A GSA proposal is a monstrous document full of red tape. And yet when you cut through all the legwork-the information gathering, writing, exhibit preparation, document formatting, the seemingly endless questions that have to be answered... it all comes down to one thing: Establishing your contract pricing. And negotiating pricing with GSA poses a dilemma for many companies.

Discounting practices and proposed GSA prices are inextricably tied to each other. The single biggest problem companies experience in making an offer to GSA is not tying the two together truthfully for fear that it will result in a lower price. Don't make this mistake. GSA will insist that you disclose all discounts and then base your price on your discounts. Get it right, up front in the original proposal, because you will have to in the end or not receive a contract award.

Life would be wonderful if you could just say to GSA: "Our standard price list is enclosed and let's forget about those occasional 30% discounts we grant now and then to make our numbers." Unfortunately, that's not the way it is.

Correct disclosure problems now to avoid audit risks and price claw backs. Then install a compliance system that eliminates audit risks. GSA schedule contract compliance is not that complex for service companies and companies with stable product pricing.