Installment Purchase Agreements
The IPA may be used to finance the purchase of systems supporting a BOCES service such as the support of an Administrative, Student, Financial System, or Instructional Technology.
For an IPA as well as any hardware/software purchase, a technology plan is required that shows how the equipment is to be used. The plan must show that staff development associated with the technology is to be purchased. This is shown by allocating a percentage of the total dollar amount of the IPA to Staff development. The staff development costs cannot be included in the IPA and therefore must be paid for by general funds.
Participation in the Model Schools, CoSer, the Common Set of Learning Objectives as well as Network Support is also required for Instructional IPA's. Participation in an Administrative, Student or Financial System support is required for an Administrative IPA.
The nature of the Installment Purchase Agreement involves policies and procedures outside of the normal LHRIC procurement process.
Southern Westchester BOCES has secured extremely competitive lending rates by standardizing the procedures involved in executing IPAs. One standard required by banks is that all vendors are paid at one time. Therefore, delays in the payment to any ONE vendor effects payment to ALL vendors
Materials Qualifying for Installment Purchase Agreement
IPA - Eligible items
- New hardware and software purchases
- Software associated with the new hardware on the IPA
Note: Should a District choose to order equipment/software that is not considered a LHRIC regional standard, the District will be responsible for the maintenance of the equipment/software ordered.
IPA - Ineligible items
- Districts engaged in an Installment Purchase Agreement with Southern Westchester BOCES will be responsible for the payment of Legal fees.
- An estimate of the Legal fees will be conveyed to the District at the time of proposal. These fees cannot be included in the IPA, and therefore are to be paid by general funds.
Consequently, in addition to the Standard Policies and Procedures materials purchased through an IPA may not be returned unless they are defective.
Change Orders (including re-quotes)
For IPA purchases:
- The LHRIC will accept requests for changes or re-quotes up to two weeks prior to PO release. The PO release date will be conveyed to the district by the Project Manager. After two weeks, a processing fee of 4% (or a $25 minimum; whichever is greater) of the new purchase cost will apply to all requested changes. An additional $25.00 will be charged for Purchase Orders that need to be RUSHED or expedited. These fees will be in addition to the project procurement fees. Changes at a late date may also impact the installation schedule, due to a late release of purchase orders
- LHRIC Project Manager is responsible for reviewing the “Bill of Materials” with the client prior to the release of the Purchase Orders
- Should a requested change dramatically impact the scope of the project, the project may then be considered a ‘new’ project which would create the need to revise the original schedule and budget
Use of Federal or Grant Funds
Payment for Equipment and Work with Federal or Grant Monies
The process for use of Federal funds or any Grant to pay for all or part of a project is allowable, if the LHRIC adheres to the following.
1. The District must accept that there will be NO separate invoice for the work or equipment purchased on their behalf.
2. The items need to be billed under the district's Non-Aidable codes, which will be provided to the district to allow them to reconcile their billing.
3. If the district is either a component of Rockland BOCES or Putnam Northern Westchester BOCES, a call or note to the Business Office to alert them to process as Non-Aidable is required.