Current No Sales Team Pilot Program

In order to avoid cancellation, GSA vendors must have at least $25,000 in GSA sales during the first two years of their contract and at least $25,000 each following year. Recently, GSA has been more proactive in cancelling contracts that do not meet this minimum sales requirement. GSA claims that the average cost to maintain a schedule contract is $3,200 a year so they would like to remove vendors that don’t make sales. This figure may be slightly inflated and does not represent the lower cost for vendors with fewer modifications and lower sales, but there is still an administrative cost for GSA to manage contracts and GSA will continue to cancel them.

In order to allow low sales vendors to have a discussion with GSA before their contract gets cancelled, GSA has piloted a “No Sales Team” under IT Schedule 70. This team has a dialogue with the vendors to learn if there are possible opportunities coming up that may allow the vendors to generate sales to satisfy the minimum sales requirement.

Results on Schedule 70 Vendor Review

In this review, the “No Sales Team” looked at 653 IT Schedule 70 contracts. As of June 2013, 498 of those contracts are now cancelled, 123 had sales and were not cancelled,  and 32 were being monitored for upcoming sales. So, even after discussions between the “No Sales Team” and vendors,  more than 75% of the contracts were still cancelled and those that weren’t had to demonstrate sales through their GSA Schedules.

As a GSA Schedule vendor, it is vital that you maintain strong sales numbers. GSA provides some ways to identify potential opportunities and learn more about the selling to the federal government. In addition, the Office of Small Business Utilization (OSBU) offers resources for small business selling to the government, including a list of contacts to help you as a Small Business in doing business with the government.

The marketing services we provide clients to successfully compete in this ultra-competitive government market place, starts by developing an implementing a targeted marketing strategy.

To begin your marketing plan you need to do your research to identify target market size and the specific agencies most likely to purchase your goods or services.  Find available data that will allow you to identify market leaders and competitors. With this knowledge execute a targeted marketing plan that will help you connect and build relationships so you can start creating numerous sales funnels.

If you are a vendor with low to zero sales, this may be your last chance before GSA cancels your contract.  Find an experienced government marketer that will help you develop AND implement a marketing strategy right for your specific product or service. Make sure your marketing material is up to date and helps you stand out from the competition. Actively identify and qualify bid opportunities. Implement focused email marketing campaigns with the appropriate follow-up will allow you to build traction.

Although GSA sees the benefit of allowing vendors the chance to gain sales before contract cancellation, GSA also sees the financial savings of cancelling non-performing contacts and will continue to do so diligently. Be prepared for GSA to roll out more comprehensive programs in the near future that model IT 70’s pilot “No Sales Team.”We will keep you informed of these similar programs as they are implemented.

Please feel free to contact Coley for any questions you may have by email at hello@coleygsa.com, by phone at 210-402-6766 or schedule a call.

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