Pros & Cons of GSA Contracts

GSA Solutions recommends that you weigh the Pros and Cons of a government contract with the same rigor that you apply to any major business decision.
Here are some factors in favor of getting on contract:

1.The government is the largest buyer in the country for many product categories.  Two examples – the GSA is the largest landlord in the U.S. and government hospitals & clinics treat about 10% of all patients.
2. Most companies find it nearly impossible to get traction in the government market without a contract.
3. Federal buyers spend one third of their budgets with small businesses – and they pay quickly.
4. Only 0.1% of all U.S. businesses are on contract, so competition is lower than the general market.
5. Most companies find government buyers easy to work with once on contract.

Some things to consider before jumping into a government contract:

1. How does the government opportunity rank compared with other initiatives?
2. Preparing a proposal is confusing and time consuming.  Who will do it?
3. Do you have people to make the additional sales calls?
4. Are you set up for direct shipping and invoicing?  If not, you can include distributors on contracts.
5. Will you have to modify your reporting systems in order to report contract sales quarterly?