MAIL BAG: CAN A PRIME BUY FROM MY SCHEDULE CONTRACT?

Alert reader Richard Feder of Fort Lee, New Jersey writes:  “We sometimes work with a large systems integrator that insists they can buy from our GSA Schedule contract if they send us a letter on their letterhead authorizing it.  Is this accurate?”  Well, Mr. Feder, your systems integrator partner is half right.  Federal prime contractors can buy from you if they have a letter on government letterhead that authorizes them to buy from your Schedule as part of their fulfillment of their own government contract.  Commonly known as a “FAR 51” letter, it allows, but does not mandate, you to sell to another prime contractor under such circumstances.  Your firm would treat this sale like any other federal Schedule transaction, including paying the Schedules IFF on it.  Failure to obtain a proper letter, on government letterhead, may result in your company violating the terms of its Schedule contract.  If you choose to sell to primes in this manner, always have a letter and keep it in your file.