MAS Hits $40 Billion Per Year

In the last decade, the federal government's use of GSA Schedules (also known as Multiple Award Schedules or MAS) has surged, and it's projected to hit $40 Billion in awards by the end of FY2024, a significant increase from under $15 Billion in 2014.

The MAS is a purchasing tool that federal agencies use to acquire commercial products, services, and solutions at prices that have already been negotiated. This system helps agencies achieve savings, value, and efficiency, which has contributed to its popularity over the past ten years. Additionally, delays in awarding other contracts have pushed agencies to rely more on the MAS.

Many new contractors might not be aware that tens of thousands of bids and purchases each year are only accessible to MAS holders. Even seasoned contractors often underestimate how much the use of the MAS has expanded in recent years.

The MAS is Essential for Many NAICS

There are 235 different categories within the MAS, each with varying levels of use. Having access to the MAS is especially crucial for companies that sell IT services, consulting, and certain commercial products. In contrast, businesses focused on construction, research, major defense projects, or very specialized products, may not rely on it as much. The chart below highlights the NAICS categories where the most work was awarded through the MAS in 2023.

Should Your Business Consider Getting a MAS?

To apply for the MAS, the General Services Administration (GSA) has certain requirements: a company must have been in business for at least 2 years, be financially sound, demonstrate prior performance, and offer products or services that are available to the public. For companies with less than 2 years of experience, the GSA offers a program called Startup Springboard that allows them to apply for a MAS schedule under specific conditions.

Typically, many businesses hire a consultant to assist with the MAS application process. Moreover, companies need to meet minimum sales targets—generally, $25,000 in the first two years and then another $25,000 annually after that. Because of these factors, expert analysts at Advance GSA often recommend that companies wait until they are fairly established in the government contracting space before pursuing a MAS Schedule to avoid wasting resources and/or the risk of being dropped from the MAS. However, for businesses with services and products in categories that see heavy MAS usage, I have increasingly suggested that they consider applying sooner in their government contracting journey.

As the use of GSA Schedules continue to rise, projected to reach $40 Billion in awards by the end of FY2024, securing a MAS can be a game-changer for businesses looking to enter the government contracting space. With access to tens of thousands of bids and purchases exclusively available to MAS holders, companies that focus on IT services, consulting, and other heavily utilized categories stand to benefit significantly. Industry experts at Advance GSA understand the complexities of the MAS application process, including eligibility requirements and sales targets. If government contracting is part of your strategic plan, their team is here to guide you through the application process and assess your eligibility. By partnering with them, you can position your business for success in the growing federal marketplace, tapping into the vast opportunities that come with holding a MAS. They do not charge for an initial consultation.