Financing Service, Equipment: Special Instructions
Prior Approval
Prior approval of the Vice Chancellor of Informational and Instructional Technology must be acquired to use this contract.Utilization Procedures
The master agreement established as a result of this contract will be used to procure equipment required primarily by the various units of the University System of Georgia, including the Office of Information & Instructional Technology, from selected suppliers on an installment purchase basis by use of the Standard Agency Agreement. The individual installment purchase contracts will be for varying lengths of time, i.e., 12, 24, 36, or 60 months. The interest rate that will be used to calculate the amortization schedule will be fixed at the time of execution of each individual installment purchase contract by the method describe in section 3 of the instructions.The supplier(s) of the equipment selected by the Board or the applicable Institution by means of competitive bid or by use of statewide contracts will be notified by the issuance of a Purchase Order by the DOAS State Purchasing Division or Field Purchase Order issued by the BOR or the BOR Institution denoting the identity of the financing contractor and requested to invoice the financing contractor for the equipment by providing a detailed listing of the equipment and associated costs. The invoice will be exclusive of sales tax since the State of Georgia as the end purchaser of the equipment is exempt from sales and use tax. A copy of the Purchase Order issued by the DOAS or Field Purchase Order issued by the BOR or the BOR Institution will be sent to financing contractor. Upon receipt and acceptance of the equipment, the financing contractor will be notified in writing and authorized to pay the invoice. The financing contractor will then sell the equipment to the Board by means of a signed Standard Agency Agreement, with an appropriate amortization schedule showing the principal amount financed, the interest rate and showing for each equal monthly payment (1) the payment due date, (2) the total monthly payment, (3) the principal amount, (4) the interest, and (5) the outstanding principal balance.
Execution of the Standard Agency Agreement will be by issuance of Purchase Order by the DOAS State Purchasing Division or Field Purchase Order issued by the Institution to the financing contractor referencing the appropriate master financing agreement and detailing the equipment and all associated costs to be acquired.
Interest Rate
The interest rate or rates are as specified on Appendix B expressed as a percent of the H.15 Treasury Constant Maturities Nominal 10 Weekly Average (currently column 6) as reported by the U.S. Federal Reserve plus applicable spread. The H.15 Treasury Constant Maturities Nominal 10 Weekly Average Yields are currently located at http://www.federalreserve.gov/releases/h15/Current/ .Rates will float throughout the life of this contract based upon the most current weekly average yields except that once equipment is financed within the Firm Rate Period below, the interest rate will then be fixed for the term of that equipment financing contract release.
Firm Rate Period
Institutions in need of the financing services covered by this RFQ shall contact the financing services contractor for an interest rate quotation based upon the methodology described in section 3 of these Specifications and Appendix B. The quoted interest rate shall remain firm for acceptance by the institution for a period of thirty (30) days.Contract Term
The term of the master agreement(s) will be for one (1) year after the date of execution with four (4) options to renew for one (1) year each under the same terms and conditions. The term of any Standard Agency Agreement executed in accordance with the master agreement(s) will be governed by the terms and conditions of that Standard Agency Agreement.Minimum Dollar Value
The BOR does not intend to use the master agreement(s) to purchase equipment costing less than $25,000.Payments
All payments shall be in equal amounts. There shall be no penalties for prepayment of any installment sale agreement covered by this contract.Equipment Installation
The installation of any equipment acquired under the master purchase agreement(s) will be accomplished by the supplier of the equipment.Equipment Maintenance
Maintenance on installed equipment will be covered by a separate contract and is not considered as a part of this quote.Insurance
The State of Georgia is self-insured and will carry the necessary insurance on the equipment purchased through this agreement.Documents
The Board nor any Institution will not grant any lien on or security interest in any equipment acquired pursuant to a Standard Agency Agreement, nor will it execute any of the following documents:- Opinion of Counsel
- Certificate of Incumbency
- UCC-l
Use of the Equipment
All equipment acquired under a Standard Agency Agreement will be utilized by an agency of the State of Georgia.Tax Exempt Status
The Board and its Institutions, as agencies of the State of Georgia, are exempt from the payment of most taxes. The institution is authorized to sign IRS Form 8038-G.