Understanding GSA Pricing for Better Procurement Decisions

Depending on what services or materials you provide, there is no better business decision to be made than getting on the GSA Schedule. The GSA Schedule allows you to sell to the entire federal government and even select local, state, and tribal governments, depending on the products listed. 

One of the things that separates you from the competition is your ability to price items in a way that gets items or services sold. GSA Advantage is completely open to view, so anyone with the internet can look up prices and vendors. Make sure your price points and listings catch buyers’ attention the first time, and we’ll show you how!

Introduction to Government Procurement

To understand GSA Advantage pricing and why it matters, we need to talk about government procurement. Government procurement involves acquiring goods and services through contracts, with the Multiple Award Schedule (MAS) being a key program.

Every year, the federal government commits billions of dollars to more projects than we can even imagine. Everything from contracts to buy oil, lubricants, and sealants, to sourcing service contracts to upgrade engines on aircraft. Of course, this is focused on aviation assets; the government contracts billions in IT upgrades and support, lawn mowing and facility maintenance and management, and almost anything else you can think of. 

Contracting Officers play a crucial role in ensuring fair and reasonable prices for products and services. These are the individuals who have the legal authority to award contracts in the name of the U.S. Federal government, and they must comply with all applicable rules and regulations. 

However, one way to speed up and streamline the process is: The GSA Schedule program provides access to millions of products and services from thousands of contractors. And still, only roughly 4% of small businesses in the U.S. are even on the GSA Schedule!

GSA Schedule and Pricing

On average, companies that are on the GSA Schedule earn almost one million dollars annually from these contracts. Also, almost half of all contracts that the U.S. government awards only receive a handful of submissions from approved vendors. If you are on the GSA Schedule, you are in a much smaller competition pool.

The GSA Schedule is a long-term contract between the GSA and a contractor, allowing eligible entities to purchase products and services at pre-negotiated prices. This dramatically shortens the procurement timeframes because a new contract is not required for each purchase. 

Instead, GSA pricing involves setting fair and reasonable prices for products and services, with prices determined by the contractor and reviewed by the Contracting Officer. However, once the price is approved, it is posted on the GSA Advantage website (or the applicable source) for eligible buyers to source. 

The Multiple Award Schedule (MAS) program enables contractors to offer their products and services to eligible entities at competitive prices. Contractors must submit their pricing information, including discounts and terms, as part of the contract award process.

The GSA Schedule program is designed to provide fair and reasonable prices for products and services, with prices based on market research and analysis. This is a win for the vendor because they know exactly what price point they need to meet to be profitable. It is a win for government procurement professionals because they know exactly what they will pay, making it much easier to budget. 

Multiple Award Schedule Benefits

While this does not necessarily benefit the vendors, it is beneficial to the federal government when they need a reliable supply of items and want to make sure there is sufficient availability.  

The Multiple Award Schedule (MAS) program offers several benefits, including access to a wide range of products and services from multiple contractors. Eligible entities can purchase products and services at pre-negotiated prices, simplifying the procurement process, which is not different from other forms of contracts.

The MAS program promotes competition among contractors, driving prices down and improving the quality of products and services. Since more than one contractor is awarded a contract, the federal agency that procures the contract has the latitude to request the different contractors to bid against each other. 

However, the contractors can benefit from the MAS program by gaining access to a large customer base and increasing their sales. Yes, there is some competition against similar vendors, but it also broadens the overall customer base. The program also provides a streamlined procurement process, reducing administrative burdens and costs.

GSA Advantage Platform

GSA Advantage is a fantastic tool for getting GSA Schedule holders front and center before their customer base. The GSA Advantage platform is an online ordering system that allows eligible entities to purchase products and services from GSA Schedule contractors. And it is really just about anything you can imagine, from disaster response items like pallets of water, to aviation and aerospace items like bolts, screws, washers, oil and other lubricants, to hygiene and toiletries, and everything else under the sun. 

Once contractors are approved on the GSA Schedule, which usually takes several months, they can upload their product and service information, including pricing and descriptions, to the GSA Advantage platform. The pricing is pre-arranged and pre-approved, so the price that is listed is the price that federal buyers pay. 

Eligible entities (federal procurement officers and select state, local, and tribal governments) can use the platform to research and compare products and services, making informed procurement decisions. And it is not just small-ticket items either.

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The GSA Advantage platform is designed to provide a user-friendly and efficient procurement experience, with tools and resources to support procurement success. It is effectively a search engine designed to put items of all kinds in front of the people who need them, with pre-approved pricing so there is no searching for months for the item you need but having to pull information from five sources even though you already know exactly what you need. 

GSA Advantage puts it right there with the prices listed, so you can get it ordered. 

Transactional Data Reporting Requirements

Part of the agreement when you get on the GSA Schedule is transactional data reporting. The federal government wants to know what your activity has been since you are using their platform to exclusively sell to government entities. 

Transactional Data Reporting (TDR) is a requirement for GSA Schedule contractors to report transaction-level data on products and services sold through the GSA Advantage platform.

These requirements apply to contractors with specific Special Item Numbers (SINs) and require the submission of monthly reports on sales data, so it is not ALL GSA Schedule holders, but if it does apply to your organization, you are compelled to provide it. 

Best Practices for Procurement Success

Let’s talk about best practices for a successful run in government procurement. 

  • DO conduct thorough market research and analysis to determine fair and reasonable prices.
  • Contractors should ensure compliance with GSA pricing requirements, including Transactional Data Reporting (TDR) and the Price Reduction Clause.
  • Eligible entities should use the GSA Advantage platform to research and compare products and services to make well-informed procurement decisions.
  • Contractors should provide high-quality products and services, with excellent customer service and support. 
  • Procurement professionals should stay up-to-date with the latest GSA pricing policies and procedures by attending training and workshops to enhance their knowledge and skills. Getting on the GSA Schedule is a long-term commitment, but it statistically pays great dividends if you are willing to put in the effort. 

Greenwood Aerospace Is Committed to GSA Excellence 

Securing a spot on the GSA Schedule is one of the biggest wins for businesses seeking to work with the federal government, but it’s a significant commitment. The process takes time and effort, and many find it worthwhile to seek expert help to get it off to a good start. But once you’re on the GSA Schedule, you will have access to a customer base that few other small businesses can tap into. 

We don’t offer GSA Schedule consulting services, but we hope our insights into the process will help you determine if this is the right fit for you and what steps to take next.

If you’re interested in government procurement, parts sourcing, logistics, aircraft sustainment or related services, we invite you to contact us on our contact page; our team is ready to help now. Or if you know what you need, you can use our online quote tool to get started today.

Also, make sure to check out our other articles about the General Services Administration: