I received a call from a business colleague last week.
It seems she received a cold call from another firm that "expedites GSA sales proposals.
"A number of dubious claims were made about their services as well as erroneous statements about GSA Schedules contract.
The firm apparently "guarantees" a business a GSA schedule "if I qualified.
" What a remarkable guarantee!That's a little like saying if the Rangers or Giants win four games of the World Series, then this firm would guarantee them a ring.
So what are the facts? GSA awards contracts to any firm that meets the criteria (more on that at Qualifying for a GSA Contract).
In truth, it does not matter who prepares the proposal - if qualified, the firm will be awarded the contract.
Yes, firms like mine that prepare GSA proposals all the time all the time will get a firm through the approval process with less hassle and in a timely manner.
But the real reason why a firm should hire a reputable GSA consultant is to ensure that all required disclosures are properly made, that an audit-proof contract is negotiated, and that prices are negotiated in a proper and profitable manner - not all GSA contract do! A GSA contract presents significant opportunity but also significant liability if not negotiated properly.
And what about those guarantees?Do you get cash back?Some of the schlock outfits promise to deliver in-kind services such as a listing in their federal publication, that just happens to be the value of the amount you paid to them for their ineffective service.
Read the fine print promising a guarantee, because it often is not what it appears to be.
Another misstatement was that "if I didn't get $5000 sales in the first year, then they would give me back $2500 and GSA would give me $2500" That is also incorrect because GSA expects you to generate $25,000 in the first two years of the contract.
If you do not, GSA sometimes exercises the option to cancel the contract due to lack of sales in the third year or later.
They will not cancel for lack of sales in the first year.
In the third year or later, if you haven't received any contracts whatsoever, GSA may cancel your contract and send you a check for $2,500.
Aside from the obvious error in the sales person's statement, no one I know goes through this process in hopes of winning $2,500.
Most firms want sales in orders of magnitude greater than $2,500.
Also beware of a firm that claims it can expedite your proposal and get you a contract within 30 or 45 days.
Yes it is possible to get some contracts through quickly, but GSA also has a tremendous backlog due to the economic downturn with many firms entering the federal market, and they simply do not have the resources to handle that many offers.
Not long ago, for example, the GSA IT Center was averaging 105 days to process an offer.
And beware of firms whose only claim to fame is that "we won X number of contracts in the past year.
" At face value this may seem like an impressive figure, but who prepared and negotiated the proposal, was it a quality proposal that made all proper disclosures and priced properly and profitably for your business?Will that firm be around when GSA audits you and uncovers significant problems with the original proposal, compliance with the price reduction clause, and similarly important issues? These firms should stop spewing useless guarantees, hype, and misstatements and start focusing on winning contracts for their clients that are compliant, bullet-proof, proper, and profitable.
How do you protect yourself?Before signing a contract, check the firm's Better Business Bureau ratings and several of their references, not just the quotes and testimonials on their web site.
And find out about the experience of the people you will work with on a daily basis.
Are they simply several paper processors with little knowledge about GSA?Ask to speak to the actual consultants who will be working with you and see if you are comfortable with them and the answers they provide you.
It seems she received a cold call from another firm that "expedites GSA sales proposals.
"A number of dubious claims were made about their services as well as erroneous statements about GSA Schedules contract.
The firm apparently "guarantees" a business a GSA schedule "if I qualified.
" What a remarkable guarantee!That's a little like saying if the Rangers or Giants win four games of the World Series, then this firm would guarantee them a ring.
So what are the facts? GSA awards contracts to any firm that meets the criteria (more on that at Qualifying for a GSA Contract).
In truth, it does not matter who prepares the proposal - if qualified, the firm will be awarded the contract.
Yes, firms like mine that prepare GSA proposals all the time all the time will get a firm through the approval process with less hassle and in a timely manner.
But the real reason why a firm should hire a reputable GSA consultant is to ensure that all required disclosures are properly made, that an audit-proof contract is negotiated, and that prices are negotiated in a proper and profitable manner - not all GSA contract do! A GSA contract presents significant opportunity but also significant liability if not negotiated properly.
And what about those guarantees?Do you get cash back?Some of the schlock outfits promise to deliver in-kind services such as a listing in their federal publication, that just happens to be the value of the amount you paid to them for their ineffective service.
Read the fine print promising a guarantee, because it often is not what it appears to be.
Another misstatement was that "if I didn't get $5000 sales in the first year, then they would give me back $2500 and GSA would give me $2500" That is also incorrect because GSA expects you to generate $25,000 in the first two years of the contract.
If you do not, GSA sometimes exercises the option to cancel the contract due to lack of sales in the third year or later.
They will not cancel for lack of sales in the first year.
In the third year or later, if you haven't received any contracts whatsoever, GSA may cancel your contract and send you a check for $2,500.
Aside from the obvious error in the sales person's statement, no one I know goes through this process in hopes of winning $2,500.
Most firms want sales in orders of magnitude greater than $2,500.
Also beware of a firm that claims it can expedite your proposal and get you a contract within 30 or 45 days.
Yes it is possible to get some contracts through quickly, but GSA also has a tremendous backlog due to the economic downturn with many firms entering the federal market, and they simply do not have the resources to handle that many offers.
Not long ago, for example, the GSA IT Center was averaging 105 days to process an offer.
And beware of firms whose only claim to fame is that "we won X number of contracts in the past year.
" At face value this may seem like an impressive figure, but who prepared and negotiated the proposal, was it a quality proposal that made all proper disclosures and priced properly and profitably for your business?Will that firm be around when GSA audits you and uncovers significant problems with the original proposal, compliance with the price reduction clause, and similarly important issues? These firms should stop spewing useless guarantees, hype, and misstatements and start focusing on winning contracts for their clients that are compliant, bullet-proof, proper, and profitable.
How do you protect yourself?Before signing a contract, check the firm's Better Business Bureau ratings and several of their references, not just the quotes and testimonials on their web site.
And find out about the experience of the people you will work with on a daily basis.
Are they simply several paper processors with little knowledge about GSA?Ask to speak to the actual consultants who will be working with you and see if you are comfortable with them and the answers they provide you.
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