For many, the idea of writing a proposal for a GSA Schedule contract ranks just short of "I'd rather stick my hand in a fire. Both hands. Up to the elbows." The same is true of proposals to extend GSA contracts for 5 more years.

Why are GSA Schedule proposals so difficult to write? Why is the back and forth of proposal refinement, rejection, and more refinement so extended and excruciating? Why is the GSA price evaluation process less than perfect? Why aren't there answers to the multitude of questions about Schedules?

The answer to all of these questions is the same. The GSA Schedule offer/evaluation/negotiation process is based on a company's commercial pricing and discounting practices. In theory, this seems simple and straightforward. However, most companies start out asking the most fundamental question:

"What's a discounting practice? We sell at the prices the market will bear. To survive in our market you do what you have to do to make a deal."

Many small- to medium-sized companies don't have standard price lists, never mind standard discounting practices. So the reality is that using a company's commercial prices to set GSA prices is more complex, subjective, and open to differing interpretations than it looks.

For example, Company EAW manufactures toner cartridges. In August, they had 10,000 cases of toner. The stuff is dated and they needed to get it out of the warehouse, so EAW sold the whole lot at a 25% discount. Two months later, Company A got a 10% discount on 10,000 cases of toner, and a week later Company B got a 10% discount on 6,000 cases of toner. Why? No one remembers for sure.

Which brings me to my final point. Most companies don't really have a handle on what their discounting practices are. Often the reason why a discount was offered is not well documented, nor can the company's discounting practices be described in a clear and definable way.

At least half of the people reading this installment will say, "That's us."