Financial Leasing Prequalification Program

The State of Michigan Department of Technology, Management and Budget issued a Request for Proposal on October 31, 2018, to establish a Financial Leasing Prequalification Program for equipment financing services across Grand Traverse County and multiple Lansing City jurisdictions. This two-tier procurement program seeks qualified contractors to provide fixed-rate equipment financing options for lease amounts of $500,000 or greater, with monthly or annual amortization terms not exceeding the useful life of the equipment. Contractors must agree to the terms outlined in the Master Equipment Lease Agreement with Early Purchase Option, which establishes the framework for future Tier II competitive bidding solicitations when individual state agencies require financing for equipment purchases. Key deliverables include providing financing proposals with fixed interest rates (effective for 30 days), prepayment premiums, amortization schedules, and IRS Form 8038G documentation in response to State requests, with typical lessor response timelines ranging from two to fourteen days. Evaluation criteria are pass-fail based on contractor acceptance of Master Agreement terms; contractors may submit proposed modifications in track changes format with detailed justifications, with failure to do so constituting acceptance of all terms. The State also reserves the right to negotiate pricing, conduct reference checks and background investigations, award based on best value considerations including qualified disabled veteran status under Michigan law, and evaluate overall economic impact factors such as Michigan job creation and tax revenue implications. The bidder question deadline was November 8, 2018, with proposal submissions due November 28, 2018, at 3:00 p.m. Eastern Time, and an anticipated contract start date of January 1, 2019.

The solicitation does not indicate specific set-aside restrictions limiting respondent eligibility, though the State considers qualified disabled veteran status as an evaluation factor under Michigan law. Historical lease contract data from December 2010 onward demonstrates established vendor relationships with repeat lessors including PNC Bank National Association, Banc of America Public Capital Corp, Fifth Third Bank, and Key Government Finance Inc., indicating successful prior performance across multiple equipment financing arrangements. These historical contracts ranged from $612,000 to $117,045,038 in principal amounts, with interest rates spanning 1.20 percent to 3.32 percent and loan periods extending from two to twelve years across state agencies including the Michigan Department of Corrections, Michigan State Police, Department of Natural Resources, and Department of Licensing and Regulatory Affairs. No specific overall funding cap is stated for this prequalification program, as it functions as an as-needed framework for future individual leasing transactions; however, contracts exceeding $500,000 require State Administrative Board approval. Interested contractors must be capable of providing financing for equipment items to be determined through future Tier II solicitations and must integrate with the State's electronic fund transfer payment system, with payments due within forty-five calendar days of invoice receipt.