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Office of Acquisition and Logistics (OAL)

Equipment Installment Purchase Program for Other Government Agencies

The OAL Equipment Installment Purchase Program eases the financial impact of significant one-time obligations for equipment purchases.  Instead of purchasing equipment outright, via an up front, lump sum payment, the program enables equipment to be purchased by installment payments with a minimal administration charge.

Send Request-for-Lease Memorandum to:
FAX:  (202) 273-7158
Email:  don.hufford@va.gov

Points of Contact for Capital Installment Information:
Don Hufford, Systems Accountant — (202) 461-6895
Annette Crayton, Chief, Hines Fiscal Division — (708) 786-7523

Points of Contact for Equipment Cost Information:
National Acquisition Center High-Tech Medical Equipment Division — (708) 786-5258
Center for Acquisition Innovation, Frederick Division — (202) 461-0791

Advantages of the Program

  1. A one-time, up front budget obligation for the equipment’s entire cost is not required of the customer; rather, the cost of the equipment is spread over multiple years.
  2. The customer receives the same leveraged purchase discounts as those obtained in an outright purchase.
  3. The installment payments can be made from either equipment or operating funds.
  4. The 6% administrative rate is extremely low.
  5. The customer is entitled to early buyout of the installment balance without penalty, which facilitates intelligent use of year-end funds.

Terms of the Program

  1. The period of the agreement will be from one to five years.  Agreements for equipment costing less than $100,000 are limited to terms of 1 year.  (Note:  the agreement term must be less than the equipment’s useful life).
  2. If the equipment is purchased through the National Acquisition Center (NAC) or the Center for Acquisition Innovation (CAI), the customer will pay the standard markup (usually 2% with a cap of $25,000).  If purchased via a national contract, such as FSS, the markup is 1%.
  3. Installment payments will be made fro the customer’s funds to OAL on a quarterly, bi-yearly, or yearly basis.
  4. The annual administrative rate of 6% is assessed on the declining principal balance.
  5. The customer will be responsible for repair and maintenance.
  6. The equipment title will pass to the customer upon completion of installment payments or after early buyout.

Accessing the Program

  1. The prospective customer faxes a request to Don Hufford, OAL Systems Accountant, at (202) 461-6928.  This information can also be sent electronically to Don Hufford.  The request should include:
    • a description of the equipment.
    • the NAC, AOS, or open market cost of the equipment (net of any discounts and/or trade-ins) and the name of the contracting officer.
    • the useful life of the equipment.
    • the length of time for the installment (from 1 to 5 years).
    • the name and phone number of the requesting agency’s point of contact.
  2. After determination that funding is available, OAL’s CFO Office will provide a proposed installment payment schedule and a draft Interagency Agreement containing the installment terms.

  3. The Interagency Agreement is signed by the other government agency, and the Deputy Assistant Secretary for OAL.  The signatures for the other government agency must be the individual responsible for the program’s funding and an upper management official.

  4. The equipment will then be purchased, using Supply Fund resources, for delivery to the customer.

  5. The customer makes quarterly or annual payments to the Supply Fund through Treasury’s  Intergovernmental Payment and Collection System (IPAC).