The 2020 Mid-Year Economic Update_long

Selling to the World’s Largest Customer

According to our recent report on federal contract compliance by attorneys Andrew Mohr and C. Kelly Kroll, government agencies are growing more aggressive about auditing contracts with suppliers. The government, after all, is the "world's largest customer," buying some $350-plus billion in commercial goods and services each year. Many distributors are eager to get a piece of the pie.
 
But the federal government leverages this buying power by including in its contracts numerous laws and regulations that typically won't be found in traditional commercial contracts. Some rules are intended to protect workers, some aim to promote contracting for small and minority businesses, and still others promote ...

According to our recent report on federal contract compliance by attorneys Andrew Mohr and C. Kelly Kroll, government agencies are growing more aggressive about auditing contracts with suppliers. The government, after all, is the “world’s largest customer,” buying some $350-plus billion in commercial goods and services each year. Many distributors are eager to get a piece of the pie.
 
But the federal government leverages this buying power by including in its contracts numerous laws and regulations that typically won’t be found in traditional commercial contracts. Some rules are intended to protect workers, some aim to promote contracting for small and minority businesses, and still others promote the purchase of American-made products.
 
The subject has come up due to the news that facilities maintenance distributor Grainger has been accused of not complying with stipulations laid out in its contracts with the government. (Read article.)
 
Mohr and Kroll say that distributors that sell to the government must reexamine the systems they have in place to ensure they are in full compliance with obligations under contracts. They say the process requires analysis, organization and discipline, and a management that demands employees take compliance obligations seriously.
 
What has been your experience in selling to the government?

Federal Government Contract Compliance

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.