Staying Compliant with GSA
Many GSA contractors believe that simply securing a GSA Schedule contract is the answer to quick profits. However, this could not be further from reality. Attaining a GSA Schedule is an important step, but only the first step to profitability in the government sector for commercial businesses. The government’s selection process plays a big role in the contracting process. Therefore, it becomes the responsibility of GSA contractors to properly market their products and/or services to the government and remain compliant with the requirements of the General Services Administration (GSA).
One of the main issues with selling to government agencies is remaining compliant. GSA has multiple scrutinizing compliance requirements that can easily result in hefty penalties, fines, and worst of all, a loss of business if contractors do not abide by them. These requirements are extensive and can easily be violated; As a result, many contractors have found remaining compliant to be one of the most challenging long term issues for GSA contractors.
For example, a common GSA compliance issue is simply not following the terms and conditions for the GSA Schedule program. The terms and conditions vary depending on your commercial business, and involve many topics such as minimum order threshold, delivery costs and schedule, labor qualifications, and subcontracting restrictions. These common issues are often not accurately represented and GSA contractors do not properly teach and discuss the difference to their employees.
Businesses can reduce these errors by conducting corporate wide training on GSA pricing. GSA Contractors should also distribute any self-audit proposals and invoices along with any additional materials for reference. Understanding the key differences in the terms and conditions and how they apply to your business is also crucial for your company’s success.
Due to the numerous amounts of GSA contracts and increases in competition, the GSA has recently been shrinking the number of active GSA contracts by cracking down on compliance errors. Many GSA contractors are concerned about the penalties and are trying to avoid the horror of compliance repercussions.
Although contract Terms and Conditions is one of the biggest compliance issues in GSA contracting, there are many other common compliance risks that GSA contractors must beware of. In response to the building anxiety and growing concerns, a complimentary webinar was hosted this past Halloween to address these compliance issues and provide solutions to avoiding penalization from the GSA.