Impact of Corona Virus

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January 31st the President declared an emergency concerning the Cornavirus. If your company would like to supply products during a federal emergency, you need to be registered in SAM.gov as disaster response provider. I pulled this from a health supply company to show how it looks to federal buyers…

Important: If your company is not listed in the Disaster Response Registry you cannot participate in emergency funded contracts. Here is an overview from Acquisition.gov with links to instructions to get your company’s registration updated.

As the Coronavirus task force builds their response and congress approves emergency funds, expect significant challenges in obtaining products which will drive up supply costs and delivery timelines.

Database65 IIA Contract holders and other schedules that carry medical supplies and viral testing products should connect with their GSA contract managers regarding supply chain and pricing challenges. GSA contract holders, while they may be a great resource for many contracts, may experience challenges with GSA pricing maximum that preclude your ability to meet demand at current price levels.

The benefits of pricing your GSA contract right

We have provided hundreds of companies with GSA pricing advices over the years and knowing what GSA looks for will help you price your contract correctly. Whether you provide products or services, here are some tips to use when providing pricing:

  1. Get the highest acceptable price possible. Why? You can always discount your GSA pricing but you cannot go over that price without an approved economic price adjustment. So, if someone is buying on price off GSAadvantage and is 1 penny less you lose AND when an emergency like Coronavirus hits and prices increase you lose.
  2. Provide the contracting officer with pricing support. Why? I can’t tell you how many times we have helped reframe a company’s thinking on this subject and gotten rates for program managers of over $300 per hour. In every case, we did the work for the contracting officer to show them, apples for apples comparison of already accepted pricing – on existing successful GSA contracts – so we can have a higher than average price accepted by GSA. Again, you can discount this rate (which makes you look good) while having the headroom for hiring and providing resources when the going rate puts others out of the game.
  3. Make sure you have price escalation built into your GSA contract. Why? Like most federal 5 year contracts, GSA contracts are 1 year contracts with 4 option years. If you do not have price excallation built in, you are losing money next year AND the rest of the years unless you submit economic price increases. Make it easier on everyone – put those price escalations in at the start.

If you would like to schedule a Market Assessment of your GSA competitors as well as all the competitors in your SAM registered NAICS – Click here or call 888-9-GET-isi.

Register for Emergency Contracting Briefing – March 5 2019

in Federal Contracting by Aisha H. Leave a comment
About the author: Aisha H.

Aisha has been working exclusively in the federal market space with isiFederal, providing research and finance expertise in addition to being the Business Process Manager and assistant to CEO. She's no stranger to unpredictable, demanding environments--her past work experience includes auditing, teaching English at the Berlitz School of Language, and working for the Grand Hyatt in Dubai.

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