HomeMy WebLinkAbout2021-04-27 - AGENDA REPORTS - LEASE-PURCH ZAMBONI FOR THE CUBE (2)0
Agenda Item: 5
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: bi
DATE:
April 27, 2021
SUBJECT:
APPROVE THE LEASE -PURCHASE OF A ZAMBONI FOR THE
CUBE
DEPARTMENT:
Administrative Services
PRESENTER:
Joseph Oerum
RECOMMENDED ACTION
City Council:
1. Approve the "piggyback" lease -purchase of a Zamboni using Sourcewell contract #011620-
NCL with NCL Government Capital to fund a 5-year lease -purchase agreement in an amount
not to exceed $182,211.
2. Appropriate funding from the Recreational Facility Fund (120) to expenditure account
14515-5201.002 by $6,558 for Fiscal Year 2020-21, $36,348 for Fiscal Year 2021-22
through Fiscal Year 2024-25; and $30,261 for Fiscal Year 2025-26. Increase Transfers In
account 120-4711.120 and Transfers Out account 10019500-5501.120 by $6,558.
3. Authorize the City Manager or designee to execute all documents, contingent upon the
appropriation of funds by the City Council in the annual budget for such fiscal year, subject
to City Attorney approval.
BACKGROUND
On August 25, 2020, the City Council approved the acquisition of real property located at 27745
Smyth Drive, newly renamed The Cube - Ice and Entertainment Center (The Cube). The
acquisition included approximately 4.39 +/- acres of land, a 92,751 square foot two-story
building with three ice rinks, and all of the assets within the building needed to run the facility,
including two Zambonis. Since the acquisition, City of Santa Clarita (City) staff completed
several repairs and equipment replacements, including repairs to the facility's roof and cooling
system, replacement of the ice condenser and heat floor pumps, and repairs to the Zambonis.
One of the two Zambonis is over 20 years old and due to its age and existing condition,
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replacement parts are not readily available. After several unsuccessful attempts to repair the
Zamboni, staff determined the equipment would not be operational long-term and replacement of
the Zamboni is necessary. The Zamboni is an integral piece of equipment for the operation of
The Cube as it is used routinely to resurface the top layer of ice on each rink to create smooth
and clean ice surfaces. Two functional Zambonis are needed to maintain each of the three ice
rinks daily and in between skate sessions.
After conducting extensive research to find the most competitive pricing and the highest quality
equipment, staff recommends using the City's "piggyback" option for this lease -purchase. On
July 11, 1995, the City Council approved the use of "piggyback" purchasing, which allows the
City to place orders against a competitively awarded public agency contract. The City is using
the cooperative purchasing contract with Sourcewell (formerly NJPA), which allows the City to
take advantage of an existing solicitation process. This contract, which was awarded on
March 13, 2021, was competitively solicited through a nationwide bid process and is valid
through March 13, 2024.
After performing a cost analysis and reviewing commercial list pricing for comparable
equipment from other sources, it has been determined that the Sourcewell cooperative
purchasing contract with NCL Government Capital provides the best value to the City. Using the
Sourcewell cooperative purchasing contract, along with a discount of 3 percent received from
Sourcewell, results in a total equipment price of $164,970.04, inclusive of tax and delivery. The
amount financed for the lease -purchase over the 5-year term shall not exceed $182,211. This
amount includes financing at 3.8 percent compound interest, as well as a one-time $500
document fee.
ALTERNATIVE ACTION
Other actions as determined by the City Council.
FISCAL IMPACT
Upon approval of the recommended actions, $6,558 will be transferred from the General Fund to
Recreational Facility Fund; and will be appropriated to expenditure account 14515-5201.002.
Funding for future fiscal years are contingent upon appropriation of funds by the City Council
during the annual budget process.
ATTACHMENTS
Proposal
Sourcewell Tax -Exempt Municipal Leasing with Related Services RFP (available in the City
Clerk's Reading File)
NCL Government Capital Contract Acceptance & Award (available in the City Clerk's Reading
File)
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NCL
April 12, 2021
City of Santa Clarita
25663 W. Avenue Stanford
Santa Clarita, CA 91355
Re: Tax Exempt Municipal Lease Proposal
Dear Sir or Madam:
Lease Servicing Center, Inc. dba NCL Government Capital ("NCL") is pleased to propose to City of Santa Clarita the following Tax
Exempt Municipal Lease transaction as outlined below. Under this transaction, City of Santa Clarita would enter into a Tax Exempt
Municipal Lease agreement with NCL for the purpose of acquiring a Zamboni. This transaction is subject to formal review and
approval by both the Lessor and Lessee.
LESSEE: City of Santa Clarita
LESSOR: Lease Servicing Center, Inc. dba NCL Government Capital
EQUIPMENT: Zamboni
EQUIPMENT COST: $164,970.04
DOWN PAYMENT / TRADE-IN $0
AMOUNT FINANCED: $164,970.04
FUNDING DATE: April 30th, 2021
DEFERRAL DAYS: 0
FIRST PAYMENT DUE: May 30th, 2021
TERM: 5 Years
MONTHLY LEASE PAYMENTS: $3,028.51
BALLOON PAYMENT: $0.00
PRICING: The Rates and Payments outlined above are locked, provided this proposal is accepted by the
Lessee by April 30, 2021 and the transaction closes/funds prior to May 31, 2021. After these
days, the final Rate and Payments shall be adjusted commensurately with market rates in effe
at the time of funding and shall be fixed for the entire lease term.
DOCUMENTATION FEE: $500 paid to Lessor at closing
220 22nd Ave. E Suite 106 * Alexandria, MN 56308 * Telephone 320 763 7600 * Fax 320 763 9600
www.nclgovcap.com
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DOCUMENTATION: Lessor shall provide all of the documentation necessary to close this transaction. This
documentation shall be governed by the laws of the State of lessee.
TITLE / INSURANCE: Lessee shall retain title to the equipment during the lease term. Lessor shall be granted a
perfected security interest in the equipment and the Lessee shall keep the equipment free
from any/all liens or encumbrances during the term. Lessee shall provide adequate loss and
liability insurance coverage, naming Lessor as additional insured and loss -payee.
TAX STATUS: This transaction must be designated as Tax -Exempt under Section 103 of the IRS code of 1986
as amended.
SOURCEWELL CONTRACT: NCL has been competitively bid and awarded a contract through Sourcewell (Formerly NJPA).
#011620-NCL NCL's Sourcewell Contract # is 011620-NCL.
We appreciate this opportunity to offer an NCL Financing Solution. Please do not hesitate to contact me if you have any questions
at (866) 763-7600. Acceptance of this proposal is required prior to credit underwriting by NCL. Upon acceptance of this proposal,
please scan and e-mail to my attention. Thank you again.
Sincerely,
Katie Vangsness - (866) 763-7600
katiev@ nclgovca p.com
ACCEPTANCE
As a duly authorized agent of City of Santa Clarita, I hereby accept the terms of this proposal as outlined above and intend to close
this financing with NCL, subject to final approval.
ACCEPTED: DATE: a
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WE ARE PROVIDING THE INFORMATION CONTAINED HEREIN FOR INFORMATIONAL PURPOSES ONLY IN CONNECTION WITH POTENTIAL ARMS -LENGTH COMMERCIAL BANKING TRANSACTIONS. IN PROVIDING THIS INFORMATION, WE
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ACTING FOR OUR OWN INTEREST AND HAVE FINANCIAL AND OTHER INTERESTS THAT DIFFER FROM YOURS. WE ARE NOT ACTING ASA MUNICIPAL ADVISOR OR FINANCIAL ADVISOR TO YOU, AND HAVE NO FIDUCIARY DUTY TO YOUR
ANY OTHER PERSON PURSUANT TO SECTION ISB OF THE SECURITIES EXCHANGE ACT OF 1934. THE INFORMATION CONTAINED IN THIS DOCUMENT IS NOT INTENDED TO BE AND SHID NOT BE CONSTRUED AS "ADVICE" WITHIN THE W
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MEANING OF SECTION ISB OF THE SECURITIES EXCHANGE ACT OF 1934 AND THE MUNICIPAL ADVISOR RULES OF THE SEC. WE ARE NOT RECOMMENDING THAT YOU TAKE AN ACTION WITH RESPECT TO THE INFORMATION CONTAINEEr
HEREIN. BEFORE ACTING ON THIS INFORMATION, YOU SHOULD DISCUSS IT WITH YOUR OWN FINANCIAL AND/OR MUNICIPAL, LEGAL, ACCOUNTING, TAX AND OTHER ADVISORS AS YOU DEEM APPROPRIATE. IF YOU WOULD LIKE A
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MUNICIPAL ADVISOR THAT HAS LEGAL FIDUCIARY DUTIES TO YOU, THEN YOU ARE FREE TO ENGAGE A MUNICIPAL ADVISOR TO SERVE IN THAT CAPACITY.
220 22nd Ave. E Suite 106 * Alexandria, MN 56308 * Telephone 320 763 7600 * Fax 320 763 9600
www.nclgovcap.com
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220 22nd Ave. E Suite 106 * Alexandria, MN 56308 * Telephone 320 763 7600 * Fax 320 763 9600
www.nclgoveap.com
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ZAMBONI COMPANY USA, INC.
15714 Colorado Ave. Paramount, CA 90723 USA L+1 562 633 07S1 19 +1 562 633 9365 zambont.com
April 7, 2021
Sergio Rodriguez
City of Santa Clarita
25663 W. Avenue Stanford
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"The principal product you have to sell is the ice itself."
— Frank J. Zamboni
Maintaining an ice surface presents a multitude of challenges. Having efficient and reliable
resurfacing equipment should not be one of them. Driven by our founder's commitment to innovation, we
put our product to the test in the harsh environment it will call home. Every feature is deliberately
designed to make resurfacing easier and to ensure that the end result is an exceptional sheet of ice. Built
by hand. One at a time. The result is an ice resurfacing machine legendary for its quality, durability and
superior performance.
MODEL 552AC:
Clean ice. Clean air. Clear choice. Building upon the solid reputation of its predecessor, the Model 552AC
features worry -free AC motors and controls, introducing new efficiencies and virtually eliminating
associated maintenance. The battery package is easy to access and maintain. Proven and dependable
controls built for tough industrial applications. Microprocessor controlled smart chargers deliver long
battery life. The Model 552AC provides a low maintenance option for your high maintenance surface.
MODEL 552AC LITHIUM -ION (OPTIONAL):
Zero battery maintenance and lithium -ion power combine for the ultimate upgrade to the world's most
popular electric ice resurfacer. Lithium -ion batteries charge quickly between resurfacings, eliminating
overnight charging. Sealed zero maintenance batteries are truly emission -free. Charging is controlled by
battery management system to optimize charging and balancing. Strong conveyor performance at any
speed. Our unrivaled down pressure system ensures that all you leave behind is perfect.
INNOVATION:
Our commitment to constant innovation is an investment in the end product. We apply decades
of experience working with facility owners and operators into every decision we make. Automated
processes provide a consistent end result and reduce the chance for operator error. Opportunities to
retrieve and display data from the machine provide a new tool in rink management. The incremental
and continued introduction of new and better technologies to our ice resurfacing machines facilitates
savings of time and valuable resources.
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QUALITY:
Zamboni sets the standard of quality to which the industry is held. The Zamboni Company holds itself to
an even higher standard with ongoing assessment and meticulous quality control, resulting in products
which consistently produce the finest sheet of ice even after many years of use. Our rugged four-wheel
drive chassis is hand -built using strong all -welded steel tubing. Premium materials and components are
used throughout. We continually collaborate with our customers to ensure the products that will ultimately
end up in their facility exceed the high expectations of quality associated with our brand.
VALUE:
Zamboni has a well -deserved reputation as the Industry Leader. One which we don't take for granted.
Our products have the lowest cost of operation and maintain the highest residual value. A network of
Zamboni Authorized Distributors and our own Customer Service teams provide local service and support
for our products. In the world of ice, time is money and unreliable equipment can be a show -stopper. Yet
another reason that worldwide, more facility operators choose Zamboni for their ice resurfacing needs.
Nothing else is even close.
MACHINE SPECIFICATIONS:
Machine specifications are also available online. Please copy the web links below into your browser
https://zamboni.com/wp-content/uploads/specs/552AC — specs.pdf
https://zamboni. com/wp-content/uploads/specs/552AC_Lith ium-ion specs. pdf
MANUFACTURER'S STATEMENT:
This machine is proudly designed and manufactured in Paramount, California by
Zamboni Company USA, Inc., a United States company.
WARRANTY:
Twenty Four (24) months or 2,000 hours, whichever comes first, parts replacement only.
SAFETY STANDARDS:
This machine is engineered to meet or exceed OSHA and ANSI safety labeling requirements.
In addition to digital safety information, operating instructions and service manuals being provided with
the delivery of the machine, all owners/operators have access to all of these materials online at
www.zamboni.com to view and download at any time.
FOR ADDITIONAL INFORMATION:
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Zamboni 552AC $ 126,250.00
STANDARD EQUIPMENT INCLUDES:
510 AH Lead Acid Battery with Charger, Aluminum Wheels, Guide Wheel, Black Powder
Coated Conditioner, Parking Brake, Conditioner Poly Side Plate, Spare Tire & Wheel
Assembly, (2) 77" Blades
ADDITIONAL EQUIPMENT:
Lithium Ion Battery in Lieu of Lead Acid
$
12,750.00
Back Up Alarm
$
725.00
Board Brush
$
5,975.00
Wash Water System w/ Poly Tank
$
5,000.00
Electronic Water Level Sight Gauge
$
515.00
Snow Tank Light
$
430.00
Stainless Steel Water Distribution Pipe
$
415.00
Zamboni Connect (Includes 2 year subscription)
$
2,295.00
Seat Belt
$
120.00
SUBTOTAL $ 154,475.00
LESS SOURCEWELL DISCOUNT $-4,634.25
STATE TAX 7.25% $ 10,863.45
COUNTY TAX 2.25% $ 3,615.84
TRANSPORTATION $ 650.00
NETTOTAL $ 164,970.04
F.O.B:
Paramount, California USA
TERMS:
Net 30 days on approved credit.
Shipment May 2021 if order received by 4/21/21. Pricing firm for 30 days.
Pricing does not include any applicable sales tax.
THANK YOU:
Doug Peters,
Regional Sales Manager
Zamboni Company USA, Inc.
15714 Colorado Ave. Paramount, California 90723 USA
Phone: +1 562 633 0751 Fax: +1 562 633 9365
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DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
011620-NCL
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Solicitation Number: RFP#011620
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN
56479 (Sourcewell) and Lease Servicing Center Inc. dba National Cooperative Leasing, 220 22nd
Ave. E. Suite 106, Alexandria, MN 56308 (Vendor).
Sourcewell is a State of Minnesota local government agency and service cooperative created
under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers
cooperative procurement solutions to its members. Participation is open to all levels of
governmental entity, higher education, K-12 education, nonprofit, tribal government, and other
public entities located in the United States and Canada.
Vendor desires to contract with Sourcewell to provide equipment, products, or services to
Sourcewell and its Members (Members).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires March 13, 2024, unless it is
cancelled sooner pursuant to Article 24. This Contract may be extended up to one additional
one-year period upon request of Sourcewell and with written agreement by Vendor.
C. SURVIVAL OF TERMS. Articles 11 through 16 survive the expiration or cancellation of this
Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Vendor will provide the Equipment, Products, or
Services as stated in its Proposal submitted under the Solicitation Number listed above.
Vendor's Equipment, Products, or Services Proposal (Proposal) is attached and incorporated
into this Contract.
All Equipment and Products provided under this Contract must be new/current model. Vendor
may offer close-out or refurbished Equipment or Products if they are clearly indicated in
Vendor's product and pricing list. Unless agreed to by the Member in advance, Equipment or
Products must be delivered as operational to the Member's site.
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This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated,
sales and sales volume are not guaranteed.
B. LAWS AND REGULATIONS. All Equipment, Products, or Services must comply fully with
applicable federal laws and regulations, and with the laws of the state or province in which the
Equipment, Products, or Services are sold.
C. WARRANTY. Vendor warrants that all Equipment, Products, and Services furnished are free
from liens and encumbrances, and are free from defects in design, materials, and workmanship.
In addition, Vendor warrants the Equipment, Products, and Services are suitable for and will
perform in accordance with the ordinary use for which they are intended. Vendor's dealers and
distributors must agree to assist the Member in reaching a resolution in any dispute over
warranty terms with the manufacturer. Any manufacturer's warranty that is effective past the
expiration of the Vendor's warranty will be passed on to the Member.
D. DEALERS AND DISTRIBUTORS. Upon Contract execution, Vendor will make available to
Sourcewell a means to validate or authenticate Vendor's authorized Distributors/Dealers
relative to the Equipment, Products, and Services related to this Contract. This list may be
updated from time -to -time and is incorporated into this Contract by reference. It is the
Vendor's responsibility to ensure Sourcewell receives the most current version of this list.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced as stated in Vendor's
Proposal.
Regardless of the payment method chosen by the Member, the total cost associated with any
purchase option of the Equipment, Products, or Services must always be disclosed in the pricing
quote to the applicable Member at the time of purchase.
When providing pricing quotes to Members, all pricing quoted must reflect a Member's total
cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and
Services that are operational for their intended purpose, and includes all costs to the Member's
requested delivery location.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly
packaged. Damaged Equipment and Products may be rejected. If the damage is not readily
apparent at the time of delivery, Vendor must permit the Equipment and Products to be
returned within a reasonable time at no cost to Sourcewell or its Members. Members reserve
the right to inspect the Equipment and Products at a reasonable time after delivery where
circumstances or conditions prevent effective inspection of the Equipment and Products at the
time of delivery.
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Vendor must arrange for and pay for the return shipment on Equipment and Products that arrive
in a defective or inoperable condition.
Sourcewell may declare the Vendor in breach of this Contract if the Vendor intentionally
delivers substandard or inferior Equipment or Products. In the event of the delivery of
nonconforming Equipment and Products, the Member will notify the Vendor as soon as
possible and the Vendor will replace nonconforming Equipment and Products with conforming
Equipment and Products that are acceptable to the Member.
B. SALES TAX. Each Member is responsible for supplying the Vendor with valid tax -exemption
certification(s). When ordering, Members must indicate if it is a tax-exempt entity.
C. HOT LIST PRICING. At anytime during this Contract, Vendor may offer a specific selection
of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Vendor determines it will offer Hot List Pricing, it must be submitted electronically to
Sourcewell in a line -item format. Equipment, Products, or Services may be added or removed
from the Hot List at any time through a Sourcewell Price and Product Change Form as defined
in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and
discontinued Equipment and Products as long as those close-out and discontinued items are
clearly identified as such. Current ordering process and administrative fees apply. Hot List
Pricing must be published and made available to all Members.
4. PRODUCT AND PRICING CHANGE REQUESTS
Vendor may request Equipment, Product, or Service changes, additions, or deletions at any
time. All requests must be made in writing by submitting a signed Sourcewell Price and Product
Change Request Form to the assigned Sourcewell Contract Administrator. This form is available
from the assigned Sourcewell Contract Administrator. At a minimum, the request must:
• Identify the applicable Sourcewell contract number
• Clearly specify the requested change
• Provide sufficient detail to justify the requested change
• Individually list all Equipment, Products, or Services affected by the requested
change, along with the requested change (e.g., addition, deletion, price change)
• Include a complete restatement of pricing documentation in Microsoft Excel
with the effective date of the modified pricing, or product addition or deletion. The
new pricing restatement must include all Equipment, Products, and Services offered,
even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Request Form will be become an
amendment to this Contract and be incorporated by reference.
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S. MEMBERSHIP, CONTRACT ACCESS, AND MEMBER REQUIREMENTS
A. MEMBERSHIP. Membership in Sourcewell is open to public and nonprofit entities across the
United States and Canada; such as municipal, state/province, K-12 and higher education, tribal
government, and other public entities.
The benefits of this Contract should be available to all Members that can legally access the
Equipment, Products, or Services under this Contract. A Member's authority to access this
Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any
entity accessing benefits of this Contract will be considered a Service Member of Sourcewell
during such time of access. Vendor understands that a Member's use of this Contract is at the
Member's sole convenience and Members reserve the right to obtain like Equipment, Products,
or Services from any other source.
Vendor is responsible for familiarizing its sales and service forces with Sourcewell membership
requirements and documentation and will encourage potential members to join Sourcewell.
Sourcewell reserves the right to add and remove Members to its roster during the term of this
Contract.
B. PUBLIC FACILITIES. Vendor's employees maybe required to perform work at government -
owned facilities, including schools. Vendor's employees and agents must conduct themselves in
a professional manner while on the premises, and in accordance with Member policies and
procedures, and all applicable laws.
6. MEMBER ORDERING AND PURCHASE ORDERS
A. PURCHASE ORDERS AND PAYMENT. To access the contracted Equipment, Products, or
Services under this Contract, Member must clearly indicate to Vendor that it intends to access
this Contract; however, order flow and procedure will be developed jointly between Sourcewell
and Vendor. Typically a Member will issue a purchase order directly to Vendor. Members may
use their own forms for purchase orders, but it should clearly note the applicable Sourcewell
contract number. Members will be solely responsible for payment and Sourcewell will have no
liability for any unpaid invoice of any Member.
B. ADDITIONAL TERMS AND CONDITIONS. Additional terms and conditions to a purchase order
may be negotiated between a Member and Vendor, such as job or industry -specific
requirements, legal requirements (such as affirmative action or immigration status
requirements), or specific local policy requirements. Any negotiated additional terms and
conditions must never be less favorable to the Member than what is contained in Vendor's
Proposal.
C. PERFORMANCE BOND. If requested by a Member, Vendor will provide a performance bond
that meets the requirements set forth in the Member's purchase order.
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D. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Member requires service or
specialized performance requirements (such as e-commerce specifications, specialized delivery
requirements, or other specifications and requirements) not addressed in this Contract, the
Member and the Vendor may enter into a separate, standalone agreement, apart from this
Contract. Sourcewell, including its agents and employees, will not be made a party to a claim
for breach of such agreement.
E. TERMINATION OF PURCHASE ORDERS. Members may terminate a purchase order, in
whole or in part, immediately upon notice to Vendor in the event of any of the following
events:
1. The Member fails to receive funding or appropriation from its governing body at
levels sufficient to pay for the goods to be purchased;
2. Federal or state laws or regulations prohibit the purchase or change the
Member's requirements; or
3. Vendor commits any material breach of this Contract or the additional terms
agreed to between the Vendor and a Member.
F. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a
Member's purchase order will be determined by the Member making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Vendor will assign an Account Representative to
Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is
changed. The Account Representative will be responsible for:
• Maintenance and management of this Contract;
• Timely response to all Sourcewell and Member inquiries; and
• Business reviews to Sourcewell and Members, if applicable.
B. BUSINESS REVIEWS. Vendor must perform a minimum of one business review with
Sourcewell per contract year. The business review will cover sales to members, pricing and
contract terms, administrative fees, supply issues, customer issues, and any other necessary
information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT
A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Vendor must provide a contract
sales activity report (Report) to the Sourcewell Contract Administrator assigned to this
Contract. A Report must be provided regardless of the number or amount of sales during that
quarter (i.e., if there are no sales, Vendor must submit a report indicating no sales were made).
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The Report must contain the following fields:
• Customer Name (e.g., City of Staples Highway Department);
• Customer Physical Street Address;
• Customer City;
• Customer State;
• Customer Zip Code;
• Customer Contact Name;
• Customer Contact Email Address;
• Customer Contact Telephone Number;
• Sourcewell Assigned Entity/Member Number;
• Item Purchased Description;
• Item Purchased Price;
• Sourcewell Administrative Fee Applied; and
• Date Purchase was invoiced/sale was recognized as revenue by Vendor.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell,
the Vendor will pay an administrative fee to Sourcewell on all Equipment, Products, and
Services provided to Members. The Vendor will submit a check payable to Sourcewell for the
percentage of administrative fee stated in the Proposal multiplied by the total sales of all
Equipment, Products, and Services purchased by Members under this Contract during each
calendar quarter. Payments should note the Sourcewell-assigned contract number in the memo
and must be mailed to the address above "Attn: Accounts Receivable." Payments must be
received no later than forty-five (45) calendar days after the end of each calendar quarter.
Vendor agrees to cooperate with Sourcewell in auditing transactions under this Contract to
ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Vendor is delinquent in any undisputed administrative fees, Sourcewell
reserves the right to cancel this Contract and reject any proposal submitted by the Vendor in
any subsequent solicitation. In the event this Contract is cancelled by either party prior to the
Contract's expiration date, the administrative fee payment will be due no more than thirty (30)
days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Vendor's Authorized Representative is the person named in the Vendor's Proposal. If Vendor's
Authorized Representative changes at any time during this Contract, Vendor must promptly
notify Sourcewell in writing.
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10. ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE
A. ASSIGNMENT. Neither the Vendor nor Sourcewell may assign or transfer any rights or
obligations under this Contract without the prior consent of the parties and a fully executed
assignment agreement. Such consent will not be unreasonably withheld.
B. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective
until it has been fully executed by the parties.
C. WAIVER. If either party fails to enforce any provision of this Contract, that failure does not
waive the provision or the right to enforce it.
D. CONTRACT COMPLETE. This Contract contains all negotiations and agreements between
Sourcewell and Vendor. No other understanding regarding this Contract, whether written or
oral, may be used to bind either party.
E. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent
contractors, each free to exercise judgment and discretion with regard to the conduct of their
respective businesses. This Contract does not create a partnership, joint venture, master -
servant, principal -agent, or any other relationship.
11. LIABILITY
Vendor must indemnify, save, and hold Sourcewell and its Members, including their agents and
employees, harmless from any claims or causes of action, including attorneys' fees, arising out
of the performance of this Contract by the Vendor or its agents or employees; this
indemnification includes injury or death to person(s) or property alleged to have been caused
by some defect in the Equipment, Products, or Services under this Contract to the extent the
Equipment, Product, or Service has been used according to its specifications.
12. AUDITS
Sourcewell reserves the right to review the books, records, documents, and accounting
procedures and practices of the Vendor relevant to this Contract for a minimum of six (6) years
from the end of this Contract. This clause extends to Members as it relates to business
conducted by that Member under this Contract.
13. GOVERNMENT DATA PRACTICES
Vendor and Sourcewell must comply with the Minnesota Government Data Practices Act,
Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell
under this Contract and as it applies to all data created, collected, received, stored, used,
maintained, or disseminated by the Vendor under this Contract.
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If the Vendor receives a request to release the data referred to in this article, the Vendor must
immediately notify Sourcewell and Sourcewell will assist with how the Vendor should respond
to the request.
14. INTELLECTUAL PROPERTY
As applicable, Vendor agrees to indemnify and hold harmless Sourcewell and its Members
against any and all suits, claims, judgments, and costs instituted or recovered against
Sourcewell or Members by any person on account of the use of any Equipment or Products by
Sourcewell or its Members supplied by Vendor in violation of applicable patent or copyright
laws.
15. PUBLICITY, MARKETING, AND ENDORSEMENT
A. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released
without prior written approval from the Authorized Representatives. Publicity includes notices,
informational pamphlets, press releases, research, reports, signs, and similar public notices
prepared by or for the Vendor individually or jointly with others, or any subcontractors, with
respect to the program, publications, or services provided resulting from this Contract.
B. MARKETING. Any direct advertising, marketing, or offers with Members must be approved
by Sourcewell. Materials should be sent to the Sourcewell Contract Administrator assigned to
this Contract.
C. ENDORSEMENT. The Vendor must not claim that Sourcewell endorses its Equipment,
Products, or Services.
16. GOVERNING LAW, JURISDICTION, AND VENUE
Minnesota law governs this Contract. Venue for all legal proceedings out of this Contract, or its
breach, must be in the appropriate state court in Todd County or federal court in Fergus Falls,
Minnesota.
17. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God
or other conditions that are beyond that party's reasonable control. A party defaulting under
this provision must provide the other party prompt written notice of the default.
18. SEVERABILITY
If any provision of this Contract is found to be illegal, unenforceable, or void then both
Sourcewell and Vendor will be relieved of all obligations arising under such provisions. If the
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remainder of this Contract is capable of performance, it will not be affected by such declaration
or finding and must be fully performed.
19. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and
address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute
and work in good faith to resolve such dispute within a reasonable period of time. If
necessary, Sourcewell and the Vendor will jointly develop a short briefing document
that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as
specified above, either Sourcewell or Vendor may escalate the resolution of the issue to
a higher level of management. The Vendor will have thirty (30) calendar days to cure an
outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a
dispute, the Vendor must continue without delay to carry out all of its responsibilities
under the Contract that are not affected by the dispute. If the Vendor fails to continue
without delay to perform its responsibilities under the Contract, in the accomplishment
of all undisputed work, any additional costs incurred by Sourcewell and/or its Members
as a result of such failure to proceed will be borne by the Vendor.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract,
or any Member order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
Written notice of default and a reasonable opportunity to cure must be issued by the party
claiming default. Time allowed for cure will not diminish or eliminate any liability for liquidated
or other damages. If the default remains after the opportunity for cure, the non -defaulting
party may:
• Exercise any remedy provided by law or equity, or
• Terminate the Contract or any portion thereof, including any orders issued
against the Contract.
20. INSURANCE
A. REQUIREMENTS. At its own expense, Vendor must maintain insurance policy(ies) in effect at
all times during the performance of this Contract with insurance company(ies) licensed or
authorized to do business in the State of Minnesota having an "AM BEST" rating of A- or better,
with coverage and limits of insurance not less than the following:
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1. Workers' Compensation and Employer's Liability.
Workers' Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Vendor will maintain insurance covering
its operations, with coverage on an occurrence basis, and must be subject to terms no
less broad than the Insurance Services Office ("ISO") Commercial General Liability Form
CG0001 (2001 or newer edition). At a minimum, coverage must include liability arising
from premises, operations, bodily injury and property damage, independent
contractors, products -completed operations including construction defect, contractual
liability, blanket contractual liability, and personal injury and advertising injury. All
required limits, terms and conditions of coverage must be maintained during the term
of this Contract.
Iil'1P'd111i1W111M
$1,000,000 each occurrence Bodily Injury and Property Damage
$1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for Products -Completed operations
$2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract,
Vendor will maintain insurance covering all owned, hired, and non -owned automobiles
in limits of liability not less than indicated below. The coverage must be subject to terms
no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer).
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Vendor will maintain
umbrella coverage over Workers' Compensation, Commercial General Liability, and
Commercial Automobile.
Minimum Limits:
$2,000,000
5. Professional/Technical, Errors and Omissions, and/or Miscellaneous Liability.
During the term of this Contract, Vendor will maintain coverage for all claims the Vendor
may become legally obligated to pay resulting from any actual or alleged negligent act,
error, or omission related to Vendor's professional services required under this
Contract.
Minimum Limits:
$2,000,000 per claim or event
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$2,000,000 — annual aggregate
6. Network Security and Privacy Liability Insurance. During the term of this
Contract, Vendor will maintain coverage for network security and privacy liability. The
coverage may be endorsed on another form of liability coverage or written on a
standalone policy. The insurance must cover claims which may arise from failure of
Vendor's security resulting in, but not limited to, computer attacks, unauthorized
access, disclosure of not public data — including but not limited to, confidential or
private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Vendor to maintain the required insurance will constitute a material breach entitling
Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Vendor must
furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this
Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to
Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the
Sourcewell Contract Administrator assigned to this Contract. The certificates must be signed by
a person authorized by the insurer(s) to bind coverage on their behalf. All policies must include
there will be no cancellation, suspension, non -renewal, or reduction of coverage without thirty
(30) days' prior written notice to the Vendor.
Upon request, Vendor must provide to Sourcewell copies of applicable policies and
endorsements, within ten (10) days of a request. Failure to request certificates of insurance by
Sourcewell, or failure of Vendor to provide certificates of insurance, in no way limits or relieves
Vendor of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY
INSURANCE CLAUSE. Vendor agrees to name Sourcewell and its Members, including their
officers, agents, and employees, as an additional insured under the Vendor's commercial
general liability insurance policy with respect to liability arising out of activities, "operations," or
"work" performed by or on behalf of Vendor, and products and completed operations of
Vendor. The policy provision(s) or endorsement(s) must further provide that coverage is
primary and not excess over or contributory with any other valid, applicable, and collectible
insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Vendor waives and must require (by endorsement or
otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional
insureds for losses paid under the insurance policies required by this Contract or other
insurance applicable to the Vendor or its subcontractors. The waiver must apply to all
deductibles and/or self -insured retentions applicable to the required or any other insurance
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maintained by the Vendor or its subcontractors. Where permitted by law, Vendor must require
similar written express waivers of subrogation and insurance clauses from each of its
subcontractors.
E. UMBRELLA/EXCESS LIABILITY. The limits required by this Contract can be met by either
providing a primary policy or in combination with umbrella/excess liability policy(ies).
F. SELF -INSURED RETENTIONS. Any self -insured retention in excess of $10,000 is subject to
Sourcewell's approval.
21. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this
Contract must comply fully with applicable federal laws and regulations, and with the laws in
the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Vendor must maintain a valid status on all required federal, state, and local
licenses, bonds, and permits required for the operation of the business that the Vendor
conducts with Sourcewell and Members.
22. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Vendor certifies and warrants that it is not in bankruptcy or that it has previously disclosed in
writing certain information to Sourcewell related to bankruptcy actions. If at any time during
this Contract Vendor declares bankruptcy, Vendor must immediately notify Sourcewell in
writing.
Vendor certifies and warrants that neither it nor its principals are presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs
operated by the State of Minnesota, the United States federal government, or any Member.
Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal
offense related to the subject matter of this Contract. Vendor further warrants that it will
provide immediate written notice to Sourcewell if this certification changes at any time.
23. PROVISIONS FOR NON -UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Members that use United States federal grant or FEMA funds to purchase goods or services
from this Contract may be subject to additional requirements including the procurement
standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements
for Federal Awards, 2 C.F.R. § 200. Members may also require additional requirements based
on specific funding specifications. Within this Article, all references to "federal" should be
interpreted to mean the United States federal government. The following list only applies when
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a Member accesses Vendor's Equipment, Products, or Services with United States federal
funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all
contracts that meet the definition of "federally assisted construction contract" in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in
accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319,
12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending
Executive Order 11246 Relating to Equal Employment Opportunity," and implementing
regulations at 41 C.F.R. § 60, "Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor." The equal opportunity clause is incorporated
herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal
program legislation, all prime construction contracts in excess of $2,000 awarded by non-
federal entities must include a provision for compliance with the Davis -Bacon Act (40 U.S.C. §
3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5,
"Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted
Construction"). In accordance with the statute, contractors must be required to pay wages to
laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor. In addition, contractors must be required to pay
wages not less than once a week. The non-federal entity must place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation. The
decision to award a contract or subcontract must be conditioned upon the acceptance of the
wage determination. The non-federal entity must report all suspected or reported violations to
the federal awarding agency. The contracts must also include a provision for compliance with
the Copeland "Anti -Kickback" Act (40 U.S.C. § 3145), as supplemented by Department of Labor
regulations (29 C.F.R. § 3, "Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that
each contractor or subrecipient must be prohibited from inducing, by any means, any person
employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he or she is otherwise entitled. The non-federal entity must report
all suspected or reported violations to the federal awarding agency. Vendor must be in
compliance with all applicable Davis -Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where
applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve
the employment of mechanics or laborers must include a provision for compliance with 40
U.S.C. § 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of
every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess
of the standard work week is permissible provided that the worker is compensated at a rate of
not less than one and a half times the basic rate of pay for all hours worked in excess of 40
hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction
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work and provide that no laborer or mechanic must be required to work in surroundings or
under working conditions which are unsanitary, hazardous or dangerous. These requirements
do not apply to the purchases of supplies or materials or articles ordinarily available on the
open market, or contracts for transportation or transmission of intelligence. This provision is
hereby incorporated by reference into this Contract. Vendor certifies that during the term of an
award for all contracts by Sourcewell resulting from this procurement process, Vendor must
comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACTOR AGREEMENT. If the federal award
meets the definition of "funding agreement" under 37 C.F.R. § 401.2(a) and the recipient or
subrecipient wishes to enter into a contract with a small business firm or nonprofit organization
regarding the substitution of parties, assignment or performance of experimental,
developmental, or research work under that "funding agreement," the recipient or subrecipient
must comply with the requirements of 37 C.F.R. § 401, "Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative
Agreements," and any implementing regulations issued by the awarding agency. Vendor
certifies that during the term of an award for all contracts by Sourcewell resulting from this
procurement process, Vendor must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL
ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require
the non-federal award to agree to comply with all applicable standards, orders or regulations
issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution
Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal
awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Vendor
certifies that during the term of this Contract will comply with applicable requirements as
referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award
(see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions
in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R.
§180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3
C.F.R. § 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names
of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor
certifies that neither it nor its principals are presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participation by any federal
department or agency.
G. BYRD ANTI -LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Vendors must file
any required certifications. Vendors must not have used federal appropriated funds to pay any
person or organization for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, officer or employee of Congress, or an employee of a member
of Congress in connection with obtaining any federal contract, grant, or any other award
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covered by 31 U.S.C. § 1352. Vendors must disclose any lobbying with non-federal funds that
takes place in connection with obtaining any federal award. Such disclosures are forwarded
from tier to tier up to the non-federal award. Vendors must file all certifications and disclosures
required by, and otherwise comply with, the Byrd Anti -Lobbying Amendment (31 U.S.C. §
1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Vendor must comply with
the record retention requirements detailed in 2 C.F.R. § 200.333. The Vendor further certifies
that it will retain all records as required by 2 C.F.R. § 200.333 for a period of three (3) years
after grantees or subgrantees submit final expenditure reports or quarterly or annual financial
reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Vendor
must comply with the mandatory standards and policies relating to energy efficiency which are
contained in the state energy conservation plan issued in compliance with the Energy Policy
and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Vendor must comply
with all applicable provisions of the Buy American Act. Purchases made in accordance with the
Buy American Act must follow the applicable procurement rules calling for free and open
competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Vendor agrees that duly authorized
representatives of a federal agency must have access to any books, documents, papers and
records of Vendor that are directly pertinent to Vendor's discharge of its obligations under this
Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right
also includes timely and reasonable access to Vendor's personnel for the purpose of interview
and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is
a state agency or agency of a political subdivision of a state and its contractors must comply
with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act. The requirements of Section 6002 include procuring only items designated in
guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the
highest percentage of recovered materials practicable, consistent with maintaining a
satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the
value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring
solid waste management services in a manner that maximizes energy and resource recovery;
and establishing an affirmative procurement program for procurement of recovered materials
identified in the EPA guidelines.
24. CANCELLATION
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Sourcewell or Vendor may cancel this Contract at any time, with or without cause, upon sixty
(60) days' written notice to the other party. However, Sourcewell may cancel this Contract
immediately upon discovery of a material defect in any certification made in Vendor's Proposal.
Termination of this Contract does not relieve either party of financial, product, or service
obligations incurred or accrued prior to termination.
Sourcewell
DocuSigned by.., ",
�t.Vt �M� S(6a
By - COFD2A139D06489...
Jeremy Schwartz
Title: Director of Operations &
Procurement/CPO
Date: 3/11/2020 1 3:44 PM CDT
Approved:
pp DocuSigned by,
By: l� t.ot
7E42BHF817A64CC...
Chad Coauette
Title: Executive Director/CEO
Date: 3/12/2020 1 7:51 AM CDT
Lease Servicing Center Inc., dba National
Cooperative Leasing
DocuSigned by:
By. C,�tVtSfbt,V Cmi
A1AA572FEE2B4AF...
Christopher Canavati
Title: Secretary/Treasurer
Date: 3/12/2020 1 5:20 AM PDT
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RFP 011620 - Tax -Exempt Municipal Leasing with Related
Services
Vendor Details
Company Name:
Lease Servicing Center, Inc.
Does your company conduct
business under any other name? If
National Cooperative Leasing
yes, please state:
220 22nd Ave
Address:
Alexandria, Minnesota 56308
Contact:
CHRISTOPHER CANAVATI
Email:
chris@lscfinancial.com
Phone:
320-763-7600
Fax:
320-763-9600
HST#:
41-1979924
Submission Details
Created On:
Sunday November 24, 2019 21:28:09
Submitted On:
Thursday January 16, 2020 09:47:08
Submitted By:
Katie Vangsness
Email:
kangsness@lscfinancial.com
Transaction #:
1 d462c33-f854-46db-a4f7-f10a8d7babca
Submitter's I Address:
216.168.95.182
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Specifications
Table 1: Proposer Identity & Authorized Representatives
Line
Item
Question
Response*
1
Proposer Legal Name (and
Lease Servicing Center, Inc. dba National Cooperative Leasing
applicable d/b/a, if any):
2
Proposer Address:
220 22nd Ave. E. Suite 106
Alexandria, MN 56308
3
Proposer website address:
WWW.NCLGOVCAP.COM
4
Proposer's Authorized
Christopher Canavati - Secretary / Treasurer
Representative (name, title,
220 22nd Avenue East Suite 106 / Alexandria, MN 56308
address, email address & phone)
chris@lscfinancial.com
(The representative must have
(320Y763-7600
authority to sign the "Proposer's
Assurance of Compliance" on
behalf of the Proposer):
5
Proposer's primary contact for this
Christopher Canavati - Secretary / Treasurer
proposal (name, title, address,
220 22nd Avenue East Suite 106 / Alexandria, MN 56308
email address & phone):
chris@lscfinancial.com
(320r763-7600
6
Proposer's other contacts for this
Katie Vangsness - Account Manager
proposal, if any (name, title,
220 22nd Avenue East Suite 106 / Alexandria, MN 56308
address, email address & phone):
kvangsness@lscfinancial.com
(320r763-7600
Table 2: Company Information and Financial Strength
Line Question Response*
Item
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Provide a brief history of your company, Lease Serving Center, Inc. (LSC) was established in July of 2000 as an
including your company's core values, independently owned leasing company by Mitri and Chris Canavati.
business philosophy, and industry longevity
related to the requested equipment, products The company was built on three guiding principles that remain relevant today:
or services. Focus on the success of our people
Focus on the success of our customers
Surround ourselves with the best funders and Vendors in the industry
In August of 2000, Lease Servicing Center began a relationship with the North
Central Service Cooperative, now Sourcewell. In order to better serve Sourcewell,
LSC formed a division, National Cooperative Leasing (NCL), to strictly focus on
leasing in the government space as well as other sectors of the market that meet
the qualifications for Sourcewell membership. This focus has resulted in NCL
developing expertise in the government finance industry, allowing NCL to better serve
Sourcewell Vendors and Members.
The foundational elements that drive how we operate and engage with our customers
are our core values. As a value driven organization our team lives and breathes by
these principles in everything we do. As the relationship with Sourcewell expanded,
we crystalized our core values to reflect that evolution and spirit of a true partnership.
Listed below is the outline of our core values. A full table with our core values and
a few examples of how they have been and will continue to be applied to the
Sourcewell relationship are located in the document upload center:
Live with Integrity
• Do the right thing
• Be transparent, honest and consistent
• Be accountable
Build lasting relationships based on trust and loyalty
• Share in Success
• Follow through
• Keep our word
Strive for excellence
• Challenge the status quo
• Aim higher
• Deliver on our promises
Nurture partnerships
• Be supportive, listen and encourage
• Be passionate, determined and driven
• Work hard & have fun
Utilize creativity
• Act boldly in trying new approaches
• Reward innovation
• Be optimistic
NCL is thankful and proud of the strong synergies and partnerships that have grown
between NCL and Sourcewell, as well as the strong relationships that have grown
between NCL and many Sourcewell Vendors and Members.
As NCL and Sourcewell move forward together, NCL is poised to continue providing
the highest quality of service and finance programs to Sourcewell's Vendors and
Members. NCL's proven methodologies and toolkits have been formulated over the
past twenty years of working in collaboration with Sourcewell, Sourcewell Vendors and
Sourcewell Members.
NCL will continue to adapt as a brand and as a business to remain as closely
aligned to Sourcewell as possible. This is reflected in NCL's newly launched brand,
logo and website, which will educate members about the benefits that NCL and
Sourcewell can provide to Members. NCL will continue to demonstrate to
Sourcewell, Sourcewell Vendors and Sourcewell Members that NCL is a critical
Provide a detailed description of the products The products included in this proposal are the specific types of financing programs
and services that you are offering in your (structures) which have been outlined below. In addition, NCL will include two
proposal. categories of services: Member Services and Vendor Services.
Products:
NCL has the ability to offer the Sourcewell Members many different lease/financing
structures including but not limited to a Tax -Exempt Municipal Lease Purchase. NCL
finances projects ranging in size from $3,000 to $5 million+ with terms from 12
months to 15 years.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Tax Exempt Municipal Lease Purchase is a structure that is available only to
Government and public education agencies. This is designed as a $lout, meaning
there is no purchase option at the end of the term. The Member takes ownership of
the equipment at the beginning of the term and NCL releases its interest in the
equipment once all payments have been made. This structure has tax benefits to
the Lessor (NCL) which it passes on to the Sourcewell Member in the form of a
lower rate. This is one of the most utilized structures because it is the least
expensive form of financing available for Government and public education agencies
and has a tremendous amount of flexibility in the term, payment frequency, and asset
type.
Fair Market Value (FMV) is also commonly known as an operating lease. An FMV
lease allows the lessee to use the equipment for the term of the lease for a fixed
monthly payment. At the end of the lease term, the Member has the option to return
the equipment, renew the lease, or purchase the equipment for the Fair Market Value
at that time. Sourcewell Members may elect to use an FMV lease for equipment
that has a shorter useful life and requires upgrades more frequently (under 5 years)
or if the Member does not want to own the equipment at the end of lease term. An
FMV can be a good lease option for equipment like copiers, technology, vehicles,
heavy equipment. The FMV is available to all Sourcewell Members.
$1 BuyOut Lease is considered a capital lease and is very similar to a loan. The
$1 buyout lease is similar to the FMV lease in that the Member has a fixed monthly
payment for the term of the agreement. Unlike an FMV lease, at the end of the
term ownership is passed on to the Member in exchange for $1.00. This is best
used for equipment where the Member wants to own the equipment but wants the
benefit of paying for it over its useful life. This is available to all Sourcewell
Members, but would most likely be used by Not -for -Profits and private education
institutions who do not qualify for Tax Exempt Municipal Leases.
TRAC Lease or Terminal Rental Adjustment Clause is a lease of qualified motor
vehicles. The Lessee and Lessor agree upon the estimated residual value (value of
equipment at the end of the lease term) and that amount is calculated into the lease
payments (lessee does not end up paying for the full equipment price through their
monthly lease payments). At the end of the term, the Member either purchases the
vehicle for the previously agreed upon residual value or returns the vehicle. If the
vehicle is returned, the Lessor liquidates the vehicle. In the event the vehicle is
liquidated for less than the residual amount, the lessee is obligated to pay the
difference. In the event the vehicle is liquidated for more than the residual amount
the delta is submitted to the Lessee (Member). This type of structure gives the
Member the flexibility to wait until the end of the lease term to decide what they
would like to do with the vehicle, but allows them to know all of the costs associated
with the lease upfront vs. an FMV lease where the purchase option is not decided
until the end of the term.
Vendor Services:
NCL believes it cannot fully support the Sourcewell Members without also educating
and supporting the Sourcewell awarded contract holders and their dealer networks
(Vendors). NCL provides a Vendor training program that includes Sourcewell RFP
support, contract launch support, multi -level education (webinars, breakout sessions,
sales meetings). The Vendor training programs offered by NCL are detailed in
question #32 and #36 of this RFP.
A key component of NCL's Vendor services is the hands on assistance the NCL
Account Manager provides on each Sourcewell Vendor opportunity. NCL has learned
through the years that Vendors are not comfortable discussing financing to its
Sourcewell prospects. Government financing is much more complex than traditional
commercial financing. NCL's Account Managers specialize in government financing
and are better equipped to have these discussions with the Sourcewell Members on
behalf of the Sourcewell Vendor. This is why NCL Account Managers are often
viewed as an extension of the Vendors' sales teams.
Member Services:
NCL offers lease & financing solutions to ALL Sourcewell Members. NCL
recognizes that with over 50,000 Sourcewell Members across all Member sectors,
there are diverse needs and opportunities that require creativity and flexibility in order
to meet those needs. NCL prides itself on being flexible and creative. Through
NCL's consultative sales approach, NCL is able to discover the best finance solution
to meet each individual Members needs. Unlike traditional financial institutions, they
are not partial to a specific asset or Member sector with its funding solutions. NCL
has built a robust portfolio of solutions to support all of the Sourcewell Members and
their own unique needs.
When speaking with a Sourcewell Member or a prospective Member the NCL
Account Manager takes a consultative approach by listening first and then takes the
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
time to ask important questions which will help the Account Manager guide the
Member to the best lease/finance solution for their needs.
What are your company's expectations in the
event of an award?
• Members have repeatedly told NCL that they have immediate needs for equipment,
but don't have the funds to pay for the equipment until future fiscal years. NCL
allows Members to push out their first lease payment to future fiscal years. Allowing
a Member to procure what they need in one fiscal year and not start paying for it
until the next fiscal year has been a key to the Member getting what they need when
they need it.
• The NCL Account Manager will find out if the Member would like to own the
equipment after the term of the agreement is up or, would they prefer to return the
equipment and upgrade to new equipment. This helps the Account Manager
determine which financing structure best fits the Member's needs.
• Asking what the Member's budget is for the upcoming annual lease payments
helps the NCL Account Manager fit the agreement term length to the Members
budget needs.
The purpose of asking these questions, is to help the NCL Account Manager provide
a solution that best fits the Member's needs.
In its response to the RFP in 2015, NCL laid out the following expectations:
a. A significant increase in overall volume of leases written per year
b. A significant increase in the number of NJPA vendors who offer NCL alongside
their products
c. A significant increase in the volume of leases written directly with NJPA member
agencies
d. A significant increase in NJPA vendor sales due to offering a competitively bid
financing plan along with their product
Since being awarded a competitively bid contract with Sourcewell in 2015, NCL has
not only met but exceeded expectations in each of the categories above. The
largest growth in each category occurred in 2019. The reason for this is mainly due
to the growth NCL experienced in (b) above. The NCL strategy was to collaborate
with other Sourcewell Vendors to offer a turnkey competitively bid solution to
Members (A competitively bid equipment solution + competitively bid finance
solution). The number of Sourcewell contract holders who completed transactions
with NCL has grown from 5 in 2015 to 41 in 2019.
The success shown in the number of contract holders completing transactions with
NCL has led to growth in volume of leases written by over 1000% with just over $3
Million in 2015 to over $30 Million in 2019. In addition, many of the contract holders
continually speak to the contract success they have had by collaborating with NCL in
offering the turnkey solution.
"It is great to have a partner like NCL as it is almost like having another member
of our sales force to help close deals. We believe that the success of the sales of
our product, as well as, to a degree how well Sourcewell does is directly related to
NCL and their efforts to make the sales process as simple as possible." — Doug
Peters, Regional Sales Manager — Zamboni Company (Sourcewell Contract #030117-
FZC)
The strategy of collaboration is clearly making a dramatic impact on NCL's success
with the contract. The relationships that have been built have taken considerable
time and effort but are now producing real results.
If awarded a contract, NCL plans to continue to build on its past success by
continuing its strategy of collaboration with other Sourcewell contract holders. This
collaboration strategy will be key to growing the relationships in both strength and
numbers. As NCL has experienced these past five years, this will result in growth in
the same four areas:
a. A significant increase in overall volume of leases written per year
b. A significant increase in the number of Sourcewell Vendors who offer NCL
alongside their products
c. A significant increase in the volume of leases written directly with
Sourcewell
Member agencies
d. A significant increase in Sourcewell Vendor sales due to offering a
competitively bid financing plan along with their product
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
10
Demonstrate your financial strength and
Lease Servicing Center, Inc dba National Cooperative Leasing, was established in
stability with meaningful data. This could
July of 2000. It is privately owned by Mitri Canavati and Chris Canavati who are
include such items as financial statements,
both active in the day to day operations of the company. The financial strength and
SEC filings, credit and bond ratings, letters
stability of the company, while strong and secure, does not compare to the financial
of credit, and detailed reference letters.
strength and stability of the funding partners who are all committed to providing the
Upload supporting documents (as applicable)
funding for the leases originated by NCL.
in the document upload section of your
response.
Financial summaries for each of the funding partners are included in the document
upload section of the response and can also be found at www.ibanknet.com. NCL,
together with its funding partners have unlimited funding capacity in order to serve
both Sourcewell Vendors and Members. Combined, these banks represent over $2
Trillion in asset value. Each of these funding partners is committed to working with
NCL to continue its path of success with Sourcewell, Sourcewell Vendors and
Sourcewell Members.
Our financial strength and stability have been demonstrated over the past 20 years
with the ability to timely process and pay Sourcewell Vendors on transactions ranging
from $1,500 to $4,500,000.
Please see letters of reference provided in the document upload section.
11
What is your US market share for the
According to information gathered by the Association of Government Leasing and
solutions that you are proposing?
Financing, the estimated originations of government leases is roughly $5 Billion per
year. Our share of that would be roughly .75%.
12
What is your Canadian market share, if any?
We could not find any industry data in terms of originations of government leasing
originations in Canada. We have funded leases in Canada; however, our volume
would not be significant.
13
Has your business ever petitioned for
Lease Servicing Center, Inc. has never filed a petition for bankruptcy.
bankruptcy protection? If so, explain in detail.
14
How is your organization best described: is it
We are a service provider.
a manufacturer, a distributor/dealer/reseller, or
b) relationship with your sales and service force and with your dealer network in
a service provider? Answer whichever
delivering the products and services proposed in this RFP. Are these individuals
question (either a) or b) just below) best
your employees, or the employees of a third party?
applies to your organization.
a) If your company is best described as a
NCL relies on its direct sales force, which are employees of NCL to build
distributor/dealer/reseller (or similar entity),
relationships with Sourcewell Vendors and to train Sourcewell Vendors on how to
provide your written authorization to act as a
utilize its products and services to help Sourcewell Members get more of what they
distributor/dealer/reseller for the manufacturer
need. In addition, Sourcewell Vendors are provided with the necessary tools to
of the products proposed in this RFP. If
provide a leasing quote on every transaction.
applicable, is your dealer network
independent or company owned?
NCL also has a direct service force to handle the credit, documentation and funding
b) If your company is best described as a
during the origination process of transactions as well as customer service personnel
manufacturer or service provider, describe
who work with the billing and collecting of the leases post funding in addition to
your relationship with your sales and service
handling questions from Members calling in.
force and with your dealer network in
delivering the products and services proposed
in this RFP. Are these individuals your
employees, or the employees of a third party?
15
If applicable, provide a detailed explanation
There are no licenses and certifications required to be held by organizations in
outlining the licenses and certifications that
pursuit of the business contemplated by this RFP.
are both required to be held, and actually
held, by your organization (including third
parties and subcontractors that you use) in
pursuit of the business contemplated by this
RFP.
16
Provide all "Suspension or Debarment'
None
information that has applied to your
organization during the past ten years.
17
Within this RFP category there may be
Tax Exempt Municipal Leases
subcategories of solutions. List subcategory
Operating Leases
titles that best describe your products and
TRAC Leases
services.
Equipment Finance Agreements
Municipal Bond Financing
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 3: Industry Recognition & Marketplace Success
Line
Item
Question
Response*
18
Describe any relevant industry awards or
NCL and its owner Chris Canavati were awarded the 2019 Sourcewell Legendary
recognition that your company has received
Leadership Award. The Legendary Leadership Award recognizes the level of
in the past five years
individual leadership and influence required to lead multiple channels of a respective
company to the full embracement of the Sourcewell cooperative purchasing way of
business. The recipient demonstrates keen business instincts, commitment and
innovation in developing and presenting justifications and business process validation
that redirects a well -established internal company -wide business culture through the
challenges of the national cooperative purchasing approach to business.
19
What percentage of your sales are to the
Government 65%
governmental sector in the past three years
20
What percentage of your sales are to the
K-12 27.1 %
education sector in the past three years
Higher Ed 4.99%
21
List any state or cooperative purchasing
None
contracts that you hold. What is the annual
sales volume for each of these contracts
over the past three years?
22
List any GSA contracts that you hold. What
None
is the annual sales volume for each of these
contracts over the past three years?
Table 4: References/Testimonials
Line Item 23. Supply reference information from three customers who are eligible for Sourcewell membership.
Entity Name*
Contact Name *
Phone Number*
Wappingers Central School District
Barbara Mackson
845-298-5000
Cleary University
Dr. Matthew Bennett
517-338-3014
City of Woodland
Troy Thompson
530-661-5956
City of Methuen School Department
Ian Gosselin
978-722-6018
City of Des Moines
Brian Bennett
515-323-8940
Table 5: Top Five Government or Education Customers
Line Item 24. Provide a list of your top five government, education, or non-profit customers (entity name is optional),
including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar
volumes from the past three years.
Entity Name
Entity Type *
State /
Scope of Work *
Size of Transactions *
Dollar Volume Past Three
*
Province'`
Years
Cardinal
Education
Massachusetts-
Facility Improvements
1 Transaction
$2,510,000
Spellman High
MA
School
City of
Government
Wisconsin - WI
Plastic Garbage Totes
1 Transaction
$2,001,206
Sheboygan
University of
Education
Texas -TX
Office Equipment
Various - 44 Transactions
$2,551,952
Houston
Cleary
Education
Michigan - MI
Facility Improvements
Various - 4 Transactions
$1,895,920
University
Sullivan County
Government
Tennessee - TN
Heavy Fleet Equipment
Various - 2
$1,968,773
Fleet Vehicles
Table 6: Ability to Sell and Deliver Service
Describe your company's capability to meet the needs of Sourcewell Members across the US, and Canada if applicable.Your response
should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-
time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any
overlap between the sales and service functions.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Item Question Response
25 Sales force. NCL is led by a direct sales team consisting of a VP of sales and 5 vertical specific
Account Managers. The verticals are Information Technology, Park and Recreation,
and Fleet and Heavy Equipment. All but one is located in the Alexandria, Minnesota
headquarters with the exception of one who offices out of Woodbury, Minnesota. All
Account Managers serve their verticals nationwide and travel extensively in order to
support their dealer networks. The NCL direct sales team spends 100% of their time
serving Sourcewell, Sourcewell Vendors, and Sourcewell Members. There is no
overlap between the sales and service function.
In addition to the NCL direct sales team, there are at lease ten thousand "feet on the
street" salespeople who are employees of other Sourcewell Vendors who have been
trained and equipped to offer Tax Exempt Municipal Leasing provided by NCL.
Below is a sampling of Sourcewell Vendor dealer networks whom NCL has trained
and equipped to offer a turn key competitively bid solution:
- Johnson Controls Over 1,000 salespeople
- Mitel Over 300 Dealers Over 1,500 salespeople
- Sharp Over 375 Dealers Over 1,500 salespeople
- International Trucks Over 350 Dealers Over 1,500 salespeople
- Federal Signal Over 40 Dealers Over 200 salespeople
- Sewer Equipment Cpmpanv Over 30 Dealers Over 150 salespeople
26 Dealer network or other distribution methods. NCL's dealer network is made up of the Sourcewell Vendors and their dealer
networks. As Sourcewell grows by awarding more contracts to new Vendors, NCL's
dealer network will continue to grow and continue to support the Sourcewell Members.
27
Service force.
NCL's business model is based on the idea of Synergy, that the creation of the whole
is greater than the sum of the parts.
NCL is currently listed on 53 Sourcewell Contracts (including some of the largest
dealer network contracts ie: CDW-G, Konica Minolta, SHARP, Mitel, Volvo
Construction, Bobcat, Heil, and CASE IH). These Sourcewell Vendors included NCL
as a partner for providing lease and financing solutions in their Sourcewell RFP
response. This is a testament to the value they place in their relationship with NCL
and in the value of collaborating with NCL to provide a turnkey competitively bid
solution for their Sourcewell opportunities.
In addition, NCL has developed relationships with many Sourcewell Vendors post
Sourcewell award (ie: Johnson Controls, Precor, International Trucks, BlueBird Bus, and
Sewer Equipment). All of the Sourcewell Vendors NCL has partnered with have
access to a finance solution through their own internal finance departments or other
third parry relationships. However, they recognize the advantage in taking a
collaborative approach to their Sourcewell business and choose to collaborate with
NCL for those opportunities.
NCL has developed a vendor onboarding process which includes customized training
designed for each level of a manufacturer (Manufacturer Executive Level, Manufacturer
Regional Sales Level, and Manufacturer Dealer Level) designed to educate the sales
teams on how to utilize NCL's funding capabilities as a way to deliver a competitively
bid turnkey solution to their customers. This allows their customers to get exactly what
they need when they need it.
Because of the partnership formed with Sourcewell Vendors, NCL's network is made
up of more than 10,000 "feet on the street" offering its finance solutions. Equally as
important as the number within the network is where the network is located and the
Member sectors and equipment vertical they serve. NCL's network is located in
every aeoaraphic reaion. and serves every Member sector. and eauipment vertical.
Our dedicated service force is comprised of the following:
Credit, Documentation and Funding — Currently, NCL has Sourcewell dedicated credit,
documentation and funding departments that work with Sourcewell Vendors and
Members. Their responsibility is to work on transactions in order to gain credit
approval, prepare documentation for approved transactions and ultimately fund the
Vendor. 100% of their time is dedicated to the products and related services
contemplated in this RFP.
Member Service — NCL's dedicated Member Services team is responsible for working
with Sourcewell Members to customize invoices to meet their specific needs. In order
to be paid timely, invoicing procedures must comply with the requirements of the
Member. The Member Service team also fields calls from Members with questions
regarding their account.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
28 Describe in detail the process and The customer service program is broken down into two components; Credit,
procedure of your customer service Documentation and Funding.
program, if applicable. Include your
response -time capabilities and Credit: Upon being awarded a transaction, the NCL salesperson is responsible to
commitments, as well as any incentives that obtain a credit application from the Sourcewell Member and submit the credit
help your providers meet your stated application to the credit analyst. The credit analyst does a review of the application
service goals or promises. and provides a credit decision.
Turnaround Time on credit approvals
Up to 100K 4 Hours
100K -500K 24 Hours
500K and above 48 Hours
29
Identify any geographic areas of the United
States or Canada that you will NOT be fully
serving through the proposed contract.
Documentation and Funding: Once a transaction has been awarded, a credit
application received and an approval given, the analyst will then prepare the document
package. In order to prepare the document package, the Vendor needs to provide
details on the equipment being leased. The details should include year, make, model,
serial number, equipment locations, the total cost of the equipment or project as well
as an itemized cost breakdown.
Turnaround time on documentation preparations:
• Once this information is obtained, the analyst will have a documentation package
prepared in less than 24 hours.
Turnaround time on funding:
Once a Delivery and Acceptance notice has been signed and received, payment
will be made to the vendor within 24 hours.
NCL is currently and will continue to offer funding solutions to ALL Sourcewell qualified
Members in both the US and Canada. Geographic areas do not limit the service
provided by NCL to the Member.
This is a unique differentiator that NCL brings to both Sourcewell Vendors and
Members. Many other financial organizations elect to not service specific states or
regions due to the complexity and difficulty of select state laws or adverse regulations
in relation to municipal financing/leasing. NCL has extensive experience originating
and servicing Members in all 50 states. Holding true to its core values of "Utilizing
Creativity" and "Strive for Excellence", NCL has been able to structure custom
financing packages that adhere to the tight regulations imposed by these individual
state governments.
The lessons learned by NCL in how to provide municipal financing solutions in these
unique regions have since been packaged into reusable deal structures that allow NCL
to maintain the funding timelines above and are available to Sourcewell, Sourcewell
Vendors and Sourcewell Members. This approach has enabled Sourcewell Vendors to
effectively provide financing options for their products in these non-traditional markets.
This approach has also enabled Sourcewell Members to take advantage of the custom
municipal financing options available to them in order to obtain the equipment they
need when they need it within their regulatory requirements.
The state of New Mexico is a good example. Most financial organizations will not
provide government financing in the state of New Mexico due to prohibitive
regulations. NCL has successfully navigated the environment enabling it to provide
solutions to Members in New Mexico.
NCL was able to provide a State University in New Mexico with financing in order to
acquire a new data center. Additionally, NCL provided a solution enabling the State
University to acquire student activity buses.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
30
Identify any Sourcewell Member sectors
NCL is currently and will continue to offer funding solutions to ALL Sourcewell qualified
(i.e., government, education, not -for -profit)
Members including state and local government, public K-12 schools, private k-12
that you will NOT be fully serving through
schools, public universities, private universities, charter schools, federal government
the proposed contract. Explain in detail. For
agencies, special districts, tribal nations, and not -for -profits.
example, does your company have only a
Many lenders have internal regulations which prevent them from serving each
regional presence, or do other cooperative
Sourcewell Member sector equally, but rather they focus on a specific sector.
purchasing contracts limit your ability to
Because of the strategic alliances NCL has formed with some of the largest most
promote another contract?
successful lender's in the finance industry, NCL has the ability to serve ALL
Sourcewell Member sectors equally and effectively.
History is often an indicator of future performance, and NCL has a history of providing
funding solutions to Member sectors that can be difficult for many lenders due to
increased risk such as Tribal Nations and Not -for -profits.
EXAMPLES:
• NCL provided a $1.8 million finance solution to the Confederated Tribes of
the Coleville Reservation for the purchase of a new fire truck, fire Hall and k
the land where the fire hall is located.
• NCL secured financing for the Choctaw Nation of OK for their $850,000
Konica Minolta copiers. The tribe had recently been turned down by their
existing finance provider due to a disagreement in the Terms and Conditions
of the lease.
• Not only did NCL offer a finance solution to Wesley Chapel Weddington
Athletic Association for their new artificial turf project, they refinanced the
existing debt on the land because their current lender would not allow them
to enter into any new finance contracts.
NCL's ability to provide a solution in these examples, where other funders could not,
allowed Sourcewell and Sourcewell's Vendor to provide a solution that made the
procurement possible. Without the NCL solution, the Members would hot have been
able to get what they needed and the Sourcewell Vendor would not have been able to
make the sale.
31
Define any specific contract requirements or
Similar to our answer in questions #29 and #30, NCL does not impose any
restrictions that would apply to our
restrictions or additional requirements to Members based on their geographic
Members in Hawaii and Alaska and in US
location. If a Sourcewell Member has a need for financing in Hawaii, Alaska, or the
Territories.
US Territories, NCL will support that need just as they would for any other Sourcewell
Member. In addition, NCL will work with its Sourcewell vendor partners to promote
the Sourcewell contract in Hawaii, Alaska, and the US Territories.
EXAMPLES:
• Alaska for the City of Skagway and its School District
• Alaska Court System
• Tlingit-Haida Regional Housing Authority
Table 7: Marketing Plan
Line
Item
32
Question
Describe your marketing strategy for
promoting this contract opportunity.
Upload representative samples of your
marketing materials (if applicable) in
the document upload section of your
response.
Response*
NCL has established five objectives, strategies and tactics that will enhance the business of
Sourcewell, Sourcewell Vendors and their dealer networks (Vendors), and Sourcewell
Members (Members). It is a plan that by design, benefits all stake holders because if one
succeeds, all succeed.
For nearly 20 years, NCL, through its Account Managers, has serviced Sourcewell, its
Members and its Vendors by providing leasing and financing solutions, first under a PSA
contract, then later a Sourcewell competitively bid contract. During this relationship, NCL
has demonstrated expertise in government procurement solutions and has developed a
deep understanding of Sourcewell Vendor and Member needs.
Working in collaboration with Vendors, NCL has engaged in marketing activities for many
years that optimize the promotion of both NCL's contract as well as the Vendor's contract.
Given the longevity of the partnership, NCL has the unique perspective to have seen what
works over -time and has activated around those areas. Experience has taught NCL that
the following programs will yield the most impact:
-Training and education - Vendors, Members, and prospective Members all benefit greatly
from increased knowledge. With many successful training and education programs in place,
NCL will renew focus on expansion and scaling.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
-Co-branded marketing programs - co -branded marketing materials and campaigns with on -
demand marketing materials deliver the highest ROL Working directly with Sourcewell and
Vendors NCL will continue to tailor marketing efforts to meet the Vendor and Member
needs.
-Maximize current business as usual (BAU) programs — Ensure that baseline programs are
supported and look for opportunities to optimize presence.
Building the NCL Brand:
Prior to diving into the details of the marketing objectives, strategies and tactics to promote
the contract, it is imperative that NCL share an exhilarating process, one Sourcewell is
familiar with; the process of changing our brand. It was only after the Marketing Team
conducted an in-depth study of the brand, an audit of the competitors and a thorough
analysis of the future state of the brand, that the NCL Executive Leadership was able to
get comfortable with an evolution of the name and identity, along with a relaunch of the
website.
Through primary research the marketing team uncovered a key point of differentiation in
how NCL does business. It is the idea of putting people first. The Account Managers
actually get to know both the Vendors and Members. They ask in-depth questions to
understand the business issue and problem and most importantly, NCL often goes further to
understand why another financial company said "no," and how NCL can solve the problem,
turning the answer into a, "yes."
It is that human element that truly builds powerful relationships that the company wanted to
capture in the new name, logo and web design. As NCL began to add other core
attributes to the brand, words like approach, modern and contemporary filled in the brand
voice and became the guide for the new identity.
Name: NCL Government Capital (Speaks to who we are and whom we serve)
Logo: New logo displayed in document upload center
URL: NCLGOVCAP.COM
The rebranding (name, logo, website) is fundamental to all of the marketing objectives
detailed below. First, all Vendors and Members will experience the new name/logo, which
presents a great opportunity for NCL Account Managers to reach out to their current
customers to explain the change, answer questions, and provide a bit about the human
element of the company. Secondly, the rebranding, introduces a best in class digital
experience to all audiences (Members, potential Members and Vendors) through unique
touch points. Members will gain deep education about NCL and information about Tax
Exempt Municipal Financing, including the benefits and how the process works. The
website also has both a Vendor and Member portal which is password protected and thus
customized for each user, offering relevant tools and training. The portals will be described
in-depth in objective #2 and #3.
Marketing Objectives:
Upon award of the contract, NCL Marketing has created the following plan to enhance the
business of Sourcewell, its Vendors, its Members, and NCL.
1.Maximize training for Vendors & enhance Member education opportunities
2.Provide Vendors & Members with both on-demand/self-publishing and custom designed
marketing solutions
3.1-everage thought leadership to build trust and credibility as leaders in financial services
4.Optimize and scale existing NCL programs
5.Increase awareness of the NCL/Sourcewell contract partnership
Objective #1 Maximize training for Vendors & enhance Member education opportunities
Education empowers Vendors and Members alike, helping them navigate the procurement
process efficiently and successfully. In addition to the in -person Vendor trainings, Sourcewell
Member meet & greets and online webinars, NCL is enhancing its training and education
programs through new technology on its website.
Vendor Training Portal:
To meet the needs of Sourcewell's growing Vendor list, NCL has developed a password -
protected Vendor Training Portal. Within the portal, each Vendor can access personalized
training materials, including onboarding kits, webinar videos, sales sheets, Sourcewell/NCL
case studies, lease quote generators, customizable brochures, and more.
Once logged in, users are guided through details on how to include a competitively bid
quote for every sale. The portal is highly scalable, allowing Vendors with hundreds of
dealers to access high -quality training materials on -demand.
Member Education Portal and Webinar Training:
NCL has successfully provided training and education to Sourcewell's Vendors for many
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
years. They have learned what works and how to motivate Vendors to include
competitively bid pricing with every deal. This has led to increased success, not only for
NCL but for Sourcewell and Sourcewell Vendors. In 2020 NCL plans to expand that
strategy to educate Members as well. The Member education portal will mirror the
information provided to vendors in many ways.
One exciting program will be a monthly webinar training series for Members. NCL will
leverage a custom sourced list to invite and incentivize Members to attend. The monthly
webinar will feature one of NCL's highly experienced Account Managers discussing financial
topics which are important for all Members. It takes the training NCL provides in -person
and digitizes it so Members can access quality content at their convenience. Members will
have access to in-depth webinars on specific industries and sectors that demonstrate how
purchasing and financing off a competitively bid contract streamlines the procurement
process and offers a turnkey solution that saves time and money.
The first subjects in the series will cover:
-Maximizing your buying power
-Why tax-exempt leasing
-Why the Sourcewell contract
The topics will grow out of discussions the Account Managers have with Sourcewell
Vendors and Members and focus on answering the questions Members have about
financing options.
Customized Vendor Training:
For nearly 20 years, NCL's Account Managers have partnered with Sourcewell Vendors to
utilize leasing as a tool to increase their sales. This training includes details on how to
include a leasing quote on every proposal, by using customized payment calculators, and
how this will help them increase the percentage of proposals that turn into sales.
In the event an NCL salesperson discovers a Sourcewell Vendor salesperson is not aware
or educated on the Sourcewell contract, the NCL consultative salesperson is equipped to
help train and educate them on that information. In many cases, the NCL Vendor training is
done in collaboration with the Vendors Sourcewell training. At such events the focus is to
train the Vendor's salespeople on the value of utilizing leasing as a closing tool and to
reinforce the Vendor training on the Sourcewell contract and the value of contract purchasing.
"In regards to leasing and financing solutions, NCL has become a valuable alternative for
government financing. NCL has provided not only unique, but also customized financial
solutions to many International customers and assisted in closing opportunities for our
dealer networks. NCL provided regional training combined with Sourcewell for dealer
networks nationwide. These trainings in conjunction with Sourcewell provided critical
education to help increase market share for International in the Government Sector. NCL's
team has been very responsive and a very good asset for our Government Sales Team
and Dealer Network. NCL and Sourcewell will continue to be a leader in training our
dealer networks." Bob Mann, VP & Assistant GM — International Trucks (Sourcewell
Contract #081716-NVS)
Lastly, NCL Account Managers routinely participate in webinars during the Sourcewell
Vendor contract launch. The NCL Account Managers will then provide follow up training
done in person or on webinar. The NCL consultative salesperson's goal is to be viewed as
a valuable resource to the sales team of the various Sourcewell Vendors. The follow up
training provided by an NCL salesperson helps to familiarize the Vendor's sale's team with
NCL as well as the benefits of presenting a competitively bid financing or lease option on
all of their sales quotes.
Objective #2: Provide Vendors and Members with both on-demand/self-publishing and
custom designed marketing solutions
On-demand/Self-Publishing Co -Branded Marketing Materials
As a financing partner, NCL serves all Sourcewell Members as part of their procurement
solution, and Sourcewell's Vendors as a marketing and sales resource.
To reliably serve both groups, NCL leverages the technology behind the Vendor/Member
Portal on NCLGovCap.com to provide marketing solutions on- demand, including brochures,
flyers, Vendor testimonials, and more.
Custom Marketing Partnership:
Create awareness, drive demand, increase sales. Regardless of Sourcewell's Member or
Vendor's objective, NCL's marketing team will collaborate with that partner to develop
custom, integrated marketing programs that will deliver results.
For example, a Sourcewell Vendor partner might be calling on new schools in a new
region, but rather than just cold call, the Vendor and NCL can partner to develop a
program to condition the sale. Meaning, NCL Marketing can create a multi touchpoint
solution providing marketing materials (postcards, emails, flyers, infographics) to procurement
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
agents, decision makers and influencers highlighting special products, programs, or pricing
that NCL and the Sourcewell Vendor have prepared for the new schools. These marketing
materials educate the audience at the schools and prepare them to have a productive
meeting with NCL and the Vendor.
NCL's Director of Marketing often partners with NCL's consultative sales team to proactively
join sales meetings where marketing can enhance the conversation. From those calls
marketing can be deployed to help drive sales results.
Objective #3: Leverage thought leadership to build trust and credibility as leaders in
financial services
With nearly 20 years of experience in the government finance sector, the NCL team has
gathered invaluable industry knowledge that can be shared to benefit Sourcewell Vendors,
Members, and prospective Members alike. In addition to the educational component,
showcasing our thought leadership will build credibility and trust with the target audience.
Trust is the single most influential factor in the buyer/seller relationship. With sellers having
fewer opportunities to interact face to face with prospects, it's even more critical to build
trust in the digital environment. Thought leadership bridges this gap, enhancing our digital
footprint and driving real business impact. In an Edelman survey of more than 1,300 US
business decision makers and C-suite executives, 82% reported thought leadership had
increased their trust in an organization. 45% said it directly led them to do more business
with a company.
Although this strategy will take some time to develop and the distribution channels to fine
tune, once the thought leadership platform is determined, the thinking is that the main
channels will be Linkedln and Twitter given their ability to reach a professional target.
Objective #4: Optimize & Scale Existing Touchpoints
NCL will continue to invest in our existing marketing touchpoints while continuously looking
for opportunities to optimize.
-Member Tradeshows: NCL routinely supports Sourcewell and Sourcewell Members by
attending tradeshows. Tradeshows are an effective venue to market a competitively bid
leasing and financing contract to existing Member agencies and potential Member agencies.
Example of the shows NCL will attend include NIEP (National Institute of Educational
Procurement), I-ASBO (International Association of School Business Officials), NIGP
(National Institute of Government Purchasing), NPI (National Purchasing Institute), NRPA
(National Recreation and Parks Association), and others as recommended by Sourcewell.
-Elevate and Extend Tradeshow Presence: NCL will continue to actively look for
opportunities to elevate and extend our presence at tradeshows. For example, NCL is
partnering with Sourcewell to sponsor a government sector happy hour and roundtable event
at Waste Expo. NCL will also actively explore additional exclusive happy hours or
executive breakfast roundtable with a provocative or enlightening speaker for Members or
Vendors important to Sourcewell and NCL (including prospective Members, executives, etc.).
-Sourcewell Newsletter: NCL currently provides articles that are included in the Sourcewell
Newsletter. Because Sourcewell is the publisher, this is a relevant and credible source to
provide education and information about the benefits of Tax -Exempt Municipal Leasing. It is
also a great vehicle to highlight partnerships and case studies/testimonials.
Objective #5: Sourcewell Partnership Awareness Program
Upon an awarded contract, NCL's marketing team will begin collaborating with Sourcewell's
marketing team to develop a cobranded advertising campaign. This campaign will speak
directly to what makes this partnership so powerful that it has endured nearly two decades.
Together, NCL and Sourcewell will explore a pilot program that utilizes cobranded
messaging to create awareness with potential Members about who we are and the
compelling services the partnership provides.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
33
Describe your use of technology and
To scale NCL's hands-on, personal relationship approach, the company utilizes robust digital
digital data (e.g., social media,
marketing technologies.
metadata usage) to enhance
marketing effectiveness.
These technologies do not take the place of a real person on the other side of the
conversation, but rather enhance its ability to serve customers when, where, and how they
prefer.
The NCL website is our primary digital platform. It serves as both an educational and
interactive resource for Sourcewell Vendors, Members, and prospective Members. Using
performance monitoring and engagement analytics, NCL is able to identify which assets
best serve our audience and optimize accordingly. Our Salesforce.com platform integration
ensures leads are captured consistently and information privacy is maintained at all times.
Our revamped vendor portal supports Sourcewell Vendors with the comprehensive training
tools they need to close deals and increase sales, as well as co -branded marketing
materials they can print on demand. The portal has customizable quote calculators and
lease applications. Each Vendor has a unique login ensuring the training, marketing and
calculators are proprietary to that particular Vendor partner. As we replicate and build out
the Members portal, we will follow the same principles and model ensuring each Member
receives relevant training, marketing and financial calculators.
In addition to the NCL website, NCL utilizes social media, focusing on Linkedln and Twitter
as our primary B2B social media marketing channels. Both Linkedln and Twitter have user
dashboards and analytics tracking number of connections, followers, page views, reposting,
etc. this data will allow NCL's marketing director the ability to optimize in real time, change
a story, and react to content on sites we follow.
Other digital marketing tools include email marketing software, marketing automation
platforms, A/B testing software, video production software, and paid search campaign
platforms.
34
In your view, what is Sourcewell's role
Unlike other procurement cooperatives, Sourcewell recognized the importance and value of
in promoting contracts arising out of
having a specific and separate finance contract that provides Members with finance
this RFP? How will you integrate a
solutions that are competitively bid. To NCL's knowledge, Sourcewell is the only purchasing
Sourcewell-awarded contract into your
cooperative to have done so. This has helped Sourcewell differentiate themselves as well
sales process?
as the Sourcewell Vendors that have collaborated with NCL and offer a turn key
competitively bid solution. Recognizing this differentiation, Sourcewell has aggressively
supported and promoted the NCL contract as well as the collaboration of NCL's contract
and other Sourcewell Vendor contracts.
NCL anticipates that Sourcewell will continue, as it has the past nearly 20 years, to support
and promote the competitively bid leasing contract on the Sourcewell website and at all
Sourcewell sponsored events, including H2O, Sourcewell University, Sourcewell Get To Know
Us, Sourcewell meet and greets as well as new Vendors kick off meetings whether done in
person or by webinar. By continuing to include NCL and the competitively bid leasing
contract in the vendor presentations, Sourcewell sponsored events and the Sourcewell
website, Sourcewell will continue to validate the effectiveness of utilizing NCL's leasing and
financing solutions.
In August of 2000 when the relationship between Lease Servicing Center, Inc and the North
Central Service Cooperative (now Sourcewell) began, government leasing and financing was
a small part of Lease Servicing Center's business. Lease Servicing Center quickly
recognized not only the growing needs in the area of finance for Sourcewell Members but
also the need for a team to specialize in programs and services designed specifically for
government and education as opposed to commercial entities. Lease Servicing Center, Inc.
formed a new company, NCL, with the purpose of focusing solely on Sourcewell, Sourcewell
Vendors and Sourcewell Members.
Thus, Sourcewell, Sourcewell Vendors and Sourcewell Members are the core focus of
NCL's sales process. All actions of the Sales and Marketing team at NCL are taken with
four objectives in mind:
• Growth of the NCL Sourcewell contract
• Growth of the Sourcewell Vendor contracts
• Sourcewell Members getting more of what they need
• Sourcewell being seen as the Cooperative of choice for providing real solutions
35
Are your products or services
The complexities of the transactions as well as the documentation requirements of
available through an e-procurement
government financing make it very difficult to complete strictly utilizing an E-procurement
ordering process? If so, describe your
ordering process. That being said, NCL makes it possible for Sourcewell Members, through
e-procurement system and how
our Members portal, to generate a leasing quote as well as the ability to fill out an
governmental and educational
application directly from the website. In the event the application is approved,
customers have used it.
documentation will be completed in NCL's office and sent back electronically to the
Member agency for signatures. Upon signing, the documents are then scanned and sent
back to NCL. Hard copies are also sent via mail.
While the internet can be used to speed up the process, very few transactions are
successfully completed without the hands-on treatment of an NCL sales team member.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 8: Value -Added Attributes
Line
Item
36
Question
Describe any product, equipment,
maintenance, or operator training
programs that you offer to
Sourcewell Members. Include
details, such as whether training iE
standard or optional, who provides
training, and any costs that apply.
Response'"
NCL makes it a top priority to deliver valuable training to both the Sourcewell Members and
Sourcewell Vendors. All education and training are provided to the Members and Vendors
free of cost and is provided by one of NCL's Account Managers who are Government
finance specialists.
Member Training
NCL's Member training can be broken down into two categories; the training and education
provided to a Member on a transactional basis and the ongoing education NCL provides to
the Sourcewell Membership.
Transactional Member Training:
NCL's Account Managers work directly with the Member during a transaction to ensure the
Member understands the mechanics and benefits of the financing structure that best fits their
needs. The education on a transactional basis provided by NCL comes in many forms
including;
• discovery calls to identify the needs of the Member and what
funding solution will best meet their needs
• marketing material highlighting the benefits of the solution for their agency
• conference calls with management and counsel to discuss local
policy and how the solution satisfies those requirements.
While most of the communication between NCL and a Member is done over the phone,
NCL has also traveled in person to educate Member Boards on Tax Exempt Municipal
Financing. For example, Jake Ost (NCL Account Manager) traveled to Sheboygan, WI to
meet with the City and its leadership team, along with the vendor (Wastequip) to answer
questions the board had on the equipment and the financing solution.
Katie Vangsness (NCL Account Manager) recently traveled to a Lakeview School District
school board meeting to present a financing solution for a solar panel project that the school
was currently in deadlock over. During her presentation, Katie included education on NCL's
Sourcewell Contract as well as the financing structure itself.
Another Sourcewell Member, City of Karlstad, MN, benefited from NCL traveling to their City
offices to review their need for a 15-year term on an HVAC replacement project.
"The assistance provided through JCI and National Cooperative Leasing was a no brainer.
We were walked through all the aspects of the process. I definitely believe we made the
right decision and we accessed the best service for the citizens of our community." Mitch
Borneman — Mayor of Karlstad, MN (Sourcewell Member #135890)
"In the Karlstad project, we had a couple of air conditioning condensing units that were
failing, they needed to be repaired. These types of projects snowball into bigger dollar
amounts and typically an operating lease through Johnson Controls is a 5-7 year term where
as NCL was able extend the term out to 15 years. Having the option to put together a
payment plan instead of an upfront lump sum is critical to a small town like Karlstad. NCL
has been a great resource for me when we can come in with a financial solution together
as a team, the customer can see clearly how they are going to get that project done." Jon
Paul — Johnson Controls Senior Account Executive (Sourcewell Contract #031517-SGL)
Ongoing/On Demand Member Training:
NCL takes a proactive approach to educating the Sourcewell Members on how to maximize
their purchasing power by utilizing a lease or finance solution. NCL took many of the
common questions/concerns they heard from their customers when talking about financing and
developed a 2.51-minute animated video which speaks directly to the Member and answers
questions about Tax Exempt Municipal Leasing and NCL's Sourcewell Contract. The video
is linked here:
https://www.youtube.com/watch?v=r2Xi7SZP6aM&feature=youtu.be
NCL attends Sourcewell Member tradeshows (i.e. NRPA, NIGP, WASTECON) along with
participating in Member facing speaking events. For example, in February 2020 NCL will be
joining fellow Sourcewell contract holder Johnson Controls (JCI) to present to the AASA
National Superintendent Certification — West Cohort. NCL & JCI will deliver a walkthrough
discussion of the Partner Alliance for Safer Schools (PASS) Checklist while simultaneously
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
teaching the benefits to cooperative purchasing/financing.
Another exciting program will be a monthly webinar training series for Members. NCL will
leverage a custom sourced list to invite and incentivize members to attend. The monthly
webinar will feature one of NCL's highly experienced Account Managers discussing financial
topics which are important for all members.
The first subjects in the series will cover:
• Leveraging your budget to maximize your buying power
• Why tax-exempt leasing
• Why the Sourcewell contract
The topics will grow out of the discussions our Account Managers have with Sourcewell
Vendors and Sourcewell Members and focus on answering the questions Members have
about financing.
Vendor Training:
Vendor training is provided on how to utilize lease/financing as a tool to increase their
Sourcewell contract success. Training includes insight into the lease/finance industry and
best practices on presenting a lease/financing option.
As part of the Vendor onboarding process discussed throughout this response, NCL has
developed a robust Vendor training checklist which includes webinar trainings for every level
of a Sourcewell awarded manufacturer (Manufacturer Executive Level, Manufacturer Regional
Management Level, and Manufacturer Dealer/Sales Rep Level).
A few samples of Vendor webinar training provided by NCL include but are not limited to
Mitel was recently re -awarded a Sourcewell contract for Unified Communications and as part
of their contract re -launch to their partner network (dealer network) NCL was included and
delivered 35 webinars to regional and partner level groups to educate on how to utilize
lease/financing to increase Sourcewell contract sales.
NCL has also provided webinar training to many Sourcewell Vendors including but not limited
to:
• Johnston North America
• Konica Minolta
• PlayPower
• Precor
• Kardex Remstar
• Mohawk Lifts
• Gilbarco
In addition to webinar training, many Vendor partners have included NCL in their local,
regional and national sales meetings. The focus at these events is to train the Vendor's
sales team on the value of utilizing lease/financing along with the value of cooperative
purchasing for both equipment and lease/financing.
International Truck asked NCL to present to their Southwest region via Webex. After the
success of the first presentation, NCL was asked to replicate the presentation 5 more times
across the Nation. NCL traveled to Portland, Phoenix, Chicago, Dallas, Philadelphia to
deliver the presentation in person.
In addition, NCL was invited to provide training at many other Sourcewell Vendor national
sales meetings including but not limited to:
• Shaw Sports Turf
• Federal Signal (Elgin and Vactor)
• Sewer Equipment
• Schwarze
• Volvo Construction
• Falcon Asphalt Equipment
• National Auto Fleet Group
NCL has and will continue to participate in all Sourcewell Vendor events including H2O and
Sourcewell University. NCL utilizes these events to deliver a message focused on a
collaborative approach to cooperative purchasing. NCL's presentation and message at these
events will continue to evolve as Sourcewell and Sourcewell Vendors' needs evolve. NCL
has continuously received positive feedback from the Sourcewell Vendors that have attended
past H2O Events and Sourcewell Universities, which is a strong indicator of the value that
NCL's training message delivers to the Sourcewell Vendors.
Although NCL believes the best way to educate Sourcewell Vendor partners is directly
(webinar or in person) they recognize the need to give vendors on demand access to
education material. NCL is currently making upgrades to their website's vendor portal which
will include recorded webinar vendor trainings, downloadable print material, and vendor
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
specific information.
37
Describe any technological
NCL's marketing plan describes how technology will play a key role in the following areas:
advances that your proposed
Website Redesign
products or services offer.
Vendor Training Portal
Member Training Portal
On Demand Co -Branded Marketing Materials
Use of Social Media (Twitter & Linkedln)
Web Tracking Analytics (SEO, Site Design, Google Tracking)
38
Describe any "green" initiatives
Internally, NCL continues to invest in technologies that will convert workflow to an electronic
that relate to your company or to
process and eliminate the use of paper throughout its office. NCL has also initiated a
your products or services, and
paperless billing option to Sourcewell members for their financing statements.
include a list of the certifying
agency for each.
More importantly, NCL supports Sourcewell Members in their own "green" initiatives by
providing innovative funding solutions for these projects.
NCL is proud to have partnered with Sourcewell, National Auto Fleet Group, the
Electrification Coalition and the Climate Mayor's program providing a finance program for
electric vehicles. Many cities cannot afford the higher price of electric vehicles vs traditional
gas vehicles. The federal government and many state governments offer tax credits to
purchasers of electric vehicles to help reduce the higher cost of electric vehicles. However,
Members in the SLED sector do not pay income tax and thus cannot, on their own, take
advantage of the tax credits.
NCL created a program that enables Sourcewell Members the ability to capture 100% of the
federal income tax credits available for purchases of electric vehicles making the cost of an
electric vehicle comparable to a traditional gas vehicle. This is the only program of its kind
(passing 100% of the tax credits on to the Member) in the US today.
"NCL has provided innovative programs that have helped the City of Jersey City take
advantage of federal tax credits in order to reduce the cost of our commitment to "go
Green" as members of the Climate Mayor's program." Marty Valenti, Director of Automotive -
City of Jersey City (Sourcewell Member #90998)
"Green" initiatives such as solar systems, LED lighting retrofits, HVAC upgrades and others
provide long term energy savings to Sourcewell Members. However, the initial costs of
installing such improvements are cost prohibitive. It takes several years for the energy
savings realized from such initiatives to pay for the up -front cost.
NCL has worked with Sourcewell Vendors such as Johnson Controls and Sourcewell
Members such as the City of Karlstad and the Lakeview School District, to provide
innovative financing plans that allow the project to be budget neutral year one. The energy
savings on the new equipment or project covers the yearly cost of the financed project and
allows the Member to keep the project budget neutral. NCL has actively promoted funding
solutions for "green" projects such as solar panels, LED lighting retrofits, energy savings
projects, and HVAC upgrades.
It's these types of innovative programs that NCL will continue to develop as more and more
Sourcewell Members aim to increase their energy savings and reduce their carbon footprint.
39
Describe any Women or Minority
NCL does not possess any such certifications.
Business Entity (WMBE), Small
Business Entity (SBE), or veteran
owned business certifications that
your company or hub partners
have obtained. Upload
documentation of certification (as
applicable) in the document upload
section of your response.
40
What unique attributes does your
NCL considers its business model to be uniquely positioned and differentiated from other
company, your products, or your
financial services companies for several reasons:
services offer to Sourcewell
The first is NCL's commitment to make its brand, its people and
Members? What makes your
its offerings more relevant to Sourcewell, its Vendors and its
proposed solutions unique in your
Members. 100% of NCL's focus is on Sourcewell, its Vendors
industry as it applies to Sourcewell
and its Members.
members?
Next, is the NCL business model, Synergy. The belief, that the
creation of the whole is greater than the sum of the parts. Said
more simply, that the rising tide lifts all boats. When you win,
we win. Synergy is achieved through collaboration between
NCL's competitively bid contract and other Sourcewell Vendors'
competitively bid contract.
• NCL's unique funding strategy of building a collaborative
alliance of banks and funding partners in order to meet the
diverse needs of all Sourcewell Vendors and Sourcewell
Members.
• NCL's "Can do" mentality
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Finance transactions are typically evaluated by criteria including but not limited to the following:
• Entity Type
• Credit/Financial Strength of Borrower
• Asset
• Finance Structure including length of term
• Legal Terms and Conditions (Documentation)
Most finance companies have their criteria, "a box". If all of the above criteria do not fit the
box, the transaction is denied. NCL is successful with the Sourcewell Members and
Sourcewell Vendors because it does not have to fit the Member or transaction into "a box".
Because of the funding alliance NCL has built, NCL has many boxes that allow them to find
a finance solution (box) that best fits the Member's and transaction's unique needs. To
evidence the unique nature of NCL's ability, many of the transactions NCL has successfully
completed were originally denied by another finance company. (Examples are provided
below).
It is how NCL works within each of the categories above that has successfully served the
Sourcewell Members for the past 20 years.
Entity Type:
Most of the major finance companies and the finance companies that Sourcewell Vendors
have programs with, are focused on commercial lending and they do it very well. They will
work on the SLED transactions as a courtesy to their Vendor partner but it is not their
specialty. Sourcewell Vendor partners tell NCL that they choose to work with NCL on their
Sourcewell transactions because NCL's entire business is built around the Sourcewell
Membership sectors. Those Member sectors are the only sectors NCL serves and NCL
understands what it takes to serve these sectors well. NCL is unique as it relates to entity
type because it has finance solutions for ALL Member sectors including the more complex
such as Tribal Nations, Not -For -Profit and Federal Government. Examples include:
• Choctaw Nation of Oklahoma (Tribal)
• Confederated Tribes of the Coleville Nation (Tribal)
• Fort Huachuca (Federal)
• US Coast Guard (Federal)
• The Learning Experience Academy of Early Education (Not -for -
Profit)
Credit:
In most underwriting departments, there are strict credit requirements for any applicant and if
all of those requirements are not met then the transaction is declined and the Sourcewell
Member is left without a way to fund the equipment or project they need to better their
community. Likewise, the Sourcewell Vendor is left without a way to complete the
transaction. NCL is unique in its underwriting practices because if a Member does not
initially meet all of the credit criteria, it does not mean the transaction is automatically
declined. NCL would then work with the customer to understand the reason or reasons for
the credit deficiencies, what actions are being taken to remedy the credit deficiencies and if
there is a way for NCL and the customer to improve the quality of the transaction for the
underwriter. Often times when NCL has taken this approach, a finance solution is able to
be offered instead of a decline. NCL prides itself in having a 99% approval ratio for
customers in the SLED sector. Examples include:
• City of Flint, MI
• Jefferson County, AL
• Town of Ramapo, NY
• City of Methuen, MA
• City of Eagle Butte, SD
"The City of Methuen School Department used National Cooperative Leasing for two
financing projects in 2019. The School first reached out to NCL to inquire about a 6-year
financing term for a new reading curriculum the district was going to be purchasing. We
needed a 6-year term on the financing to align with the 6-year license on the software
included in the curriculum. At the same time, the District's IT Director reached out to NCL
to secure financing for a new batch of Chromebooks for the student body. NCL quickly
prepared financing quotes for both the reading curriculum and chromebooks to be reviewed
and authorized by the City Council. We then submitted our financial information to NCL to
gain credit approval and move forward with the transaction. The City of Methuen and the
School Department had recently had some financial difficulties which may have prevented us
from securing financing with another lender, but NCL took the time to understand the financial
strengths and weaknesses of the District and was able to approve both transactions with the
structure that the school committee had originally approved. The City and the District were
very happy with the outcome and service provided by the NCL team." Ian Gosselin, School
Business Administrator - Methuen Public Schools (Sourcewell Member ID #14148)
Asset:
In the finance industry it's very common for lenders to have an approved asset list. This is
a list of equipment they are willing to finance which is based on how well the equipment
holds its value, how easily it can be repossessed in the event of default, and how essential
the equipment is to the operation of the Member. Since its inception, NCL has recognized
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
the need to service all of the Sourcewell Members and all of their procurement needs, not
just the "good equipment". Because of how NCL is structured and the funding alliance it
has built, NCL has a way to fund any asset that Members may request including the non-
traditional, non -removable assets. NCL has a significant list of assets currently on its books
that would be considered non-financeable assets in the finance industry:
• Roof Replacement — Southern Local School District
• Artificial Turf — North Middlesex Regional School District
• Software Licenses — City of Hollywood, FL
• K-12 Curriculum Program — City of Methuen School Department
• Plastic Garbage Totes — City of Sheboygan, WI
Structure:
In addition to the actual finance product (FMV, $1 Out, Etc.) that is being used for any given
transaction, structure also refers to the term of the agreement, 1st payment due date, and
payment frequency. Instead of proposing a set structure for each type of equipment, NCL
will speak with each Sourcewell Member to discover what the Member's needs are and
work to propose a customized structure to fit their specific budget needs.
For example, NCL and Sourcewell Vendors have found that most finance companies have
maximum terms established for given Asset types. When providing quotes, they will typically
quote the maximum term and require the first payment at lease commencement. If the
Member does not have the required payment in their budget, the transaction dies. NCL has
made it common practice to have a discussion with the Member to determine what their
needs are and what their budgets allow and work to fit the plan into the Member's budget.
Asking questions like, "What is the annual budget for the lease payment on this equipment
or project" helps NCL determine what the term of the contract should be.
Below are examples of successful transactions where NCL was able to provide extended
terms where other finance companies could not:
• City of Sheboygan, WI — 10 years for Plastic Garbage Totes
• Pueblo County School District — 7 years for Phone System
• City of Woodland, CA — 10 years for High Reach Truck
• North Middlesex Regional School District — 10 Years for Artificial
Turf
• City of Karlstad, MN — 15 Years for HVAC Improvements
• Dallas County Board of Education — 10 Years for School Buses
"NCL's knowledge, creativity, flexibility and hands on approach were crucial to the successful
procurement of a Mitel phone system for Pueblo County School District #70. The School
district had initially chosen another funding source. However, when the project was
completed and payment was due to the Mitel dealer, funding was not approved by the
original funding source. The school district had financing procedures they needed to follow
that were not agreeable to the funder [7 Year Term on Phone System, and deferred
payments]. NCL stepped in, listened to the financing requirements of the school district, put
together an agreeable financing solution, and funded Mitel's dealer. The Pueblo County
School District #70 was grateful that Mitel had a funding source that was able to meet their
needs to acquire the phone system and service agreement they had requested.
Pueblo County School District #70 has now entered into their second 7-year lease contract
with NCL for upgrades and additions to their existing Mitel phone system. The district
utilized both the Mitel and NCL Sourcewell contracts to streamline the procurement process
and satisfy their bid requirements. This allowed the district to move forward quickly with the
project at hand." Murray Van Dyke — SLED Vertical Sales Specialist - Mitel (Sourcewell
Contract #022719-MBS)
"Recently Bus Worx worked with National Cooperative Leasing on providing the Dallas
County Board of Education a solution for them to acquire a fleet of school buses. The state
of Alabama has a transportation reimbursement program where districts can get money back
for financing buses over a 10-year term. NCL was able to provide the customer the
extended term needed to be able to qualify for this program. This transaction went very
smooth as NCL was not only flexible with the term but they also were able to provide the
customer a competitively bid contract for financing. Bus Worx provided the customer the
equipment contract through Bluebird and NCL provided the financing contract making this
transaction move quickly and the customer could get exactly what they wanted in a timely
manner without going through the traditional bid process. We will definitely look to Jake and
the team at NCL for any leasing and financing solutions in the future and would recommend
their services to all customer we work with." Chris Bible, Corporate Bus Sales Manager -
Truckworx (Sourcewell Contract #102115-BBB)
Another question asked by the NCL Sales Executive is whether or not the Member has
funds appropriated in the current year for the first payment? This helps determine if the
customer would benefit from deferring the 1st payment to the next fiscal year. Often times,
Members have an immediate need for equipment but must put the purchase off because
they have no funds in the current budget. NCL allows the Members to defer their first
payment up to 12 months so they can get their essential equipment when they need it and
start making lease payments the following year when funds are available. Many existing
NCL vendors have stated other finance companies don't allow this due to the non -
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
appropriations clause. Below is just a sampling of transactions where NCL was able to
defer payment to future fiscal years enabling the Member to get the equipment they needed
even though it was not in the budget:
• Barnwell County, SC — 12 Month Deferred Payments to Acquire
Construction Equipment
• Lakeview School District — 7 Month Deferred Payments to
Acquire a Solar Farm
• Town of Lake George, NY — 16 Month Deferred Payments to
Acquire Construction Equipment
• Yuba County, CA — 6 Month Deferred Payments to Acquire
Police Vehicles
• City of Sheboygan, WI — 13 Month Deferred Payments to
Acquire Plastic Garbage Totes
Legal:
Often times NCL is asked to help with a transaction that has stalled with another lender
because of legal issues within the documentation. Many times, when NCL sees another
lender's document package for a SLED Member, it's a Commercial Document with a
Government Addendum. This can be problematic for the Member when they have their
counsel review because they are not legally able to commit themselves to certain terms that
are standard in a commercial lease document. Because NCL serves only the Sourcewell
Member sectors, our boiler plate lease/finance documents are all written based on standard
Government financing practice.
Even though NCL documents are specific to SLED Members, each State, County, City,
University or School District has their own set of laws and regulations making a "one size
fits all" document impossible. When counsel reviews the documents and requests changes
or additions be made, the NCL management team will immediately schedule a call and
review the concerns of counsel with the goal being to put together a mutually agreeable
document package.
For example, a Precor (Sourcewell Awarded Contract holder for fitness equipment) dealer
had reached out to their NCL Account Manager because the lender they were currently
working with on a transaction for a University was at a standstill. The University's Counsel
had made some comments on the document package and asked that a call be set up to
review the documents with the lender. The lender would not accommodate that request and
instead withdrew the approval. NCL stepped in, took a call with the University's Counsel to
understand his concerns, sent out the NCL document package with the requested revisions
and funded the transaction.
Sometimes the requested changes to a document package require a quick conference call
to explain a requirement. Sometimes, however, the document comes back with significant
redlines that require hours on the phone with counsel going through the redlines line item by
line item to decipher needs vs. wants and work towards a compromise. Either way, NCL is
always willing to go that extra step and make concessions on language of the document
package when appropriate.
Below are a few examples of transactions that required document revisions:
• Johnson County, TX
• City of Sheboygan, WI
• Cullman County, AL
• Wappingers Central School District
• City of Des Moines, IA
"The first deal we worked on with NCL and Sourcewell happened because the initial
financing wasn't compliant with our legal process. So, we turned to NCL. Jake and team
immediately got to work and within three days we had completed the entire process. NCL
and Sourcewell were able to provide a turnkey solution that was compliant and met our
needs. Because of the value NCL was able to provide the school district when purchasing
equipment, we have continued to utilize NCL as our preferred finance solution provider for all
equipment. Jake has made this process seamless and I look forward to a continued
relationship in the future." Barbara Mackson — Purchasing Agent — Wappingers Central
School District (Sourcewell Member ID #115344)
The above communities may have never gotten what they needed without NCL. In the words
of a respected Sourcewell Contract Administrator "NCL has built its business on broken
promises". What he means is other finance companies say they can but can't. NCL says it
can and does.
41 Identify your ability and willingness NCL is both willing and able to provide the same services to Canadian members as US
to provide your products and members.
services to Sourcewell member
aaencies in Canada.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 9: Warranty (Performance Standards or Guarantees)
Describe in detail your performance standards or guarantees, including conditions and requirements to qualify, claims
procedure, and overall structure. You may upload representative samples of your performance materials (if applicable) in the
document upload section of your response in addition to responding to the questions below.
Line
Item
Question
Response*
42
Describe any performance standards or guarantees
Once a Sourcewell Member chooses a Sourcewell Equipment solution along
that apply to your services (turnaround times,
with an NCL finance solution, it is imperative that NCL is able to provide a
funding time frames, etc.)
credit approval and provide said credit approval quickly. Once approved,
lease agreements need to be prepared and provided to the Sourcewell
Member in order to obtain proper authorizations. Once authorized, the
Sourcewell Member is able to finalize the order with the Sourcewell Vendor
and NCL provides Sourcewell Vendor with a Funding Commitment. Once
Sourcewell Vendor delivers the equipment or finishes the project and the
Sourcewell Member accepts final delivery, NCL funds the Sourcewell Vendor
within 24 hours.
% of approvals to applications:
• 99% on State, County, City and Education Applications
• of fundings to approvals:
• 90% of approvals ultimately funded
Turnaround Time on credit approvals:
• Up to 100K 4 Hours
• 100K -500K 24 Hours
• 500K and above 48 Hours
Turnaround Time on document preparation:
• Documents sent to customer within 24 hours of NCL
Documentation Analyst having all pertinent information
Turnaround Time on fundings:
• Within 24 hours of receiving all properly authorized
documents
43
Describe any service standards or guarantees that
NCL's service standards and guarantees revolve around the following
apply to your services (policies, metrics, KPIs, etc.)
objectives:
Help Sourcewell Members get more of what they need
Help Sourcewell Vendors close more Sourcewell transactions
NCL has identified the following KPIs that are relevant to achieving the above
objectives:
• Approval %
• Funding %
• Turnaround Time on Applications
• Turnaround Time on Documentation Preparation
• Turnaround Time on Funding
• # of Vendor Trainings
-Webinars
-On Site Trainings
• # of Tradeshows Attended
• % of Vendors utilizing NCL Marketing Services
44
Describe any service contract options for the items
Although this question is more pertinent to a product offering vs a service
included in your proposal.
offering, NCL works with Vendors and Members in order to provide better
access to available service contracts by allowing members to include the cost
of the service contract in the financed amount.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 10: Payment Terms and Financing Options
Item ine
Question
Response
45
What are your payment terms (e.g., net 10, net 30)?
NCL does not have one size fits all payment terms. Depending on
the Member's needs, NCL will customize payment plans and
payment terms to fit their needs. For example, some Members
require an invoice 45 days in advance of making payment. Others
require 30 days.
46
Briefly describe your proposed order process. Include
All orders are received and processed at the NCL headquarters in
enough detail to support your ability to report quarterly
Alexandria, Minnesota. Thus, all Sourcewell sales are processed
sales to Sourcewell as described in the Contract template.
internally and are easily tracked and reported to Sourcewell:
For example, indicate whether your dealer network is
Orders are identified first by the Account
included in your response and whether each dealer (or
Manager as a Sourcewell transaction
some other entity) will process the Sourcewell Members'
All orders are then reviewed by the NCL
purchase orders.
Controller at month end to ensure all Sourcewell
transactions are identified
47
Do you accept the P-card procurement and payment
As NCL will be providing financing for purchases of goods and
process? If so, is there any additional cost to Sourcewell
services, it is rare for Members to utilize P-cards to make
Members for using this process?
payments. NCL is able to accept the P-Card procurement and
payment process as well as numerous other methods of payment
such as ETFs and ACH which do not have additional costs. In the
event the Member wishes to utilize P-Card, the additional cost of
doing so will be passed on to the member.
Table 11: Pricing and Delivery
Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can
be made during the term of an awarded Contract as desribed in the RFP, the template Contract, and the Sourcewell Price and Product
Change Request Form.
Line Question Response'*
Item
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
48
Describe your pricing model (e.g., line -item discounts or
The pricing model for this proposal can best be described as
product -category discounts). Provide detailed pricing data
a "Cost Plus" pricing model. NCL's cost is directly related
(including standard or list pricing and the Sourcewell
to "Interest Rate Swaps" which is a commonly used Market Index.
discounted price) on all of the items that you want
Similar to other Market Index rates such as Libor or Prime, Interest
Sourcewell to consider as part of your RFP response. If
Rate Swaps vary based upon the length or term of the lease or
applicable, provide a SKU for each item in your proposal.
loan and change daily based on market conditions. These rates
Upload your pricing materials (if applicable) in the document
can be accessed daily on several websites including but not limited
upload section of your response.
to the Wall Street Journal (www.wsj.com) and the Federal Reserve
(www.federal reserve.g ov).
A detailed pricing model has been uploaded in the document upload
section of this response. The pricing model shows NCL's cost
(Interest Rate Swaps) based upon Interest Rate Swaps as of
January 2, 2020, NCL's mark up over cost (Delta Over Swaps), the
resulting interest rate to the Sourcewell Member (NCL Rate), and the
payment factor (NCL Payment Factor) which is utilized to calculate
the resulting monthly payment.
Sourcewell Members also have the option of choosing monthly,
annual, semiannual or quarterly payments. The same "NCL Rate" for
a given term will be utilized to calculate monthly, annual, semiannual
or quarterly payments.
There are two pricing models included in the document upload
section of this response: Tax Exempt Municipal Rates and Non -Tax -
Exempt Municipal Rates. Sourcewell Members who qualify for Tax
Exempt Municipal Rates receive a discounted rate that is at least
21% lower than the Non -Tax -Exempt Municipal Rates.
Sourcewell Members who qualify for Tax -Exempt Municipal Rates
must be a State or possession of the U.S., the District of Columbia,
or a political subdivision thereof. Political subdivisions include cities,
towns, counties and other municipalities. They may include other
state entities such as school districts, public universities, special
purpose districts (fire, parks, utility, water, etc.), hospitals, agencies,
authorities, boards and commissions.
Not -for -profit organizations created under Section 501 (c) (3) of the
Internal Revenue Code do not qualify directly as issuers of tax-
exempt obligations but may be eligible with a sponsoring
governmental unit.
49
Quantify the pricing discount represented by the pricing
Sourcewell Members receive a rate that is on average 20% lower
proposal in this response. For example, if the pricing in
than the typical customer of NCL. In addition, Sourcewell Members
your response represents a percentage discount from MSRP
who qualify for Tax -Exempt Municipal financing receive an additional
or list, state the percentage or percentage range.
discount of at least 21% of the already discounted rate.
50
Describe any quantity or volume discounts or rebate
In order to simplify the pricing model, we have created a volume
programs that you offer.
threshold of $500,000 at which point Sourcewell Members receive
additional discounts. This threshold can be met with one transaction
or the sum of multiple transactions. This discount ranges from 7%
on a ten-year term to 13% on a one-year term.
51
Propose a method of facilitating "sourced" products or
Sourcewell Members may desire lease structures that are "Non -Tax -
related services, which may be referred to as "open market"
Exempt Municipal Leases" since they include a residual or purchase
items or "nonstandard options". For example, you may
price at lease end. Sourcewell Members using such structures have
supply such items "at cost" or "at cost plus a percentage,"
the option of purchasing the equipment at lease end or returning the
or you may supply a quote for each such request.
equipment at lease end. Such lease structures allow for lower
monthly, quarterly, semiannual or annual payments depending upon
the anticipated value of the leased asset at lease end. Leases in
this category include but are not limited to the following:
-Operating Leases
-TRAC Leases
-Not to Exceed Leases
These structures do not qualify for Tax -Exempt Municipal Rates.
Thus, the Non -Tax -Exempt Municipal Rate table must be used. The
NCL Rate or "Yield" utilized for these programs will include the
anticipated Residual or Purchase Option thus the total Yield will not
exceed the proposed rates.
52
Identify any element of the total cost of acquisition that is
Items not included in the pricing submitted include the following:
NOT included in the pricing submitted with your response.
-Sales Tax (If applicable)
This includes all additional charges associated with a
-Personal Property Tax (If applicable)
purchase that are not directly identified as freight or
-Origination Fees ($500 Max)
shipping charges. For example, list costs for items like pre-
-Late Charges
delivery inspection, installation, set up, mandatory training, or
-P-Card charges
initial inspection. Identify any parties that impose such costs
and their relationship to the Proposer.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
53
If freight, delivery, or shipping is an additional cost to the
Freight, delivery and shipping is not a cost that is charged by NCL.
Sourcewell Member, describe in detail the complete freight,
Such costs may be charged by the Sourcewell Vendor supplying the
shipping, and delivery program.
leased asset. NCL assists the Sourcewell Members by allowing
them to include these costs in the financed amount.
54
Specifically describe freight, shipping, and delivery terms or
We do not treat Alaska, Hawaii, Canada or offshore delivery
programs available for Alaska, Hawaii, Canada, or any
Sourcewell Members differently than mainland Sourcewell Members.
offshore delivery.
55
Describe any unique distribution and/or delivery methods or
Customized calculators are provided to Sourcewell Vendors with
options offered in your proposal.
Vendor specific programs in order to enable the Vendor sales force
to easily provide financing quotes with each equipment proposal.
Table 12: Pricing Offered
Line
Item
The Pricing Offered in this Proposal is:
Comments
56
d. other than what the Proposer typically offers (please describe).
The pricing offered in this
proposal is approximately
20% lower than what is
typically offered. NCL does
not work with other GPOs,
other purchasing cooperatives
or state purchasing
departments.
Table 13: Audit and Administrative Fee
Line
Item
Question
Response*
57
Specifically describe any self -audit process or program that you
NCL has employed a multi layered process to ensure the
plan to employ to verify compliance with your proposed Contract
proper pricing is being provided as well as a review process
with Sourcewell. This process includes ensuring that Sourcewell
to ensure procedures have been followed:
Members obtain the proper pricing, that the Vendor reports all sales
NCL Direct Sales Team will be provided rate
under the Contract each quarter, and that the Vendor remits the
tables reflecting proposed pricing and trained to
proper administrative fee to Sourcewell.
ensure awareness and understanding of the
importance of providing the proper pricing
• NCL Financial Analysts are also provided the
rate tables and check pricing at the time of
application to ensure compliance
• NCL Financial Analyst reviews the pricing at the
time documentation is prepared to ensure
compliance
• NCL Controller reviews transaction at time of
funding to ensure compliance
Each quarter, all transactions are reviewed by the NCL
Controller to ensure they have been properly identified. The
administrative fee is easily calculated as a percentage of the
funded amount. The administrative fee is the same
regardless of transaction size or pricing.
58
Identify a proposed administrative fee that you will pay to
NCL proposes a .25% of the funded amount of transactions
Sourcewell for facilitating, managing, and promoting the Sourcewell
under the Sourcewell Contract.
Contract in the event that you are awarded a Contract. This fee is
typically calculated as a percentage of Vendor's sales under the
Contract or as a per -unit fee; it is not a line -item addition to the
Member's cost of goods. (See the RFP and template Contract for
additional details.)
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 14: Depth and Breadth of Offered Equipment Products and Services
Indicate below whether or not leasing solutions for the listed asset type or application is included in your proposal. If yes,
state applicable minimum and maximum funding levels.
Line
Item
Asset Type or Application
Leasing Offered "
Minimum Funding Amount
Maximum Funding
Amount
59
Office Furniture
r: Yes
$3000.00
Unlimited
r No
60
Office Equipment
r: Yes
$3000.00
Unlimited
r No
61
Technology Software and Licenses
r Yes
$3000.00
Unlimited
r No
62
Technology Hardware
r: Yes
$3000.00
Unlimited
r No
63
Fleet Vehicles
r: Yes
$3000.00
Unlimited
r No
64
Fleet Equipment
r Yes
$3000.00
Unlimited
r No
65
Facility Systems
r Yes
$3000.00
Unlimited
r No
66
Facility Improvements
r: Yes
$3000.00
Unlimited
r No
Table 15: Industry Specific Questions
Line
Item
Question
Response'"
67
If you are awarded a contract, provide a
If awarded a contract, NCL will track the following metrics on a monthly basis:
few examples of internal metrics that will
1. # of direct Sourcewell Vendor trainings performed by NCL
be tracked to measure whether you are
Sales Executives
having success with the contract.
# of On Site Training
• # of Webinar Trainings
2. # of Vendor portal visits on NCL website by Sourcewell
Vendors
3. # of Member portal visits on NCL website by Sourcewell
Members
4. # of Sourcewell Vendors providing an NCL lease proposal
along with Sourcewell Vendor proposal
• # of proposals provided by custom calculators on-line
• # of proposals provided directly by NCL Sales Executives
5. # of lease applications submitted by Sourcewell Vendors
and/or Sourcewell Members
6. # of leases funded by NCL for Sourcewell Vendors and/or
Sourcewell Members
7. Volume in $ of leases funded by NCL for Sourcewell Vendors
or Sourcewell Members
68
Describe your strategy for collaborating
Since the beginning of the NCL/Sourcewell relationship, NCL's stated mission was to
with Sourcewell awarded vendors of
develop customized, unique, solution -oriented leasing programs designed with two
relevant equipment, products and services
purposes in mind:
to facilitate member transactions
(resources, tools, training, etc.).
Help Sourcewell Vendors increase success with their Sourcewell contract
Help Sourcewell Members get more of what they need
NCL's strategy follows the belief that NCL's success with the NCL contract will be
achieved by helping Sourcewell Vendors achieve success with their Sourcewell
contract. NCL's programs and services must provide a competitive advantage to
Sourcewell Vendors which allow them to win more opportunities with Sourcewell
Members. Over the years, NCL has developed and implemented strategies that have
demonstrated its ability to deliver on the above -mentioned objectives. The success of
this strategy can be shown by the growth of the number of Sourcewell contracts that
completed transactions with NCL from 5 in 2015 to 41 in 2019. Additionally,
success can be shown by the many Sourcewell vendor testimonials provided in this
proposal.
The key to accomplishing these objections the past five years will be the key to
continuing the growth and success of not only the NCL contract but of the Sourcewell
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Vendor contracts of Vendors who choose to collaborate with NCL.
The strategy begins with the Vendor Onboarding process.
1.Initial presentation and meeting with Vendor Senior Management (preferably at
Sourcewell with Sourcewell support team present)
2.Presentation and meeting with Vendor Regional Sales team. Purpose is to
strategize and plan the onboarding and training of the Vendor's Dealer Network
and/or Direct Sales Team
3.Develop Specific Vendor Portal site on NCL website. The Vendor Portal site will
be customized to the specific Vendor and will include the tools necessary for the
Vendor dealer network and salespeople to utilize NCL's leasing programs. Tools will
include but not be limited to the following:
a. Webinar Training on the benefits of offering a Tax Exempt Municipal Lease
b. Co -Branded marketing materials that can be printed on demand
C. Customized Calculator enabling the Vendor dealer network and their sales
teams the ability to prepare a lease proposal on demand to accompany their
equipment proposal
4.The NCL Sales Executive will provide ongoing personalized sales support to
Sourcewell Vendor sales channel which includes but is not limited to the following:
a. Assistance in providing finance solutions to potential Members. This may
be as simple as preparing a finance quote to pass on to the Member, a phone
meeting with the Member to better understand Member needs. It may also involve a
face to face visit with the Member by the Vendor Salesperson and the NCL Sales
Executive. This enables NCL to provide the best solution.
b. On -site training provided at National Sales Meetings, Regional Sales
Meetings or specific dealer locations in conjunction with Sourcewell training if possible
C. Tradeshow support which includes but is not limited to the following:
i.Customized Cobranded marketing materials targeting attendees
ii.Pre-show Cobranded email marketing campaign targeting attendees
iii.Developing customized "Show Specials" with Turn Key Competitively Bid
Solutions
iv.NCL Sales executive at the show
d. Assist Vendor Salesperson with the finance process. Vendor salespeople
appreciate the fact the NCL Sales Executive is willing to do the "heavy lifting" during
all stages of the finance process in order to ensure a smooth completion of the
transaction. This will likely involve discussions with key decision makers of the
Member including finance directors, attorneys and at times Mayors.
The NCL Sales team prides itself as being viewed as an extension of the Sales
Teams of NCL's Vendor partners as shown by the testimonials below.
"NCL provided Johnson Controls with a competitively bid contract that has flexibility
and offers a wide range of solutions given our breath of products. This ensures that
none of our projects have to be put out to bid. Beyond that NCL proactively put
together training materials for our 1000 plus sales staff, as well as frequently joined
conference calls to discuss financing with our potential customers. In February, NCL
will be speaking with Johnson Controls in a school safety breakout session to
superintendents in San Diego. NCL has taken the time to understand the needs of
Johnson Controls and has worked directly with our team to support our customers."
Tom Staves, State Cooperative Program Manager - Johnson Controls International
(Sourcewell Contract #031517-TIS, #030817-JHN, #031517-SGL)
"We at Mitel will continue to work with NCL utilizing their Sourcewell contract, as we
believe it provides significant value for both our customers and network of dealers."
Murray Van Dyke — SLED Vertical Sales Specialist - Mitel (Sourcewell Contract
#022719-MBS)
"One of the biggest obstacles we have to overcome as a company is the financial
part of the sale for a big -ticket item like synthetic turf. Using NCL we can give our
customers a turnkey solution to get their field sooner at competitive market rates.
Using NCL's calculator has helped us give examples and highlight real life instances.
The customer can actually see a number vs. an abstract conversation. Getting NCL
involved with our customers allows for a more open conversation between the
customer and the lender. With cooperative contracts becoming so important to our
selling cycle it just makes all the sense in the world to have NCL working with us
hand and glove on these jobs. I can only see a bright future for us and our
partnership." Jimmy Marshall, Director of Cooperative Sales — Shaw Sports Turf
(Sourcewell Contract #060518-SII)
"Truthfully, in the past Government entities may not have looked at leasing as a viable
option to equip their fleet. Utilizing National Cooperative Leasing and their financing
options takes away some of the objections about budget dollars not being available.
So, as a vendor or a sales representative we can steer the conversation in another
direction in order to close the sale a little faster. Although many vendors and
manufacturers that have NJPA [Sourcewell] contracts have already established
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
financing options, partnering with NCL provides a force multiplier to close multiple
sales especially when the opportunity arises when you have to have a competitively
bid lease program and National Cooperative Leasing is our choice. NCL is right
there every step of the way and making sure the customer is able to get the
machines they need in the time frame they need them without having to worry about
upsetting the budget." Randy Fuss, Sr. Government Accounts Manager — Bobcat
(Sourcewell Contract #040319-CEC)
"National Cooperative Leasing is a great partner of ours. Working with NCL saves
us a lot of time in the sales process in addition to the time and effort is saves our
customers. National Cooperative Leasing is very flexible in their options and they
really take a lot of time to listen to the customer's needs. When we put the
customer in touch with NCL they help guide the customer through the process and all
of the options they have for financing. We are a huge, huge fan of National
Cooperative Leasing." Dave Elton, Education Market Manager — Precor (Sourcewell
Contract #120215-PCR)
"NCL has worked with our team at Wastequip closely on multiple opportunities. NCL
has flexible programs that can be customized to fit our customers' needs. Their
contracted solution provides us with the tools needed to help close Sourcewell
contract opportunities for our customers with financing needs. Wastequip appreciates
NCL's attendance at trade shows and meetings in support of Wastequip and our
customers. We look forward to working on Sourcewell opportunities with NCL for our
customers in need of financing programs." Will Kessler, VP Equipment Finance —
Wastequip (Sourcewell Contract #041217-WQI)
"National Cooperative Leasing has been a great supporting partner for us over the
years and have become our exclusive partner for our municipal financing needs. For
us having a partner that has a Sourcewell contract like ourselves, has been a
competitive advantage for us in offering a turn key competitively bid solution to our
customers. NCL is trusted by myself and our staff knowing they will go the extra step
to ensure my customers get the vehicle they need and the means to pay for it."
Jesse Cooper, Fleet Manager - National Auto Fleet Group (Sourcewell Contract
#120716-NAF)
"Sharp, including Sharp Direct Branches and Sharp Independent Dealers nationwide,
has had a relationship with NCL in collaboration with our Sourcewell contract since
2001. Although Sharp has a robust portfolio of funding options with some of the
financial industry's most prominent finance companies, when it comes to government
and public education entities (Sourcewell Members), NCL has shown a unique ability
to provide solutions where others cannot. Sharp has learned when an issue arises
that cannot be solved by our traditional funders, NCL will likely provide a solution.
NCL has funded transactions for Sharp Branches and Sharp Dealers ranging from
$1,500 to over $2,000,000. There has never been an issue in which Sharp
Branches or Sharp Dealers have not been funded timely by NCL. I feel confident
recommending NCL to both our dealer community of over 375+ independent
businesses, as well as our direct sales teams. The professionalism and customer
service which NCL provides is outstanding and much appreciated." Erica Calise,
Director Government & Major Account Marketing - Sharp Electronics Corporation
(Sourcewell Contract #083116-SEC)
69
Describe the percentage of your business
Office Furniture - .9%
represented by the asset types identified
Office Equipment - 13.3%
in Table 14 above (e.g. Office Furniture
Technology Software - 1.8%
5%, Office Equipment 2.5%, etc.)
Technology Hardware - 6%
Fleet Vehicles - 14%
Fleet Equipment - 47%
Facility Systems - 2%
Facility Improvements - 15%
70
Describe your percentage of business
Tax Exempt Leasing 80.5%
represented by tax-exempt leasing and
Non -Tax -Exempt Leasing 19.5%
percentage of other lines of leasing (i.e.
traditional leasing).
71 Describe any asset types your organization Over the twenty years of working with Sourcewell and Sourcewell Members, NCL has
will not finance. demonstrated its flexibility and creativity by financing any asset type a Sourcewell
Member has requested. NCL has financed roofing projects, artificial turf, flooring,
software and other "non-traditional" assets. To date, there has not been a request
NCL could not finance.
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Table 16: Exceptions to Terms, Conditions, or Specifications Form
Line Item 71. II4. :a:11 .1�,: To identify any exception, or to request any modification, to the Sourcewell template Contract terms, conditions, or specifications, a
Proposer must submit the exception or requested modification on the Exceptions to Terms, Conditions, or Specifications Form immediately below. The
contract section, the specific text addressed by the exception or requested modification, and the proposed modification must be identified in detail.
Proposer's exceptions and proposed modifications are subject to review and approval of Sourcewell and will not automatically be included in the contract.
Contract Section I Term, Condition, or Specification I Exception or Proposed Modification
Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided
2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to
ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by
Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the
zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding
to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan."
• ,Fiinanciiall.._ trenatlh._and.._ .tablliity - Financial Strength and Stability.zip - Wednesday January 15, 2020 16:41:18
• IMarllkoting IF'llan/Samplles - Marketing Plan and Samples.zip - Thursday January 16, 2020 09:45:53
• WMBE/MBE/SBE or Related Certificates (optional)
• Warranty Information (optional)
• ,C�trrl.cin.g - Pricing.zip - Wednesday January 15, 2020 10:16:59
• Additionall.. Document - Table 2 Question 7 - NCL Core Values applied to Sourcewell relationship. pdf - Wednesday January 15, 2020
10:18:52
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.
DocuSign Envelope ID: 47E56B5B-3A18-445F-8F85-60BA78353030
Proposers Assurance of Comp
PROPOSER ASSURANCE OF COMPLIANCE
PROPOSER'S AFFIDAVIT
The undersigned, authorized representative of the entity submitting the foregoing proposal (the "Proposer"), swears that the following
statements are true to the best of his or her knowledge.
1. The Proposer is submitting its proposal under its true and correct name, the Proposer has been properly originated and legally exists
in good standing in its state of residence, the Proposer possesses, or will possess before delivering any products and related
services, all applicable licenses necessary for such delivery to Sourcewell member agencies. The undersigned affirms that he or she
is authorized to act on behalf of, and to legally bind the Proposer to the terms in this Contract.
2. The Proposer, or any person representing the Proposer, has not directly or indirectly entered into any agreement or arrangement
with any other vendor or supplier, any official or employee of Sourcewell, or any person, firm, or corporation under contract with
Sourcewell, in an effort to influence the pricing, terms, or conditions relating to this RFP in any way that adversely affects the free
and open competition for a Contract award under this RFP.
3. The contents of the Proposer's proposal have not been communicated by the Proposer or its employees or agents to any person not
an employee or agent of the Proposer and will not be communicated to any such persons prior to the official opening of the
proposals.
4. The Proposer has examined and understands the terms, conditions, scope, contract opportunity, specifications request, and other
documents in this solicitation and affirms that any and all exceptions have been noted and included with the Proposer's Proposal.
5. The Proposer will, if awarded a Contract, provide to Sourcewell Members the /products and services in accordance with the terms,
conditions, and scope of this RFP, with the Proposer -offered specifications, and with the other documents in this solicitation.
6. The Proposer agrees to deliver products and services through valid contracts, purchase orders, or means that are acceptable to
Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first -quality products and related
services to Sourcewell Members under an awarded Contract.
7. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.
8. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either
substantially or in their entirety. Under Minnesota Statute §13.591, Subd. 4, all proposals are considered nonpublic data until the
evaluation is complete and a Contract is awarded. At that point, proposals generally become public data. Minnesota Statute §13.37
permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data
Practices Act.
The Proposer understands that it is the Proposer's duty to protect information that it considers nonpublic, and it agrees to defend and
indemnify Sourcewell for reasonable measures that Sourcewell takes to uphold such a data designation.
rr,, By checking this box I acknowledge that I am bound by the terms of the Proposer's Affidavit, have the legal authority to submit this
Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I
had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic
signature or electronic record was used in its formation. - Christopher Canavati, Secretary / Treasurer, Lease Servicing Center, Inc. dba
National Cooperative Leasing
The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the
Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid.
r Yes a No
Bid Number: RFP 011620 Vendor Name: Lease Servicing Center, Inc.