Need Help? (888) 742-5060

In The News:

The Melville, NY-based distributor of metalworking and MRO supplies, MSC Industrial Direct Co. Inc., is facing an audit by the General Services Administration related to government sales and compliance with the Trade Agreements Act. According to an SEC filing of its quarterly results, "the U.S. Department of Justice has advised the company that GSA OIG's audit identified non-compliant sales and potential liability arising therefrom." MSC reported however that it does not anticipate its potential liability, if any, to have "any material adverse effect on the company's consolidated financial position, results of operations or liquidity."
And that's all we know. MSC is one of many companies that do business with the government, which has stringent rules covering country of origin and other product specifications of what it buys from government contractors. The government has in recent years stepped up its enforcement of its Trade Agreements Act, which prohibits the selling of any product made in certain countries (who have not signed onto certain trade agreements with the U.S.) to the U.S. government. The law is more complex than this, of course. Read from the MDM Archive, The Trade Agreements Act, and Federal Government Contract Compliance for more on this topic.
You can find the SEC filing from MSC here. Note that the filing includes just one paragraph under Legal Proceedings in the document."

© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>

MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Post a comment to this article

Partner Center