GSA:Temporary Price Reductions

One frequently asked question regarding GSA contracts is “what paperwork does a business need to file to adjust its price list?”

Assuming your business already has a GSA contract, the answer will depend on whether you need to make a price increase or decrease and whether the adjustment is temporary or permanent.

This post deals with temporary price decreases. Future posts will deal with price increases and permanent price decreases.

Temporary Price Decrease
One common scenario justifying a temporary price decrease is when a business overproduces a product and needs to sell the product at a lower price to reduce overhead.

Your GSA contract will allow you to temporarily reduce your prices without filing any paperwork.

To do this, you simply go to the GSA Advantage website and follow the instructions for temporary price decreases.

The process should not take more than five (5) or ten (10) minutes (depending on you computer skills) and will show up online within twenty four (24) hours.

GSA: Procurement Classification Codes

Before you apply for your GSA Schedule Contract you must first determine what classification your product or service falls under. I have included a list of GSA's product and service classification code numbers and descriptions below.

Classification Code Numbers and Descriptions

10 -- Weapons
11 -- Nuclear ordnance
12 -- Fire control equipment
13 -- Ammunition & explosives
14 -- Guided missiles
15 -- Aircraft & airframe structural components
16 -- Aircraft components & accessories
17 -- Aircraft launching, landing & ground handling equipment
18 -- Space vehicles
19 -- Ships, small craft, pontoons & floating docks
20 -- Ship and marine equipment
22 -- Railway equipment
23 -- Ground effects vehicles, motor vehicles, trailers & cycles
24 -- Tractors
25 -- Vehicular equipment components
26 -- Tires and tubes
28 -- Engines, turbines & components
29 -- Engine accessories
30 -- Mechanical power transmission equipment
31 -- Bearings
32 -- Woodworking machinery and equipment
34 -- Metalworking machinery
35 -- Service and trade equipment
36 -- Special industry machinery
37 -- Agricultural machinery & equipment
38 -- Construction, mining, excavating & highway maintenance equipment
39 -- Materials handling equipment
40 -- Rope, cable, chain & fittings
41 -- Refrigeration, air-conditioning & air circulating equipment
42 -- Fire fighting, rescue & safety equipment
43 -- Pumps & compressors
44 -- Furnace, steam plant & drying equipment; & nuclear reactors
45 -- Plumbing, heating, & sanitation equipment
46 -- Water purification & sewage treatment equipment
47 -- Pipe, tubing, hose & fittings
48 -- Valves
49 -- Maintenance & repair shop equipment
51 -- Hand tools
52 -- Measuring tools
53 -- Hardware & abrasives
54 -- Prefabricated structures and scaffolding
55 -- Lumber, millwork, plywood & veneer
56 -- Construction & building materials
58 -- Communication, detection, & coherent radiation equipment
59 -- Electrical and electronic equipment components
60 -- Fiber optics materials, components, assemblies & accessories
61 -- Electric wire & power & distribution equipment
62 -- Lighting fixtures & lamps
63 -- Alarm, signal & security detection equipment
65 -- Medical, dental & veterinary equipment & supplies
66 -- Instruments & laboratory equipment
67 -- Photographic equipment
68 -- Chemicals & chemical products
69 -- Training aids & devices
70 -- General purpose information technology equipment
71 -- Furniture
72 -- Household & commercial furnishings & appliances
73 -- Food preparation and serving equipment
74 -- Office machines, text processing systems & visible record equipment
75 -- Office supplies and devices
76 -- Books, maps & other publications
77 -- Musical instruments, phonographs & home-type radios
78 -- Recreational & athletic equipment
79 -- Cleaning equipment and supplies
80 -- Brushes, paints, sealers & adhesives
81 -- Containers, packaging, & packing supplies
83 -- Textiles, leather, furs, apparel & shoe findings, tents & flags
84 -- Clothing, individual equipment & insignia
85 -- Toiletries
87 -- Agricultural supplies
88 -- Live animals
89 -- Subsistence
91 -- Fuels, lubricants, oils & waxes
93 -- Nonmetallic fabricated materials
94 -- Nonmetallic crude materials
95 -- Metal bars, sheets & shapes
96 -- Ores, minerals & their primary products
99 -- Miscellaneous

GSA: What is A DUNS Number?

If you are new to GSA contracting, you may have heard of a Data Universal Numbering System or "DUNS" Number but don't know what it is. The following is an explanation of a DUNS Number in layman's terms:

A Brief History
Some years ago a company called Dun & Bradstreet (D&B) came up with a system for determining the creditworthiness of individual businesses. The system requires a company trying to establish a good credit rating to register with D&B. The registration process requires your company to provide information related to your company's size, location, number of years in business, cash flow, capital, etc.

Your company's information is then placed in D&B's database and the company assigned a DUNS Number. The information you provide regarding your company is used to create a credit profile for the company.

The DUNS Number itself is used by D&B, SBA, GSA CCR and a number of other agencies to identify your company. The number may be aptly analogous to a Federal Employer Identification Number or Social Security Number. Using your DUNS Number, the GSA can review your credit history as reported by D&B.

DUNS Number Required
If you wish to participate in the GSA Schedules program you are required to have a DUNS Number. You may obtain a DUNS Number by filling out the paperwork yourself and submitting it to D&B.

As a result of obtaining a DUNS Number, you might be included on D&B's marketing list that is sold to other companies. If you do not want your name or company name included on this marketing list, you will need to contact D&B to request your company's name be removed.

GSA: What Is An 8(a) Contractor?

The U.S. General Services Administration, or GSA, is the arm of the federal government that helps federal agencies find and contract with private companies like yours.

The way it works is you get your business registered with the GSA and then the GSA adds your business information to a google-type searchable website that federal agencies use to find suppliers.

Federal agencies are constantly searching this website looking for small businesses that can supply what the agency is looking for. You can also use the website to find potential federal agency customers and market to those customers. But you have to be registered with the GSA first.

8(a) Contractors
One of the GSA's goals is to help small businesses like yours sell to the federal government by leveling the playing field against your larger competitors.

The GSA accomplishes this goal by setting aside a number of federal projects and purchases (called procurements) that can only be performed by what are called "8(a) Contractors." An 8(a) Contractor is a business that is either minority or woman owned (usually at least 51% ownership).

These set asides require all federal agencies to contract with a certain number of 8(a) Contractors each year. The term 8(a) refers to Section 8(a) of the Federal Small Business Act related to assisting minority and woman owned businesses in obtaining federal procurements.

To take advantage of the 8(a) Contractor program, a small business must be registered with the Small Business Administration, as well as the GSA.

This process can be lengthy and difficult if you are not familiar with it and you will likely need assistance with the process.

There is a great deal of paperwork required to obtain 8(a) status, but the reward can be that your business is placed in a relatively small pool of businesses entitled to federal GSA procurement set-asides. An 8(a) Contractor who can meet a procurement need is like gold to a federal contracting agent.