Entering into business with the U.S. Government provides companies, including those in the automotive industry, with the opportunity to expand their business base, with tremendous potential. Even with ongoing budget cuts, the U.S. Government continues to spend a significant amount of money each year procuring goods and services. In fact, federal procurement spending on goods and services through contracts and grants exceeded $500 billion in fiscal year 2016. Moreover, the U.S. Government procures a wide variety of goods and services from contractors, ranging from typical government purchases such as weapons and aircraft, to what may be considered atypical purchases, such as advertising, consulting, and construction services as well as mundane goods, such as office supplies, clothing and food.

The concerns of companies who are wary of entering into the government marketplace, however, are well-founded. Government-unique auditing and accounting requirements, specifications and standards, and other requirements have dissuaded many commercial contractors from selling their goods and services to the federal government. What many commercial companies do not realize, however, is that due to acquisition reform in the 1990’s and the concept of commercial item contracting, the government can procure commercial supplies and services from contractors on terms and conditions that are very similar to commercial contracts, and the government’s definition of a commercial item is very broad.