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The
Vendor Handbook is a guide to help Mohave vendors provide quality
goods and services to Mohave members throughout Arizona.
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| CONTENTS |
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 Welcome To Mohave!
Introduction To Mohave
Now That I Have A Contract, What Do I Need To Do?
What Is The Procedure For Processing Purchase Orders?
Special Order Processing
Payments
Contract Maintenance
Contract Examination
Pricing
Product Additions/Deletions
Contract Renewal/Cancellation
Returns
Professional Organizations
Who Can Use Mohave Contracts?
What Is The History Of Mohave?
Things To Keep In Mind:
Where Do I Go For Help?
Exhibits
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DOWNLOAD PRINTABLE VERSION
» Vendor Handbook (PDF, 6.9 MB)
QUESTIONS
ABOUT THE VENDOR HANDBOOK?
Please
contact Director
of Contracting
Programs Craig
McKee by phone
at 928-753-6945 or by
email at craig@mesc.org. |
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Welcome to
Mohave |
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Welcome to Mohave!
For nearly 40 years, Mohave Educational Services Cooperative has been growing and changing to meet the needs of 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.
As a Mohave vendor, you are an important part of our contracting program. We appreciate your willingness to join us in providing quality goods and services through Mohave contracts. Without you, members would not have such ready access to the effectiveness, efficiency and economy of cooperative purchasing.
A key feature of contracting is the partnerships that develop between the parties. Mohave is committed to strong partnerships that are based upon the highest levels of honesty and integrity. To achieve this, we ask that you and your staff join our commitment to fair, professional and ethical relationships between Mohave, our members, and our vendors.
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.
If you are new to Mohave, 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.
If you are not new to Mohave, this handbook includes revisions associated with 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.
Whether you are new to Mohave, or a long time Mohave vendor, it is imperative that you and your staff comply with the terms and conditions in your contract. Our experience indicates that the best way to do this is by ensuring that all members of your staff have access to, and are familiar with, those terms and conditions.
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 providing our members with quality contracts from quality vendors. We are committed to doing that on a daily basis.
Thank you for your trust, and thank you for being a Mohave vendor.
Sincerely,
Tom Peeler
Executive Director
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Introduction
To Mohave |
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Welcome to the group of Mohave contractors serving agencies throughout Arizona. We look forward to working with you and your organization. We have prepared this guide to answer some of the most frequently asked questions about working with Mohave.
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 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. |
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Now That I Have A Contract, What Do I Need To Do? |
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Start selling. The Mohave contract is a great sales tool, but the award itself does not guarantee any business. Mohave simplifies the purchasing process, making it easier for members to do business with you. However, we do not do marketing and it is up to you to make our members aware of your contract and the benefits they can derive from it. You can obtain member information on the Member List page on our website.
Your contract contains terms and conditions that are binding upon you, Mohave and the buying member. To be successful, your representatives must be aware of those terms and conditions, as well as the products, services and prices that were included in the contract award. It is strongly suggested that you provide copies of the contract to all members of your firm that will be working with your Mohave contract. |
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What Is The Procedure For Processing Purchase Orders? |
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Your contract has been assigned to one of Mohave's procurement specialists who will coordinate and review member purchase orders for your company. You can find the name of the procurement specialist assigned to your contract by visiting the Product/Vendor Finder on our website. You may also call us at 928-753-6945 for the information.
The ordering cycle is as follows:
- Provide the member with a quotation that includes product or service description, part number, MESC contract number, Mohave contract price, and the number of days the quotation is valid.
- The member issues a purchase order to your company BUT must send it and a copy of the quotation to Mohave, referencing your contract number.
- The procurement specialist reviews the member's purchase order to determine if the purchase is allowable under our contracts. Based upon that review, Mohave stamps the purchase order with "MESC Reviewed" and then emails the purchase order to you and emails the member at the same time.
- Do not perform any work or order any products until you have received the "MESC Reviewed" purchase order.
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.
The procurement specialist assigned to your contract is committed to quick turnaround of orders. This means that the vendor will generally receive the "MESC Reviewed" purchase order within 2 business days. However, problems with the member's purchase order (such as incorrect prices, including products or services that are not under contract, failing to attach your quotation, etc.) will delay processing. Peak ordering periods, such as the beginning and end of a fiscal year (June and July), may have longer order turn around time. Even during peak periods, your procurement specialist will make every effort to process all orders as quickly as possible.
If a member needs to change an order, they must do this in accordance with the above outlined information. Do not make changes to orders without prior approval from Mohave. |
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Some orders, such as leases and E-Rate, require special order processing. Instructions for processing such orders have been included in the exhibits at the end of this handbook. |
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| Payments |
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Remember, you must only sell awarded materials and services under your Mohave contract. Contact us if you have any questions about what products or services are covered under your contract.
Invoices are billed directly to the Mohave member after products are shipped to, or services are performed for, the member. After receipt of the invoice, the member should pay that invoice within 30 days of receipt of the goods or services. Collections is a vendor responsibility. However, if your efforts to collect past due invoices are unsuccessful, you may contact Mohave for assistance.
Mohave procurement solicitations include provisions for vendors to offer prompt payment discounts. Members may participate in these discount programs and retain the savings made by the early payment.
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Contract
Maintenance |
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It is essential that your Mohave contract contain current products and pricing at all times. It is your responsibility to keep the contract up-to-date.
Mohave produces pamphlets and uses our website to provide members with information about our contracts. To check your contract description, go to www.mesc.org and click on the Product/Vendor Finder link and locate your company's information in the search field. Contact Mohave's Director of Contracting Programs to make revisions to your contract summary. Contract summaries should be of an informational, not promotional, nature. |
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Mohave contracts are public documents. In accordance with Arizona law, they are available for inspection by interested parties, including competitors. 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. |
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Mohave contract pricing can be fixed price, percentage off a specified pricelist, or a combination of both. If your contract uses a discount off a pricelist, you must provide us with new pricelists as they are issued to you. New pricelists are in effect upon Mohave's approval of them.
Fixed price contracts must be updated with a complete price update on each anniversary of your contract. Generally, that is the only time fixed price contracts can be adjusted. However, in rare instances when a legitimate, demonstrable cost increase clearly affects the contractor'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. See your contract for details on price changes.
All price changes are subject to Mohave's approval. Price increases and reductions, special offers, quantity discounts, etc., must be received and approved by Mohave, before they are offered to members. All price reductions must be made available to all members and generally must be for 30 days or more.
Mohave is audited each year by an independent audit firm. In the course of the audit, prices on purchase orders will be randomly checked against our contracts. |
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Product
Additions/
Deletions |
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Your Mohave contract allows you to add products or services as long the additions are within the scope of the contract, are similar to, or an extension of, the products or services originally awarded, and are priced or discounted at the same or to a greater degree as the original award. Mohave reserves the right to review proposed additions to contracts, and to accept or reject them as determined appropriate under the contract and in the members' best interests. Please advise Mohave of discontinued products or services as soon as possible. |
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Contract
Renewal/
Cancellation |
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Mohave is a self-supporting entity with finite resources. Therefore, we generally only renew the contracts that members use regularly. The following criteria have been established for renewing Mohave contracts.
- The vendor's products must continue to meet the standards expected by members.
- The vendor's service must continue to meet the standards expected by members.
- Acceptable pricing for the new item.
Mohave may choose not to renew a contract if:
- The vendor has experienced a change in ownership.
- The vendor fails to comply with the terms and conditions (incorrect quotes, performance problems, invoice problems, etc.)
- Mohave has experienced excessive difficulty administering or monitoring the contract.
Mohave may chose to cancel a contract if:
- The vendor has violated one or more terms, conditions or agreements under which the contract was awarded.
- The contract is subject to unresolved written complaints.
Contracts are subject to cancellation for contract violations. Offering products or services that were not included in the contract award, selling at non-contract prices, and having members send purchase orders for Mohave purchases directly to the vendor are all contract violations. Vendors must avoid such violations to ensure continuation of their contracts. |
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Mohave has many contracts, each with a unique policy regarding returns. Regardless of your particular policy, all returns on products purchased under Mohave contract should be arranged through you and the terms of return must be clearly spelled out to the member. If there are problems in this process, you may contact your Mohave procurement specialist for assistance. After the member has met the requirements of your return policy and accepted the obligation to pay any restock fees, you should arrange for return of the product. |
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Professional
Organizations |
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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. We maintain membership in professional organizations to further the professional stature of our organization and to provide continuing professional development for our staff. |
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Who Can Use Mohave Contracts? |
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A list of current Mohave members (approximately 350) is available on our website. Those members are eligible to purchase from Mohave contracts. Please contact us if you are unsure if a prospective customer is a Mohave member. Additionally, there may be other state, city, county, and other public groups that would like to use our contracts. If you become aware of those individuals or groups, please contact us. We will then contact and offer them an opportunity to complete the necessary Cooperative Purchase Agreement. |
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What Is The History Of Mohave? |
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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 for vendors and members, Mohave began this process change. Among the major changes 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 have 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. |
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Do:
- Sell your products and services using your Mohave contract.
- Keep your prices up-to-date.
- Advise us of any changes in your address, contact person, phone numbers, etc.
- Have members send their orders to Mohave, we then stamp "MESC Reviewed" and email you their PO.
- Show the member's purchase order number on all shipments and invoices.
- Invoice the member.
- Contact Mohave whenever you desire assistance with questions, problems and/or disputes.
Do Not:
- Make changes to an order without permission from Mohave.
- Process or order anything for a member until you have the "MESC Reviewed" purchase order.
- Ask a member to send the purchase order directly to you.
- Invoice Mohave directly. The purchasing member should be invoiced.
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| .Where Do I Go For Help? |
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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
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| .Exhibits |
EXHIBIT 1 Purchase Order Process Flowchart And Notes |
| EXHIBIT 2 Using Mohave Contracts Under E-Rate |
| EXHIBIT 3 Lease Processing Instructions
- Purchase And Financing Under Mohave Contracts (Admin Fee Is Included) |
| EXHIBIT 4 Lease Processing Instructions - Purchase Under Mohave Contract |
| EXHIBIT 5 Lease Processing Instructions - Lease Under Mohave Contract |
| EXHIBIT 6 Lease Processing Instructions - Purchase And Financing Under Mohave Contracts (Admin Fee Is Not Included) |
| EXHIBIT 7 Sample Quote |
| EXHIBIT 8 Sample MESC Reviewed Purchase Order |
| EXHIBIT 9 Sample Admin Fee Reconciliation Fee Report |
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EXHIBIT 1
PURCHASE ORDER PROCESS FLOWCHART AND NOTES
Mohave Member Order Process
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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. (An electronic copy of the report should be emailed to invoices@mesc.org.)
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
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 3
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 4
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 5
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
6
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 7
SAMPLE QUOTE
EXHIBIT 8
SAMPLE MESC REVIEWED PO
EXHIBIT 10
SAMPLE ADMIN FEE RECONCILIATION REPORT
Download: Sample Reconcilation Report (Excel, 44 KB) |
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