Thriving as an IT Schedule 70 Vendor

Apr 29, 2016 9:00:08 AM / by David Rockwell

According to the U.S. General Services Administration (GSA), IT Schedule 70 (which provides federal agencies with direct access to more than 4,700 pre-vetted innovative companies that provide high-quality IT products, services, and solutions) continues to be the largest and most widely used acquisition vehicle in the federal government. The government saw program growth in FY15, after a downturn during previous fiscal years, with the program's business growing by $424 million (or 3 percent) to a staggering total of $14.8 billion. Additionally, also according to the GSA, most of this spending was through three special item numbers (SINs) on IT Schedule 70:

  • IT Professional Services
  • Perpetual Software Licenses
  • Hardware (making up more than 75 percent of business volume)

In FY15, this Hardware SIN saw a growth of 14 percent (from $1.6 billion to $1.74 billion) over FY14. IT Professional Services saw a growth of $211 million, which was the largest real dollar growth on the Schedule in FY15. IT Professional Services, according to the GSA, remains the majority of the Schedule's business volume.
The Office of Management and Budget (OMB) recently selected IT Schedule 70 as one of three federal contract vehicles to participate in the Government-wide Strategic Solutions for Laptops/Desktops. This initiative aims to develop a framework and strategic approach to buying from specific government-wide contracts with standardized configurations; make terms, conditions, and pricing transparent; and help federal agencies get better value for their laptop and desktop purchases.
To make sure that vendors on the IT Schedule 70 are thriving, this Schedule contains a clause: All vendors on the Schedule must generate $25,000 in sales in the first two years of the contract and $25,000 in sales each year thereafter. Vendors on the Schedule who don't meet these sales thresholds are removed from the Schedule. In FY15, the GSA identified more than 200 vendors on the IT Schedule 70 who weren't hitting these sales thresholds and helped them not only meet but exceed these thresholds.
According to the GSA, these companies did one or more of the following to increase sales:

  • Developed a comprehensive marketing plan
  • Hired personnel to support their business development efforts

US Federal Contractor Registration, the world's largest third-party government registration firm, makes available marketing services as well as business development support for its clients. It helps its clients get on a GSA schedule and also develop ways of hitting these sales thresholds. In FY15, US Federal Contractor Registration clients earned more than $1.9 billion in federal contracts. To find out how US Federal Contractor Registration can help your business succeed as a government contractor, call 877-252-2700, ext. 1.

Tags: GSAP Registration, Guides

David Rockwell

Written by David Rockwell

David is a writer and educational multimedia producer for government contractors around the world. Some of his favorite work, with the experts at USFCR, is telling success stories of businesses that win federal contracts.

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