What’s in This Article:
Some of the Latest on GSA & VA Schedule Contracts
Contract Type and Schedule Mismatch Continues
GSA Schedule Contracts Based on T&M Billing Rates
Cost and Pricing Requests for a GSA Schedule Contract Award
GSA Schedule Consolidation: Good News for Professional Services Firms
Understanding Your GSA Schedule Contract
Some of the Latest on GSA & VA Schedule Contracts
The General Services Administration (GSA) manages the Multiple Award Schedule (MAS) program, which offers a wide variety of products and services that the federal government seeks to procure. The Department of Veterans Affairs (VA) also manages separate Federal Supply Schedule contracts for certain healthcare-related products and services.
With multiple contract vehicles available for government customers to use, even GSA makes it clear that simply being awarded a Schedule contract does not guarantee sales. You still have to market your products or services to federal agencies.
And while the Schedule program can make federal purchasing easier, contractors still need to understand the pricing, billing, and contract requirements before pursuing an opportunity.
Contract Type and Schedule Mismatch Continues
The federal government typically uses several contract types, including:
- Fixed-price
- Time-and-materials (T&M)
- Cost-reimbursement
While each of these varies in how contractors are paid and how financial risk is managed, they are common federal contract types.
It is important to note that sometimes a GSA Schedule is not a good match for the contract type being requested.
GSA Schedule contracts generally establish commercial pricing, so for many service contracts, this means fixed-price arrangements or established hourly billing rates.
However, cost-reimbursement orders are not permitted under FAR Subpart 8.4 Schedule ordering procedures. If a solicitation identifies a GSA Schedule but requests a cost-plus-fixed-fee arrangement, the contractor should clarify the intended contract vehicle and ordering requirements before submitting a proposal.
GSA Schedule Contracts Based on T&M Billing Rates
When a GSA Schedule order is based on T&M billing rates, you need to determine how the approved labor rates compare with your actual costs.
Consider what the customer expects to see in terms of billing as well. These issues should be discussed during the solicitation phase, before submitting your price proposal.
This is important because the indirect cost burden built into your GSA Schedule rates could be out of line with your current or provisional indirect cost rates.
For example, if your overhead or general and administrative (G&A) expenses have increased since your Schedule rates were established, your actual profit margin may be lower than expected.
Remember, T&M billing under a Schedule order generally uses established hourly labor rates, not reimbursement of actual labor costs and indirect expenses.
Understanding the difference can help you avoid pricing and billing problems after the contract is awarded.
Cost and Pricing Requests for a GSA Schedule Contract Award
Some solicitations will say they are being awarded under a GSA Schedule but then request additional cost and pricing information.
Wait a minute! Isn’t the point of using the GSA Schedule to reduce the procurement effort for both the customer and the vendor?
While GSA has already determined that Schedule prices or rates are fair and reasonable at the contract level, agencies may still evaluate pricing for individual orders and request additional discounts or supporting information when appropriate.
Depending on when your GSA Schedule contract started, as well as the number of economic price adjustments granted, your current costs may not equate to the same labor category pricing.
That’s why it is important to understand what information is being requested and whether your proposed rates still support the costs of performing the work.
GSA Schedule Consolidation: Good News for Professional Services Firms
One major change since the original GSA Schedule structure is the consolidation of separate schedules into the Multiple Award Schedule program.
In October 2019, GSA introduced a consolidated MAS solicitation, combining 24 legacy schedules into a single solicitation for products, services, and solutions.
This included the former Professional Services Schedule and made it easier for contractors to offer multiple types of services under one Schedule contract.
Today, the consolidated MAS program organizes offerings into categories and Special Item Numbers (SINs), simplifying how government customers find products and services.
The consolidation is no longer a future initiative, but GSA continues to update its program requirements.
One significant change in 2026 is the expansion of Transactional Data Reporting (TDR) to all MAS SINs. Contractors must review their applicable modifications and reporting requirements as they transition to TDR.
For professional services firms, these changes make it important to stay current with GSA requirements while continuing to evaluate contract pricing and profitability.
Understanding Your GSA Schedule Contract
A GSA Schedule contract can provide valuable access to federal contracting opportunities, but it does not eliminate the need for careful pricing, billing, and contract management.
Before submitting a proposal, make sure the contract type, labor rates, and billing requirements are appropriate for the work being requested.
At Cheryl Jefferson & Associates, we help government contractors understand their accounting requirements, evaluate indirect costs, and make informed financial decisions.
Need assistance reviewing your government contract accounting practices or evaluating contract profitability? Contact CJA to learn how our GovCon consulting and virtual CFO services can support your business.
Frequently Asked Questions
Does having a GSA Schedule contract guarantee government sales?
No. Contractors must still market their products and services, identify opportunities, and compete for orders when required.
Can a cost-plus-fixed-fee contract be awarded under a GSA Schedule?
Cost-reimbursement orders, including cost-plus-fixed-fee orders, are not authorized under FAR Subpart 8.4 Schedule ordering procedures. Contractors should clarify any solicitation that appears to combine these requirements.
What changed with GSA Schedule contracts in 2026?
GSA made Transactional Data Reporting mandatory across all MAS SINs through Solicitation Refresh 31 in April 2026. Existing contractors should review their applicable modifications to determine when the new reporting requirements take effect.
