Key Takeaways

  • A GSA contract, also called a GSA Schedule or Federal Supply Schedule, is a long-term, governmentwide contract for commercial goods and services.
  • The Multiple Award Schedule (MAS) program allows qualified vendors to sell directly to federal, state, and local agencies under pre-negotiated pricing and terms.
  • GSA contracts simplify the buying process, reduce risk, and provide pre-approved vendors with access to over $45 billion in annual federal spending.
  • To get a GSA contract, companies must register on SAM.gov, prepare compliant pricing and documentation, and respond to GSA solicitations.
  • Small businesses can benefit from GSA contracts through special set-asides and subcontracting opportunities.
  • Maintaining compliance after award—through reporting, contract modifications, and renewals—is critical for long-term success.

GSA contracts — also called GSA schedule contracts, GSA schedules, or federal supply schedules — are contracts awarded by the General Services Administration to businesses and institutions. Companies that have GSA contracts are able to conduct business with government customers.

What Is a GSA Schedule Contract?

The General Services Administration awards GSA schedule contracts to the following:

  • Businesses 
  • Educational institutions 
  • Non-profit organizations 

These organizations can then sell products and services to government clients.

These contracts were designed to assist federal employees in buying services and products. They have specified delivery terms, pre-negotiated pricing, warranties, and other terms and conditions to streamline the buying process. GSA contracts are primarily for use with federal agencies, but in some cases they're used to conduct business with local and state governments.

GSA contracts are long-term contracts. GSA contracts are usually the best option for federal buyers because they simplify the acquisition process and cut down on risk. An entity who holds a GSA contract is often viewed as more trustworthy to do business with because it's been “pre-approved” and validated.

GSA contracts aren't tied to any actual purchases. Instead, they're a channel for federal sales to flow through.

It's a five-year, unfunded contract. The initial term is five years, but the contract comes with three five-year extensions. Therefore, it's possible for a company to hold a contract for 20 years.

Understanding the GSA Schedule Program (MAS)

The GSA Schedule Program, officially known as the Multiple Award Schedule (MAS), is managed by the General Services Administration to streamline federal procurement. Under this program, businesses enter into long-term governmentwide contracts to provide commercial products and services at fair and reasonable prices.

Each GSA Schedule is divided into Large Categories, Subcategories, and Special Item Numbers (SINs) that correspond to specific products or services. For example, IT services, professional consulting, office supplies, and facilities management all fall under distinct SINs.

The MAS Program operates under Federal Acquisition Regulation (FAR) Part 8.4, which governs ordering procedures. Vendors that qualify are considered pre-approved suppliers, meaning their offerings have been evaluated for price reasonableness, financial stability, and past performance.

In 2020, the GSA consolidated its schedules into a single MAS contract, reducing administrative burdens for vendors while offering agencies more flexibility in purchasing.

Benefits of GSA Schedule Contracts

Contractors who hold GSA contracts are often viewed as trusted sources by government buyers. There's an intense vetting process to obtain a GSA contract. Once you pass this process, it shows local, state, or federal buyers that your company is in good standing. It also demonstrates you have the capability to deliver the products and/or services you're trying to sell.

GSA contract holders have a major advantage in having access to several online GSA systems, such as the following: 

Contractors can easily be found by buyers who are looking for particular services or products. While contractors don't have to have a GSA contract to do business with the federal government, they should be aware that many agencies only order through GSA contracts. Therefore, companies that do a lot of business with government agencies find it necessary to get a GSA contract.

The benefits of holding these types of contracts include the following:

  • Smaller number of competitors 
  • Competitive advantage 
  • Access to over $45 billion in yearly sales 
  • Simplified, shorter sales process
  • Ability to sell to all federal agencies, and in some cases, to local and state governments

Still, getting a GSA contract might not be the best first step to take if you're just getting started in the government market. It's worth obtaining a contract to expand government sales if any of the following apply: 

  • Clients request you have a GSA schedule 
  • Competitors hold GSA schedules 
  • Market research supports GSA contract sales 
  • You have experience selling to government agencies

Contractors gain advantages of GSA contracts in the federal market, such as the following: 

  • Having access to exclusive opportunities in the GSA market 
  • Validation in the eyes of buyers 
  • Pre-negotiated pricing 
  • Simplified buying process

There's less paperwork for buyers because GSA contract holders have already completed many portions of a purchase order.

Although many companies experience fast growth through GSA contracts, they still have to work hard to connect with customers and maintain a competitive edge. Prices awarded on GSA contracts are considered fair and reasonable and to be in compliance with applicable laws. This reduces the time and complexity of the negotiation process.

One of the best reasons for having GSA contracts is having an easier time landing individual contracts for your company. Your bidding process will be simpler, and you'll have less competition. If you're planning on having a long-term relationship with government agencies, obtaining one of these contracts makes good business sense.

Not every business needs to acquire a GSA contract, but for certain organizations, it can be very beneficial. It's worth going through the arduous vetting process for many companies, since the result is increased sales. In addition, entities enjoy the enhanced validation and good reputation they have with their association with the GSA.

GSA eTools for Contractors

Contract holders gain access to several digital platforms that make it easier to market and manage government sales:

  • GSA Advantage! – Online catalog for federal buyers to search and purchase from vendors.
  • GSA eBuy – Portal for posting and responding to Requests for Quotation (RFQs).
  • GSA eLibrary – Database listing all current GSA contractors and their SINs.
  • GSA Reverse Auctions – Tool for bidding on specific government needs.

These platforms increase visibility among federal buyers and can lead to repeat business.

Maintaining and Renewing a GSA Contract

Once awarded, contractors must adhere to strict reporting and compliance requirements to keep their GSA contract active. This includes:

  • Sales Reporting: Submitting regular sales reports and paying the Industrial Funding Fee (IFF).
  • Price Adjustments: Keeping pricing competitive with the commercial market and notifying GSA of changes.
  • Contract Modifications: Updating offerings, terms, or contacts through modification requests.
  • Renewals: GSA contracts typically last five years and can be renewed for up to 20 years with good performance.

Failure to comply can result in contract suspension or termination. Maintaining a good track record ensures eligibility for future renewals and task orders.

Small Business Opportunities and Set-Asides

The GSA actively promotes small business participation. Small and disadvantaged businesses—including 8(a), HUBZone, Women-Owned, and Service-Disabled Veteran-Owned small businesses—receive preferences or can compete in set-aside opportunities under GSA schedules.

Holding a GSA contract can:

  • Qualify your business for small business set-aside solicitations.
  • Improve your competitive standing for subcontracting opportunities.
  • Build credibility with federal buyers seeking small business participation.

The Small Business Administration (SBA) also partners with GSA to ensure small firms can access federal opportunities through the MAS Program.

Who Can Buy Through GSA Contracts

GSA contracts were initially designed for federal agencies, but their use has expanded to other public entities. Today, the following can purchase through the GSA Schedule:

  • Federal agencies and departments
  • State and local governments (through Cooperative Purchasing Programs)
  • Tribal governments
  • Certain nonprofit organizations and educational institutions

This wide accessibility increases sales potential for GSA contract holders and enhances opportunities for long-term public-sector relationships.

How to Get a GSA Contract

To obtain a GSA contract, companies must complete a multi-step process designed to verify that their pricing, capabilities, and compliance align with government requirements. The process generally includes:

  1. Registering on SAM.gov: Every company must have an active registration in the System for Award Management (SAM).
  2. Identifying the Right SINs: Determine which Special Item Numbers best match your products or services.
  3. Preparing Documentation: Submit commercial sales practices, financial statements, and past performance records.
  4. Developing a GSA Offer: Respond to the open MAS solicitation on SAM.gov by providing pricing, technical, and administrative information.
  5. Negotiating Pricing: GSA will review your offer and negotiate fair and reasonable prices.
  6. Contract Award and Activation: Once awarded, your company’s offerings are listed on GSA Advantage!, the government’s online purchasing platform.

This process can take several months depending on your company’s readiness. Many small businesses choose to partner with GSA consultants or legal professionals to ensure compliance and speed up approval.

Frequently Asked Questions

1. What is a GSA contract? A GSA contract is a long-term agreement with the federal government allowing vendors to sell goods and services at pre-negotiated rates.

2. How long does it take to get a GSA contract? On average, the process takes six to twelve months, depending on how prepared your company is and the completeness of your submission.

3. Do small businesses need a GSA contract to sell to the government? Not always, but having one provides easier access to federal buyers and eligibility for certain set-asides.

4. Can local or state agencies use GSA contracts? Yes, many local and state governments can use GSA contracts through the Cooperative Purchasing Program.

5. What happens after a GSA contract is awarded? Contractors must maintain compliance, report sales, and keep pricing current to remain eligible for renewals and future opportunities.

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