What You Can and Can’t Do Under a GSA Contract

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What You Can and Can’t Do Under a GSA Contract

Winning a GSA contract is a big milestone. It signals to government buyers that your company has been vetted, your pricing reviewed, and your offerings cleared for purchase. But here’s where many first-time vendors get tripped up: a GSA contract doesn’t give you unlimited freedom.

There are clear rules about what you can—and can’t—do once you’re on schedule. Understanding these boundaries will keep your contract in good standing and your business positioned for growth.

What You Can Do Under a GSA Contract

  1. Sell Through GSA Commercial Platforms
    Once awarded, your products or services are listed on GSA Advantage! and other platforms where agencies shop. This makes it easier for buyers to find you without posting new solicitations.
  2. Offer Pre-Negotiated Pricing
    Your GSA rates are set during the contract award process. Agencies trust those prices because they’ve already been reviewed against your Most Favored Customer pricing.
  3. Compete for Task Orders
    Many agencies issue task orders under the GSA Schedule instead of full open competitions. Being “in the club” allows you to bid for these streamlined opportunities.
  4. Modify Your Offerings
    Need to add a new product, adjust pricing, or expand into a new GSA SIN number category? You can, but only by following GSA modification guidance and submitting the proper requests.
  5. Build Long-Term Relationships
    GSA contracts last up to 20 years (with renewals). That gives you a stable platform to grow your presence in the federal market.

What You Can’t Do Under a GSA Contract

  1. Charge Above Your Approved Rates
    Your GSA price list is binding. You can’t inflate pricing on an order-by-order basis. Doing so risks penalties or even cancellation.
  2. Ignore the “Most Favored Customer” Rule
    If you give a better discount to a commercial client than the government, you must disclose it. Otherwise, you risk violating the Most Favored Customer GSA requirements.
  3. Sell Anything Outside Your SINs
    Each contract is tied to specific GSA SINs. If you want to sell outside those categories, you must formally modify your contract.
  4. Skip Compliance Updates
    Annual reporting, sales tracking, and contract refreshes aren’t optional. Neglecting compliance can result in audits, suspensions, or worse.
  5. Transfer Without Approval
    If your company is acquired or merged, the contract doesn’t automatically move with you. Under Novation FAR rules, you must go through an official novation process with the government.

Why It Matters

The GSA system was built to create transparency and fairness. Agencies get consistent pricing, vendors get easier access, and taxpayers benefit from streamlined purchasing. But the trade-off is structure: your contract is both an opportunity and a responsibility.

The Role of Capitol 50

For vendors navigating these rules, working with a GSA contract consultant can make all the difference. Capitol 50 helps businesses understand contract boundaries, submit modifications, and stay compliant—so you can focus on growing your federal sales pipeline instead of worrying about paperwork.

Not sure if you’re managing your GSA contract correctly—or preparing to pursue one? Capitol 50 offers tailored services to guide you through the process:

Cap50 Success

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Book a free strategy call with a Capitol 50 expert.
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