If a company wants to procure a GSA Schedule Contract, but does not manufacture that goods it sells a Letter of Supply (LOS) becomes a requirement. GSA uses the term Letter of Commitment interchangeably with LOS.
THE LETTER OF SUPPLY GENERALLY CONFIRMS:
That the supplier/manufacturer providing product to the GSA contract holders authorizes the product to be listed on the GSA schedule.
The supplier/manufacturer is committing to provide a continuous supply for the duration of the GSA Contract in quantities that would meet the federal government’s requirements.
The Letter of Supply also requires that the provider of the goods is in compliance with TAA (Trade Agreement Act), meaning the goods must come from countries on a pre-approved list.
Price reductions will be relayed to the contractor in a timely manner so that the GSA Schedule Pricelist can be updated.
If the vendor to the GSA Schedule Holder is a reseller or dealer of a product there will be a secondary level of Letter of Supply directly from the manufacturer.
THE LETTER OF SUPPLY SHOULD:
Have the original signature of an authorized representative of the firm meaning someone that can commit the company. The letter also should be printed on the original letterhead of the manufacturer.
IS A LETTER OF SUPPLY MANDATORY?
This question is very common and quite often asked as the regulations don’t specifically spell out the need for a Letter of Supply. Technically the requirement calls for the firm to prove the firm has a reliable and committed supply source that is acceptable to the GSA. However the only way we have experienced this requirement being met by a GSA applicant is through the use of a Letter of Supply.