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When Can A GSA Contract Be at the Risk of Being Cancelled

Are you a GSA contract holder? Have you not been able to meet the minimum sales criteria? Your contract might then be in jeopardy of cancellation because of low sales! In this article, we have made some recommendations regarding how to solve this problem.


 Although the General Services Administration gives opportunity to the small sized businesses to apply for the GSA contracts, it reserves the right to enforce compliance with the applicable regulations. One such regulation is the Contract sales criteria, which is mentioned in Clause I-FSS-639. The Clause addresses minimum sales criteria, which GSA contract holders are supposed to meet. According to the Clause, the GSA Schedule Contract suppliers are required to exceed $25K in contract sales in the first two years following the award and $25K in the contract sales every year after that. This criteria is not new; the only thing is it is getting unprecedented attention. If any supplier is unable to meet this requirement/criteria, the contract can be cancelled  by GSA as per the clause 552.238-73.

 New Policy of GSA

 Before, Clause I-FSS-639 was hardly applied and GSA contracts were rarely cancelled because of low sales. Now it’s not the same and GSA can send a warning to you if your contract doesn’t meet the minimum sales conditions. This is just a reminder report where you will be warned of your sales criteria, which if continues to fall below the specified amount, the contract you hold may be at the peril of being cancelled.

 If your company has got this notification, you need to focus immediately on enhancing your business exposure to the federal agencies that order from GSA MAS contracts by using the tools, which are listed below. The exposure might assist you in getting your sales figures back. However, if your firm hasn’t got this warning, you can be sure that you will not be out of the woods right now.

 What to do to solve the problem

 General Services Administration is aware of this challenging environment in federal marketplace and comprehends that this needs willpower and agility in meeting the sales obligation. According to GSA, you just need to explore the different options, if you want to solve the problem on your own. The different options are:

  • Monitoring opportunities, which are posted on FedBizOpps and eBuy
  • Looking into the local and state government cooperative purchasing program
  • Developing a unique GSA marketing campaign
  • Looking into the GSA Schedule contract supplier team arrangement
  • Going to the GSA’s VSC for events and news
  • Going to the GSA Interact to learn about GSA marketing tools

These tools may assist you find, and increase exposure to the federal government entities, which require the services/products your business offers.

 Apart from not being able to meet the minimum sales criteria, there is one more reason for which your GSA contract may be cancelled. If you do not comply with the terms/conditions of the contract, it might result in cancellation. So, ensure your team knows the contract compliance provisions.

 If you need any kind of assistance for increasing the sales of your business, Advance GSA, an expert GSA consultant, is here to help you.