Federal Supply Schedule vs Open Market: Which Procurement Path is Best?
Compare GSA Schedule and open market procurement methods. Learn when agencies use each approach, advantages for contractors, and how to maximize your federal sales.
Quick Answer: FSS vs Open Market
The Federal Supply Schedule (GSA Schedule) provides pre-negotiated pricing and faster procurement, while open market allows any qualified vendor to compete. Many contractors benefit from having both capabilities—a GSA Schedule for quick sales and open market access for larger opportunities.
Overview of Procurement Methods
Federal agencies have multiple procurement paths available depending on the value, complexity, and urgency of their needs. Understanding these methods helps contractors position themselves for the right opportunities.
Key Procurement Authorities
FAR Part 8 - Required Sources
Agencies must consider FSS and other mandatory sources first
FAR Part 13 - Simplified Acquisition
Streamlined procedures for purchases up to $250K
FAR Part 15 - Contracting by Negotiation
Full and open competition for larger procurements
Federal Supply Schedule (GSA Schedule)
The GSA Multiple Award Schedule (MAS) program provides federal agencies access to millions of commercial products and services at pre-negotiated prices from approved contractors.
Advantages for Agencies
- •Pre-vetted vendors with negotiated pricing
- •Faster procurement (no lengthy RFP process)
- •Simplified ordering procedures
- •Volume discounts already negotiated
- •Easy access via GSA Advantage platform
Advantages for Contractors
- •Visibility to all federal buyers
- •Shorter sales cycles on many purchases
- •Credibility as vetted supplier
- •State/local access via cooperative purchasing
- •Long-term contract (up to 20 years)
GSA Schedule Competition Thresholds
Open Market Procurement
Open market procurement allows any responsible contractor to compete for federal business, regardless of whether they hold a GSA Schedule or other contract vehicle.
Advantages for Agencies
- •Access to all qualified vendors
- •May get better pricing through competition
- •Custom requirements and specifications
- •More flexibility in evaluation criteria
- •Appropriate for unique requirements
Advantages for Contractors
- •No GSA Schedule required to compete
- •Can propose custom solutions
- •More flexibility in pricing approach
- •Larger contracts often available
- •Set-asides create less competition
Open Market Considerations
Open market procurements typically involve longer timelines and more extensive proposal requirements. However, they also tend to be for larger dollar values and may offer better profit margins than schedule sales.
Side-by-Side Comparison
| Factor | GSA Schedule | Open Market |
|---|---|---|
| Entry Barrier | Must obtain GSA contract first | SAM.gov registration only |
| Typical Timeline | Days to weeks for orders | Weeks to months |
| Competition | Among schedule holders only | All qualified vendors |
| Pricing | Pre-negotiated ceiling rates | Proposal-based |
| Proposal Effort | Lower for most orders | Higher, full proposals |
| Contract Value | Often smaller orders | Full range, often larger |
| Administrative | Quarterly reporting, IFF | Per-contract requirements |
When Agencies Use Each Method
Agencies Prefer FSS When:
- • Commercial products/services needed quickly
- • Standard solutions work for requirements
- • Need to simplify procurement process
- • Under time pressure
- • Buying IT, professional services, or supplies
- • Want pre-negotiated pricing assurance
Agencies Go Open Market When:
- • Requirements are complex or unique
- • Major procurement (millions of dollars)
- • Want maximum competition
- • Need custom solutions
- • Specific socioeconomic goals
- • Best value evaluation important
Contractor Strategy
Dual-Track Approach
Many successful contractors pursue both paths simultaneously:
GSA Schedule
- • Quick, repeat sales
- • Agency relationship building
- • Visibility and credibility
- • State/local opportunities
Open Market
- • Large contract pursuits
- • Custom solutions
- • Strategic wins
- • Set-aside opportunities
Strategy Tip
Use your GSA Schedule to build past performance and agency relationships, then leverage those relationships when larger open-market opportunities arise. Many task orders start on schedule and grow into follow-on competitions.
Frequently Asked Questions
Do I need a GSA Schedule to sell to the government?
No. Any registered contractor can compete for open-market opportunities. However, a GSA Schedule opens access to buyers who prefer or are required to use schedule contracts, expanding your opportunity pool significantly.
Can agencies require GSA Schedule holders only?
Generally no—agencies cannot arbitrarily exclude open-market competition. However, for certain purchases, using the FSS satisfies competition requirements, so agencies may choose to limit competition to schedule holders.
Which method has better pricing for contractors?
It varies. GSA Schedule pricing is capped at your negotiated rates, while open-market allows more pricing flexibility. However, schedule sales have lower BD costs, so net margins may be similar despite potentially lower prices.
How do I know which method an agency will use?
Check the solicitation notice on SAM.gov. It will indicate whether it is FSS-only, open-market, or allowing both. Many agencies post Sources Sought notices first to gauge interest before deciding.
Find Both GSA and Open Market Opportunities
BidFinds helps you discover federal contract opportunities across all procurement methods. Whether you have a GSA Schedule or compete on the open market, find opportunities that match.
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