Prepayment revisited

[LVFD301]

Ok, if a manufacturer wants a 25% down. They must have a bid performance bond I understand.

BUT,

the 25%, is that 25% of the total, or 25% of the federal share?

Example, total cost, 192,000.00
Federal share 182,400.00

Would the 25% be 48k, or $45,600.00?

[SLY4420]

You are allowed to draw a max of 25% of the Federal share for a pre-payment. ($45,600) Whatever the manufacturer wants beyond that is your responsibility.

[LVFD301]

Thanks.

We just opened bids on a new tanker, and a couple of the bidders wanted deposits, but all were based on the total - or they did not deduct the part of the award that was for physicals(9k)

[islandfire03]

Thanks.

We just opened bids on a new tanker, and a couple of the bidders wanted deposits, but all were based on the total - or they did not deduct the part of the award that was for physicals(9k)

Did they offer a discount for prepayment of the chassis?
Also remember in addition to the performance bond , you need to require a penalty clause that states XXX per day if delivery and acceptance by DATE /DATE.

[rands1]

In our pumper award package it also stated (and strongly suggested) to have a zero-down down payment. We included this in our bid specs. We will be opening those up tomorrow afternoon.

[SLY4420]

We just opened bids on a new tanker, and a couple of the bidders wanted deposits, but all were based on the total - or they did not deduct the part of the award that was for physicals(9k)

So basically the manufacturers priced your vehicle at the amount you were awarded. That's the awesome part about public disclosure of grant amounts! Wonder why there's difficulty in competitive bidding...

[LVFD301]

So basically the manufacturers priced your vehicle at the amount you were awarded. That's the awesome part about public disclosure of grant amounts! Wonder why there's difficulty in competitive bidding...

They ranged from 180 to 210k, but the majority were right in the 192 area. I know the sales people don't want to leave money on the table, but....

[CCCFire09]

What we ended up doing was we had the builder order the chassis, and upon its arrival we will inspect it and then pay the invoice they receive straight to the International Dealer. This way it is not prepayment and we can get more than the 25% ahead. ($120k on an award of $270). We will own the chassis while the builder is building the body.