1) If You Get Sent to Kansas City

So, your company has completed and filed your GSA Schedule proposal with your Contracting Officer (CO), and you have just concluded the administrative review. You should be in the clear and ready for negotiations, right? Whoa, not so fast. Some companies are chosen to undergo an additional financial review before they are awarded a GSA Schedule. This could happen for one of the following reasons:

• your specific Schedule requires all applicants to do so;
• your company is rather new and/or recently established; or
• your company has questionable financial statements.

Those selected for financial review must complete US government 527 forms, which request detailed information from your financial statements. Your CO will send the form to the GSA Office of the Inspector General (OIG) in Kansas City, where all such reviews are completed. If your company is deemed to be financially unstable, the OIG may reject your claim of fiscal competency and state that it believes you would be unable to maintain the requirements of the potential Schedule. The OIG’s decision cannot be appealed.

However, if your company fits under Small Business Administration’s (SBA) small business size standards, you can request a Certificate of Competency (COC), which will override the rejection. The COC program was formed so that small businesses can appeal a determination that it is unable to fulfill the requirements of a specific government contract. From the SBA website:

“The COC program helps ensure that small businesses, especially those which are newly entering into the federal procurement arena, are given a fair opportunity to compete for and receive government contracts.

“During the evaluation, SBA considers credit ratings, past performance, management capabilities, management schedules, and the prospects for obtaining needed financial help or equipment.

“The team’s findings are presented to a COC Review Committee composed of legal, technical and financial representatives, which makes a detailed review of the case and recommends approval or disapproval. If the decision is negative, the firm and the purchasing agency are so informed; if affirmative, a letter certifying the responsibility of the firm to perform the contract (the Certificate of Competency) is sent to the purchasing agency. By the terms of the Small Business Act, the COC is conclusive on questions of responsibility, and the contract is awarded.”

The good news is that if you are selected for financial review, all is not lost. The bad news is that if you are rejected from Kansas City and/or the SBA, your entire proposal will be rejected.