An earlier installment discussed the importance of revealing your discounting practices during contract negotiations with GSA, and the profit-eating dragon known as a Price Reduction Clause violation. The following five scenarios are far less menacing than a PRC violation, but they can be troublesome nonetheless.
- Offering products from Designated Countries listed in the Trade Agreement Act.
- Selling open market items as part of a GSA Schedule order without designating them as open market.
- Not accounting for and paying the Industrial Funding Fee correctly.
- Inadequate invoicing and contract administration procedures.
- Work performed and billed to the government that was not within the scope of the GSA contract.
Guard against these threats through the implementation of an effective audit system.
