GSA SCHEDULE DISCLOSURES: WHAT PART OF “ALL” IS SO HARD TO UNDERSTAND?

We thought the answers to what a company  has to disclose in terms of commercial sales when obtaining a GSA Schedule contract, modification, or extension were well understood.  Judging by recent questions, however, perhaps we should not have so assumed.  To be clear, when submitting a new offer or extension package to GSA, ALL commercial sales practices need to be disclosed.  That means “All”.  Selling to a prime contractor that is, in turn, selling to the feds?  That is what the government terms a “commercial sale”.  Unless you have a letter on government letterhead, signed by a CO, giving that prime permission to buy from Schedule contractors in support of its own contract, that sale is “commercial”.  Giving a deep discount to your brother-in-law’s company?  That, too, is a commercial sale that must be disclosed.  It can be disclosed as a non-standard discount, but GSA does want to know about it.  Failure to make full, accurate, current and complete disclosures when obtaining, extending, or modifying a GSA Schedule contract can cost your firm millions.  Two companies settled a defective data case this summer for a total of $75 million.  That does not include the millions paid to attorneys, forensic accountants or expert witnesses.  When in doubt, disclose and explain. Think no one will know if your company gets fined?  While you can negotiate the size of the fine, the multiplier, and other factors, DOJ WILL NOT negotiate away the press release that comes with each and every settlement.