Computing and Networking/Lease Program

The Hewlett Packard Leasing Agreement
Computing & Networking and the Central Purchasing Office have developed a leasing agreement for microcomputers and other computing-related equipment with Hewlett Packard Corporation (HP). The lease offers all NMSU organizations a tool to address the technology replacement and renewal problem. For example, Computing & Networking will use the lease to implement a plan to turn over desktop systems every three years. This will allow us to maintain a reasonably current technological level without undergoing major expenditure "replacement shock." This agreement will also allow NMSU to do more with existing dollars. Essentially the lease agreement allows monthly payments at $30 per $1,000 purchase price. If departments were to lease a PC that normally costs $2,000 to purchase, the lease rate would be approximately $60 per month. Therefore, for about $1,000 of annual lease payment to HP, NMSU could have approximately $3,000 worth of equipment on hand. If an organizational unit has $3,000 available every year, technologically-current computers can be kept on the desks of three faculty or staff.

This agreement allows NMSU organizations to order the equipment through lease "units," each represented by its own Purchase Order. The general terms of the agreement are:

HP was chosen after an extensive RFP that sought responses from a wide variety of capital sources. They provided the best combination of rates and choice of vendor equipment. As noted above, existing leases can be extended with additional acquisitions or new lease orders can be created. The plan is very flexible and, after some practice, should be easy to use.

Attached is a flow chart of the steps that need to be followed to order from the lease agreement. Please note that all deliveries through the lease need to be made to Computing & Networking (C&N). C&N will maintain a database on all equipment subject to the lease, verify that the correct equipment was shipped, and check for shipping damage. There is a small fee for this service. In addition, C&N will install the equipment, if desired, at our regular rates. Please call Dave Rocks in Computing & Networking or Tom Pearson at Purchasing if you have any questions.

COMPUTER VENDORS








Last Updated on October 11, 1996