Avoiding GSA compliance mistakes is crucial for maintaining your federal contracts and unlocking business opportunities. Common pitfalls include outdated product authorizations, late reports, pricing errors, and missing sales benchmarks. Starting December 2024, contractors must meet stricter sales thresholds to keep their contracts. Here’s how to stay compliant:
- Keep product details updated: Verify TAA compliance and secure Letters of Supply.
- Meet reporting deadlines: Use the FAS SRP system for timely updates.
- Follow pricing rules: Regularly review EPA clauses and pricing ratios.
- Hit sales benchmarks: $25,000 in the first 24 months, then annually.
Need help? GSA consultants can simplify compliance, reduce errors, and save you time. Stay proactive to avoid penalties and keep your contracts active.
Tips for GSA Schedule Compliance and Success
Top GSA Compliance Issues
Managing a GSA Schedule contract requires close attention, as non-compliance can lead to canceled contracts and financial penalties. Below are some of the key challenges contractors face and the pitfalls to avoid.
Product and Service Authorization Gaps
One major compliance issue involves gaps in product authorization. Offering unauthorized products can put your contract at risk. Make sure all GSA Schedule products meet TAA requirements and are listed in the Verified Products Portal (VPP). Common mistakes include selling products that lack VPP approval, using outdated Letters of Supply, not updating manufacturing locations, or providing incomplete country of origin documentation.
Missing or Late Reports
Timely and accurate reporting is critical. GSA Advantage vendors must meet specific performance standards:
| Performance Metric | Required Level |
|---|---|
| Shipment/Backorder Status | Above 95% |
| On-time Performance | Above 75% |
| Cancellation Rate | Below 15% |
Failure to meet these standards can lead to suspension from GSA Advantage and eBuy. If contractors don’t submit a corrective action plan within 90 days of suspension, they risk being permanently removed from these platforms.
Price Violations
Pricing compliance is another key challenge. Non-TDR contractors often face difficulties maintaining the required MFC-to-GSA pricing ratios.
"As a contract holder, it’s your responsibility to remain compliant, and it can be overwhelming to keep track of especially if you are a new contract holder or don’t have someone on your team who is familiar with GSA Schedule maintenance." – Lillian Bohan, Consultant, Winvale
Additionally, contractors must meet a minimum sales threshold of $25,000 within the first 24 months and every year after that to stay compliant.
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How to Fix Compliance Problems
Tackle compliance issues by following these straightforward steps.
Getting Product Approvals
To ensure your products are authorized, start with the VPP Participation Dashboard. This tool helps confirm if your manufacturer is active and your reseller status is approved. If a manufacturer hasn’t provided supplier authorization through the VPP, secure a current Letter of Supply (LoS) that guarantees uninterrupted supply for your MAS contract. Keep thorough records of manufacturer checks, LoS documents, and updated product details. If you notice discrepancies in VPP data, collaborate with your manufacturer or reach out to VPP@gsa.gov for assistance .
Meeting Report Deadlines
Stay on top of reporting deadlines by using the FAS SRP system with your GSA FAS ID. This prevents issues like suspension due to late submissions. Ensure you submit quarterly CSP reports and monthly TDR updates. Remember, you must access the system at least once every 90 days to keep your account active . Organize records by special item number and regularly review your reporting schedule to avoid missed deadlines.
Following Price and Labor Rules
Keep your pricing and labor practices compliant by regularly updating EPA clauses and your electronic price list on GSA Advantage!. Monitor your commercial sales practices to avoid triggering the Price Reduction Clause 552.238.81. For construction orders, verify wage rates as outlined in FAR subpart 22.4. Additionally, ensure travel expenses align with FTR requirements and document all pricing decisions thoroughly .
For additional guidance, consider seeking expert support to simplify your compliance efforts further.
Getting Expert Help
Working with experts can help reduce compliance errors and avoid costly mistakes. Their knowledge complements the practical solutions mentioned earlier.
GSA Focus: GSA Contract Support
GSA Focus specializes in managing compliance for GSA contracts. Their full-service approach takes care of nearly all the paperwork and boasts a 98% success rate . Services include document preparation, compliance monitoring, and contract negotiations.
They are especially helpful when dealing with complex contract modifications and compliance challenges. Here’s a quick overview of their offerings:
| Service Type | Coverage | Annual Cost |
|---|---|---|
| Product-Based Contracts | Unlimited admin mods, two product mods for up to 1,000 products, price adjustments (500 items) | $5,000 |
| Service-Based Contracts | Unlimited admin mods, two labor mods for up to 200 categories, SIN modifications | $5,000 |
| Basic Modifications | Contract administrator updates, MAS mod acceptance | $379-499 |
Why Use GSA Consultants
Consultants bring more than just dedicated services; they offer strategies to navigate intricate compliance requirements. Their expertise ensures accurate documentation and smooth handling of schedule modifications, which is especially valuable for businesses new to government contracting.
Ongoing Contract Updates
Keeping contracts updated is key to staying compliant and meeting reporting standards. Expert services often include:
- Modification Management: Taking care of administrative changes, price adjustments, and product or service updates.
- Reporting Assistance: Helping with TDR submissions and IFF payments.
For businesses without in-house GSA compliance teams, working with professionals can save time, reduce stress, and free up internal resources .
Conclusion
Staying compliant with GSA Schedule requirements involves careful attention and consistent management. Contractors need to meet a $25,000 sales threshold within the first 24 months and continue meeting it annually to avoid suspension or cancellation .
Effective GSA Schedule management focuses on three main areas: ensuring all products and services comply with TAA rules and have proper authorization, keeping up with reporting requirements like TDR submissions and IFF payments, and following strict pricing and labor guidelines to maintain the integrity of government contracts . These tasks can be challenging, and many contractors benefit from external expertise.
Hiring expert consultants can make compliance easier and free up time for business growth. As mentioned earlier, navigating these detailed requirements often requires both strong internal processes and strategic external support. Consultants can reduce paperwork by 95% and achieve a 98% success rate, with GSA Focus reporting an average ROI of 87x .
Long-term success with GSA Schedule compliance depends on staying informed about regulatory updates and keeping detailed records. Whether handled internally or with expert assistance, a proactive approach helps avoid penalties and unlocks more opportunities in the federal marketplace.
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
