If your company is the manufacturer of the products you sell, it’s fairly straightforward to propose those products with your GSA schedule offer, or to add them onto your current GSA Schedule via an Addition Modification. However, if you are a reseller and are offering products that you do not manufacture, then you will need a Letter of Supply. Getting a Letter of Supply completed as soon as possible is an important step in successfully acquiring or maintaining your GSA Schedule.
Depending on the structure of your organization and the products you are offering, obtaining a Letter of Supply can be a convoluted process. Here’s what you need to know about Letters of Supply and your GSA Schedule.
What is a GSA Letter of Supply?
A Letter of Supply is a GSA-created template that shows that the manufacturer has given your company permission to list its products on a GSA Schedule. It also ensures that the manufacturer will be able to supply the government with “sufficient quantities of the offered products” during the contract period in order to meet the federal government’s needs. It also covers several basic terms and conditions that are applicable to all products offered on a GSA Schedule. The Letter of Supply is a key part in certifying to the government that you have access to an uninterrupted, trustworthy supply of compliant products.
Where Do You Find a Letter of Supply?
You can find the Letter of Supply template in the Available Offerings and Requirements page on GSA’s website. Scroll down the page, select the “Templates to download, complete, and upload in eOffer (if applicable)” section to find all the templates. GSA updates their templates on a semi-regular basis in accordance with their refreshes, so it’s always a good idea to download the template from their website so you have the most up-to-date copy.
The content of the letter has been approved by GSA and while it is sufficient, manufacturers may attach additional verbiage in subsequent pages, provided the additional language does not contradict the statements made within the Letter of Supply. The template already details federal expectations, regulations, and other GSA terms pertaining to supplying products on the GSA Schedule.
Why Do You Need a Letter of Supply?
The Letter of Supply is a relatively simple document. Having one in place gives the reseller (you) authorization from the manufacturer to sell its products on the GSA Schedule. It will also provide an uninterrupted source of products over the duration of the contract period.
The Letter of Supply serves the following purposes:
- Gives explicit permission from the manufacturer to list its products on your GSA Schedule contract throughout its entire duration. There should be no expiration date on the letter.
- Certifies that all products and services that are offered on a GSA Schedule must be compliant with the Trade Agreements Act (TAA) and are compliant with federal restrictions on telecommunications and visual surveillance equipment.
- Ensures that the vendor and contract holder will notify GSA immediately upon discovery of any changes in the Country of Origin of supplied products.
- Identifies products with environmental attributes. Manufacturers must provide a copy of the environmental organization’s certification.
- Highlights additional restrictions pertaining to products that fall under the Information Technology Category and the Office Management Category.
The Letter of Supply should be signed and dated within the past year of your initial MAS offer, or product addition modification to reflect a current and active relationship between the manufacturer and the contractor.
When Do You Need a Letter of Supply?
Getting any GSA MAS offer approved by GSA if you're a reseller without a properly signed Letter of Supply will most likely be a fruitless venture. To secure a successful MAS offer or product addition modification process, a vendor must provide a Letter of Supply if they are not the supplier of the products they are selling.
It’s mandatory a Letter of Supply is completed and submitted with the modification package before adding new products or a new product line to an existing contract. Option extensions to extend the next period of your GSA Schedule contract also require a new letter from the manufacturer.
Exception to the Letter of Supply
GSA has launched the Verified Products Portal (VPP), a manufacturer and reseller facing portal that captures and houses important supplier information. Manufacturers can log into this portal and provide details about their products, including product images and supply chain attributes. They can also authorize and deauthorize products and resellers in real time, so if your manufacturer participates in the VPP and authorizes you as a reseller, you will not need a Letter of Supply. You will just need to upload a copy of your dashboard results to with your offer or modification package so GSA can confirm that you are authorized to sell the products you are proposing.
It's important to note that the VPP is a new system, so your manufacturer may not be a participant yet, and you'll want to confirm this before you decide whether you need a Letter of Supply or not. You can check which manufacturers are currently participating in the VPP by checking the Verified Products Portal Participating Dashboard.
Tips for Completing a GSA Letter of Supply
So, you have decided to move forward with drafting a GSA MAS offer or adding new products as a reseller to your GSA Schedule. One helpful tip is to get a ‘jump start’ on the Letter of Supply. One of the requirements of the letter is it must have the signature of a company official authorized to make the commitment. Both the reseller and manufacturer must sign it. Most often, when a contractor is ready to submit an offer or add new products to their contract, the turnaround time for award is crucial.
When you are ready to get started, you’ll need to consider a few factors that could potentially put a strain the time it takes to complete the Letter of Supply and stall the offer or modification process.
- Getting the Letter of Supply to the right person to sign
- Specific Letter of Supply requirements
- Clarifications
Getting the GSA Letter of Supply Signed by the Right People
Getting the Letter of Supply in the right hands can have its challenges. For example, if your Point of Contact for your manufacturer is not an authorized company official, then they cannot sign it. Additionally, getting the Letter of Supply to a busy executive or correct point of contact may take some additional time.
GSA Letter of Supply Requirements
There are a few requirements for a Letter of Supply to be valid. They include:
- The Letter of Supply must be signed by both the contractor and the manufacturer on official letterhead.
- The Letter of Supply must be dated within the past year.
- The Letter of Supply must not have an expiration date on it.
- You should have a Letter of Supply for each manufacturer added to the contract.
- If you are offering IT Products or Ink and Toner Products, you will need to indicate that on the Letter of Supply.
Allow time for Letter of Supply Clarifications
Allowing time for potential questions and clarifications should also be taken into consideration. Conveying terms and conditions of the Letter of Supply to an internal team, or providing additional clarifications to the manufacturer regarding language in the letter, could all extend the time it takes to get the Letter of Supply submitted and the award granted.
Do You Need Help with Your GSA Letter of Supply?
Letters of Supply can be a little confusing and many contractors choose to bring in a third-party consultant to further explain the GSA language and what it all means. As a GSA reseller ourselves, our consultants are perfectly positioned to assist you in obtaining a Letter of Supply or to offer our support in any other step in the proposal process.
For more government contracting resources, subscribe to our blog and newsletter for all the latest updates.
