Determining if you need a GSA Schedule can be complex, and obtaining one can be even more complicated. In fact, almost half of all GSA eOffer submissions are rejected. Understanding why GSA Schedules are rejected is the first step in avoiding rejection. So, here are six common reasons GSA Schedule rejections happen.
The offeror, or person submitting the application, selected the wrong SIN, and therefore, the Contracting Officer determined that the products or services do not fit correctly. Contracting Officers want the SIN to have the most relevant fit because it directly impacts GSA sales. In most cases, they perceive a better fit in a different SIN.
2. Financial Instability
Your net worth does not demonstrate a positive value and you lacked profitability. GSA wants to award schedules to companies they determine are stable enough to maintain orders from current commercial customers while supporting the growth from future GSA business. They gauge this by evaluating financials to ensure profitability and positive net worth.
3. Past Performance
Your company received negative past performance evaluations and now you have received a GSA Schedule rejection. Past performance is a difficult area of submission. The evaluation is conducted as a blind survey, which makes addressing any negative reports difficult. Areas of evaluation consist of: reliability, cost, order accuracy, timeliness, quality, business relations, personnel, customer support, and responsiveness.
All documentation was not included in the offer or was not completed correctly. This means that the submission had a responsiveness issue, such as a missed signature, missing document, or specific formatting or response requirement was not met.
Your pricing for products or services are not “fair and reasonable.” Contracting Officers typically compare pricing with other GSA Schedule holders to determine “fair and reasonable” prices. They are concerned with likelihood for sales. If prices are too high, there is a lower likelihood for sales success. If prices are too low, there might be a misunderstanding regarding requirements or sales might not meet the annual requirement of $25,000.
6. Subcontracting Plan
The offeror did not provide a letter detailing their Subcontracting Plan. Large businesses are required to establish an effective Subcontracting Plan. This helps GSA reach their socioeconomic goals. (This is not a requirement for small businesses.)
With knowledge comes power. By identifying and understanding the primary reasons for rejection, offerors are equipped with the knowledge to prevent future offer rejections. Want further information on GSA Schedule rejections? Take a look at our White Paper which provides an in-depth look at rejections and tips for ensuring GSA Schedule award.