Commercial Business Realities and Government Compliance Requirements


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Recently, there has been an increase in emphasis on commercial business practices, and changes in regulatory rules. The old government regulatory rules have changed, and there is need for new best practices.

Commercial businesses have to ensure compliance with new customization in method of pricing, accounting and invoicing, and data management. As a result of these changes, most commercial businesses have had to sell their products and services to the Federal Government. To comply with this, commercial business need to acquire the General Services Administration (GSA) Schedule Contract for best practices. This contract ensures that the Federal Government will continue to peruse and order specific commercial products and services. This provides commercial businesses guarantee of remaining in business.

It is an important best practice for commercial businesses going into business with the Federal Government, to ensure compliance with regulations and legislations governing the contract. The Federal Acquisition Regulation (FAR) and the non-FAR legalities must be respected as a best practice. Commercial businesses must be aware of the adverse effects of government businesses.

Furthermore, there are GSA Schedule Contract requirements which need compliance when commercial businesses are involved in both government and non-government businesses. This contract contains requirements for best practices that are required to keep a balance in the commercial-government business activities. As a best practice, contractors are bound by this contract to disclose important information which may affect the contract within 15days. Failure to ensure compliance with this requirement, and failure to self-disclose setbacks in performance requirements is an offense. If these are discovered by auditors, there will be noncompliance penalties and claims to bear. Therefore, commercial businesses in business with the government must issue a report on their compliance management.

Government Compliance Report Requirements

It is an important best practice to ensure compliance with the Government Compliance Report format to provide necessary information. There must be mention of the discounts issued during the contract period for best practices. The report must also contain information about the terms and conditions of distributors, resellers and end-user agreements. This information is important for determining the extent of compliance of commercial businesses with the GSA contract.

Furthermore, the report must provide information to assist in identifying the categories of customers during the disclosure and negotiation process. This is an important best practice which helps in tracking the government’s discount relationship during the period of the contract. An increase in the amount of discount arrangement for customers leads to reduction in the prices. Therefore, it is important to ensure compliance with reporting requirements.

It is important to emphasize that, commercial businesses and government businesses must ensure compliance with GSA contract requirements.

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