Multi-vendor contracts limit competition and make purchasing faster and cheaper. The government, when using a multi-vendor contract, need only solicit bids from three vendors holding the type of contract in question. Those not holding such a contract are not considered. The reality is that the bulk of the dollars spent through these programs go to large federal contractors. Most multi-vendor contracts aren't realistically awarded to, or held by, new players in the market.

A GSA Schedule multi-vendor contract can be obtained by new players in the market and are particularly attractive to small businesses entering the federal market because:

• One may be awarded to a business of any size.
• There is no limitation upon the number of vendors that may receive an award of such a contract.
• GSA Schedule contracts are open (meaning that a vendor may submit a proposal at any time and there is no closing date for receipt of such proposals).

Getting approved federal prices (a GSA schedule contract) requires considerable red tape. An application of 100 - 150 pages describing a company's experience, commercial prices, and commercial discounting practices is required. There is an entire industry ready to help you get through the application process, including our company. Companies can complete GSA schedule applications on their own provided that they have a person with government contracting experience or they have a senior financial person with lots of time and the tenacity of a pit bull.

Although GSA schedule applications require many pages of red tape, the core of an application is your commercial pricing and how you have discounted from your commercial prices. After review of your application, GSA uses your commercial discounting disclosures to seek the lowest price you have offered others.