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  • letter of understanding

    An official action that may be issued in resolving SPA requests to reflect an agreement by all parties (Commerce, Agency, the supplier, and the customer). A Letter of Understanding is used to confirm production or shipping schedules that do not require modifications to other rated orders. It is not used to alter scheduling between rated orders, to authorize the use of priority ratings, to impose restrictions under the DPAS regulation, or to take other official actions.

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