U.S. GSA SCHEDULE CONTRACT
I. U.S. GSA SCHEDULE CONTRACT OPPORTUNITIES
The U.S. Federal Government is the single largest buyer on the face of
the earth. Every year, it buys hundreds of thousands of different
products and services. Until recently, foreign firms were not allowed to
participate in this gigantic market.However, with recent changes in the
acquisition regulations, it is now possible for firms in Korea to
market their products and services directly to the U.S. Federal
Government. How can a Korean business, like yours,participate in
this market? You can do it directly or partner with a U.S. firm. We
specialize in assisting firms of all sizes through the navigation of the
various regulatory and procedural steps required to set up contractual
relationships with the overseeing agency of the U.S.Federal
Government.
U.S. GSA SCHEDULE CONTRACT
The procurement for and by the Federal government is accomplished
through a variety of contracting procedures, which are governed by a
host of regulations. The most popular procurement vehicle used by the
U.S. Federal Government is the GSA Multiple Award Schedules
Program. This is because the General Services Administration (GSA)
acts as the business manager and purchasing agent for the Federal
Government market, both domestic and oversees, through the process
of competitive bidding and contracting. During Year 2003, the GSA
contracted for over $28 billion worth of goods and services under the
GSA Federal Supply Services (FSS). The size of this market is
expected to expand immensely in the near future as there are
considerations for allowing state and local governments to have access
to this increasingly popular procurement vehicle.
U.S. GSA SCHEDULE CONTRACT
Before a business can sell to the federal government through the GSA, it
must have a GSA Schedule Contract for specific products and services.
How does one become approved for the GSA Schedule? One of the
divisions of the GSA is the Federal Supply Service (FSS), which
oversees administration of the awards and schedule contracts. Included
among the list of schedules are the Information Technology (IT)
Schedules, which cover all computer and computer networking related
products. This area of business should be of particular interest to Korean
firms; given their competitive advantage with respect to many IT related
products and services. During 2003, the IT purchases by GSA were well
over $16 billion. This figure is expected to almost double over the next
two to three years with the expanding role of technology in the daily
operations of the Federal government.
Currently, there are approximately 100 FSS Schedules covering a broad
range of products and services. As the needs of the Federal Government
change and as new products and services enter the market place, the
schedules are likely to change as well.
U.S. GSA SCHEDULE CONTRACT
With the right guidance and market research, the potential rewards for
Korean firms for participating in this giant market are indeed high,
especially since many Korean firms enjoy a cost advantage over their
U.S. counterparts. The GSA purchases goods and services on a
worldwide basis for both civilian and military agencies of the
government. This means that Korean firms will have a special
advantage in marketing their products and services to the
U.S. Army, U.S. Air Force and civilian installations based in Korea.
This can be done under Federal Supply Schedule (FSS) as well as
through contractual possibilities with Federal Technology Service (FTS)
under its business lines: Network Services, Information Technology
Solutions, Security System Integration, etc.
It is important to note that once your firm is awarded the GSA
Schedule Contract, with proper assistance and guidance, you can
expect a long-term presence in the market of 10 to 20 years and
beyond.
U.S. GSA SCHEDULE CONTRACT
II. HOW CAN YOU GET A FOOTHOLD IN THIS MARKET?
The following is a brief description of the process for businesses of all
sizes to market their products and services to the U.S. Federal
Government. To make this process more scalable to your needs, it is
broken down into four phases: Phase I – Preparation of Proposal,
Phase II –Negotiation and Discussions, Phase III- Post-Award Efforts,
and Phase IV – Marketing, Teaming Arrangements and Internal
Training.
In addition, under appropriate circumstances, you can also offer
marketing and teaming opportunities to other Korean and U.S. firms
under your own contracts with the GSA.
U.S. GSA SCHEDULE CONTRACT
Phase I – Preparation and Submission of Proposal
In this initial phase, directly or indirectly, you shall prepare and
submit a proposal offer to the GSA. This effort will include planning,
analysis, data collection, organizing, and bringing attention to other
myriad details that form the basis of preparing and submitting an
offer.
Phase II – Negotiation and Discussions
Once an initial proposal offer has been submitted for evaluation to
the government, the government generates requests for contract
clarifications that often result in contract revisions in order to ensure
compliance with government requirements. You will work closely
with the GSA contracting officers and guides its clients through the
process of proposal clarifications, revisions and ultimately in the
preparation of Best and Final Offer (BAFO), pre-award audits, and
negotiations for contract award.
U.S. GSA SCHEDULE CONTRACT
Phase III - Post-Award Efforts
In this phase of the process, you will comply with all aspects of
contract requirements and/or contract modifications as may be
required or otherwise in your best interest. GSA's acquisition
regulations require that the contractors, at all times, offer to the
government their best possible price. You will continue to comply
with needed contract modifications resulting in price increases or
decreases, spot price reductions, addition of new products or
services and deletion of old lines of products or services, and
otherwise maintain an effective Price Reduction Compliance
Program. You must also comply with Industrial Funding Fee (IFF)
reporting requirements and spot and post-award audits.
U.S. GSA SCHEDULE CONTRACT
Phase IV – Marketing, Teaming Arrangements, and Internal
Training21
Whenever there are mutual interests, you will also offer firms in the U.S.A. as well
as in Korea teaming opportunities under their own GSA Schedule Contracts (For
example, DUCOM’s available GSA Schedule Contracts: GS-35F-5423H, GS23F-0307K & GS-07F- 5947P), whereby they will undertake all marketing aspects
of the contract as well as pre- and post-award negotiations and general
supervision of the contract in all areas. The regulations require that the teaming
partners have an approved GSA Schedule Contract.
In conjunction with Phase I through Phase IV directly or indirectly, you should
conduct internal training for your staff on a host of issues pertaining to GSA
Schedule Contracts- such as reporting requirements, Terms and Conditions,
FAR Regulations, Blanket Purchase Agreements (BPAs), Teaming
Arrangements with other companies to increase the scope of delivering product
and service solutions, Certificate of Competency Program (COC), Leasing,
Ordering Procedures, GSA Advantage! (an on-line ordering system- now,
contractors are required to submit their products and services and associated
prices through this electronic medium), Economic Price Adjustment (EPA),
Price Reduction or the Addition of Schedule Items/Special Item Numbers
(SINs), and cost-benefit analysis, Trade-Ins, etc. You will also provide regular
news bulletins to help your staff stay abreast of the new regulations or general