Information for Resellers
reseller n. 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.”
Resellers are encouraged to participate in the VA Schedules program. Generally, we recommend that you have at least 2 years of business experience and $150,000 in commercial sales (this is not a requirement, but does help us determine the capabilities of your business). Often, resellers have “insignificant sales” for the products or services they are offering to the Government. A determination of insignificant sales is made on a case by case basis and is dependent on the individual vendor's circumstances and commercial selling practices.
Determination of Significant Sales
Considerations of “significant sales” may include:
- Number and dollar value of commercial contracts or agreements
- Manufacturer restrictions on the reseller’s selling capacity
- Percentage of state & local government sales as compared to commercial sales
- Percentage of previous federal Government sales as compared to commercial sales
- Any other indications that your firm focuses on marketing to the Government
If your assigned CO determines that you are a reseller with insignificant sales you may be required to provide additional information to support your proposal, including:
- Manufacturer price: The price you receive from each manufacturer for the offered products. This should be compared against your proposed Government pricing and included in the price proposal format provided in the solicitation or RFM.
- Manufacturer commercial discounts: The discounts the manufacturer offers to its commercial customers (i.e. quantity discounts, annual rebates, prompt payment discounts, credit card acceptance, and any other incentive program criteria).
- Manufacturer CSP data: The manufacturer’s CSP information as required by the solicitation or RFM.
- Manufacturer sales records: Prior to submitting your proposal, you must obtain written authorization from the offered manufacturer(s) for Government access to the manufacturer’s sales records. The Government reserves the right to access this information at any time before award or processing of a modification and will be used to verify the information submitted.
This required information allows the Government to make a determination of fair & reasonable pricing. We recommend that you advise your manufacturer(s) of this requirement so as to expedite the review and award process.
Work with your assigned CO to determine what, if any, of this information is required. Refer to CSP–1 paragraph 5 for more information about the requirement to provide manufacturer information.
I–FSS–644 Dealers and Suppliers
- Letter of supply from the manufacturer that ensures you will have a source of supply sufficient to satisfy the Government’s requirement for the contract period.
The sample letter identifies the required components that must be in the letter of supply as well as other recommended language and formatting.
- Evidence that you will have an uninterrupted source of supply from which to satisfy the Government’s requirements for the contract period.
All resellers are required to submit a letter of supply for each offered manufacturer.