The following clause is contained in every GSA Schedule contract in one form or another:

A contract will not be awarded unless anticipated sales are expected to exceed at least $25,000 within the first 24 months following contract award, and are expected to exceed $25,000 in sales each 12-month period thereafter. The government may cancel the contract if these sales goals are not met.

Small businesses, particularly those not certified under a preference program, often have difficulty gaining traction in the federal market. GSA cancels many contracts with small businesses under the minimum $25,000 in annual sales clause.

Small businesses come to the federal market with the hope that a GSA schedule contract will result in orders. A Schedule contract may result in orders for commodities but this is not the norm. Complex products and professional services must be sold to federal end users based on value. This, in turn, requires a marketing plan (call list) and sales calls.

A GSA sales program requires a dollar investment commensurate with the size of the business, projected federal revenue, and the type of product service being sold. Don't be surprised when the termination call comes in Year 3. Develop and implement a sales plan to avoid the call and get a return on the original investment in your GSA proposal.