[MUSIC] Hello everyone, welcome back. Today we're going to talk about the GSA MAS contract or some addition, additional information about the VA Veteran Affair Contract Registration, how we can register this contract, how to manage it. So let's have a look at first, what is the condition as I said earlier on GSA mess contract, it's like phishing license right so therefore Pre-qualification process a lot of companies are interested in applying for this one but only a limited number of the company qualified to the divisions or demonstrate the technical capability are considered and accepted, okay? So let's have a look at it. Any company coins through GSA Schedule Contract they must have at least a company must established two years. So for startup company, brand new company are not eligible. And also last year, your revenue has to be the minimum $200,000 so you got to have at least $200,000 of the revenue maintained. So is either you are a startup company, or you got a very small revenue less than $200,000. They basically will kick you out of the process. You're not even, invited to submit your application. And then key requirement as I mentioned number time before all of the GSA potential contract they must submit the country they are representing the mastery signature country for Trade Agreement Act. For that sense, Korea is well in this legal framework you can do that. Like as the example that I shared with you last time, the Korean company they manufacture office equipment, in a factory in China. And brought that product into Korea, create a little bit of a value and ship it out to the State. They could not produce a certificate of origin. Therefore, the country had the issue of non-compliance. The contract was basically cancelled had to resupply all the goods again. So these are instance that happened because of the TAA compliance issue. So a country does not have a TAA legal framework of status simply cannot be part of doing business of China unfortunately cannot participate. Any company I would say from the China cannot participate it directly the prime contract can do this business. The process of the testing eligibility of the GSA mass contract is rather complicated. At least we have a like three different steps of preparation and his main activity, have a look at it. Let's have a look at it, even though GSA MAS has now the modification since November 2009, all of the detailed schedule component of GSA MAS contract now merge as one huge mega contract. So you can put all different items under one schedule that the one benefit in there. However, the process, a specific procedure how you go through eligibility and the proposal submission are not that much different. So let's have a look at it. Maybe you can divide into three different stages. Stage 1 is eligibility determination that mean whether you have relevant legal qualification first. As I said, you got to have at least a two years old operation history and you got to meet the minimum or $200,000 revenue in that period. Otherwise, you'll be basically disqualified from the beginning, having qualified at least the legal qualification and then you can talk about eligibility determination whether you are eligible. Because USA government, Does not want to see that anybody trying to sell the product in GSA MAS contract without the selling anybody else. So let's put this one different perspective. Let's say one company in Korea we produce this company in regions of manufacturing computer screen for medical use, okay? So this is the new product this medical screen is not just a medical screen had some awesome AI function AI Artificial Intelligence component built in there. So this screen can attach in the hospital so the patient, I can get a lot more information through the voice activation instead of attaching real product something like this exist in this day right? So instead of the, use your controller, you can use your voice to activate the different option. You can command the TV monitor to show you, Google or YouTube, whatever the case might be. So this is like a brand new different product in the market. So if you want to try to sell this particular monitor for the medical or hospital through GSA MAS problem, you're going to have two problems number one, any electronic devices interact in the hospital, okay in the hospital, they may require to have FDA okay? The Federal Drug Administration may not be. So if that is not the case, the second you have to show US government this product is already been sold. In other word, you got to have a past performance they don't want to use something that nobody used before. Whether you sell it to Korean government or the commercial shell, as long as you can prove with invoice, your export record or any commercial invoice you validate with true and factories and correct information. They don't mind to check it out and no problem but If this product eventually never sold, not a single piece in the market, you're trying to sell it to US government, they are not going to buy from you. That's common sense prevail, right? So therefore, before you do anything in there, you have to check whether your product Already has some at least bare minimum past performance in terms of how many customer with you sell. Well if you have past performance selling similar product to other customer in the US government, that's the best reference you can use it or at least maybe Korean company or Korean government, any other country export will be able to use it for. So once you can do that, and then final thing what you have to consider, they have a one very unique proposition when they evaluate the application because they want to buy best price. Remember the term that I use the best value for money. So fish value for money this is exactly what US government want. So if you have this monitor, for example, sold to one customer in Malaysia, for example $1,000 per unit, and then you sold the the same system to one customer in the United States, California $900. And then you sold another unit system to Saudi Arabia. Kingdom of Saudi Arabia for $1,100. So you have the three different prices but prices are to us, California is 900, the cheapest, the most competitive pricing. So what you have to do what they demand, they will ask you come out with the most preferred pricing structure. So you got to have a pricing the attract to the government. So US government based you want to buy the cheapest the most competitive price you ever saw. So if you download the 900 your customer in California, your pricing to GSA MAS has to be lower lower than your best surprise to California, so that's something that you have to have. So after having all this information ready and available and then you can start to put your paperwork together. So paperwork preparation is rather tedious and very repetitive work or take a lot of our fill out all the forms and fill out all of the information for the pricing. A scheduled for the technical specifications so this will take some time, prepare. So after you prepare all eligibility determination and then you can go into stage two of proposal submission. So, provided that you have all of the legal eligibility done in terms of the two years of company establishment of the more than $200,000 revenue generated and then you have all other basic information confirm your past performance. Technical certificate all other information ready and then you submit the proposal to the government. So when we create a proposal of flat form and then you submit to the government and then the government basically assigned a contracting officer, they start with pricing negotiation. When they have everything done and then they will issue a contract that mean, contract mean they will issue a phishing license with that phishing license and you can start going out phishing and with your time your effort you can convince the customer. But there is a criteria where In order to get you to move your product and services more aggressively, GSA will ask you to keep your sale, at least $25,000. Okay, for the following year. So that's the very important of the entire process. For many Korean company in my experience giving up in half way and because they giving up the paperwork too complicated and the information they ask for too sensitive, and especially with the US government being a customer any customer from any supplier for oversea you really have to included all shipping costs. I guess this is very important element for the those who want to get in this business. Logistic costs should be part of pricing so under the intercom, international commerce, the terms and condition provision. A DAP, delivery at place is basic term or we call it FOB destination. So then the US, customer, our GSA expected supplier to include all the associated costs of delivering a particular goal to the location of a customer all inclusive. So if you're pricing it with a $1,000, so even $1,000 you have to include everything else. So there is no incidence where US government agents, it's called to the poor to clear the custom. You don't do that. So it does entirely on the supplier side of the duty that you have to do it. So wrap up with what we said about the GSM MAS contract. It's very attractive contract but he something that need the special effort and need to put a lot of time in there and the best prepare by hiring or having consultation from professional organization expert for GSA MAS. VA schedule has not changed at this stage. It should remain the same as before. VA anything to the VA registration and schedule for medical devices and medical equipment, one thing is very clear. You must have US FDA. Otherwise you have no way to sell it the product in the United States whether you have a US FDA class one or two or three, you've got to have the US FDA approval for that matter. So overall, GSA and VA we have a look at it. I hope you understand a lot more clearly what they mean by the phishing license and also what they mean by the coin that actually make it happen and build revenue for your company.