About GSA Schedule Contracts


GSA Schedule contracts are based on the same concept as the negotiated purchase agreements used by many large corporations. Vendors offer their commercial products, GSA and the vendor negotiate “fair and reasonable” discounts and terms, and GSA awards contract that, instead of promising any specific orders, allows Federal agencies to purchase the listed items as needed, without having to get bids or quotations or create separate contracts.

Basis of Contract Award

Since they are based on products and services that are offered in the commercial marketplace, GSA contract prices and terms are usually based on those that are given to those customers, other than Federal Government, who receive the best pricing and terms.

Main Requirements

- Full disclosure of prices and terms for all customers
- Tracking and reporting of all sales to GSA Schedule users
- Payment of a ¾ percent Industrial Funding Fee
- Honoring provisions of the Price Reductions clause

Classification System

Broad Categories of Products and Services are divided into numbered Schedules, the separated into smaller groups by “Special Item Number” (SIN).

Authorized Users

Federal Agencies and Other Authorized GSA Schedule Users are listed in GSA Order ADM 4800.2F. http://www.gsa.gov/graphics/fas/SignedGSADirective48002F.pdf

Prices under GSA and VA Schedule contracts are determined by a process that is unlike the methods used for any other federal contract types. Prospective contractors disclose their “Commercial Sales Practices”, including pricing, discounts and terms for all of their non-federal customers. The prospective contractor and the GSA contracting officer negotiate until they agree on GSA pricing that is “fair and reasonable” compared with the non-federal customer with the best overall pricing and other concessions.