GSA Contracts

[ustoolfast]

Does anyone know if a GSA Contract is required to sell the federal government?  We have an opportunity to sell the Fed some Festool, and they asked if we have a GSA Contract.  Has anyone sold them without this, and are there certain ways to work around it?  Thanks!

 

[Tinker]

Does anyone know if a GSA Contract is required to sell the federal government? 

I'm in  [wink]
Tinker

 

[AlexThePalex]

Does anyone know if a GSA Contract is required to sell the federal government? 

You might have trouble finding someone with a deep enough pocket. Most people just buy it one or two congressmen at a time.  [wink]

 

[andvari]

We have an opportunity to sell the Fed

I'd bet you won't be able to even give it away considering the liabilities.

 

[Jesse Cloud]

Does anyone know if a GSA Contract is required to sell the federal government?  We have an opportunity to sell the Fed some Festool, and they asked if we have a GSA Contract.  Has anyone sold them without this, and are there certain ways to work around it?  Thanks!

Its been a while since I've been in the Federal procurement arena, but historically, I have sold to the government and then bought stuff as a government employee.  The bottom line is that for a serious amount of $$, you are going to have to get a contract, or work with someone who already has a contract, e.g., get them to add your stuff to their contract.  It is way harder for both sides without the GSA schedule, basically a competitive procurement which can take years to award and then it can be appealed in court - that's a big part of why we have $1,000 toilet seats.

If you think there is a long run potential, it might be worth pursuing.  I would advise talking to the Small Business Administration office in your town, they can point you to various programs and opportunities, even loan you money.  There are also fast track programs for minority owned, female owned, veteran owned, etc etc.  It does take a lot of work, but once you learn the ropes, it can be very rewarding.

There are also some agencies, FEMA for instance, and others I won't name, that can buy outside procurement regs.  You might ask your contact if there are any vehicles other than GSA he can use.

 

[tbellemare]

I've sold a lot of stuff to the military with credit cards. The procurement groups in Iraq/Kuwait would call periodically and order various things, often related to A/C repair. I have sold to Federal labs a few times as well and they always used credit cards.

I suspect there are limits to what they can buy with a credit card and depending on their situation, those limits vary greatly. I know that's the way the State of Texas is. Above a certain amount, they have to take competitive bids.

With the various States, there are different rules. Counties and Cities are even more diverse.

One of the GSA rules I remember from well over a decade ago (so it may not still be valid) is that you can't sell to them for more than you sell to others. If I remember correctly, their contracts required that you attest to as much.

Tom

 

[ustoolfast]

Thanks Tom,

It would probably be for under $10k to start, but I think it has potential to be bigger.  I hear that alot of people sell the gov't without the GSA contracts, it's just that I can't find anything on the GSA website that states what qualifies for the exemption....or if its just an unwritten rule or at the discretion of the purchasing personnel at individual facilities.....

We're not going to pursue the GSA contract until it proves out....so for now...hoping to find a work-around.  Thanks again. 

 

[RONWEN]

Does anyone know if a GSA Contract is required to sell the federal government? 

You might have trouble finding someone with a deep enough pocket. Most people just buy it one or two congressmen at a time.  [wink]

I'm not sure but I believe all of the congressmen have already been purchased... [unsure]

 

[Tinker]

Thanks Tom,

It would probably be for under $10k to start, but I think it has potential to be bigger.  I hear that alot of people sell the gov't without the GSA contracts, it's just that I can't find anything on the GSA website that states what qualifies for the exemption....or if its just an unwritten rule or at the discretion of the purchasing personnel at individual facilities.....

We're not going to pursue the GSA contract until it proves out....so for now...hoping to find a work-around.  Thanks again. 

At first, I thought "sell the government" was a mistook of omission.  I now see it is a statement common to you.  Before contracting with the government, I suggest you become more careful in how you word your specifications.  A slip could result in buying more than your share of government.
Tinker

 

[ustoolfast]

Though I do appreciate the political satire, on a more serious note this is a legitimate opportunity, are there any Festool dealers here who do have a GSA Contract that might be interested in participating with us via a 'letter of supply'?  Only serious inquiries please. 

 

[Chowman]

Hi Everyone...I've been lurking for several years...quite informative to say the least...
On this subject I have a great deal of experience holding a Government Purchase Card and as a Contracting Officers Representative on many contracts. I hope this will be helpful...

Two methods available to sell to US Govt agencies -- Government Purchase Card (GPC = Visa) or via a contract. GSA is a long and expensive process. My contracting office does not take a GSA price as best price, and over the years I have often bought for less than GSA listed items. Dealing with high volume items such as software licenses, GSA is the way to go. Just depends on the commodity.

Many agencies now rely on GPC for most small purchases. Depending on agency and experience of the buyer the single purchase limit may be $2,500, $3,000 or $25,000. 

$25K limit -- Not many agencies allow this level as each purchase must be signed off by the contracting officer (KO) for the card program. That program avoids many long winded contracts and saves numerous trees to use for furniture not to mention valuable hours. Any purchase above $3K up to $25K requires three offers which can be verbal or email.

Up to $3K (or $2.5K) any source can be used so long as its the best value to the Government and the vendor accepts Visa. No need to have three offers. The buyer is obligated to seek the best value, must preference small business, may not knowingly split larger orders into parts in order to bypass the single purchase limit; should seek competition and not place unrestricted repetitive orders with the same vendor; and many other rules. As an example when I equipped our shop with Festools over the course of 18 months, and as decisions were made to add to the arsenal, I made four or five purchases from three different dealers, all under $3K.

I think your best bet is to find the Visa buyer who services that end user and make an offer. You need to find out if this has to be executed before 30-Sep. Sounds like an agency may have some year end money to spend before it expires on 30-Sep. You might ask if anyone in the agency has a $25K single purchase limit authorization. The only other means to spend $10K would be to issue a contract and that probably could not happen before 30- Sep as it has to advertised I think for 15 days. I do not recommend splitting $10K into four or more purchases in a single month as that will almost certainly put someone in jeopardy.

Perhaps you could ask for a smaller order now to cover their most immediate needs. Maybe another requirement comes up in October and another purchase is made then. And the project that comes in Feb funds the next lot of specialist tools.

Sorry for the lengthy discourse -- this was the extremely condensed version.

 

[Tinker]

I don't understand much of the gobbeldy gook of the above post, but I do understand some of the process described.  I do know (don't ask how i know) something about competitive contracts on public levels.  Those who are setting up for a contract often know what they need.  they also know well what they don't want and who they do not want to do certain projects.  specs can be set up and arranged to meet those needs and requirements.  Those who meet the specs end up in the race.  those who cannot meet the specs drop out.  The biggest problem is that contracts must be given out to the lowest bidder.  A low bid is often accomplished by discovering a loophole to be taken advantage of whereby, the contract becomes far more expensive that otherwise planned.  I suppose the above poster has shown the way for protection against all (or much of) of that problem.
Tinker

 

[ustoolfast]

Thanks again - turns out they need to place an equipment requisition and we'll also need to apply as an approved vendor.  Some paperwork, and likely waiting for who knows how long.  But we'll see how it turns out.  Thanks again all for the valuable feedback, very much appreciated!

 

[Jesse Cloud]

One thing I would add to Chowman's excellent post is that if the process is going to take a while, I probably won't happen before the end of the fiscal year (30 September).  Worse than that, the beginning of the new fiscal year is often no-man's land for government purchasing.  Even in good conditions, it takes a while for $$ to trickle down from OMB in Washington and then to find their way to the right account in the agency.  Different agencies are slower or faster...  And if congress is deadlocked, as often happens these days, the necessary appropriation legislation may be delayed for weeks or months.
So, the bottom line is don't build up inventory for this order before you see some paper or a visa card. 

But don't give up, either.  Once you get your foot in the door, the government can be a good customer.

 

[John Stevens]

All kidding aside, your congressman's office might be able to help you by telling you where you can get the correct info.

Regards,

John