Looking to secure federal contracts? Here’s a quick breakdown of two key methods: GSA Ordering and Open Market Purchasing. Both offer unique benefits and challenges, so choosing the right one depends on your business goals.

• GSA Ordering: A streamlined, long-term option through the GSA Schedule program. It offers pre-negotiated pricing, less competition (only 4% of small businesses participate), and steady revenue – averaging $927,000 annually per business. However, it requires upfront paperwork and compliance.
• Open Market Purchasing: A flexible, immediate approach outside the GSA framework. It’s ideal for urgent or one-time needs, but involves more competition, longer sales cycles, and project-specific pricing.

Quick Comparison

Choose GSA Ordering for consistent, long-term revenue and reduced competition. Opt for Open Market Purchasing if you need flexibility, faster entry, or project-specific solutions. Both have their place – pick what aligns with your resources and goals.

Expo 2012: Schedules Vs. Open Market (8 of 11)

Understanding GSA Ordering

The GSA Multiple Award Schedule (MAS) program is a key pathway for businesses aiming to access federal procurement opportunities. In 2023 alone, this program facilitated $45 billion in spending, offering a wealth of opportunities for qualified vendors.

Main Elements of GSA Ordering

The GSA ordering process revolves around two main platforms that simplify government purchasing:

• GSA Advantage!: The primary online portal for procurement.
• GSA eBuy: An electronic system for submitting Requests for Quotes (RFQs).

With pre-negotiated pricing, the program ensures consistent rates throughout the contract term. Every day, over $160 million in GSA Awards are processed, showcasing the marketplace’s high activity level. These tools make it easier for businesses to access government contracts.

Business Opportunities Through GSA

GSA Schedules provide businesses with distinct advantages in the federal marketplace. According to GSA Focus:

"The GSA Multiple Award Schedule program offers: Fewer competitors – Your competition pool shrinks dramatically; Shorter sales cycles – Deals move faster; Consistent sales – Tap into steady, government-backed demand; One-time price negotiation – Lock in fair pricing upfront with our expert help." – GSA Focus

This approach is especially beneficial for small businesses. The program offers steady demand, even during economic downturns, and typically results in larger contract values compared to commercial opportunities.

Overall, the GSA Schedule program delivers high-value contracts with less competition. Coupled with its streamlined processes, it’s an excellent option for businesses seeking consistent federal market opportunities.

Understanding Open Market Purchasing

Open market purchasing allows federal agencies to buy directly from commercial vendors outside of established contract systems like the GSA Schedule. This approach provides agencies with more options but involves a more detailed process.

Steps in Open Market Purchasing

• Define Requirements: Agencies must clearly outline their needs and specifications.
• Conduct Market Research: Vendors are evaluated to ensure competitive pricing and suitability.
• Prepare Solicitation: Agencies create RFQs, RFPs, or IFBs based on their specific needs.
• Ensure Competition: The Federal Acquisition Regulation (FAR) mandates open competition.
• Select Vendors: Vendors are chosen based on the best value for the agency.

Compared to GSA Schedule purchases, this process often requires more paperwork and takes longer to complete. However, these steps are essential for successfully navigating open market purchases.

When Is Open Market Purchasing Used?

Open market purchasing is often the best option in specific situations where flexibility or urgency is crucial:

• Urgent Needs: For example, during the COVID-19 pandemic, agencies used this method to quickly acquire personal protective equipment (PPE).
• Specialized Items: Agencies like the Department of Defense rely on open market purchasing for unique military equipment unavailable on GSA Schedules.
• One-Time Purchases: This approach works well for pilot programs or unique requirements that don’t fit existing contracts.
• Local Vendors: Agencies may need local vendors for region-specific services, such as facilities maintenance or geographic-specific support.

While open market purchasing demands more effort in terms of vendor research and price negotiations, it provides agencies with greater flexibility to meet unique or immediate needs. Agencies must balance these benefits against the streamlined processes available through GSA Schedule purchasing.

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Direct Comparison of Both Methods

Feature Comparison Chart

The table above breaks down the main differences between these two methods, which are explained further below.

GSA Ordering: Pros and Cons

The GSA Schedule program is a popular choice for businesses targeting federal contracts. In 2023 alone, it handled $45 billion in transactions.

Pros:

• Long-term contracts lasting up to 20 years
• Pre-negotiated pricing simplifies the process
• Reduced competition compared to open markets
• Provides steady revenue opportunities, supported by consistent client growth

Cons:

• Extensive paperwork and compliance checks during onboarding
• Ongoing reporting and administrative requirements
• Requires a significant upfront investment
• Limited flexibility in pricing adjustments

Open Market: Pros and Cons

Open market purchasing takes a different approach, offering more immediate and flexible options but with its own set of challenges.

Pros:

• No long-term commitments, offering greater flexibility
• Pricing can be adjusted as needed
• Faster response to procurement needs
• No pre-qualification process to navigate

Cons:

• Intense competition due to the broader pool of participants
• Longer sales cycles with more documentation
• Revenue streams are less consistent and harder to predict

This side-by-side comparison shows that GSA Ordering provides a more structured, long-term path to federal contracts, while open market purchasing emphasizes flexibility and quick adaptability to immediate needs. Each method has its place, depending on a business’s goals and resources.

Selecting the Right Method

Opt for GSA Ordering if you’re aiming for steady, long-term government contracts. Here’s why it might be the right fit:

• Stable revenue streams: Government spending remains consistent, even during economic downturns. In 2023 alone, the GSA Schedule program facilitated $45 billion in transactions.
• Less competition: Many government awards attract only a single bid, creating a less crowded market.
• Larger contracts: GSA contracts often lead to significant federal deals. On average, companies working with GSA Focus reported $927,000 in steady revenue added to their bottom line.

"Every day you’re not on GSA, you’re missing out on $50m+ in opportunities." – Josh Ladick, President and Founder, GSA Focus

On the other hand, Open Market Purchasing is better suited for situations where speed and flexibility are key:

• Immediate market entry: No need to wait for GSA contract approvals.
• Flexible pricing: Rates can adjust to market conditions rather than sticking to pre-negotiated terms.
• Lower administrative burden: Ideal for businesses with limited capacity to manage ongoing compliance.

Your choice should reflect your business’s ability to handle administrative demands, your desired contract size, and your broader federal contracting objectives. Align your method with your resources and strategic priorities.

GSA Focus Services

GSA Focus offers a streamlined solution to simplify the GSA application process. By managing about 95% of the paperwork, they cut down a business’s time commitment to just 3 hours – compared to the 100+ hours typically required for those applying independently.

Here’s a closer look at the core services that make this process efficient:

These services tackle common challenges, enabling businesses to secure and maintain federal contracts effectively.

GSA Focus has worked with over 600 clients, achieving a 98% satisfaction rate and delivering an average ROI of 87x. On average, businesses see an additional $927,000 in revenue per GSA Schedule contract.

"We guarantee your success with the GSA Program, or you don’t pay a cent."

The process begins with a free eligibility consultation, which is especially important for the 57% of businesses new to GSA. This consultation helps businesses assess their potential in the federal marketplace. By addressing the complexities of paperwork, time constraints, and strict compliance requirements, GSA Focus simplifies the path for businesses exploring federal procurement options.

Conclusion

Success in federal contracting often depends on selecting the right approach: GSA Ordering or Open Market Purchasing. In 2023 alone, the GSA Schedule handled $45 billion in transactions and awarded over $160 million daily.

With only 4% of small businesses on GSA Schedules and 44% of government awards receiving just one bid, the competition is relatively low. Add in the simplified processes and pre-negotiated terms, and GSA Ordering becomes a strong option for businesses aiming to build lasting federal contracts.

On the other hand, Open Market Purchasing suits businesses looking for immediate opportunities, fewer compliance requirements, flexible pricing, or a way to test the federal market. For companies using the GSA Schedule, the potential payoff is significant – on average, they see an additional $927,000 in revenue.

Both methods have their place, but GSA Ordering often provides a more strategic, long-term benefit. Assess your goals, resources, and readiness to decide which approach aligns best with your federal contracting plans.

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• GSA Schedule vs Direct Federal Contracts: Which to Choose?
• GSA Schedules vs. Open Market Bidding
• GSA Bidding vs. Open Market Bidding
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