- Meet Sales Requirements: Generate at least $25,000 in sales within the first two years. Long-term, aim for $100,000 in the first 5 years and $125,000 for each additional 5-year period.
- Stay Compliant: Follow GSA rules, report sales accurately, pay the Industrial Funding Fee (IFF) on time, and update contract details regularly (pricing, offerings, company information).
- Boost Federal Sales: Use tools like GSA Advantage! and eBuy, market your business to federal buyers, and maintain strong relationships with Contracting Officers.
- Prepare for Audits: Keep detailed records of sales, pricing, certifications, and contract modifications. Conduct internal audits to stay ready.
- Consider Professional Help: GSA consultants can save time, reduce compliance risks, and improve sales performance.
Key takeaway: Consistent compliance and proactive sales efforts are essential to avoid GSA contract termination and succeed in the federal marketplace.
Tips for GSA Schedule Compliance and Success
Why GSA Contracts Get Terminated
If you’re a federal contractor, knowing why GSA contracts get terminated can help you avoid common pitfalls. Here are the top reasons contracts are at risk.
Breaking GSA Rules
Violating GSA rules is one of the quickest ways to lose your contract. Issues like incorrect sales reporting (TDR or CSP), missing or late IFF payments, working outside your awarded SINs, or failing to keep proper documentation can all lead to termination.
Even if you’re following the rules, poor sales performance can still put your contract in danger.
Low Sales Performance
Clause I-FSS-639 requires contractors to meet a $25,000 sales threshold. GSA has ramped up enforcement of this rule, and contractors who fall short are being flagged more often. If you’re not hitting this sales target, you might receive a warning – or worse, face termination.
But meeting sales goals isn’t enough. You also need to keep your contract details accurate and up to date.
Outdated Contract Information
Failing to maintain current contract information can also lead to termination. This includes regular updates to pricing, product or service offerings, and company details.
- Pricing Updates: Your GSA pricing must reflect current market rates. If your prices are outdated, you could be removed from GSA Advantage! or risk losing your contract entirely.
- Product/Service Modifications: Any changes to your offerings must be documented and approved by your contracting officer through proper contract modifications.
- Company Information: Keep your contact details, business size status, ownership, and federal certifications up to date to stay compliant.
Staying proactive about these areas can help you maintain your GSA contract and avoid termination.
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Steps to Keep Your GSA Contract Active
Managing your GSA Schedule contract takes ongoing attention and a commitment to meeting requirements. Here’s how to keep your contract active and avoid potential termination.
Track Contract Requirements
To stay compliant, make sure you’re keeping up with these essential tasks:
- Report sales through the Federal Acquisition Service (FAS) Sales Reporting Portal.
- Pay the Industrial Funding Fee (IFF) on time.
- Renew your SAM.gov registration every year.
"Managing your GSA Schedule after award is a very important step in becoming a successful GSA contractor."
While compliance is crucial for keeping your contract active, meeting sales targets is just as important for long-term success.
Strategies to Build Federal Sales
Beyond the initial $25,000 sales requirement, contractors need to hit these milestones:
- $100,000 in sales during the first 5-year period.
- $125,000 in sales for each additional 5-year option period.
Here are some effective strategies to help you reach those goals:
- Use GSA Tools: Take advantage of platforms like GSA Advantage! and eBuy to showcase your offerings and find opportunities. Don’t forget to check SAM.gov for additional contract opportunities.
- Create Targeted Marketing: Develop materials like capability statements and add a government-focused section to your website. Engage with GSA Interact forums and attend events to boost your visibility and build relationships.
Building strong sales not only helps you meet GSA requirements but also makes audits easier by keeping your records organized and clear.
Get Ready for GSA Audits
Staying compliant and maintaining strong sales naturally prepares you for audits. Keep detailed records of:
- Sales data and transaction history.
- Approved price lists and pricing details.
- Employee qualifications and certifications.
- Approved contract modifications.
To stay audit-ready:
- Regularly update your compliance checklists.
- Keep accurate financial records.
- Conduct internal audits periodically.
- Document all contract-related activities thoroughly.
Working with GSA Contract Experts
Getting professional help can make it easier for small businesses to handle GSA compliance and avoid the risk of contract termination.
Why GSA Consultants Matter
GSA consultants bring specialized expertise to the table. They help businesses lower compliance risks, respond to requirements faster, and prepare for audits. Beyond compliance, they also share effective federal marketing strategies to improve sales.
GSA Focus: A One-Stop Solution for Contract Management
GSA Focus provides end-to-end contract management services, helping small businesses stay on track with compliance while growing their federal sales. With a 98% success rate, they tackle compliance, sales, and strategic planning, making sure contractors meet GSA standards and succeed in the federal marketplace.
Should You Manage In-House or Hire a Consultant?
Here’s a quick comparison to help you decide:
| Aspect | In-House Management | Professional GSA Consultant |
|---|---|---|
| Expertise | Limited understanding | Deep knowledge and experience |
| Time Investment | Steep learning curve | Saves significant time |
| Cost Structure | Lower upfront costs, higher over time | Higher initial cost, potential long-term savings |
| Compliance Risk | Greater chance of errors | Lower risk |
| Business Focus | Split between tasks | Allows focus on core operations |
Professional consultants are especially helpful in situations like:
- Setting up and activating a new contract
- Preparing for GSA audits
- Making contract updates or modifications
- Developing sales strategies tailored to federal markets
The right choice can make or break your success with GSA contracts.
Conclusion
Keeping a GSA Schedule contract active demands consistent effort and attention to detail. Losing a contract doesn’t just mean missed opportunities – it can also hurt your reputation in the federal market and limit future growth.
To prevent termination, focus on staying compliant, building strong relationships with Contracting Officers, and fulfilling all contract requirements. Managing your contract well ensures it stays active and profitable in the federal space.
If managing a GSA contract feels overwhelming, professional support can help simplify compliance and improve federal sales. Whether you handle it internally or bring in experts, the key is staying compliant while driving sales.
Success with GSA contracts isn’t just about avoiding termination. It’s about meeting requirements consistently and actively pursuing federal opportunities. With the right approach, small businesses can turn their GSA Schedule into a powerful tool for long-term federal market success.
Related Blog Posts
- How to Track GSA Contract Compliance
- How to Manage GSA Contract Performance
- Top 5 Compliance Issues in GSA Contracts
- Ultimate Guide to GSA Compliance Standards
