3D Printing "The GSA Schedules program accounts for nearly $50 billion a year in spending, a whopping 10% of all federal procurement spending."
The U.S. Government is the largest buyer of products and services hands down but have you been struggling to sell to the Government as an Manufacturer (I will address Small Business Resellers in another post) but for now I want to focus on Manufacturers.
I hear lots of rumblings in the industry where OEM's seem to think since they make the 3D Printing product that they can dictate how the Government will buy their product.
I understand their position to a certain extent but I've worked on Billion Dollar Government Acquisition Programs where some of the largest and best manufactures in the world did not make the cut. Why was that? Primarily, because the Manufacturer did not have an adequate supply channel setup where the Government could maximize their buying rules for Small Business. Believe or not the Government does not like buying directly from a Manufacturer due to the proprietary nature of getting locked into a single source procurement better known as (Monopolization of a Product).
As many Manufacturers may know or may not know the Government has Procurement Buying rules in place that without a massive J&A signed off at the top level they cannot sole source buy from any company or manufacturer. Therefore, the Governments primary way of procurement is through Small Business Value-Added Resellers and not direct to the Manufacturer.
So, what does this mean for you as a Manufacturer? Here are a few questions that you should be asking yourself prior to attempting to sell to the Government...
If you are a Manufacturer of 3D Printers then here are a few things to question?
1. Is your 3d Printer Manufacturing company capturing any of this $50 Billion per year market? If not why not? If so how much?
2. Do you have the right portfolio mix of Small Business Value-Added Resellers on your team? Why is this important?
3. Do you know how and why your products must be on a GSA Schedule in-order for the Government to buy them?
4. Do you have to be just on GSA to earn a potion of this business? What are some alternatives?
If you are a Small Business Reseller and you are struggling with getting 3D Manufacturers to issue LOS for your GSA please let us know... We are looking to help build a streamlined approach and to understand the restraints that OEM's may have prior to giving a Letter of Supply for your GSA Schedule...
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