GSA Advice

Richard R. Mackey Biography

Richard R. Mackey founded CapITal Reps in 1996, which specializes in establishing the contract foundation (General Services Administration schedules) for clients looking to enter the federal arena by preparing, negotiating and maintaining GSA schedules.

CapITal Reps has negotiated nearly 375 GSA schedules for products and services that include but are not limited to: IT Hardware, Software, IT Services, Leasing, Training, Publications, Advertising & Integrated Marketing Solutions (AIMS), Automotive Leasing, Law Enforcement and Fire Fighting Equipment, Finance & Business Solutions (FABS), Special Purpose Clothing, Temporary Services, Professional Engineering Services (PES) and Management, Organizational and Business Improvement Services (MOBIS). CapITal Reps clients include Bay Networks, CompUSA, Deloitte Consulting, En Pointe, Gates/Arrow, PkWare, Xerox as well as dozens of small-disadvantaged businesses, resellers, services providers, manufacturers, women-owned businesses and 8(a)’s.

CapITal Reps business initial focus from 1996 to 1999 was as a manufacturer’s representative, in which CapITal Reps acted as a short or long-term sales alternative to establish federal channels, teaming relationships, writing business plans, implementing marketing programs and having clients products/services placed onto Government-Wide Acquisition Contracts and Indefinite-Delivery, Indefinite Quantity (GWAC/IDIQ’s).

Prior to CapITal Reps, Mackey was Director of GSA Programs with Oracle Corporation (Herndon, VA). At Oracle, Mackey was responsible for maintaining and negotiating GSA schedule A (Mainframes, Mini Computers and Workstations, Schedule B/C (PC based hardware, software and peripherals) and Schedule E (Electronic Commerce/EDI), in addition to an outside sales staff of five. Additionally, Mackey directed the Direct Marketing Division (DMD) for Oracle’s Aerospace and Defense industries, with a staff of twelve.

Many New Benefits Await Companies with GSA Supply Contracts

by Richard Mackey, President, CapITal Reps

Emerging companies need to consider marketing their products to the US Federal Government. This is especially true if those products have any relevance to Homeland Security. While marketing and selling to the Government requires a multi-layered, multi-faceted implementation plan, one of the first things to consider is a GSA schedule strategy. Procurement reform has changed some of the rules over the past few years. It’s important to understand what the GSA Schedule program is and how your company should participate.

Richard Mackey (RM below), president of CapITal Reps (www.capitalreps.com), Reston, VA, has been helping companies figure out their GSA strategies for nearly a decade. For a free forty-six page Powerpoint presentation about "Dissecting the GSA Schedules Program", click here: http://www.capitalreps.com/CapITal%20Reps%20Dissecting%20the%20GSA%20Schedules%20Program%20upload.pdf Here are some commons questions and responses about the Federal Supply Schedule Program.

Q: What exactly is the GSA Schedule?

RM: Under the schedules program, GSA enters into contracts with commercial firms to provide supplies and services at stated prices for given periods of time. Orders are usually placed directly with the schedule contractor, and deliveries are made directly to the customer.

Q: How relevant is the GSA Schedule program to how the commercial market purchases products?

RM: The Federal Supply Schedule Program mirrors commercial buying practices more than any other procurement process in the Federal Government today. It provides customers with literally millions of state-of-the-art; high-quality commercial products and related services at volume discount pricing on a direct delivery basis. All customers, large or small, even those in remote locations, are provided with the same services, convenience, and pricing. The Federal Supply Schedule Program also offers the benefits of shorter lead-times, lower administrative costs, and reduced inventories.

Q: Is the program successful?

RM: Clearly the GSA program has demonstrated its popularity and federal agency preference in FY 08, as Government customers purchased about 27 percent of their products and services the GSA program (over $26 billion).

Q: How do GSA Schedules rate over other ways to sell to the Government?

RM: Contractors of all disciplines took to the GSA schedule program in FY 02, as it provides a greater validation of their stability, provide the agencies with reasonable and most-favored customer pricing, while providing them with the foundation and flexibility to implement Blanket Purchase Agreements (BPA's), Teaming Agreements and Spot Pricing.

Q: Is a GSA Schedule all a company needs to be successful selling to the Government?

RM: As CapITal Reps advises all of our GSA clients, they need to distinguish themselves from their peers - being the lowest responsive responsible bidder no longer gets the order. They need to sell solutions (not products), understand the agency mission and budget, and know the rules and regulations. They also need to spend marketing dollars so they can move up the food chain and of course, they need lots of patience.

Q: The GSA Schedule program has undergone changes recently. What are some of the pros and cons of the GSA Schedule changes?

RM: On the pro side, the synopsis requirement in the Commerce Business Daily (CBD) has been removed; contracts can be 5 years long; allows dealer agents to sell off contract; and no maximum order limitations.

Q: What is your advice for Israeli companies that want to sell to the Federal Government?

RM: There are a number of things companies need to do to be successful selling into this market. First of all, honestly assess your products/services to ensure that the US Government needs them. Draft a business plan, followed by a marketing plan with a realistic marketing budget. Pursue contracting vehicles, such as a GSA schedule, blanket purchasing agreements, and teaming agreements that make it easy for the customer to purchase your products. Learn as much as you can about the government market, particularly the agencies that are your most likely customers and the basic rules and regulations of the market, such as the Federal Acquisition Regulations (FARs). Most importantly, have lots of patience.

Q: What are the basic requirements for a company to receive a GSA schedule?

RM: Register with https://www.bpn.gov/ccr/default.aspx. Complete an Open Ratings Customer Satisfaction Survey ($175 fee) and have a favorable review. Be prepared to offer your products or services to the US government equal to or better than your most favored end-user customer(s). Ensure that products are trade compliant. Prepare to establish price reasonableness by disclosing your Commercial Sales Practices. Complete a VETS-100 Compliance Report to the Dept of Labor.

Q: Should companies set up a US office or have a DC office?

RM: It’s not a requirement, but a local presence is beneficial. In large part, success is accelerated by the relationships you develop in the Federal marketing community with systems integrators, government contractors, and Government leaders, among others.

Q: Some companies say that getting a GSA takes too long and is too complicated, so they prefer to be a subcontractor to a company with a GSA schedule. Is this the right approach to take?

RM: Yes, getting a GSA schedule can be complicated (involves inputs from your legal, human resources, contracts, sales and marketing and financial staff) and it generally takes 4-6 months to have an award made, which is valid for five-years plus it has three optional five-year periods (total of 20 years). Thus, many of our clients have started out by supplying Letter of Supply documents to be added to an existing GSA reseller’s schedule (may take 30-60 days to be approved), yet they have grown tired of leaving monies on the table and eventually have opted for their own schedule.