Lease Purchase Order

There are anticipated costs associated with every lease contract. Two purchase orders are created annually for each type of cost:

• Fixed cost - This is a cost included in the scope of the lease and has a monthly, fixed-dollar amount. A manual invoice is not required as these payments are made automatically on a monthly basis in the real estate module in SFS.
• Variable cost - This is a cost included in the scope of the lease but the dollar amounts are not fixed. These require invoices to be sent to us in order to be paid.

The anticipated annual costs for each lease is sent to the agency for approval and coding.

To request changes to a lease purchase order, email BSC Leasing Management at [email protected].

Overview

This process was created to ensure that OGS and OSC have a true cost for all leased facilities. Purchases for goods or services at a leased facility not included within the scope of the lease contract (and under $50,000) are tracked in the Statewide Financial System (SFS) using a project ID number, entered within the chartfield string. This project ID number is required whenever using state funds.

Agency

The agency initiates a request to process a one‐time lease transaction (OPL) to us via email to the OGS contract mailbox. The subject line of the email should read: “OPL Contract Needed,” along with the lease number. For prompt processing, the email should contain a completed OPL requisition request form along with the invoice/quote from the landlord (subcontractor, or vendor), and any additional supporting documentation required according to the checklist (see below).

Business Services Center

We will review the OPL request in its entirety. If no further documentation is required, we will enter the general requisition in SFS, and once finalized contact the agency for review and approval of the requisition. If additional information is required, we will reach out to the agency with further instructions/requirements.

Agency

The agency will review and approve the general requisition in SFS and once approved and valid budget checked, a draft purchase order will generate in SFS.

Business Services Center

We will review the draft purchase order, update the purchase order if necessary, review and submit for OSC approval. Once approved and valid budget checked, the purchase order will be emailed to the vendor. We will notify the Lease Accounts Payable Unit requesting payment be made if invoices were previously attached.

Agency

If the purchase order was non‐confirming, the agency is required to enter the invoices into FileNet and reference the approved purchase order number received for payment processing.

Business Services Center

We will process the invoice for payment.

Confirming OPL – work has been completed and invoices are attached/received.

Non‐Confirming OPL – work has not yet been completed and an estimate/work order was received. Invoices will be submitted via FileNet/email later.

If paying the landlord directly:

• Section of the lease verifying expense is not covered.
• Quote: Name listed matches the existing lease vendor name (exactly).

• Fair & Reasonable Letter (if required): Name listed matches the existing lease vendor name (exactly).

If paying a management (parent) company (or third-party vendor):

• Section of the lease verifying expense is not covered.
• Quote: name listed matches the management company name.
• Fair & Reasonable Letter (if required): Name listed matches the management company name.
• Additional Documentation Required - Proof of the following:
  • Workers' Compensation insurance
  • Liability insurance
  • Disability insurance
  • Vendor responsibility profile