In previous installments we stated that GSA Schedules are the sales closing mechanism of choice for small businesses. They are always open for bid and they cover all major industries; two critical characteristics unique to GSA schedules. Politically, the General Services Administration (GSA) professes to be small business friendly; anything less would be considered heresy within the bureaucracy. Yet GSA has stated publicly and through tighter qualification requirements that too many small businesses are being awarded contracts and then not generating enough sales to justify GSA administrative expenses and awarding and maintaining the contracts. GSA's bureaucratic lifeblood is the industrial funding fee (IFF) collected on schedule sales. Many small businesses are not paying enough IFF in GSA's view.

Our last installment about GSA's new 30 Day Proposal Evaluation Program illustrates the new tighter requirements in that the 30 day program requires that a vendor must:

• Have a minimum of $100,000 in cumulative sales (primarily or entirely commercial) over the last two years.
• Have a minimum current ratio of 1.5, based upon the Offeror's most current year's financial statement.
• Have been in business for at least two years.

Although these are now requirements for participating in the fast track 30 day evaluation program, we expect the same or similar requirements will become GSA schedule solicitation provisions that a vendor must meet to awarded a contract. The GSA schedule program would then be closed to many small businesses.

In short, get your schedule now before it is too late. In his book Rolling the Dice In DC, Richard White recommends eliminating the IFF in order to stimulate competition and encourage small businesses to do business with the federal government. Don't hold your breath although this recommendation makes sense. The sensible way is not usually the way of the federal bureaucracy. Elimination of the IFF would require Congressional action and small businesses are not the highest priority of Congress right now.