GSA Schedules FY26: Unlock Contract Updates & Prepare for Success

Here's a compelling introduction for the blog post:

"As we dive into Fiscal Year 2026, government contractors are gearing up for a fresh set of contract terms and conditions. But what exactly does this mean for GSA schedule holders? If you're not prepared, you could be facing changes to your pricing, delivery schedules, or even access to certain customer agencies. In fact, the General Services Administration (GSA) has already announced several updates that will impact contractors across various industries.

In this article, we'll cut through the noise and break down the key changes coming to GSA Schedules in FY26. You'll learn about new contract terms, updated pricing models, and changes to reporting requirements - all designed to help you navigate the evolving landscape of government contracting. Whether you're a seasoned contractor or just starting out, this post will give you the insider knowledge you need to stay ahead of the curve and maximize your opportunities in the federal marketplace."

Understanding Key Changes to Contract Terms and Conditions

Changes to Contract Terms and Conditions: A Closer Look

In FY26, GSA has introduced several significant updates to contract terms and conditions across various schedules. These modifications aim to enhance transparency, streamline administrative tasks, and promote competition among contractors.

One notable change is the introduction of a new clause (552.223-70) requiring offerors to disclose any existing or pending government contracts in the same product/service category as the proposed award. This clause aims to prevent contractors from unfairly competing for awards by leveraging their existing relationships with the government.

Another key update is the revision of the contract's price reduction clause (FAR 52.216-7). GSA has increased the threshold for price reductions, allowing contractors more flexibility in adjusting prices without penalty. For example, if a contractor experiences an unexpected increase in material costs, they can now adjust their prices up to 15% above the original price without triggering a price reduction clause.

Additionally, GSA has modified the contract's intellectual property (IP) provisions to better protect government interests. Contractors must now ensure that all IP rights are assigned to the government upon award, and that any existing IP agreements do not restrict the government's use of the awarded products or services.

To navigate these changes effectively, contractors should:

• Review their existing contracts to identify areas where they may need to update their terms and conditions
• Familiarize themselves with the new clauses and provisions outlined in the FY26 GSA schedules
• Ensure that their pricing structures and IP agreements comply with the revised contract requirements

Impact of OMB Memo on GSA Schedules Contracting

The Office of Management and Budget (OMB) recently issued a memo that will have far-reaching implications for GSA Schedules contracting. The memo, which went into effect on October 1, 2023, imposes new requirements on federal agencies and contractors alike.

One key change is the introduction of a new metric: "Total Small Business Award Value" (TSBVA). This metric requires agencies to track and report on the total value of all small business awards made under GSA Schedules. Contractors can expect to see this metric included in their contract's Performance Reporting requirements, which will likely require regular submissions.

To prepare for these new reporting requirements, contractors should review their existing contracts and ensure they have a clear understanding of what is being reported on. This may involve updating their business systems and processes to accurately track small business awards.

Another significant change is the increased focus on "Category Management." Category Management involves grouping similar products or services into categories, which are then managed by a single federal agency. Contractors can expect to see more emphasis on these categories in the coming year, as agencies look to streamline their procurement processes and reduce costs.

To take advantage of Category Management opportunities, contractors should review their existing contract positions and identify areas where they can be categorized. This may involve working closely with GSA to understand the category management framework and how it applies to their specific products or services. By being proactive and prepared, contractors can position themselves for success in this new contracting environment.

This is just a starting point for understanding the impact of OMB's memo on GSA Schedules contracting. Contractors should remain vigilant as more guidance is released and requirements become clearer.

New Requirements for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs)

As part of the annual update to GSA Schedules, FY26 brings several new requirements specifically for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). These changes aim to enhance transparency and accountability while ensuring equal opportunities for SDVOSB contractors.

One significant change is the requirement for SDVOSBs to obtain a Verification of Ownership and Control (VOC) from the VA's Center for Veterans Enterprise (CVE) every two years. This ensures that the business remains owned and controlled by a service-disabled veteran, as defined in 38 CFR Part 74.

To comply with this requirement, SDVOSB contractors should:

• Review their current CVE verification status
• Ensure all owners and officers meet the required criteria for ownership and control
• Submit updated documentation to the VA for re-verification

Additionally, GSA Schedules will now require SDVOSBs to report any changes in business structure or ownership within 30 days of the change. This includes updates to entity types (e.g., from sole proprietorship to LLC) and changes to company officers.

To comply with this requirement, contractors should:

• Maintain accurate records of business changes
• Notify GSA and VA within 30 days of any changes
• Update their Schedule contract accordingly

These new requirements aim to strengthen the integrity of the SDVOSB program. By understanding these updates, contractors can ensure compliance and take advantage of the benefits available to eligible businesses.

Updates to Pricing, Payments, and Invoicing Procedures

As of FY26, GSA Schedules are undergoing significant updates to pricing, payments, and invoicing procedures. Contractors should be aware of these changes to ensure compliance and maximize their opportunities.

One key update is the introduction of a new pricing model for Schedule 70, the largest GSA Schedule. The previous price list structure has been replaced with a more flexible pricing approach that allows contractors to set prices based on their own cost-plus or fixed-price methods. This change enables greater transparency and efficiency in the contracting process.

Contractors should also be aware of updates to payment procedures under the Federal Acquisition Regulation (FAR). Effective FY26, the FAR now requires contracting officers to prioritize electronic invoicing through the System for Award Management (SAM) instead of paper invoices. Contractors are encouraged to take advantage of this efficient method by registering with SAM and familiarizing themselves with the e-invoicing process.

Another significant update is the introduction of a new payment term: "Prompt Payment." This requirement ensures that contractors receive timely payments from federal agencies, typically within 15 days of invoice submission. To comply with this regulation, contractors should ensure their invoicing procedures are accurate and thorough, including providing complete payment information and any necessary supporting documentation.

To prepare for these updates, contractors should:

• Review their existing pricing structures to determine if they need to make adjustments
• Register or update their SAM accounts to facilitate electronic invoicing
• Familiarize themselves with the Prompt Payment regulation and adjust their invoicing procedures accordingly.

Preparing Your Business for the Upcoming Schedule Re-compete

As government contractors prepare for the upcoming schedule re-compete under GSA Schedules, it's essential to understand what changes are on the horizon. With FY26 approaching, contractors should review and adjust their strategies to ensure compliance with new requirements.

The GSA has announced several updates aimed at improving efficiency, reducing costs, and increasing transparency in the procurement process. Contractors will need to be aware of these changes to remain competitive:

• Simplified Schedule Re-compete Process: The GSA is streamlining the re-compete process by introducing a new, more intuitive online application portal. This will reduce paperwork and make it easier for contractors to respond to solicitations.
• Increased Emphasis on Past Performance: Contractors should expect a greater focus on past performance metrics during the evaluation process. Ensure your company's online portfolio is up-to-date and highlights successful projects and client testimonials.
• Enhanced Security Requirements: The GSA has introduced new security requirements for contractors, including the use of multifactor authentication and encryption protocols. Review your company's security procedures to ensure compliance.

To prepare for these changes, take the following steps:

1. Review your company's online portfolio and update it with relevant information.
2. Ensure all personnel have multifactor authentication and encryption protocols in place.
3. Familiarize yourself with the new online application portal and schedule re-compete process.

By being aware of these updates and taking proactive steps, contractors can position themselves for success in the upcoming schedule re-compete under GSA Schedules. Stay informed, adapt to change, and maintain a competitive edge in the government contracting market.

Recommended Tool

Gusto - Modern payroll, benefits, and HR platform for small businesses. Automate payroll, manage compliance, and take care of your team.

🔗 Try Gusto Today

Category: HR & Payroll

---

Here's a strong conclusion for the blog post:

"In conclusion, as we enter FY26, GSA schedule holders must be aware of the significant changes to contract terms and conditions. Key takeaways include revised pricing, updated audit procedures, and new small business set-asides. By understanding these updates, contractors can adapt their strategies to maximize opportunities while minimizing risk. Our comprehensive overview has provided you with a clear roadmap for navigating these changes. As we look ahead, it's essential to ask: Are you prepared to capitalize on the growth potential offered by the updated GSA schedules? Don't miss this opportunity – review your contract terms and conditions, update your pricing strategies, and position yourself for success in FY26."