FY 2009 GSA Schedule 70 Sales - Top 100 Rule

For several years my friend Richard Mackey of CapitalReps (www.CapitalReps.com) has provided the "top 100 Schedule 70" vendors list to me, and a few years back we started to see what the marketshare was for the Top 10, 25, 50 and 100.

The following info (in italics) is from an email Richard just sent me:

The decline in awardees is likely to GSA routinely termination contracts that have not sold $25k in the first two years or less than $100k after five-years.

In the last year, GSA has recognized the challenges to new GSA awardees and implemented the following:

1. Sales in first two-years after aware are expected to be $25k vs. $50k.
2. Requirement for each new awardee to complete GSA Pathway to Success Training http://webcast.gsa.gov/login.asp?lib=pn100381_gsa_pathways
3. Must have had two years of sales for the proposed products/services to the commercial or government sector (no start-ups).
4. Requires offerors to discuss how they plan to market their schedule, upon award in their submission package

Schedule 70 IT FY 2009 Schedule 70 IT

Top 25 Market Share 41.50%
Top 50 Market Share 54.20%
Top 100 Market Share 65.16%
Total Sales $15,713,948,624
Total Schedule 70 Awardees 5,333
Firms with Zero Sales 1,962 (36.78%)

As you can see, the top 100 took 65% of the $15.7 billion that passed through Schedule 70 in FY 2009, leaving 3,271 companies to split the remaining 35% (I removed the 1,962 companies that made $0). These percentages are very close to the FY 2008 results.

Apparently the top 100 do some things that others don't. My next article at www.Washingtontechnology.com will be addressing some of the things the Top 100 do that others should emulate.

Stay tuned!

GSA Schedule 70 Sales - 2008

My friend Richard Mackey (www.CapitalReps.com) negotiates and manages GSA Schedules for a variety of companies. Several years ago he ran a report on Schedule 70 that had some remarkable statistics (I used this data in my first book Government Marketing Best Practices), so I asked him to run the numbers for me for 2008 (Schedule 70) to see if anything had changed. Things have not changed.

The results:

Total FY 08 Schedule 70 Sales were $15,901,412,897 (down from past years)

Total # of comapnies on Schedule 70 in FY 2008: 5,615

Dell's market share has dropped to 6.43% - years ago, they had almost 10%. 6.43 isn't bad though!

Top 50 Market Share 53.63% - about the same as the past

# of Firms Selling less than required $25k 45.97% - up a lot

# of Firms Selling less zero 38.62% about the same as the past


We have run these stats for several Schedules over several years and the general results are:

-the top 2% of the companies on any Schedule take over 60% of the $

- the middle group takes about 35%

- the bottom third usually take little or nothing.

Now keep in mind that the GSA Schedules only account for about 15% of the toal federal spending.

But what does this tell us?

1) Most companies in the government market are in a passive mode, sitting by the phone waiting for it to ring because they have a contract.
2) Most companoes with GSA Schedules do not know how to leverage these into sales.
3) That the very proactive companoes out there understand how it is done.

If your company is not in that top tier, y0u need to start your education process NOW!

Take a look at www.GovernmentMarketMaster.com to start that education process.