Best Practices in Leasing Schedule 36
24
Federal Acquisition Service U.S. General Services Administration Best Practices in Leasing Schedule 36 Gary Haag, Ryan Mathews, Shannon Stanford Integrated Workplace Acquisition Center June 9, 2009
description
Best Practices in Leasing Schedule 36. Gary Haag, Ryan Mathews, Shannon Stanford Integrated Workplace Acquisition Center. June 9, 2009. Overview Office of Management and Budget (OMB) Guidelines Lease Types and Examples Time Periods and Funding Continuance of a Lease Monthly Payments - PowerPoint PPT Presentation
Transcript of Best Practices in Leasing Schedule 36
Federal Acquisition Service
U.S. General Services Administration
Best Practices in LeasingSchedule 36Best Practices in LeasingSchedule 36
Gary Haag, Ryan Mathews, Shannon StanfordIntegrated Workplace Acquisition Center Gary Haag, Ryan Mathews, Shannon StanfordIntegrated Workplace Acquisition Center
June 9, 2009June 9, 2009
2
Federal Acquisition Service
U.S. General Services Administration
Table of Contents
Overview Office of Management and
Budget (OMB) Guidelines Lease Types and Examples Time Periods and Funding Continuance of a Lease Monthly Payments Add-on Items Maintenance and Installation
Termination of Lease Uninterrupted Use Title Loss or Damage State and Local Taxes Dos & Don’ts The Lease Document
3
Federal Acquisition Service
U.S. General Services Administration
Overview
Schedule 36 Solicitation, Refresh #14 Leasing Terms Responsibilities of each party
Intent of the Lease
4
Federal Acquisition Service
U.S. General Services Administration
Office of Management and Budget (OMB) Guidelines
Customer Agency Requirements FAR 7.4 Equipment Lease or Purchase Anti-Deficiency Act
OMB Circular A11 – Preparation and Submission of Budget Estimates
OMB Circular A34 – Instructions on Budget Execution
5
Federal Acquisition Service
U.S. General Services Administration
Lease Types and Examples for Copiers and Equipment Lease-to-Ownership Plan (LTOP), Special Item Number (SIN) 51-
58 (Capital Lease) Sales for Fiscal Year (FY) 2008 = $48,318,942
Operating Lease Plan for Copiers, SIN 51-58a Sales for FY 2008 = $36,467,442
Operating Lease Plan for all other products under Schedule 36, SIN 51-58b Sales for FY 2008 = $70,573
Lease Alternative Rental
6
Federal Acquisition Service
U.S. General Services Administration
Lease-to-Ownership Plan (LTOP), Special Item Number (SIN) 51-58 (Capital Lease) Title Includes Installation and Training Does not include Maintenance and consumable supplies
SIN 51-57 – Maintenance Service Agreements (Copier) SIN 51-100 – (supplies)
Payment of LTOP Calculation Principal, Interest, Term
7
Federal Acquisition Service
U.S. General Services Administration
Operating Lease Plan for Copiers, SIN 51-58a Residual Value Payment of Operating Lease Calculation
Principal, Interest, Term
8
Federal Acquisition Service
U.S. General Services Administration
Time Periods and Funding
Varies per contractor Minimum 24 months or 2 years Maximum 60 months or 5 years
Annual All leases end on September 30th
Multi-year
9
Federal Acquisition Service
U.S. General Services Administration
Continuance of Lease
Lease with Annual Funding automatically terminates at end of Government Fiscal year
Written notification to contractor thirty (30) calendar days prior to the lease expiration
Intent to renew lease
10
Federal Acquisition Service
U.S. General Services Administration
Monthly Payments
Variables Principal: Negotiated purchase price Term: Length of lease Lease Factor: Interest rate applied to the principal
– Negotiated Residual Value
Payment chart never changes Operating Lease
Principal of Operating Lease = Principal – Residual Value LTOP Calculation
11
Federal Acquisition Service
U.S. General Services Administration
LTOP Calculation
Calculating the Monthly Payment for LTOP using Microsoft Excel
MONTHLY PAYMENT
Principal (purchase price) = $20,000
Term (in months) = 48
Lease factor (interest rate) = 9.50%
Monthly Lease Factor (Lease Factor/12) 0.79%
Monthly Payment = $502.46
=PMT(D9, D5, -D3)
12
Federal Acquisition Service
U.S. General Services Administration
Add-on Items
Modification of existing leased equipment Mutually agreed upon by the ordering agency and the
Contractor Payment of modification
Full price upon acceptance Coterminous with the original lease term
(Coterminous is defined as the addition of equipment and it shall terminate with the original/base equipment lease.)
Modification calculations for LTOP and Operating Lease
13
Federal Acquisition Service
U.S. General Services Administration
Lease Modification Calculations (add-ons)
Calculating the Modification Cost using Microsoft Excel
MODIFICATION
Principal (purchase price) = $1,000
Term (in months) = 19
Lease factor (interest rate) = 0.63%
Modification Cost = $55.98
=PMT(D7, D5, -D3)
14
Federal Acquisition Service
U.S. General Services Administration
Maintenance and Installation
SIN 51-57 – Maintenance Service Agreements (Copier)
SIN 51-100 – (supplies) Separate Line Item Maintenance and supplies are subject to the
Economic Price Adjustment (EPA) clause Maintenance coverage charges
15
Federal Acquisition Service
U.S. General Services Administration
Termination of Lease
When the customer can cancel their lease (without early termination ceiling charge) No longer have a bona-fide need
– Documentation Non-appropriation
When the customer can cancel their lease (will incur an early termination ceiling charge) Termination Ceiling Rate
16
Federal Acquisition Service
U.S. General Services Administration
Termination Ceiling Charge Calculation
Calculating the Termination Ceiling Charge using Microsoft Excel
TERMINATION CEILING CHARGE
Principal (purchase price) = $20,000
Term (in months) = 48
Lease factor (interest rate) = 9.50%
Monthly Lease Factor (Lease Factor/12) 0.79%
Termination Ceiling Charge = $502.46 =PMT(D9, D5, -D3)
17
Federal Acquisition Service
U.S. General Services Administration
Uninterrupted Use
Equipment will remain with customer until the expiration or early termination of lease Contractors continued obligation to the government
regardless of:– Assignment– Sale– Bankruptcy– Other transfer of the leased equipment
18
Federal Acquisition Service
U.S. General Services Administration
Title
Equipment remains property of the Contractor For LTOP
Title transfers from Contractor to Customer after final payment
19
Federal Acquisition Service
U.S. General Services Administration
Loss or Damage
Government is relieved from all risk of loss or damage, exceptions: When loss or damage is due to the fault or
negligence of the Government. Government assumes responsibility during
relocation of equipment.
20
Federal Acquisition Service
U.S. General Services Administration
State and Local Taxes
Federal, State and Local Taxes are not included in the contract price
Contractor shall state taxes separately on its invoices The Government will pay taxes unless they provide
evidence of exemption (FAR 52.229-1) State and Local Taxes; (FAR 52.229-3) Federal, State and Local Taxes
21
Federal Acquisition Service
U.S. General Services Administration
Dos & Don’ts
Do’s Provide documentation
reason for early termination
Include the termination ceiling charge on purchase order
Prepare for the continuance of the lease
Don’ts Cancel the lease to
exchange for a similar piece of equipment
Delay in obtaining the appropriation of funds
22
Federal Acquisition Service
U.S. General Services Administration
The Lease Document
Mandatory items to include: Cage Code Serial Number PO/Invoice/Delivery Order Term in plan Effective date LTOP or Operating Lease SIN
23
Federal Acquisition Service
U.S. General Services Administration
PO/Invoice/Delivery Order Sample
24
Federal Acquisition Service
U.S. General Services Administration
Contact Information
Gary Haag [email protected] (703) 605-2786
Ryan Mathews [email protected] (215) 446-5793
Shannon Stanford [email protected] (215) 446-5058
![THE SECOND SCHEDULE FIFTH SCHEDULE TO THE CUSTOMS …download1.fbr.gov.pk/Docs/2019629166146700SecondSheduletotheFinance... · 1 THE SECOND SCHEDULE [See section 3 (36 )] In the Customs](https://static.fdocuments.in/doc/165x107/5e1515ad9a31c52f1f701980/the-second-schedule-fifth-schedule-to-the-customs-1-the-second-schedule-see-section.jpg)
