THE MAXON GSA POST

WHY DO THEY BUY IN A HURRY?
So why do Federal agencies all seem to want to spend their money in the Fall? The answer is relatively simple, most federal agencies operate on a “use or lose” principle when it comes to their annual budgets.

Let’s break this down a bit; the Fiscal Year (FY) operates on a different type of schedule than a calendar year. The FY runs from 1 Oct of the current calendar year to 30 Sep of the following year. On 1 Oct of this year FY06 will have passed and become FY07. If Federal Agencies don’t have their budgets spent by midnight, 30 Sep they lose whatever monies they haven’t spent and run the risk of losing future funding.

WHAT’S THE PROCESS-A SIMPLE BUYING LESSON
Selling to federal agencies can be a lengthy process depending on how busy each office involved in the process is, especially as the clock ticks down to that magic midnight hour. Don’t let that scare or discourage you though! Give the seeds you planted time to grow and bear fruit. Below is a fairly simplified version of the buying process but it will help with a basic understanding of what’s involved:

1. A need for goods/services is established
2. A vendor is identified to provide those goods/services
3. The vendor provides a quote or bid. Is there money available? If yes, let’s move on, if no, the project goes on hold until funding is available.
4. The contracting officer representing the agency requesting the goods/services prepares a contract.
5. The goods/services are delivered, is the end user satisfied? If yes, let’s move on, if no, then the vendor rectifies the situation to the end users satisfaction.
6. The budget office representing the end user makes payment to the vendor

That’s the process, again, it’s a simplified version but the basic principles are there. This basic information can be a useful tool for a vendor when there appears to be a holdup in the “system”. You, as a Maxon vendor, will be better able to ask the right questions and understand the answers at a higher level of understanding than somebody who is unfamiliar with a GSA purchase or does not know the basic purchasing process. Knowing this process will also lend more credibility to your reputation as a competent and educated Maxon/GSA sales representative.

NEXT ISSUE

• Needs Assessment
• Space Planning
• Price Proposals to Win

Just a reminder that GSA (Federal) pricing will be held at the September 12, 2005 level through the upcoming buying season ending September 30, 2006 … Starting October 1, 2006 GSA will be utilizing the new July 2, 2006 Commercial List Price Book.

Got GSA Questions? gsa@maxonmail.com