Information Technology Small Business and GSA IT 70

By: Admin
Date: 2018-11-06

A GSA Schedule is a tool in a Federal Buyers toolbox and like all tools it works best when fitted to the application in which it is best suited.  Over $4B per year in Federal IT Sales are procured from small business utilizing their GSA Schedules.  This week I am going to review Information Technology on the Schedule System and where a GSA Schedule comes out on top of other contracting vehicles used by federal buyers.

Advantages
As you can see from the Data Table below NAICS Codes such as Software Publishing (12x – 12 times federal contractors without a GSA Schedule), Computer Manufacturing (4.8x), Computer Training (7.6x), Computer Repair (34x), Data Processing (2.5x), Facilities Management (1.5x) and even Storage Devices (2x) on average pose an advantage over attempting to sell these goods and services using non-GSA Schedule contracting vehicles. 

Highlighted Industries

  1. Computer and Office Machine Repair and Maintenance (34x)–The success of these GSA Schedule Holders is likely due to the nature of on-site computer repair.  This industry typically has relatively small transaction sizes (for the federal government) and small businesses can easily handle these transactions.  This is almost a perfect fit for the GSA Schedule System and therefore these firms are hitting it out of the park relative to their peers.
  2. Software Publishers (12x) – GSA Advantage allows federal buyers to find smaller software publishers products and procure it when needed.  The relatively low sales figures for firms not on GSA Schedule demonstrates that if you are a small business software publisher you are bucking the system by not availing yourself to the GSA Schedule System.
  3. Computer Training (7.6x) – Training has always worked well with the GSA Schedule System.  Training is almost a mixture between Computer Repair and Software as the sale is for an in person product that is not a large transaction amount.  The result is clear, if a firm is attempting to sell training services to the federal government, the firm needs to have a GSA Schedule

For most IT industries a GSA Schedule in IT offers its owners considerable advantage rather than attempting to business in the federal market place without it. 

Data Table:

NAICS Code

Description

(GSA Schedule Holder) Average Small Business Sales

(Federal Government Vendor Overall) Average Small Business Sales

GSA Differential

511210

Software Publishers

                           2,731,630

                    223,001

                2,508,629

334111

Electronic Computer Manufacturing

                           1,689,601

                    348,526

                1,341,075

443120

Computer and Software Stores

                           1,474,599

                    224,983

                1,249,616

611420

Computer Training

                           1,285,621

                    168,085

                1,117,536

334119

Other Computer Peripheral Equipment Manufacturing

                           1,177,607

                    145,137

                1,032,470

519130

Internet Publishing and Broadcasting and Web Search Portals

                           1,048,196

                    174,536

                    873,659

811212

Computer and Office Machine Repair and Maintenance

                              773,271

                      22,236

                    751,035

518210

Data Processing, Hosting, and Related Services

                           1,215,607

                    478,721

                    736,886

541511

Custom Computer Programming Services

                              826,256

                    198,466

                    627,790

541519

Other Computer Related Services

                           1,261,581

                    692,256

                    569,325

541513

Computer Facilities Management Services

                           1,158,566

                    764,048

                    394,518

334112

Computer Storage Device Manufacturing

                              532,953

                    264,223

                    268,730

334413

Semiconductor and Related Device Manufacturing

                                 60,164

                      49,730

                      10,434

334113

Computer Terminal Manufacturing

                                          -  

                      18,074

                    (18,074)

334118

Computer Terminal and Other Computer Peripheral Equipment Manufacturing

                                   2,850

                      41,422

                    (38,572)

541512

Computer Systems Design Services

                              906,144

                1,159,002

                  (252,858)