Office of Acquisition and Logistics — Federal Supply Schedule (FSS) Contracting
Resellers with Insignificant Commercial Sales
A reseller is defined as a company or individual that purchases commercial goods or services with the intention of reselling them rather than consuming or using them.
Our office often receives solicitation proposals and contract modifications from resellers with insignificant commercial sales. In addition to the standard Schedule solicitation and request for modification requirements, resellers with insignificant commercial sales must meet the following conditions:
Price Reasonableness
Reseller
To ensure price reasonableness, a reseller with insignificant commercial sales must provide:
- The price it receives from each manufacturer for the offered products; and
- The proposed Government pricing using the format provided in the solicitation or the RFM form.
Manufacturer
Additionally, the reseller must provide the following information for each offered manufacturer and for each item/SIN offered:
- Commercial pricing
- Additional discounts/concessions offered to the manufacturer’s commercial customers, including:
- Quantity Discounts
- Annual Rebates
- Prompt Payment Discounts
- Credit Card Acceptance (over $3,000)
- Incentive Program Proposal
- One copy of its current published (dated or otherwise identified) commercial descriptive catalog and/or pricelist from which discounts are offered
- CSP-1 Commercial Sales Practices Format, including estimated/projected annual commercial and government sales; and the information required in Figure 515.4-2
The MFC is the customer or class of customer that receive(s) the best discount and/or price agreement on a given item from a supplier, regardless of terms and conditions. The term includes any entity which does business with the supplier. In MAS contracting, the Government’s negotiation objectives are developed based on a comparison of the MFC arrangement. This is a required disclosure.
I-FSS-644 Dealers and Suppliers
Prior to contract award or processing of a modification, resellers must submit one of the following:
- A letter of supply from the manufacturer which will ensure the offeror a source of supply sufficient to satisfy the Government’s requirements for the contract period;
This sample letter of supply does not indicate a required format; however, it does include recommended language and outlines the components that must be included in the letter. - Evidence that the offeror will have an uninterrupted source of supply from which to satisfy the Government's requirements for the contract period.
Other Manufacturer Considerations
Prior to submitting a proposal, resellers must obtain written authorization from the offered manufacturer(s) for Government access to the manufacturer’s sales records. This information can be accessed at any time before award or processing of a modification and will be used to verify the information submitted.
This information is required to enable the Government to make a determination that the offered price is fair and reasonable.
To expedite the review and processing of offers and modifications, resellers should advise the manufacturer(s) of this requirement.
Refer to CSP-1 paragraph (5) for additional information.
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