4) Stay in Scope!

Just as with any business, the federal government purchases products and services. The fundamental difference between the commercial and government sector lies in the fact that the government has the General Services Administration (GSA), which prenegotiates government rates for many of these products and services and lists approved items on GSA Schedules. In fact, more than 80 percent of all procurement actions are through the GSA Schedules.

In each GSA Schedule, a company negotiates with the government for predetermined pricing of their products and services. These offerings are called the company’s scope of work or more simply, scope. Of course, a procurement officer may wish to purchase an item that has not been prenegotiated, which is permitted under the Open Market or Incidental Items clause (FAR 8.402(f)), as long as the items are still within the scope of the contract.

A few embarrassing incidents recently wherein purchase within scope was shown to have been loosely enforced (if at all) has focused the public on subtle abuses of the system. So GSA introduced the "Get It Right" program a couple of months ago to educate government buyers and contractors about proper use of the Schedules. Concurrently, GSA increased monitoring of Schedule task orders to ensure compliance with scope.

It is now more important than ever for businesses with GSA schedules to remain within scope. This may be difficult to accomplish, however; especially when a buyer offers you ready, needed revenue for an item or service you have just released into the commercial market but have yet to get onto your Schedule. Basically, this situation leaves you with three options: modify your existing Schedule if the items are within scope; or, if the item or service is outside the scope of your current contract, obtain another GSA Schedule or team with another Schedule contractor altogether.

Teaming is the most popular choice of the two outside scope. Partnering with another firm can provide a mutually beneficial relationship and takes a fraction of the time of obtaining a new Schedule. These partnerships, called Contract Teaming Agreements (CTAs), allows two or more companies increased ability for responding to opportunities and each company augments the others’ contracts to provide the government with a turn-key solution. Unlike the old Prime/Sub relationship, teaming partners each have a direct relationship with the government. For instance: Blanket Purchase Agreements and task orders are written to the Team, specifying by task or CLIN the responsibility for each contractor; all members of the Team report and pay the appropriate Industrial Funding Fee; changes to the contract are made directly to the appropriate company. Basically, Teaming increases business and revenue when a contracting officer needs a product or service that is out of the company’s scope and promotes networking and new partnerships. And once you team with other companies, you are better able to offer the government a one-stop solution to all their needs.