Financial Leasing Prequalification Program

The State of Michigan's Department of Technology, Management and Budget (DTMB) is seeking qualified contractors to establish a Financial Leasing Prequalification Program through RFP #190000000197. This procurement aims to create a pool of prequalified financial institutions capable of providing equipment leasing services for state agencies. The program will operate in two tiers: Tier I involves establishing the prequalified contractor pool, and Tier II will involve issuing specific financing requests to those contractors. Eligible leases must be for equipment purchases of $500,000 or greater, with monthly or annual amortization not exceeding the equipment's useful life. Contractors must provide financial leasing options at fixed interest rates, with the State reserving the right to award to contractors offering the lowest rates. The RFP was posted on November 15, 2018, with proposals due on November 28, 2018, at 3:00 PM Eastern. Questions were accepted until November 8, 2018, with answers published by November 15, 2018, and the anticipated contract start date is January 1, 2019.

The solicitation does not explicitly mention set-aside designations for disadvantaged enterprises. Historical data from the Bidder Q&A document shows previous lease purchase financing contracts have involved major financial institutions such as PNC Bank National Association, Banc of America Public Capital Corp, and Fifth Third Bank. The contracts primarily supported IT equipment leasing for state agencies including DTMB, Michigan Department of Corrections, and Michigan State Police. While specific budget ranges are not directly stated, historical contracts demonstrate a wide range of financing amounts from $612,164 to $117,045,038, with interest rates varying from 1.2319% to 3.32%. The Master Equipment Lease Agreement indicates that leases will be structured with an initial term and subsequent renewal terms based on appropriated funds, not to exceed the equipment's useful life. Importantly, the contract is not available to MiDEAL or Extended Purchasing Program members, and the State reserves the right to update the prequalified contractor pool annually through additional solicitations.