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What is a contract vehicle, and which ones should a small IT services firm actually chase?

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  • A contract vehicle is a pre-approved contractual agreement that streamlines the acquisition process for government agencies by allowing them to issue task orders or delivery orders for specific requirements under pre-negotiated terms and conditions.
  • Jordan, when considering which vehicles to pursue, it is important to analyze your firm's core capabilities against the scope of services defined in t
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My company is a 12-person IT services firm in Jacksonville, and for the last few months, everyone keeps telling us we need to get on a contract vehicle. I've been looking at SAM.gov and other places and I see a lot of different things mentioned like GSA Multiple Award Schedule contracts, GWACs, and agency-specific IDIQ contracts. It's hard to tell what any of these actually are, which ones are still open for new bids, and which ones would actually be useful for a small IT shop like ours. We do network setup and cybersecurity for small businesses, and we want to work with federal agencies like the Navy bases around here. What actually *is* a contract vehicle, and how do you figure out which ones are worth going after?

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asked Jordan P. First-year bidder, landscaping and grounds · Jacksonville, FL · 168 rep

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A contract vehicle is a pre-approved contractual agreement that streamlines the acquisition process for government agencies by allowing them to issue task orders or delivery orders for specific requirements under pre-negotiated terms and conditions. Jordan, when considering which vehicles to pursue, it is important to analyze your firm's core capabilities against the scope of services defined in the vehicle's solicitation. For an IT services firm focused on network setup and cybersecurity, a GSA Multiple Award Schedule (MAS) contract under the Information Technology Category (SIN 54151S for IT Professional Services) is often a strategic entry point, as Dave mentioned. However, also investigate agency-specific IDIQs from the Navy or other DoD components, as these can be highly targeted to your services and potentially offer less competition than broader GWACs.

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answered Nadia F. Verified vendorWOSB owner, management consulting · Minneapolis, MN · 478 rep
I agree that a [GSA Multiple Award Schedule (MAS) contract](https://govcon.forum/glossary/gsa-schedule/) is a good start. Just remember the schedule is not a sales channel by itself; you still need to market your services to agencies to get orders. · Grace L. ·
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A contract vehicle is a pre-negotiated agreement that agencies can use to acquire goods and services, and it allows them to place orders directly with approved contractors without going through the full solicitation process each time.

For an IT services firm looking to work with federal agencies like the Navy, understanding the different types of contract vehicles is key. The GSA Multiple Award Schedule (MAS) is a common starting point; it is a five-year IDIQ with three five-year options, meaning it can last up to 20 years. The MAS is continuously open, so new offers can be submitted at any time. GWACs are also IDIQs, but they are typically broader in scope and often managed by a single agency for use across the government. Agency-specific IDIQs are tailored for a particular agency's needs. To figure out which one is right for your shop, look at the services you provide and match them to the scope of the vehicle. If you want to sell to the Navy, check their public procurement forecast. You also need to consider the competition and whether the vehicle is still accepting new awardees. Many vehicles close to new offers once they have a sufficient pool of contractors.

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answered Dave H. Verified vendorParts distributor, DLA and DIBBS · Dayton, OH · 233 rep
The GSA Multiple Award Schedule is not a sales channel by itself; you still need to market your services to agencies to get orders. · Grace L. ·
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A contract vehicle is a pre-negotiated agreement that allows agencies to fulfill requirements quickly, but it also carries strict limitations on subcontracting that a small IT services firm must understand. Jordan, if your firm wins a set-aside contract on one of these vehicles, such as a GSA Multiple Award Schedule (MAS) task order, you will have to perform at least 50 percent of the cost of the contract incurred for personnel on services contracts, or 50 percent of the cost of manufacturing for supply contracts. This means you need to have the in-house capability to do most of the work, or team with another small business that qualifies as a similarly situated entity under SBA rules.

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answered Luis A. Verified vendorSDVOSB founder, court reporting and legal support · San Antonio, TX · 257 rep
Thanks, Luis. That 50 percent rule for services is a big deal. So if I win a grounds maintenance contract, I need to make sure my crew does at least half the labor hours, right? · Jordan P. ·

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