What Is the Difference Between VA and GSA Contracts: Which One Should Small Businesses Choose

For many small businesses, entering the federal marketplace through a VA contract or a GSA contract can be a game-changing opportunity. Government contracts provide access to a reliable customer base with consistent purchasing power. Unlike private-sector clients, federal agencies operate with allocated budgets and long-term procurement needs, which can translate into stable revenue and growth potential for qualified vendors.

Choosing the right federal contract vehicle is one of the most important steps in this process. Each contract type comes with specific requirements, benefits, and challenges. Selecting the wrong one can lead to wasted time, resources, and missed opportunities. On the other hand, the right choice can open the door to ongoing federal sales and long-term success.

Among the most widely used federal contract vehicles are the General Services Administration (GSA) Schedule Contracts and the Department of Veterans Affairs (VA) Schedule Contracts. Both fall under the Federal Supply Schedule program and serve as streamlined pathways for agencies to purchase commercial products and services. While they share some similarities, their scope and focus differ in key ways.

To help companies navigate these choices, Price Reporter, a consulting firm founded in 2006, provides expertise in obtaining and managing federal contracts. With more than 1,000 clients served and deep experience in the GSA and VA landscape, the firm supports small businesses in building sustainable growth in the government marketplace.

This article explores the differences between GSA and VA Schedule Contracts and provides guidance to help small businesses decide which option best aligns with their offerings.

What Are GSA Schedule Contracts?

The General Services Administration (GSA) manages one of the most important federal procurement programs, known as the Multiple Award Schedule (MAS). This program provides government buyers with access to pre-negotiated contracts that make purchasing faster, more transparent, and more cost-effective. For small businesses, a GSA Schedule Contract can serve as a gateway to building strong relationships with federal customers.

GSA Schedule Contracts cover a wide range of industries. These include information technology, professional services, office management, facilities maintenance, logistics, transportation, scientific solutions, and security. The program is designed to ensure that nearly every federal agency can find the products and services it needs from approved vendors.

The structure of the MAS program is highly organized. It consists of 12 large categories that are divided into more than 80 subcategories and over 300 Special Item Numbers (SINs). Each SIN represents a specific group of products or services. This system helps contracting officers and businesses quickly identify the right fit for their needs.

To qualify for a GSA Schedule Contract, companies must typically meet certain eligibility requirements. In most cases, a business must have been operating for at least two years and be able to provide financial statements that demonstrate stability. There are programs designed to support younger businesses, but generally, the expectation is that a company shows sufficient past performance and the ability to fulfill government contracts responsibly.

What Are VA Schedule Contracts?

The Department of Veterans Affairs (VA) oversees a specialized branch of the Federal Supply Schedule program that focuses exclusively on healthcare. VA Schedule Contracts were created to streamline the process of purchasing medical products and services needed by VA hospitals, clinics, and other federal healthcare facilities. They ensure that federal buyers can access high-quality solutions quickly and consistently.

Unlike the broad scope of GSA Schedules, VA Schedule Contracts are narrowly focused on healthcare and related fields. They include pharmaceuticals, medical equipment, surgical instruments, dental supplies, laboratory testing, and other essential products and services used in patient care. This makes VA contracts particularly important for businesses in the medical and life sciences industries.

The VA contracting program is organized into nine separate schedules. Each schedule is divided into Special Item Numbers (SINs) that represent specific product or service categories. Some schedules contain only a handful of SINs, while others, such as those covering medical equipment, may include more than one hundred SINs. This structure allows for detailed categorization and precise alignment with the needs of federal healthcare providers.

Eligibility requirements for VA Schedule Contracts differ from those under the GSA program. Businesses are not required to demonstrate two years of operating history or submit corporate financial statements. However, they must be registered in the System for Award Management (SAM.gov) and have a valid Unique Entity Identifier (UEI). In addition, companies must be prepared to provide documentation that verifies compliance with healthcare standards, certifications, and product quality requirements.

Key Similarities Between GSA and VA Contracts

Although GSA and VA Schedule Contracts serve different purposes, they share several important features that make them valuable contracting vehicles for federal buyers and businesses alike:

• Part of the Federal Supply Schedule (FSS) program. Both contract types belong to the FSS framework, which was created to simplify government purchasing and leverage the buying power of federal agencies.
• Use of pre-negotiated pricing. Prices, terms, and conditions are established in advance. This reduces the need for lengthy negotiations and provides agencies with confidence in the fairness and consistency of contract terms.
• Streamlined procurement process. By eliminating many steps of traditional procurement, both contracts allow federal buyers to place orders more quickly and efficiently.
• Compliance with FAR Subpart 8.4. Both contract vehicles operate under the Federal Acquisition Regulation, ensuring transparency, accountability, and standardized procedures.
• Access for federal buyers. GSA Contracts are available to all federal agencies and, under programs such as cooperative purchasing or disaster recovery, to state and local governments as well. VA Schedules are primarily used by VA facilities but may also be accessed by authorized healthcare agencies, including the Department of Defense, HHS, the Indian Health Service, and the Bureau of Prisons.

Taken together, these similarities highlight why both GSA and VA Schedules are considered trusted procurement vehicles. They provide a reliable foundation for transactions, reduce administrative burdens, and give small businesses a clear pathway into the federal marketplace.

Key Differences Between GSA and VA Contracts

While GSA and VA Schedule Contracts share many features, there are also significant distinctions that small businesses need to consider. The table below highlights the most important differences.

These differences show that while GSA contracts open access to a wide federal market, VA contracts are specialized and more accessible to businesses focused on healthcare. Understanding these contrasts is key to determining which schedule aligns best with a company’s capabilities and goals.

Benefits of Each Contract for Small Businesses

Both GSA and VA Schedule Contracts create significant opportunities for small businesses, but the advantages differ depending on the type of contract.

Benefits of GSA Schedule Contracts:

• Wide federal market access. GSA contracts allow businesses to sell to nearly all federal agencies and, in some cases, to state and local governments. This makes the GSA Schedule one of the most versatile federal contracting vehicles.
• Digital tools for efficiency. Platforms such as eOffer, eMod, and GSA Advantage simplify proposal submission, contract management, and catalog updates. These systems reduce paperwork and provide vendors with greater visibility among government buyers.
• Optional Transactional Data Reporting (TDR). For select categories, TDR can ease reporting requirements by eliminating the need to disclose commercial sales practices, which helps small businesses stay compliant without excessive administrative effort.

Benefits of VA Schedule Contracts:

• Easier entry for new businesses. Unlike GSA, the VA does not require two years of operating history or corporate financial statements. This makes VA Schedules more accessible to startups and smaller healthcare vendors.
• Lower sales thresholds. Businesses only need to achieve $25,000 in sales within the first two years and maintain $25,000 annually afterward. This lower requirement reduces the pressure on companies that are just beginning to work with the federal market.
• Specialized healthcare market. VA contracts provide direct access to hospitals, clinics, and other healthcare facilities within the Department of Veterans Affairs. For businesses offering medical products and services, this creates a stable and focused customer base.

Taken together, these benefits show that GSA contracts offer broader opportunities across many industries, while VA contracts are particularly advantageous for small businesses in the healthcare sector.

Which Contract Should Small Businesses Choose?

The decision between a GSA Schedule Contract and a VA Schedule Contract depends largely on what a business offers and whom it wants to serve. Each option has a clear set of strengths that align with different goals.

When GSA is Better:

• Non-medical products and services. Companies that sell IT solutions, office supplies, security services, logistics support, or other non-healthcare offerings are better suited for the GSA Schedule.
• Targeting multiple agencies. Businesses that want access to a wide customer base across federal departments can benefit from the broad reach of GSA contracts.
• Prepared for compliance and sales requirements. Firms that are ready to handle higher sales thresholds and use digital tools for compliance will find the GSA environment rewarding.

When VA is Better:

• Medical and healthcare products and services. Vendors offering pharmaceuticals, medical equipment, dental supplies, or healthcare services are best aligned with the VA’s specialized schedules.
• Lower entry barriers for small businesses. Companies that are new to the federal market or do not have two years of operating history may find VA contracts easier to obtain.
• Direct access to VA healthcare facilities. Vendors that want to sell specifically to VA hospitals, clinics, and medical centers will find a direct path through VA contracts.

Ultimately, the right choice depends on aligning a company’s core offerings with the contract that best matches its target customers. Businesses that carefully evaluate their strengths and goals can use either contract vehicle as a foundation for long-term success in the federal marketplace.

Practical Tips for Success

Securing and managing a federal contract requires careful preparation and consistent attention to compliance. Small businesses that follow best practices can improve their chances of success and avoid common pitfalls.

• Research your NAICS codes. Correctly identifying the North American Industry Classification System (NAICS) codes that apply to your products or services is essential. This helps match your business with the right schedule and ensures that buyers can easily find you.
• Prepare documentation early. Federal contracting often requires extensive paperwork, including financial statements, certifications, and proof of insurance. Gathering these documents in advance reduces delays and makes the application process smoother.
• Plan for long lead times. GSA proposals are typically reviewed within 3 to 12 months, while VA proposals may take 12 to 24 months due to their specialized healthcare requirements. Setting realistic expectations helps businesses manage resources and stay focused during the wait.
• Stay compliant after award. Once a contract is granted, maintaining compliance is crucial. This includes regular sales reporting, catalog updates, and adherence to pricing and quality standards. Falling behind on compliance can jeopardize a contract.

Example Success Stories

An IT services firm used the GSA Schedule to expand its reach beyond a single agency and secured contracts with both the Department of Energy and the Environmental Protection Agency. Access to multiple agencies through the GSA program gave the company consistent revenue and long-term growth.

A pharmaceutical company specializing in rare treatments entered the federal market through a VA Schedule Contract. The lower sales thresholds and direct access to VA healthcare facilities allowed the business to establish strong partnerships with hospitals and clinics, ensuring steady demand for its products.

By combining preparation with compliance and strategic focus, small businesses can use GSA and VA Schedules as powerful tools to build credibility and achieve long-term success in the federal marketplace.

Conclusion

GSA and VA Schedule Contracts both provide valuable opportunities, but the right choice depends on what a company offers and where it wants to grow. GSA contracts open the door to a wide range of federal agencies and require strong compliance and sales capabilities. VA contracts are more specialized, providing healthcare businesses with direct access to VA hospitals and clinics. The key to success lies in aligning the contract vehicle with your industry, business model, and long-term goals.

Navigating the complexities of federal contracting can be challenging, which is why many companies turn to experts for guidance. Price Reporter, founded in 2006, has helped more than 1,000 businesses secure and manage GSA contracts by combining deep market knowledge with hands-on support. With years of experience and a client-focused approach, the Price Reporter team ensures that companies can confidently choose the right path, stay compliant, and grow in the federal marketplace.