Mohave | Member Handbook

Page Updated 7/9/08

The Member Handbook is a guide to help Mohave members procure quality goods and services through Mohave contracts.


TABLE OF CONTENTS		Welcome To Mohave Now That I'm A Member, How Do I Start Using Mohave Contracts? What If My Organization Needs An Item That Isn't Under Contract? How Does Mohave Award Contracts? What Is The Procedure For Processing Purchase Orders? Special Order Processing Payments Contract Examination Pricing Returns Professional Organizations What Is The History Of Mohave? Things To Keep In Mind: Send Purchase Orders To: Where Do I Go For Help? Exhibits


		DOWNLOAD PRINTABLE VERSION » Member Handbook (PDF, 6.9 MB) QUESTIONS ABOUT THE MEMBER HANDBOOK? Please contact Director of Contracting Programs Craig McKee by phone at (928) 753-6945 or by email at craig@mesc.org.


Welcome To Mohave		Welcome to Mohave! For nearly 40 years, Mohave Educational Services Cooperative has been growing and changing to meet the needs of you our members. Among the many accomplishments, we are most proud of the quality of our contracts, the value they offer, and the service we have provided in managing and administering these contracts over the years. We realize that you have choices in today's competitive procurement environment. We will continue to earn your trust and business by changing as necessary to continue providing you great value and great service. An example of our commitment is the process change we implemented for member orders. We made the change at the request of our members and vendors. Members and vendors helped us develop the new process. We are confident that our members and vendors will help us make the new process successful. For new members, please take the time to review this handbook and share it with your staff. Please know that our staff is available to provide training at your site or at our offices on any or all of this handbook. For existing members, the major changes to this handbook address the member order process change. We encourage you to take a few minutes to review this handbook and share it with your staff in order for us all to be on the same page. We also extend our staff training services to you and your organization if you need them. Again, we want to thank you for making us a partner of choice now and in the future. We realize that we will only be successful if we continue to meet your needs and exceed your expectations. We are committed to doing that on a daily basis. Thank you for your trust, and thank you for being members of the Mohave Educational Services Cooperative, Inc. Sincerely, Tom Peeler Executive Director


Now That I'm A Member, How Do I Start Using Mohave Contracts?		Once we've approved your Cooperative Purchasing Agreement (CPA) you're ready to use Mohave contracts. The Product/Vendor Finder page on our website (www.mesc.org) enables you to search for products, services, equipment, and construction items by commodity or service type, or by vendor name. The website also contains a Contract Summary that can be downloaded to your computer. The Product/Vendor Finder and Contract Summary provide basic contract and vendor contact information. Mohave is a nonprofit corporation providing public procurement contracts for use by Arizona schools, government and eligible nonprofit organizations. As a public procurement unit, administrative fees paid by users fund Mohave. No direct tax dollars come to us. Mohave's administrative fee is one-percent (1%) of the purchase price of ordered materials or services. The administrative fee is not paid on the value of shipping charges, taxes, bonds, permits, etc. The administrative fee is our primary means for supporting Mohave's operations. The funds generated by that fee must be sufficient to pay for all salaries, facilities, vehicles, utilities, insurance, supplies, maintenance and repair, etc. Our history has demonstrated that 1% is the appropriate amount to meet this requirement and is lower than or equal to the fees charged by similar cooperatives around the nation. This fee is included or otherwise identified in the pricing quoted by the contracted vendor.


What If My Organization Needs An Item That Isn't Under Contract?		Let us know. Mohave accepts requests from members for new products and services on an on-going basis. Three or four times a year the requests are tallied, examined, and discussed. The process is described further below.


How Does Mohave Award Contracts?		Through our web-based solicitation request form, various conferences, professional groups, polls, and direct contact, members make known the goods or services they would like to procure through Mohave contracts. These requests become possible categories for future Mohave solicitations. Those categories that seem like good candidates for contracts are placed on a list for future solicitations. As time and resources allow, an Invitation for Bid or Request for Proposal is developed. The requirements are researched and reviewed by Mohave and member personnel. The Invitation for Bid or Request for Proposal is ultimately drafted by Mohave's contract team. Notices describing the solicitation are emailed to vendors registered in Mohave's potential bidders database for the goods or services listed in the solicitation. (Vendors can register as potential bidders on our website -- there is no charge to be listed.) Solicitations are posted for download on our website's "Procurement Solicitations" page. All bids and proposals are date and time stamped and initialed by Mohave personnel upon receipt. Bids and proposals are opened and announced publicly at the time and place noted. After the public opening, bids or proposals are evaluated by a Mohave evaluation committee. The committee is comprised of Mohave staff and may include member representatives. Responses are checked to determine if the vendor accepts the general terms and conditions, include all required information, comply with the scope of work, and have acceptable references. Those that do not are rejected. The remaining responses are evaluated in accordance with the criteria listed in the solicitation. Bids are awarded to the lowest responsible and responsive bidder or bidders. Proposals are awarded to the vendor or vendors whose proposals are determined to be most advantageous to Mohave and its members. With proposals, best and final offers may be required before contracts are awarded. Single awards may not be advantageous to Mohave's members for some commodities, services, equipment, or construction. In those instances, multiple awards are available. Awards are documented in writing. Bids and proposals become contracts after final approval and signature by Mohave's Executive Director. All vendors receive notification of the final determinations for their bids or proposals. Awards are posted on Mohave's website. They are also listed in our website's Product/Vendor Finder and Contract Summary. Most contracts run for one year and allow up to four consecutive one-year renewals. In order for you to more easily complete Due Diligence on our contracts, we have included a Contract Documentation page on our website, which contains downloadable folders for Mohave contracts. These folders contain information to assist members in reviewing the contracts for compliance with competitive procurement requirements. They also contain other useful contract information. An independent auditor reviews our procurement practices each year as part of our financial audit. This audit examines Mohave's procedures and compares them with the Arizona Procurement Code and the Arizona State Board of Education School District Procurement Rules.


What Is The Procedure For Processing Purchase Orders?		Mohave has procurement specialists that review your vendor purchase orders. You can find the name of the procurement specialist assigned to a particular contract by visiting the Product/Vendor Finder on our website. You may also call us at (800) 742-2437 for the information. The ordering cycle is as follows: The Mohave vendor will provide you with product or service description, part number(s), and Mohave contract price in the form of a quotation. You prepare and send an approved purchase order (made out in the vendor's name) and a copy of the quotation to Mohave, referencing the vendor's Mohave contract number. The procurement specialist reviews your purchase order to determine if the purchase is allowable under our contracts. Based upon that review, Mohave stamps your purchase order with "MESC Reviewed" and forwards the purchase order via email to the vendor and you. Under our contracts, Mohave vendors are prohibited from doing any work or ordering any products until they have received Mohave's approval of the member's purchase order. The vendor will ship your order with your purchase order number on the package. Revisions to your purchase order must follow the same procedures as above. Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. This responsibility is set by rule and statute, and cannot be changed by Mohave. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Our procurement specialists are committed to quick turnaround of your order. This means that the vendor will generally receive the "MESC Reviewed" purchase order within 2 business days. Problems with a purchase order (such as incorrect prices, including products or services that are not under contract, failing to attach a quotation, etc.) will delay processing. Peak ordering periods, such as the beginning and end of a fiscal year, may have longer order turn around time. Even during peak periods, the procurement specialists make every effort to process all orders as quickly as possible.


Special Order Processing		Some orders, such as leases and E-Rate, require special order processing. Instructions and sample purchase orders for processing such orders are provided in the exhibits in this handbook.


Payments		In general, vendors will invoice at the time products are shipped, services are performed or construction is complete. Leases, E-Rate, and Maintenance billing are exceptions (see exhibits). Each contracted vendor has slightly different invoicing procedures; however, for the most part, they are very similar. The Mohave contract requires you to pay within 30 calendar days of receipt of the vendor's invoice. Please work very closely with the contracted vendor to ensure payment is made in a timely manner. If you and the vendor are unable to agree upon matters relating to the invoice and/or general billing, please contact your procurement specialist for assistance. Mohave procurement solicitations include provisions for vendors to offer prompt payment discounts. You are the sole determinant as to whether these discounts are cost effective to your entity; however, these discounts must be part of the approved contract.


Contract Examination		Mohave contracts are public documents. In accordance with Arizona law, they are available for inspection by interested parties. Persons inspecting Mohave contract documents may also obtain copies of some or all pages, upon request. Contact Mohave's Director of Contracting Programs for details on inspection of contract documents.


Pricing		Mohave contract pricing can be found at www.mesc.org. For members to view this pricing, you must contact the reference listed in the website for a user ID and password. Only one user ID will be issued to each member. It is important that this information not be shared outside of your organization, this pricing is being offered to you as a member of the Mohave Educational Services Cooperative. A detailed explanation of the contract pricing structure is available in the Exhibits section of this handbook. Mohave contract pricing can be fixed price, percentage off a specified pricelist, or a combination of both. For contracts that use a discount off a pricelist, new pricelists become part of the contract upon Mohave's approval. Fixed price contracts are updated with a complete price update on the anniversary date of the contract. Generally, that is the only time fixed price contracts can be adjusted. However, in instances when a legitimate, demonstrable cost increase clearly affects the vendor's ability to sell at the current price, Mohave may consider fixed price increases at times other than the contract anniversary. Fixed prices can be lowered at any time. All price changes are subject to Mohave's approval. Special offers, quantity discounts, etc., must be received and approved by Mohave before they are offered to you. All price reductions must be made available to all members and generally must be available for 30 days or more. For most Mohave contracts, the one-percent administration fee is included in contract prices. There is no add-on charge. Exceptions include E-Rate, lease and some service contracts. You can determine if the administration fee is included in contract pricing by checking the Product/Vendor Finder on our website.


Returns		Mohave has many contracts, each with a unique policy regarding returns. Regardless of a particular policy, returns on products purchased under Mohave contract should be arranged directly with the contracted vendor. Contact the vendor as quickly as possible to request a return. After you have met the requirement of the return policy and accepted the obligation to pay any restock fees, the vendor will arrange for return of the product. Products must be returned as directed by the contracted vendor. They are not routed through Mohave. Mohave does no accept responsibility for items returned to our office in error.


Professional Organizations		Mohave is an active member of the Association of School Business Officials International (ASBO), Arizona Association of School Business Officials (AASBO), Arizona School Boards Association (ASBA), National Institute of Governmental Purchasing (NIGP), Arizona School Administrators (ASA), and other regional and national professional associations.


What Is The History Of Mohave?		In 1971, the school districts in Mohave County established a career education program. Called the Mohave County Career Education Project, the program provided local schools with career days, field trips to work sites, career fairs, and media related to the world of work. In 1980, the state changed career education from discretionary grants to formula funding through the regular school budget. Only a handful of career education projects survived that funding change. Because Mohave County Career Education had diversified into other programs, the schools in the county decided to keep the project alive. The name was changed to Mohave Educational Services Cooperative (Mohave, for short). Mohave operated through the Mohave County School Superintendent's office. In 1981-82, Mohave introduced local schools to educational software through the Minnesota Educational Computer Consortium (MECC). Mohave County districts were saving money on this software through the cooperative. When schools outside Mohave County inquired if they could be provided the same services, the Mohave County Attorney approved participation by other school districts, as long as they paid an administration fee that covered all our costs for providing them with services. Over the years, Mohave has expanded its contracting into other products and services for schools and non-school agencies throughout Arizona. To fill the statewide need for equipment and services, Mohave has competitively solicited and awarded cooperative procurement contracts. Mohave follows the same rules and procedures our members must use to award procurement contracts. All members can order through Mohave using those contracts. This procedure, cooperative purchasing, saves members time and money. Since Mohave seeks prices for the entire state, vendors offer lower prices than they would on a single member's contract. Using Mohave contracts, our members are able to purchase a variety of required materials, construction and services, with even the smallest member enjoying the purchasing power of the entire state. Taxpayers are saving money, and more materials to support important functions are available at reasonable prices. In May 2004, legislation (HB 2181) was passed to allow agencies such as Mohave to provide public procurement services as state nonprofit corporations. In January 2005, Mohave's articles of incorporation pursuant to A.R.S. § 11-952 and A.R.S. § 41-2632 become effective. Mohave Educational Services Cooperative, Inc., is governed under Title 10 of the Arizona Revised Statutes. As a public procurement unit, members can use Mohave contracts to procure products and services just as they did before the incorporation. Effective January 1, 2008, Mohave implemented a new process change that allowed for purchase orders to be made out directly to the vendors. This had been requested for many years and the timing and situation became right to accomplish this change. After a year of training to vendors and members, Mohave began this process change. Among the major changes to this are the new invoicing and payment procedures as outlined in this revised handbook. Vendors are now invoicing members directly and members are now paying the vendors directly. Mohave's staff is still reviewing purchase orders and conducting audits of orders; however, the vendors and members now have far greater roles in the process of using Mohave contracts. Mohave is still an integral part of contract administration and management as well as being available for any dispute resolution. For nearly 40 years, Mohave's staff has been dedicated to providing the finest service possible to our members. Our staff is qualified, trained and experienced. Several have achieved professional certification in their areas of expertise. Mohave has received the Annual Achievement of Excellence in Procurement Award® from the National Purchasing Institute (NPI) on four separate occasions. We have been successful in receiving this prestigious award each time we submitted an application. Mohave has also received the NIGP Outstanding Agency Accreditation Achievement Award® which is effective until September 2010. Mohave has held this certification since September 2001. These awards were given in recognition of Mohave's professional purchasing program.


Things To Keep In Mind:		Do: Advise us of any changes in your address, contact person, phone numbers, etc. Send issued purchase orders to Mohave made out to the contract vendor. Note the applicable MESC contract number on your purchase order. Check your emailed copy of the "MESC Reviewed" purchase order for notations. Send purchase order revisions and/or project change orders to Mohave. Contact Mohave whenever you desire assistance with questions, problems and/or disputes. Do Not: Make changes to a purchase order without going through the process. Attempt to use Mohave contracts without sending the purchase order to Mohave. Pay Mohave for the services/goods invoiced, payments are made to the vendor who performed the services or delivered the goods (exceptions as noted in this handbook as noted such as E-Rate and leasing.)


Send Purchase Orders To:		Send approved purchase orders and backup documentation (POs must be made out to the vendor) to: Mohave Educational Services Cooperative, Inc. 625 E. Beale Street Kingman, AZ 86401 928-718-3232 (fax) orders@mesc.org (email)

.Where Do I Go For Help?
Contract Questions Craig McKee, Director of Contracting Programs, 928-718-3201, craig@mesc.org Mark DiBlasi, Contract Specialist II, 928-718-3220, mark@mesc.org Nancy Colbaugh, Contract Specialist I, 928-718-3228, nancy@mesc.org Purchase Order and Invoice Follow-up and/or Revisions Rhonda Jackson, Procurement Manager, 928-718-3202, rhonda@mesc.org Ann Del Monaco, Procurement Specialist, 928-718-3206, ann@mesc.org Anna Jacobs, Procurement Specialist, 928-718-3207, anna@mesc.org Mike Nentwig, Procurement Specialist, 928-718-3203, mike@mesc.org Michelle O'Laughlin, Procurement Specialist, 928-718-3222, michelle@mesc.org Accounting Sue Watts, Accounting Manager, 928-718-3204, sue@mesc.org Mary Brooks, Accounting Specialist, 928-718-3221, mary@mesc.org Marta Duffin, Accounting Specialist, 928-718-3234, marta@mesc.org Terry McClintock, Audit Specialist II, 928-718-3226, terry@mesc.org Joshua Paine, Accounting Specialist, 928-718-3078, joshua@mesc.org Operations/General Questions Julia Tribbett, Director of Business and Operations, 928-718-3074, julia@mesc.org

.Exhibits

EXHIBIT 1 Purchase Order Process Flowchart And Notes
EXHIBIT 2 Sample Standard Purchase Order
EXHIBIT 3 Using Mohave Contracts Under E-Rate
EXHIBIT 4 Sample E-Rate Purchase Order
EXHIBIT 5 Lease Processing Instructions - Purchase And Financing Under Mohave Contracts (Admin Fee Is Included)
EXHIBIT 6 Lease Processing Instructions - Financing Under Mohave Contract
EXHIBIT 7 Lease Processing Instructions - Purchase and Financing Under Mohave Contracts (Admin Fee Is Not Included)
EXHIBIT 8 Sample Lease Purchase Order (Financed Under Mohave Leasing Contract)
EXHIBIT 9 Lease Processing Instructions - Purchase Under Mohave Contract
EXHIBIT 10 Sample Lease Purchase Order (Financed Under Non-Mohave Leasing Contract)
EXHIBIT 11 Sample MESC Reviewed Purchase Order
EXHIBIT 12 Contract Pricing

EXHIBIT 1 PURCHASE ORDER PROCESS FLOWCHART AND NOTES Mohave Member Order Process Mohave Member Order Process Notes E-Rate Purchases Mohave will invoice member for the admin fee. Member will make admin fee payment to Mohave. Vendor will invoice Member for goods and services. Member will pay vendor. Prices in the E-Rate contracts do not include admin fee. Vendor does not apply admin fee credit to invoices. See Mohave's Member or Vendor Handbook for complete instructions. The handbooks are available at www.mesc.org. Service/Rental Purchases Effective 7/1/08, the following information applies to service/rental purchase orders. Members shall follow the regular Member Order Process for service/rental purchases. Member will not issue a separate purchase order for the admin fee. Mohave will not invoice for the admin fee. Mohave's admin fee will be included in vendor's invoiced amount. Mohave's admin fee will be included in Member's payment to vendor. Vendor remits admin fee to Mohave. See Mohave's Member or Vendor Handbook for complete instructions. The handbooks are available at www.mesc.org. Financed (Lease) Purchases The process for these purchases varies because of the following scenarios: Purchase and financing under Mohave contracts, admin fee is not included in financed amount. Purchase and financing under Mohave contracts, admin fee is included in financed amount. Purchase under Mohave contract, financing under non-Mohave contract. Financing under Mohave contract, purchase under non-Mohave contract. See Mohave's Member or Vendor Handbook for complete instructions. The handbooks are available at www.mesc.org. MESC Contract Numbers It is essential that vendor quotes, member POs, and vendor invoices include the applicable MESC contract number. The MESC contract number provides the following: Confirmation that a Mohave contract is being used. Faster processing and review. An additional check and balance. A readily available audit trail. Quotations Only quote items under contract. Quote only at approved MESC contract prices. Must reference the applicable MESC contract number. Special volume discounts, promotion, closeout, and other special pricing must be approved by Mohave before they are quoted to the member. Product and service additions must be approved by Mohave before they are quoted to the member. Member should attach a copy of the quote to member's PO. Mohave needs the quote to review and approve the PO. Order Processing Member must not send PO directly to the vendor. Vendor must process member POs only after Mohave approves them. The email subject references Mohave confirmation of a specific member PO The approved member PO is attached to the email. The PO will include a "MESC Reviewed" stamp. Revisions to POs follow the same process. Invoices Bill to addresses can be found on the member's PO. Should include vendor's MESC contract number. Invoices should match the member PO. Invoices for "as-needed, when-needed" BPO purchases must match approved contract pricing. Payment terms must comply with the applicable MESC contract. Members may take prompt payment discounts, if such discounts are included in the contract. Admin Fee Each contract has a specified day of the month for submitting the admin fee payment and reconciliation report. Reconciliation reports are provided monthly, regardless of activity. Admin fee payments must be submitted monthly, unless the amount is less than $20. Amounts of less than $20 should be added to the next month's admin fee payment. Contract Prices Contract prices will be posted on Mohave's website. Each member agency may request a single user ID and password. The member may share that user ID and password with appropriate personnel within the organization. Rev. 5/16/08, JTP EXHIBIT 2 SAMPLE STANDARD PURCHASE ORDER EXHIBIT 3 USING MOHAVE CONTRACTS UNDER E-RATE Member will issue a purchase order to Mohave indicating the order is for an E-Rate purchase and listing the vendor's contract number. Purchase order will provide a description of the project, list the item(s) to be purchased, and provide Mohave contract price(s) in the body of the purchase order. For long detailed orders, members may provide the project's description in the body of the purchase order and attach the details on separate sheet. Amount of the purchase order will be equal to one-percent (1%) of the total cost of the goods and services (Mohave's administration fee). Prices in Mohave's E-Rate contracts do not include the one-percent administration fee. Member will send the Mohave purchase order, a copy of any purchase order issued to the vendor, a copy of the vendor's quote, and a copy of the Schools and Libraries Division (SLD) Funding Commitment Decision Letter to Mohave. Highlight the section of the SLD Funding Commitment Decision Letter that applies to the purchase order. Mohave will issue a purchase order to the vendor that states "E-Rate Purchase" in the top right corner. Vendors should only start work on E-Rate projects under Mohave contract after receipt of Mohave's E-Rate purchase order. Vendor will perform the work in accordance with the contract and the purchase order. Vendor will invoice the Universal Service Fund (using vendor's SPIN number) for the eligible percentage of the project noted in the SLD award document. Vendor will invoice the member directly for the balance of the project. Payment will be made directly to the vendor. Mohave will invoice the member for Mohave's one-percent (1%) administration fee. Mohave will not invoice for the goods and services for the project. The only money Mohave will receive for the E-Rate project is Mohave's one-percent (1%) administration fee. Mohave holds the contract and does not have a SPIN number. Therefore, we cannot invoice the Universal Service Fund. Servers are awarded under a computer contractor's SPIN number. We recommend checking with the SLD or Arizona Department of Education for additional information on E-Rate purchases. Also, please feel free to contact us for further information. NOTE: Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 4/9/08, JTP EXHIBIT 4 SAMPLE E-RATE PURCHASE ORDER EXHIBIT 5 LEASE PROCESSING INSTRUCTIONS PURCHASE AND FINANCING UNDER MOHAVE CONTRACTS MOHAVE'S 1% ADMIN FEE IS INCLUDED IN THE FINANCED AMOUNT A member is financing the purchase of equipment. Both the equipment purchase and financing are through Mohave contracts. They are financing the entire purchase, including the admin fee. The processing instructions are as follows: The member issues a PO to Mohave for the equipment purchase. The PO must reference the applicable MESC contract numbers for both the equipment and lease contracts. The body of the member's PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, etc.), a notation that the purchase is being financed, and the names and contract numbers for the equipment and financing contractors. The member should enclose a copy of a financing proposal from the financing contractor. The general details of the lease (principal amount, interest rate, payment amount, number of payments, etc.) should be included in the proposal. The PO amount is $0.00. Mohave issues a PO to the equipment contractor. Mohave's equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) Mohave issues a PO to the financing contractor. Mohave's financing PO amount is equal to the 1% admin fee and the transaction fee (1% of the total interest to be paid under the lease). Mohave invoices the financing contractor for the admin fee and the transaction fee. The member sends Mohave a copy of the lease documents. Notes: The equipment contractor will submit the invoices for the equipment purchase directly to the member or the financing contractor. If the contract price includes Mohave's administration fee, the vendor must deduct the amount of the fee from the invoice. The financing contractor pays the equipment contractor in full upon receipt of the acceptance certificate from the member. The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT INFORMATION Mohave must know how the 1% admin fee will be paid (paid direct by member or included in the lease amount and paid by the financing contractor). Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 3/4/08, JTP EXHIBIT 6 LEASE PROCESSING INSTRUCTIONS FINANCING UNDER MOHAVE CONTRACT MOHAVE'S 1% TRANSACTION FEE IS INCLUDED IN THE FINANCED AMOUNT A member is financing the purchase of equipment. The financing is through Mohave contract. The equipment is not purchased through a Mohave contract. The processing instructions are as follows: The member issues a PO to Mohave for the financing of the purchase. The PO must reference the MESC contract number. The body of the member's PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, etc.), a notation that the purchase is being financed and the Mohave contract number. The member should enclose a copy of a financing proposal from the financing contractor. The general details of the lease (principal amount, interest rate, payment amount, number of payments, etc.) should be included in the proposal. The PO amount is $0.00. Mohave issues a PO to the financing contractor. Mohave's financing PO amount is equal to the transaction fee (1% of the total interest to be paid under the lease). Mohave sends the invoice to the financing contractor for the transaction fee. The member sends Mohave a copy of the lease documents. Notes: The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT INFORMATION Mohave must know how the 1% admin fee will be paid (paid direct by member or included in the lease amount and paid by the financing contractor). Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. 3/4/08, JET/JTP EXHIBIT 7 LEASE PROCESSING INSTRUCTIONS PURCHASE AND FINANCING UNDER MOHAVE CONTRACTS MOHAVE'S 1% ADMIN FEE IS NOT INCLUDED IN THE FINANCED AMOUNT A member is financing the purchase of equipment. Both the equipment purchase and financing are through Mohave contracts. The member is financing the entire purchase, minus the admin fee. The processing instructions are as follows: The member issues a PO to Mohave for the equipment purchase. The PO must reference the applicable MESC contract number for both the equipment and lease contracts. The body of the member's PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, etc.), a notation that the purchase is being financed, and the names and contract numbers for the equipment and financing contractors. The member should enclose a copy of a financing proposal from the financing contractor. The general details of the lease (principal amount, interest rate, payment amount, number of payments, etc.) should be included in the proposal. The member's PO amount is equal to Mohave's 1% admin fee for the purchased equipment and the transaction fee for the lease (the transaction fee is 1% of the total interest to be paid on the lease). Most Mohave contract prices now include the 1% administration fee. If the contract price for the purchased equipment includes Mohave's administration fee, the member can determine the amount of the fee by multiplying the contract price by .0099. Mohave issues a PO to the equipment contractor. Mohave's equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) Mohave issues a PO to the financing contractor. Mohave's financing PO amount is equal to the transaction fee (1% of the total interest to be paid under the lease). Mohave invoices the member for the 1% admin fee. Mohave invoices the financing contractor for the transaction fee. The member sends Mohave a copy of the lease documents. Notes: The equipment contractor will submit invoices for the equipment directly to the member or the financing contractor. If the contract price includes Mohave's administration fee, the vendor must deduct the amount of the fee from the invoice. The financing contractor pays the equipment contractor in full upon receipt of the acceptance certificate from the member. The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT INFORMATION Mohave must know how the 1% admin fee will be paid (paid direct by member or included in the lease amount and paid by the financing contractor). Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 3/4/08, JTP EXHIBIT 8 SAMPLE LEASE PURCHASE ORDER (USED WHEN THE PURCHASE IS FINANCED UNDER A MOHAVE LEASING CONTRACT) EXHIBIT 9 LEASE PROCESSING INSTRUCTIONS PURCHASE UNDER MOHAVE CONTRACT FINANCING IS THROUGH A THIRD PARTY FINANCING CONTRACT A member is financing the purchase of equipment. The equipment purchase is through a Mohave contract. Financing is through a non-Mohave third party leasing company. The processing instructions are as follows: The member issues a PO to Mohave for the equipment purchase. The PO must reference the applicable MESC contract number. The body of the member's PO contains the complete purchase description (items purchased, unit price, extended cost, total cost, tax, freight, Mohave's admin fee, etc.) and Mohave's contract number. The body of the member's PO must note that the purchase is being financed by a third party contractor and provide the name of the financing contractor. The member's PO must indicate whether Mohave's admin fee is or is not included in the financed amount. The member's PO amount is equal to the amount of Mohave's 1% admin fee. Most Mohave contract prices now include the 1% administration fee. If the contract price for the purchased equipment includes Mohave's administration fee, the member can determine the amount of the fee by multiplying the contract price by .0099. Mohave issues a PO to the equipment contractor. Mohave's equipment PO amount is equal to the cost to purchase the equipment (cost of equipment, freight, etc.) Mohave invoices the member for the admin fee. If Mohave's admin fee is not included in the financed amount, the member remits payment to Mohave. If Mohave's admin fee is included in the financed amount, the member forwards the invoice to the financing contractor and authorizes payment to Mohave. A copy of Mohave's PO and a note of explanation are sent to the financing company. Notes: The equipment contractor will submit the invoices for the equipment directly to the member or the financing contractor. If the contract price includes Mohave's administration fee, the vendor must deduct the amount of the fee from the invoice. The financing contractor pays the equipment contractor in full upon receipt of the invoices and acceptance certificate from the member. The financing contractor invoices the member direct for all lease payments. The member makes lease payments directly to the financing contractor. IMPORTANT INFORMATION Mohave must know how the 1% admin fee will be paid (paid direct by member or included in the lease amount and paid by the financing contractor). Mohave must have a copy of the lease documents for its files, particularly the signature pages and amortization schedule. NOTE: Mohave assists members with purchase verification. However, it is the member's responsibility to independently verify that quotations and purchase orders comply with the terms of the award of a contract or procurement. Contract documentation files are available on our website to assist members in meeting this due diligence responsibility. Rev. 3/4/08 JTP EXHIBIT 10 SAMPLE LEASE PURCHASE ORDER (USED WHEN THE PURCHASE IS FINANCED UNDER A NON-MOHAVE LEASING CONTRACT) EXHIBIT 11 SAMPLE MESC REVIEWED PURCHASE ORDER EXHIBIT 12 CONTRACT PRICING Access Contract Pricing from "Purchasing Services" in our website at www.mesc.org/contract_pricing.html. This information is on the bottom half of the Contract Pricing webpage. It provides instructions for obtaining a login and password, an explanation of price file naming methodology, and contacts for questions. The following pages provide an overview of our contract pricing area.