24SC-353 Municipal Lease Purchase Agreement

Agency:	New Castle County
State:	Delaware
Type of Government:	State & Local
Category:	X - Lease or Rental of Facilities
Posted:	Oct 5, 2023
Due:	Nov 1, 2023
Solicitation No:	24SC-353 Municipal Lease Purchase Agreement
Publication URL:	To access bid details, please log in.

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New Castle County

Purchasing Division

87 Reads Way

New Castle, DE 19720

(302) 395-5250

Bid# 24SC-353

Municipal Lease Purchase Agreement

New Castle County is seeking competitive sealed priced proposals for Bid 24S-353 Municipal

Lease Purchase Agreement seeking a responsible vendor to provide both vehicle and

equipment lease finance options and solutions for new capital purchases for New Castle

County.

Interested parties are asked to submit a priced proposal to New Castle County Purchasing

Division, New Castle County Government Center, 87 Reads Way, New Castle, DE 19720, stating

their interest and qualifications. Proposals must be received by 2pm on November 1st, 2023,

and must include and must include one (1) signed original printed and two (2) hard copies and an

electronic copy on a USB Flash Drive within a sealed envelope.

Questions concerning the project should be submitted in writing via email to Robin Allen

Procurement Agent, at robin.allen@newcastlede.gov by end of day October 19th, 2023

INSTRUCTIONS FOR PROPOSAL SUBMISSION

➢ Sealed proposal envelopes must clearly display 24SC-345 Municipal Lease Purchase

Agreement in the lower left quadrant on the front.

➢ Facsimile transmissions of proposals are unacceptable and will be rejected without any

notice to the bidding vendor.

➢ Bidders are responsible to retrieve the bid specifications and all addendums from the

New Castle County Purchasing website at www.newcastlede.gov/Bids.aspx.

➢ Proposals shall be no more than 30 pages in length excluding Procurement forms

(Signature Page and Affidavit).

Pursuant to New Castle County Code and Delaware Law, each bidder must submit proof

satisfactory to the County or its designated representative that the bidder and every

subcontractor possesses valid and effective licenses required by the United States, State of

Delaware, County and any applicable political subdivision in which the project is located to do

business within each such jurisdiction and to perform the labor and/or supply the materials

involved in the performance of the contract. No contract will be executed prior to the

submission of such proof and the acceptance thereof by the County or its designated

representative.

Awards, if any, will be made in conjunction with the Delaware Code, Subchapter 2, Chapter 69,

Title 29, and the New Castle County Code.

10/6/23

Bid# 24SC-353

Page 1 of 16

New Castle County

Purchasing Division

87 Reads Way

New Castle, DE 19720

(302) 395-5250

Bid# 24SC-353

Municipal Lease Purchase Agreement

SUMMARY OF PURCHASING REQUEST

BACKGROUND

New Castle County is seeking a responsible vendor to provide both vehicle and equipment lease

finance options and solutions for new capital purchases the County shall be making beginning

January 1st, 2024. Although there is no guarantee as to the amount of new vehicle or

equipment purchases, New Castle County shall be making in the near-term capital purchases

that will require finance arrangements involving lease agreements. Purchase Orders in the

range of $4MM to $7MM to cover lease obligations have been issued in each of the last three

fiscal. Based on this, the vendor will be required to extend New Castle County a credit limit at a

minimum of approximately $15 million dollars, based on expected future capital purchases.

This considers the expected lead times of such acquisitions.

Part 1 –PRICING

Interest rates offered will be fixed for the life of the individual lease tranches but will not

exceed 120% of the average useful life of the underlying good(s) securing the lease. Vendors

are encouraged to select like-term U.S. Government Securities as published in the H.15

Federal Reserve Statistical Release (FRSR).

https://www.federalreserve.gov/releases/H15/#1

Vendors will be allowed to submit offers using alternative sources for interest rates. If a

Vendor should select an alternative index other than a tracked Security Index, the Vendor

will clearly identify the index selected, specify applicability of the index, provide a public and

easily accessible website where the index can be tracked, and be prepared to explain the

liquid nature of the index selected.

As part of your proposal, provide an example of a calculated lease payment for a capital

purchase of $100,000 and provide the interest rate to be utilized based on the index to be

used as of September 29th, 2023

Part 2 – AMOUNTS AND TERMS

The minimum amount to be financed on any transaction under this agreement will be

$5,000.00, (as per Government Accounting Standards Board (GASB) Statement 34 governing

capital acquisitions).

10/6/23

Bid# 24SC-353

Page 2 of 16

New Castle County

Purchasing Division

87 Reads Way

New Castle, DE 19720

(302) 395-5250

Bid# 24SC-353

Municipal Lease Purchase Agreement

New Castle County will have the ability to choose fixed lease payments on a monthly, quarterly,

or semi-annual basis at the time of a financing request. The rate for each lease will be

established as referenced above in Part 1 and fixed for the term at the time of approval and

commitment by the lessor.

Individual leases will be executed by the appropriate designee authorized by New Castle

County. Lease payments are conditioned on annual appropriation and will be secured solely by

the leased property (i.e., vehicle or equipment).

If reserve funding is required by the leasing organization (i.e., escrow), this must be denoted as

part of the vendors’ proposal and should not have any negative impact regarding New Castle

County’s credit limit.

Requests by New Castle County for a payoff balance of the principal or any portion of the

principal must be provided by the Awarded Vendor in five business days or less. The amount

shall be valid for 15 days. Upon receipt of a warrant for payment, the Awarded Vendor shall

immediately release the lien on the equipment or property, provide the title or a letter

indicating the equipment or property is released, in five business days or less.

Turnaround time for payoff information due to vehicle/equipment loss or any change in the

amortization schedule for such leases, shall be communicated in fifteen business days or less.

Lease payment schedules shall be calculated to include either:

1) A $1.00 (one dollar) buy-out concurrent with the last lease payment, or:

2) Ownership will immediately transfer to the lease upon final payment within the lease

schedule.

The Lessor may not assign its obligation for any lease covered by this contract unless the Lessor

receives the express consent of New Castle County.

Lessors may not assign New Castle County leases to foreign governments, foreign entities or

allow assignments to be held in a foreign country.

All obligations, costs and responsibilities associated with ownership of the equipment will be

borne by the Lessee including insurance, maintenance, and applicable taxes.

10/6/23

Bid# 24SC-353

Page 3 of 16

New Castle County

Purchasing Division

87 Reads Way

New Castle, DE 19720

(302) 395-5250

Bid# 24SC-353

Municipal Lease Purchase Agreement

All fees or expenses of the Awarded Vendor(s) are to be included within the interest rate

quoted.

If the selected firm is not the current lessor, it is understood that the new firm will not be

required to buy out the current leases on record with New Castle County. Any leases that are in

the process of being obtained from the date of award through the date contract begins will be

reviewed to determine in the best interest of New Castle County whom the asset should be

financed through.

Part 3 – OPINIONS OF COUNSEL

New Castle County shall be required to have their legal counsel review all lease documents,

and have counsel provide an “Opinion of Counsel” letter which shall accompany the lease

agreement.

Part 4 - CHANGES TO CONTRACT AND/OR LEASE TERMS

New Castle County will reserve the right to separately negotiate, modify, and/or change terms

of the contract and/or any planned lease, as the need or circumstances require. Such changes

will be contingent on agreement with the selected vendor. New Castle County also will retain

the right to solicit individual lease projects if determined to be in the best interest of the

County.

During the term of any lease covered by this contract the Lessee shall have the option to prepay

the outstanding principal balance or portions of the balance on each individual schedule under

the Master Lease Purchase Agreement. Prepayment of an individual item(s) does not invalidate

or change the terms or conditions of an individual lease tranche. Instead, prepayment of an

individual item(s) on a lease schedule reduces the regular payment amount by the removal of

said item(s). New Castle County shall not accept a proposal which stipulates pre-payment fees

and/or penalties. Requests by a Lessee for a payoff balance of the principal or any portion of

the principal, must be provided by the Awarded Vendor in five business days or less. Upon

receipt of a State warrant for payment, the Awarded Vendor shall immediately release the lien

on the equipment or property and provide the title or a letter indicating the equipment or

property is released, in five business days or less.

10/6/23

Bid# 24SC-353

Page 4 of 16

New Castle County

Purchasing Division

87 Reads Way

New Castle, DE 19720

(302) 395-5250

Bid# 24SC-353

Municipal Lease Purchase Agreement

NEW CASTLE COUNTY LEASE PROCEDURES

1. New Castle County shall obtain firm pricing and estimated delivery of the vehicle or

equipment to be leased in accordance with Section 2.05.502 of the New Castle County

Municipal Code.

2. The interest rate and lease terms may be quoted as an estimate at the time of the order of

the vehicle and/or equipment to be purchased and the monies shall be encumbered by the

department who shall be leasing the equipment. A Purchase Order shall be generated at that

time to complete the encumbrance. The interest rate will not become fixed and effective until

the day the vehicle or equipment is booked with the leasing company.

3. On receipt of equipment or executed contract, New Castle County will request and sign the

lease with the selected vendor.

4. Upon signature of the lease agreement, it shall be accompanied by legal counsel’s “Opinion

of Counsel” letter. The letter, as well as any other supporting lease documents and required

proof of insurance and indemnification will be forwarded back to the Lessor.

REQUIREMENTS

o Describe the management team.

o Provide names, roles, functions, and location for each project team member.

o Provide a brief resume for key project team members.

o Describe the experience and expertise of key members as it relates to their function.

o Identify who will be responsible for each component of the proposed project.

o Identify who will be the primary contact for daily communication with the County.

o Identify all key staff assigned to the project including qualifications and work

experience.

o Describe the available reporting methods available by your firm to be provided to New

Castle County as needed to ensure transparency within the leasing process.

o Indicate if your firm has a customer portal to retrieve executed leases and/or any

historical data as needed.

o Vendor will be required to hold a monthly meeting with New Castle County

Procurement and key Fiscal team members to review all open commitments.

o Provide the expected timeline from asset acquisition by the County to payment delivery

to the vendor providing the asset to the County.

10/6/23

Bid# 24SC-353

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This is the opportunity summary page. You are currently viewing an overview of this opportunity and a preview of the attached documentation. For more information, please visit the Publication URL Web page.

Bid Title:	24SC-353 Municipal Lease Purchase Agreement
Category:	Goods and Services
Status:	Open

24SC-353 Municipal Lease Purchase Agreement

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