Is Your GSA Contract at Risk of Being Cancelled Because of Low Sales?
The General Service Administration (GSA) now sends out notifications to GSA Schedule Contract holders that have not met their minimum sales criteria warning them that their contract may be cancelled. This blog makes some recommendations on how you can remedy the problem.
GSA actively recruits small businesses to apply for GSA contracts because the government benefits from having many diverse businesses participate in the GSA Schedules program, while at the same time it reserves the right to enforce compliance with applicable regulations. One of these regulations, Clause I-FSS-639 (Contract sales Criteria) addresses the minimum sales criteria that suppliers with GSA contracts must meet. This Clause requires GSA Schedule Contract suppliers to exceed $25,000 in contract sales within the first 24 months following contract award and $25,000 in contract sales each year thereafter. If a supplier fails to meet this requirement, GSA may cancel the contract in accordance with clause 552.238-73.
GSA’s New Policy
In the past Clause I-FSS-639 was seldom enforced and GSA Contracts were hardly ever cancelled due to low sales. Recently, this has changed and now GSA may send you a reminder if your GSA Contract does not meet its minimum sales criteria. This reminder reports your GSA Schedule Contract sales to date and warns that if your sales continue to fall below the minimum criteria, your contract is in jeopardy of cancellation.
What You Can Do to Remedy the Problem
GSA understands the challenging environment in the federal marketplace and realizes that this requires determination and agility to meet your sales obligation. GSA also understands that there may be numerous reasons why your sales are not on track. There are a number of options you can explore to remedy the situation on your own:
- Monitor opportunities posted on eBuy and FedBizOpps
- Look into state and local government cooperative purchasing programs
- Look into a GSA Schedule contractor team arrangement
- Develop a solid GSA marketing campaign
- Go to the GSA Vendor Support Center (VSC) for news and events
- Go to GSA Interact where you can learn more about GSA marketing tools
Need help on any of the above ways to increase your sales to the Government? BH Sky is available to assist you. Speak to a federal procurement expert at BH Sky Associates. Phone 866-468-7420. Email us or visit us on the web.