Every year, thousands of businesses miss out on one of the most lucrative opportunities in the U.S. B2G market: selling to the federal government. Why? Not because they lack the products, services, or capabilities – but because they believe outdated myths about what it takes to secure a GSA contract or meet GSA standards.
This article breaks down the five most common misconceptions about GSA contracts that hold companies back from entering a $50+ billion federal marketplace. Whether you’re a small business or a growing mid-sized firm, understanding the truth behind these myths could change the trajectory of your sales strategy.
Don’t let assumptions limit your potential. Read on to learn what’s actually required and find out if your business might already be eligible to sell through the GSA Schedule.
If you’re unsure where to start, companies like Price Reporter, with nearly two decades of experience managing and supporting GSA contracts, can help you determine your eligibility and guide you through the process.
Myth 1: “GSA Contracts Are Only for Big Businesses”
One of the most persistent myths about GSA contracts is that they are reserved for large corporations with massive resources and established government ties. This misconception keeps many small and mid-sized businesses from even exploring federal contracting as a viable sales channel.
In reality, small businesses are not just eligible to participate in the GSA Multiple Award Schedule program – they are actively prioritized. Federal agencies have mandated goals for working with small businesses, and the GSA is one of the strongest supporters of these initiatives.
More than one-third of all dollars awarded through GSA MAS contracts go directly to small businesses. These aren’t limited to general categories either. There are specific set-aside programs for women-owned small businesses (WOSB), veteran-owned small businesses (VOSB and SDVOSB), minority-owned businesses under the 8(a) program, and HUBZone-certified firms.
These programs reduce competition from larger firms and provide more targeted opportunities for small companies to succeed in the federal marketplace. Far from being shut out, small businesses are often the preferred choice for many types of contracts – especially when they meet specific agency goals or fill niche needs.
If your business meets the basic eligibility requirements, a GSA contract could be your gateway to long-term government clients and stable revenue streams.
Myth 2: “You Need Government Contracting Experience First”
A common misconception among commercial vendors is that you must have prior experience working with the federal government to qualify for a GSA Schedule. This belief causes many businesses to self-disqualify before even considering an application – even though they may be perfectly eligible.
In reality, government contracting experience is not a prerequisite. The GSA does not require a record of previous federal sales. Instead, it focuses on your commercial past performance and the viability of your business.
If your company has been operational for at least two years and has generated consistent revenue – typically at least $100,000 annually for two consecutive years – you’re already meeting a key part of the eligibility criteria. The goal is to ensure you are financially stable, can deliver on contracts, and have an established operational history.
In fact, many first-time GSA contractors come directly from the commercial sector. They succeed not because of previous work with federal agencies but because they understand their market, have proven their ability to deliver, and are prepared to meet compliance requirements.
How Commercial Experience Translates to Federal Readiness
Here’s a comparison of what matters in commercial business vs. what the GSA looks for during the evaluation process:
| Commercial Business | GSA Schedule Application Requirement |
| 2+ years in business | Required: Demonstrates operational maturity |
| Consistent revenue over time | Required: Minimum $100,000/year (past 2 years recommended) |
| Proven product or service offerings | Required: Must offer commercially available products |
| Customer references or testimonials | Required: Used to verify past performance and reliability |
| Competitive pricing | Required: Must justify fair and reasonable pricing to GSA |
| Internal systems and documentation | Required: Financials, compliance policies, and procedures |
As shown above, many of the qualities the GSA looks for already exist within successful commercial businesses. You’re not starting from zero – you’re leveraging your existing strengths in a new market.
If you’ve been delivering results in the private sector, there’s a strong chance your company already has the foundation needed to enter the public sector. The key is recognizing that GSA contracting is not reserved for government insiders – it’s open to businesses that are ready, responsible, and capable.
Myth 3: “The Process Is Too Complicated for Small Teams”
Another common concern among small businesses is that the GSA application process is overly complex and resource-intensive. It’s true that the process involves multiple steps, but that doesn’t mean it’s unmanageable – even for lean teams.
The federal government has made significant efforts to simplify and standardize the path to getting a GSA contract. Tools like SAM.gov and the eOffer platform guide applicants through required registrations and document submissions. Mandatory training, such as the “Pathways to Success” course, helps vendors understand what to expect and how to prepare a compliant offer.
Yes, the process is detail-oriented, but it follows a clear structure. Once you understand the basic components – from financial documentation to pricing justifications and technical narratives – it becomes much easier to navigate.
Proper preparation is key. When businesses take the time to read solicitation requirements carefully and gather the right materials in advance, many of the perceived barriers start to fall away. The process may feel bureaucratic, but it is also designed to be repeatable and transparent. With the right approach, even a small team can manage it effectively.
Myth 4: “Lowest Price Always Wins”
One of the most damaging myths about GSA contracting is the belief that only the lowest bidder gets the deal. This assumption leads many businesses to think they can’t compete unless they drastically cut their pricing. In reality, that’s not how federal procurement works.
While price is certainly a factor, it is rarely the only one. Federal buyers are trained to evaluate offers based on “best value” – a broader standard that considers more than just cost. Agencies are often willing to pay slightly more for vendors who demonstrate strong technical expertise, reliable past performance, innovative solutions, responsive customer service, and the ability to deliver on time and within scope.
The goal is not just to save money but to ensure that taxpayer funds are spent on solutions that truly meet the government’s needs. A low price that comes with high risk, poor quality, or questionable reliability is unlikely to win over a contracting officer.
This evaluation model gives businesses room to compete on what they do best. If you offer specialized expertise, higher quality, or better support than your competitors, you may have a strong advantage even if your prices are not the lowest on paper.
Myth 5: “Once You’re on the GSA Schedule, Sales Just Roll In”
Securing a GSA contract is often perceived as the final step in entering the federal market. Many vendors assume that once their business is listed on the GSA Schedule, government buyers will start reaching out and purchase orders will start flowing without any further effort.
This assumption couldn’t be further from the truth.
A GSA contract is not a shortcut to instant sales. Rather, it’s an opportunity to compete in a vast and regulated marketplace. Think of it as a ticket to enter the arena – you still have to show up, market your offerings, and outshine the competition. The Schedule makes you visible to federal buyers, but it does not replace the need for a sales strategy.
What Does It Actually Take to Succeed?
To generate consistent revenue through your GSA contract, businesses must take an active role in managing and promoting their offerings. Here are some of the core tasks required:
- Keep your catalog current. Products, services, and pricing listed on GSA Advantage must be regularly updated to reflect what you truly offer. Outdated listings or incorrect information can lead to missed opportunities or compliance issues.
- Monitor and respond to opportunities. Use tools like eBuy and SAM.gov to find Requests for Quotes (RFQs) and Requests for Proposals (RFPs) relevant to your SINs (Special Item Numbers). Timely and well-prepared responses are essential.
- Build relationships with buyers. Federal agencies work with vendors they trust. Proactively introduce your company, schedule meetings with procurement officers, and participate in matchmaking events and industry days.
- Promote your GSA status. Include your contract number and awarded SINs on your website, in proposals, and in marketing materials. Many buyers prefer vendors who are already pre-approved under the MAS program.
- Maintain full compliance. Regularly report sales, ensure you meet Trade Agreements Act (TAA) requirements, and submit modifications as your offerings change. Failing to do so can lead to audits, fines, or even contract cancellation.
- Analyze performance and adjust. Track what agencies are buying, which competitors are active in your category, and how your pricing compares. Use this data to refine your strategy and stay competitive.
Success on the GSA Schedule requires consistency and intentional effort. Vendors who treat it as a dynamic sales platform – not just a registration badge – are the ones who build sustainable revenue and long-term federal relationships.
Conclusion: Let the Facts, Not the Myths, Guide Your Federal Sales Strategy
Outdated beliefs about GSA contracting can stop even well-qualified businesses from entering one of the most reliable and scalable markets in the U.S. government sector. If your company meets the basic requirements and has the capacity to deliver value to federal agencies, the GSA Schedule can open the door to long-term growth and consistent revenue streams.
To navigate the process with confidence, it helps to rely on those who understand the system from the inside. Companies like Price Reporter have spent nearly two decades supporting vendors across industries by managing the complexities of GSA contracts and helping them thrive in the federal space. When you have the facts and the right support, the federal market becomes much more accessible – and far more rewarding.
