Master Equipment Lease RFP

Alleghany County, Virginia is soliciting proposals for a Master Equipment Lease Financing (MELP) agreement to fund public safety equipment procurement. The county seeks firms with specific experience in local government equipment lease financing to establish a master lease agreement primarily targeting public safety vehicles like fire trucks and rescue equipment. The Request for Proposals (RFP) requires respondents to submit financing proposals with percentage-based pricing indexed to metrics such as the ICE SWAP Rate, offering 7-year, 10-year, and 15-year lease term options. Proposals are due by September 18, 2024, with the county planning to negotiate final terms in September, obtain Board of Supervisors approval in October 2024, and execute the agreement as soon as possible thereafter. Evaluation criteria will likely focus on firms' demonstrated experience in municipal equipment leasing, competitive pricing structures, and flexibility in financing terms. The county emphasizes that the lease agreement will be subject to annual appropriation and will not constitute a general obligation debt.

The procurement opportunity does not specify explicit set-aside designations or restrictions on respondent organizations. The maximum financing amount available is $2,000,000, with the county expecting to draw approximately $1.8 million by January 2026. The financing will be structured as a tax-exempt master lease agreement, with options for both bank-qualified and non-bank qualified rates. Notably, Alleghany County is not rated by any rating agencies, and the agreement will not be secured by the county's full faith and credit or taxing power. The county is interested in proposals both with and without prepayment options, and each financing term will be based on the useful life of the specific equipment being acquired. The county reserves the right to review and comment on all terms and conditions of the draft agreement and maintains the flexibility to pursue alternative financing options outside of this master lease agreement.