GSA Schedule Scams – Contractors BEWARE!
Business owners have a choice when selecting a consultant to assist them in navigating the complexity of GSA Schedule Contracts. Some consultants offer more value than others and unfortunately, a few are just out to make a quick buck at the expense of small and medium-sized business owners. This blog is designed to inform you of some pitfalls that await unsuspecting business owners.
Business owners have a choice when selecting a consultant to assist them in navigating the complexity of GSA Schedule Contracts. Some consultants offer more value than others and unfortunately, a few are just out to make a quick buck at the expense of small and medium-sized business owners. This blog is designed to inform you of some pitfalls that await unsuspecting business owners.
Background
FL and SC Attorney General Offices are investigating the complaints and now U.S. Rep. Kathy Castor from the 11th District in FL has asked the Federal Trade Commission (FTC) to investigate a cast of shady companies that started out in and around St. Petersburg, FL., but has now branched out to other states using a variety of bogus names. These companies all seem to be affiliated in some way with each other either by sharing phone numbers, addresses, or employees. The organizations in question are reported as being evasive with substantive information most of the time, and other times they provide information that just makes no sense even to folks who are new to federal contracting. They habitually do not complete work they promise, while embezzling the money. This is an ongoing criminal enterprise that could be charged under the RICO Act, but those investigation take time.
There are No Guarantees
Having a GSA Schedule contract does NOT guarantee you sales. A GSA Schedule contract is a marketing tool, a contract vehicle and a license to hunt. GSA Schedule contractors are expected to exceed $25K in the first two years and $25K every year thereafter in GSA sales off their contract. The client should understand that GSA will review their GSA sales history and reserves the right to cancel their contract if there are either insufficient sales or a demonstrated lack of regard for contract compliance. GSA currently has a backlog and the amount of time it takes to gain approval of a GSA Schedule Contract offer after receipt varies depending on the acquisition center, volume of offers and complexity.
Consultants that guarantee GSA Schedules are a scam. Especially beware of consultants that guarantee results within 45 days.
Look for a Quality Consultant
Does your consultant provide you with a knowledgable single point-of-contact that is easily reachable for follow-up questions and inquiries? This same point of contact should be available throughout contract negotiations, post-award compliance and IOA visits. Get personal contact information or bios about the company executives through other websites, find out about the management team, and their subject matter experts.
Beware of consultants that do not provide solid customer references. Especially beware of consultants that advertise they have helped X number of clients. It is more important that you have a quality proposal that is properly negotiated to avoid pitfalls down the road.
Don’t Purchase What You Don’t Need
A consultant with bona fide GSA expertise should not sell you a service you cannot utilize. Step 1 in navigating the complexities of GSA is to determine if your company has the qualifications to secure a GSA Schedule contract. This pre-assessment should include a review of GSA contract requirements to determine if your company complies with key contract requirements, assess if the GSA Schedule is a good fit for your company, market research to determine if the federal government has a need for the products/services you offer, and a determination of whether there is a GSA Schedule that covers the products/ services your company provides.
Consultants that promise you a GSA Schedule Contract without a pre-assessment are a scam and should be avoided.
About BH Sky Associates
BH Sky Associates, based in Princeton, New Jersey, and Washington, D.C., helps clients identify, negotiate, secure, market and manage procurement opportunities and government contracts. It is New Jersey’s only company specializing in GSA/VA Schedule Contracts and Government Market Intelligence. BH Sky offers professional consulting services to small and mid-size companies in a wide range of industries seeking to do business at all levels of government. For more information, visit www.bhskyassociates.com to request our free GSA Market Analysis or for information on obtaining a GSA Schedule Contract contact a BH Sky NCMA Certified Schedule Contract Manager (CSCM) at info@bhskyassociates.com or call 866.468.7420 to order the GSA pre-assessment.