The US General Services Administration (GSA) has made a change to how it buys software from companies. Now, the government can pay for software licenses upfront, which could save money and help small businesses. This change applies to software that is delivered online (Software as a Service, or SaaS) and is part of a special category for technology purchases. This new rule brings government buying practices more in line with what happens in the private sector, and gives government agencies more flexibility when they need to buy software through this program.

The GSA's Acting Commissioner, Tom Howder, stated that by allowing vendors to receive payment immediately after delivering software, the agency is eliminating an administrative burden for both vendors and agency partners. This change marks a significant milestone, reflecting the GSA's commitment to helping agencies save money, advance their mission, and support small businesses simultaneously.

The update was implemented after the GSA conducted research and gathered input from agency buyers and vendors. The goal is to modernize payment methods, reducing barriers, and enabling agencies to enhance and improve their IT operations in service of American taxpayers.

With this update, the GSA is making it easier for small business software resellers to sell their products. Before, these small businesses might have struggled to stay afloat while waiting months for payment from government contracts. Now, they'll be able to get paid quickly, which will help them keep their businesses running smoothly.

According to GSA's Assistant Commissioner Laura Stanton, this change is another step in making it easier and more affordable for government agencies to buy cloud services. With the upcoming Ascend Blanket Purchase Agreement, agencies will be able to take advantage of competitive prices for cloud solutions when they can pay upfront. This means that agencies will have more flexibility when making purchases, and it will also open up more opportunities for small businesses to sell their cloud products to the government.

If you're interested in learning more about GSA Schedule and the opportunity to grow your small business in the federal marketplace, I always recommend contacting an industry expert such as Advance GSA and ez8a. Their teams are dedicated to supporting small businesses like yours as you explore the federal government contracting space. Whether you're just starting out or looking to expand your reach, they can provide guidance on how to navigate the process and unlock new revenue streams. Neither charge for an initial consultation.