🇦🇺Australia

GSA Contract Non-Compliance Fines

2 verified sources

Definition

GSA mandates minimum USD 25,000 (approx. AUD 37,500) in annual government sales to maintain contracts; failure results in termination. TAA non-compliance from poor supply chain documentation triggers fines, debarment, and lost revenue opportunities for Australian exporters.

Key Findings

  • Financial Impact: AUD 37,500 minimum annual sales threshold loss per contract; plus fines and debarment costs[2][3]
  • Frequency: Annual sales check; quarterly IFF reporting (0.75% of sales)
  • Root Cause: Manual supply chain verification, inadequate origin documentation, delayed sales reporting

Why This Matters

The Pitch: Office furniture manufacturers in Australia 🇦🇺 targeting US GSA contracts waste AUD 25,000+ annually on lost sales eligibility or face contract termination. Automation of origin tracking and sales reporting eliminates this risk.

Affected Stakeholders

Compliance Manager, Supply Chain Director, Export Sales Lead

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

TAA Supply Chain Bottlenecks

AUD 40-80 hours/month manual compliance work; equivalent to AUD 5,000-10,000 lost productivity per team[1][4]

Pricing & Reporting Errors

0.75% IFF on all sales (e.g., AUD 7,500 on AUD 1M sales); penalties for late/inaccurate reports[2]

BIFMA Certification Tracking Costs

AUD 10,000-50,000 per certification cycle (testing, audits, consultants); 20-40 hours/month manual tracking

Certification Process Delays

AUD 5,000-20,000 per delayed cycle (lost production days at AUD 1,000/day); 4-12 weeks process time

Lost Sales from Certification Gaps

2-5% annual revenue loss (AUD 50,000+ for mid-size firm); missed deals due to certification expiry

BOM Errors Causing Cost Blowouts

AUD 20,000-100,000 per year in excess materials and delays for mid-sized manufacturers[1][5]

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