sales practices to ensure you have competitive pricing and a history of sales to private sector clients. This helps the government determine that you’re capable of providing value at a fair price.
4. Relevant Products or Services
   Your business must offer products or services that align with one or more of the GSA’s Schedule categories. These categories cover a wide range of industries, including technology, professional services, office supplies, and more. If your offerings fit into one of these categories, your business has a pathway to securing a GSA contract.
5. Compliance with Government Regulations
   You must comply with specific federal regulations, including environmental and socio-economic requirements. For example, if you’re providing physical products, they need to meet certain sustainability standards. Additionally, businesses must adhere to labor laws, equal employment opportunities, and any other applicable federal guidelines.
6. Past Performance
   Although not mandatory for all businesses, having positive past performance reviews, especially from government or large clients, can significantly boost your chances. The GSA may ask for references to verify that your business delivers on its promises.

Common Misconceptions

Some small business owners shy away from applying for a GSA MAS contract, assuming their business isn’t large enough. The truth is the GSA encourages small businesses to apply, and they even have programs that favor small businesses in government contracting. So long as your business is financially sound, has commercial sales, and meets the industry-specific qualifications, you could very well be eligible.

How to Apply for a GSA MAS Contract

Now that you know your business may be eligible, it’s time to dive into the application process. While it can seem complex, breaking it down into manageable steps will help you get a clear picture of what's required.

1. Prepare Your Documents

The first step in applying for a GSA MAS contract is gathering the necessary documentation. Here’s what you’ll typically need:

• Financial Statements: At least two years of business financials to show stability.
• UEI (Unique Entity Identifier): A UEI number replaces the previous DUNS number system. You’ll be assigned a UEI when you register your business in the System for Award Management (SAM) database.
• SAM Registration: Your business must be registered in the System for Award Management (SAM), the official government contractor database. SAM registration is essential for selling to federal agencies.
• NAICS Code: The North American Industry Classification System (NAICS) code that applies to your business’s industry. It’s important that your NAICS code also maps to the relevant SIN (Special Item Number) for the specific products or services your business offers. This ensures your business is properly aligned with GSA’s procurement categories.
• Pricing Structure: A detailed breakdown of your pricing for products or services. You will need to offer competitive prices, similar to what you provide to your best commercial customers.

2. Identify the Right SIN

The GSA MAS contract uses Special Item Numbers (SINs) to categorize the products and services available for purchase. You’ll need to identify the correct SIN that aligns with what your business offers. The GSA website provides tools to help you map your products or services to the appropriate SIN. For example, if your company provides IT services, you will need to find the SIN that covers those specific offerings.

Selecting the right SIN is crucial to ensure that federal buyers can find your business and that your services meet the government’s purchasing needs.

3. Complete the Offer

Once you’ve gathered your documents and identified the right SIN, the next step is submitting an offer through GSA eOffer, the official platform for MAS contract applications. Here’s what to expect:

• Technical Proposal: You’ll be asked to explain your business capabilities, including your experience and past performance.
• Pricing Proposal: You must provide a detailed breakdown of your commercial sales and pricing. The government expects a fair and competitive rate.
• Administrative Proposal: This section requires specific certifications, including compliance with federal regulations such as environmental standards and equal employment laws.

4. Review and Negotiation

After submitting your offer, a GSA contracting officer will review it. If your proposal is missing information, they will request clarification or revisions. Once the officer is satisfied, they will move to the negotiation stage. Here, you’ll work with the GSA to finalize pricing and terms.

5. Award of Contract

If all goes well, your GSA MAS contract will be awarded! Once approved, your business will be listed on GSA Advantage!, the government’s purchasing platform, where federal buyers can find and purchase from you.

Tips for a Successful Application

• Accuracy is Key: Ensure all your documents are accurate and complete. Even small mistakes can slow down the process.
• Competitive Pricing: Government buyers are looking for good value, so make sure your pricing reflects that.
• Be Patient: The process can take several months, depending on the workload of the contracting officers and the complexity of your application. However, it’s worth the wait.

This concludes Part 1. Part 2 will appear tomorrow

Yesterday, we covered the information about why a GSA Contract is a great contract for small businesses.

Cost and Time Investment

Securing a GSA MAS contract can be a rewarding opportunity for your small business, but it’s important to understand the investment involved in terms of both cost and time. While the benefits can far outweigh the initial effort, knowing what to expect will help you plan effectively.

1. Time Investment

The process of obtaining a GSA MAS contract isn’t instant. Here’s a breakdown of the typical timeline:

• Preparation (1-3 Months): This includes gathering the necessary documents, registering in SAM, obtaining your UEI number, and ensuring your NAICS code and SINs are properly aligned. Small businesses may need additional time to prepare their pricing structures or technical proposals.
• Submission and Review (2-6 Months): After you submit your offer through GSA eOffer, a contracting officer will review your proposal. Depending on the complexity of your offer and the workload of the contracting office, this process can take anywhere from two to six months.
• Negotiation and Approval (1-3 Months): Once the GSA reviews your submission, the negotiation process begins. You may be asked to adjust pricing or terms. This stage varies depending on how quickly agreements are reached, but typically takes one to three months.

In total, expect the entire process to take 4 to 12 months, from preparation to contract award. Planning for this timeline ensures you have realistic expectations and can balance the workload with your ongoing business operations.

2. Cost Investment

There are both direct and indirect costs associated with securing a GSA MAS contract:

• Direct Costs:
  • Proposal Preparation Costs: Many small businesses choose to hire consultants to guide them through the application process. Consultant fees can range from $5,000 to $15,000 for small businesses and can be 2-3 times higher for larger businesses with more complex needs.
  • Certifications and Compliance: Some businesses may need to invest in certifications, such as ISO standards or other industry-specific qualifications, to meet GSA requirements.
  • Maintenance Costs: Once you’re awarded a contract, there may be annual fees to maintain compliance, renew certifications, and stay registered in SAM. There’s also the cost of marketing your business on platforms like GSA Advantage!.
• Indirect Costs:
  • Time and Resources: The time you or your team spend preparing the proposal and ensuring compliance can be a significant cost. Be sure to allocate time for the application process without compromising your daily operations.
  • Discounted Pricing: The GSA expects you to offer competitive pricing, which may mean giving federal buyers the same or lower rates than your best commercial clients. While this can reduce profit margins, the volume of sales through the GSA can make up for it.

The Benefits of Using a Credible Consultant

Working with a knowledgeable consultant can significantly improve your chances of securing a GSA MAS contract, especially if you’re unfamiliar with the process. Credible consultants bring expertise in navigating the intricate government requirements, preparing compliant proposals, and identifying potential pitfalls that can delay or derail your application.

A skilled consultant will help you avoid common mistakes like submitting incomplete documentation, pricing your products or services incorrectly, or misunderstanding key regulations. They can also streamline the process, saving you valuable time by ensuring your application is organized and ready for review. By handling the more technical aspects of the proposal, a consultant allows you to focus on running your business while ensuring that your application stands the best chance of success.

However, it’s important to choose the right consultant. Look for someone with a track record of successfully helping businesses obtain GSA MAS contracts. Avoid consultants who offer unrealistic guarantees or push for inflated fees without clear value. A reliable consultant will be transparent about their approach and the costs involved, helping you avoid costly delays and rejections.

Is the Investment Worth It?

The upfront time and cost can seem daunting, but for many small businesses, the investment pays off significantly. GSA MAS contracts open doors to a steady stream of government contracts, providing long-term stability and revenue growth. Plus, the credibility of having a GSA MAS contract can enhance your reputation, helping you secure additional private-sector or government contracts down the road.

Conclusion

Securing a GSA MAS contract can be a transformative move for your small business, offering access to a steady stream of government clients, long-term contracts, and enhanced credibility. While the process requires an investment of time, effort, and resources, the potential benefits far outweigh the initial challenges. With the right preparation and support, your small business can not only succeed in obtaining a GSA MAS contract but also thrive in the competitive federal marketplace. Whether you go it alone or hire a consultant, the key to success lies in understanding the requirements and being persistent. Your next step could be the gateway to sustainable business growth