QUESTION
Eric, For many of us shareholders, today 4/30/12 is a tough start to the week. I am referring to the low p.p.s. of wnbd. I was wondering if you were able to share any news on the G.S.A. front. Sincerely…
ANSWER
- We have come close to obtaining substantial tender awards twice, but were outbid at a lower price by an existing supplier of an older product. We could have matched that price, but did not know in advance what the others are delivering. As an active participant, we are now privy to more of that data, levelling the playing field.
- Prior to agencies gaining first-hand experience with a product, the GSA cannot vary the specification of tenders to accommodate a new entry whose properties are preferable, but not yet internalized into the specification process. In other words, a product that does not have some of the older harsher chemicals may lose the bid because of the assumption being made that the absence of the harsher ingredients will not deliver the required result.
- To address this Catch-22, we have in the meantime proposed a Blanket Purchase Agreement which would enable the GSA to accept all the metrics of our product on its own merits as something new, and to keep it in-stock in its own warehouses. This is being considered currently. This would break the log jam. Also, the fact that we have recently been awarded the USDA Biopreferred designation turns the tables in our favour. But this has just happened.
- As an alternative, the NEXEO launch would serve the same purpose. Despite this being reported to us in writing as likely to have happened by now, there was a delay on the other end for reasons unrelated to the product. Naturally we are endeavoring to learn the details of next steps. We have been pre-qualified in terms of the product itself and our eligibility to do business with NEXEO.
- In the meantime, we have individual testimonials from persons in appropriate agencies. Those persons would like their agencies to supply our product, but this has not yet been approved.
- Today the GSA did approve Winning Brands’ first GSA advertisement. It’s going into one of their leading publications, distributed to thousands of GSA personnel. Each ad needs prior approval. The date of this insertion has not been confirmed by the GSA because there is limited commercial space in each edition of the publication. The publication serves as a journal of various professional updates within the GSA organization and is widely read.
- While on the surface it may look like progress in this matter is slow, people who are familiar with government business know that its appeal comes not from the speed but rather the potential scale of the result. Eventually, when we are established in this setting and our products are widely known, then we too will benefit from being an “existing” supplier with all that this entails. This is why our initial vendor contract with the GSA is for 5 years, with several 5-year renewal periods. The government thinks “long term” in such relationships. The mere fact of having a GSA schedule listing is highly valuable for its potential. Far more vendors would like to have it than do have it – there is a waiting list for approvals.
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