Exploring how GSA Solicitations and the GSA eBuy system can create a significant advantage for GSA contract holders in the federal space is what we will explore today.

GSA Solicitation

In the federal space, there are two types of solicitations or websites firms can go to to find RFQs. The first is the full government solicitations found on sam.gov. The second would be the GSA Solicitations or GSA (only) Solicitations found on GSA’s eBuy system. I will go over the GSA eBuy system and why, when it is used correctly, it creates a big advantage for GSA contract holders.

How GSA eBuy Works

The mechanism for how a GSA Solicitation or GSA eBuy RFQ is put in place is that a federal buyer logs into the GSA eBuy system and develops the GSA Solicitation. A key element to how they will go about doing this is whether the solicitation will be for a service, product, or both. If they attempt to procure a service, they will have a description of the tasks and other specifications. If they need a product or group of products, they will have a list of the items required to fulfill their shopping list. Both processes will be used for a combination. Once they have created the GSA Solicitation, GSA eBuy has a unique feature where the federal buyer can send out bid requests to the GSA Schedule holders whom they think are the best match for the procurement. They are not always correct in their selection, but at least it gives them a starting point for bidders for their GSA solicitation. The general rule of thumb that federal eBuy users work from is that if they send out seven requests, this, in turn, should deliver three completed RFQs. They are targeting this magic three number because this is the number of responses or bidders needed to have a FAR-compliant bid. 

If you are not one of the original firms selected, don’t worry; if you are a GSA schedule holder, you are still welcome to bid on the GSA solicitation. For whatever reason, the contracting officer overlooked you when initiating the RFQ. The win rate between firms that were originally notified by the procurement officer and those that were not is about the same, so there is no advantage in being originally selected other than not having to have performed a search for the opportunity. 

How Large Is eBuy Opportunity

GSA Solicitations are big business. Approximately $10 Billion per year is transacted using the GSA eBuy system. The number of transactions per year is around 100,000, which means that the average procurement is a near-perfect size for small businesses at right around $100 Thousand each.

Another reason eBuy is excellent for small businesses is that it can be difficult to get your first contract or your foot in the door with your targeted federal agency. However, the small, average transaction size offered on eBuy gives small businesses the use of the GSA Solicitation system as a gateway for their first sale into an agency. From there they can make new contacts and work towards obtaining more and more extensive sales down the road. Where normally, a firm might be competing with a dozen or more sellers on an open bid, with eBuy, that number is usually around three. The eBuy procurement is also quick, and where normally it might take months to cultivate a new opportunity with a target agency, the eBuy procurement could be settled in a few short weeks.

eBuy is a great feature of the GSA Schedule System and is one of the many reasons firms that have a GSA Schedule contract average over $1 Million per year in sales from their GSA Schedule.

Understanding the dynamics of GSA Solicitations, and harnessing the power of the GSA eBuy system, can be transformative for businesses operating in the federal space. The streamlined process facilitated by GSA eBuy not only simplifies the procurement journey for federal buyers, but also offers a strategic advantage for GSA contract holders. With Billions of Dollars transacted annually, and countless opportunities for small businesses, GSA eBuy is a gateway to government contracts. Whether you're seeking your first contract, or aiming to expand your sales, leveraging the GSA eBuy system can propel your business towards success. If you're ready to explore the possibilities that exist, I always recommend contacting an industry expert such as Advance GSA. They're here to help navigate your path to winning government contracts. They do not charge for an initial consultation.