It is important to remember that GSA awards multiple contracts for each type of item and that having a FSS contract does not actually guarantee that you will receive any orders at all. Here’s how federal agencies use FSS contracts to obtain goods and services:
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Purchases up to $3,000 may be made via credit cards held by end users on a sole source basis from any FSS contractor without consideration of what is offered by other FSS contractors.
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For orders >$3,000, the agency must procure the item that best meets their needs at the best price. This means that the buyer must at least review what is offered by several FSS contractors and select the item with the “best value” offered by those contractors. In general, this can be a pretty informal comparison, requiring little documentation in the contract file.
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For task orders to be placed for services >$100,000, the agency must seek and receive at least three quotes from FSS contractors and select the one that offers the “best value”. This “competition” may be conducted a number of ways, including advertising at www.fbo.gov or posting the opportunity at the GSA website so that any FSS contractor may submit an offer. Alternatively, the agency may just solicit a select few FSS contractors.
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When the government is procuring large quantities, it may ask FSS contractors to offer quantity discounts greater than those stated on their contracts.
In addition, state and local governments are currently authorized to buy supplies and services from participating vendors that have contracts under GSA Schedule 70 (information technology to include equipment, software and services) and Schedule 84 (law enforcement, security, facilities management, fire, rescue, clothing, marine craft and emergency/disaster response equipment). In fact, state and local governments may utilize all Schedules when they are operating under emergency conditions.
Items may be ordered under a FSS contract via an order placed directly with your firm or through the GSA Advantage!® online system. Per GSA’s website, “GSA does not market or promote specific contracts, does not distribute products of individual firms, and does not steer business to any individual contractor.”
Taking advantage of a GSA/FSS contract means that you must vigorously market the fact that you have such a contract to the agencies that are procuring your products/services. In fact, if sales under your FSS contract are not at least $25,000 per year, GSA will cancel your contract. Also, note that you will be required to pay GSA 0.75% quarterly on any orders placed against your contract. This amount must be figured into your pricing when you submit a proposal.
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