1. #1
    FH Mag/.com Contributor

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    Thumbs up For Vehicle Awardees....

    Just to restate something that I've put in other posts about truck buying...

    From page 33 of the PG:

    (8) Pre-payments: A grantee may not use grant funds to prepay for products or services in advance of delivery of the products or the rendering of services. A down payment for the purchase of vehicle is allowable if required in the purchase contract, but we will only allow up to 25 percent of the Federal share to be drawn for this purpose. The purchase of any vehicle’s chassis would not be considered a down payment, therefore, eligible. See the AFG program’s Interim Final Rule for more details on this limitation.

    Read that part about the down payment being allowed if required by the purchase contract again. And again. In other words, have the manufacturer put in the contract that you will need to put down a deposit. Some require one anyway, some don't. If they do, and they offer a slight discount equal to the average interest that the money would have earned if it were in the bank, you will need to not only declare it in your final report, but also ensure that said discount does not make your matching funds equal to less than the requirement. So if you get $200K from the feds, at 5% match ($10K), the total truck cost needs to be above $210K. If you give them a deposit and incur an interest discount of $5K, then the true federal share would be the $200K plus the $5K discount, for a total of $205K. This means that you need to add the 5% match for the extra $5K of $500, so your local funds would need to be $10,500 in order to not violate the rules.

    Also, the total project can include the equipment to make the vehicle road-ready, so hose, nozzles, SCBA, TICs, fittings, etc, etc are all part of the vehicle project package. You'll just need clearance from your grant specialist if you did not include the additional equipment purchases in your application, and then you're limited to the $5K extra.

    Congrats to all of the early round winners, and good luck to the rest of us hanging on.

    - Brian
    Brian P. Vickers
    www.vickersconsultingservices.com
    Emergency Services Consulting
    Westlake VFD - Houston, TX
    Proud Member IACOJ - Redneck Division

  2. #2
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    Default Thanks

    Brian,
    I was just about to post a request about this subject and bam you already answered my question, although still confused. We received a grant for 250 thousand, (225000 FEMA) and (22500 Match), we awarded the bid to Seagrave and there are discounts for certain prepays etc.... I thought we could pay for the chassis when we received title (100 grand max?) Then there was something about 25%....??????????

    Mark
    BE ALERT AND STAY ALIVE
    ASST CHIEF
    TLVFD, NY

  3. #3
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    First, so I don't forget: Congrats on the award. Trucks are a 1 in 10 shot, so definitely a nice job there.

    Prepaying for the chassis is not allowed with the federal monies at any time. The only time you can pay for everything is at/after delivery depending on how the order is written.

    The only time you can prepay anything is if it is part of the contract to buy the truck. So unless Seagrave put it in your order that you will pay a 25% deposit up front, then you can't give them anything but your matching money ($22,500).

    IF is it written into the contract for a 25% deposit up front on the order, it can be written in that they will credit you the interest on that amount for the period until delivery (AKA an interest rate discount), but you must declare that "income" as part of the project, and you must make sure that you match more than 10% of the total price of the project, discount included. My previous post has a hard number example so I'll save space and not retype it all.

    And this is only for the 2005 application, not the 2004. So I'm assuming that since you awarded a contract already, that you were a 2004 recepient since no 2005 awards have been given out. This rule was not in place for 2004, so I believe that you could put up to 50% of the federal money as a deposit at order time. Check with your grant administrator to double check first though.

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    Default 10 questions......Now what

    I have now received the ten questions for three seperate grants for pumpers. My open ended question is, Who would you have bid?

    The grants are from 153500 to 191000. My question is who is building dependable stuff at this price and who has had good service out of what? Just looking for thoughts.

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    At that pricing, you're probably going to end up with a commercial chassis, which nearly everyone can build a truck on, and removes most options (i.e. differences between the manufacturers) that are present with custom cab trucks. So that should narrow down the decision making a little bit.

    Personally, if you had no builder in mind when you created the application (not recommended, always have a truck spec and true price before submitting so you don't end up short on money), then I'd call everyone for a bid. Check out the New Delivery pages of the manufacturers and look for something you like. Call the local rep, get the specs and price on the trucks that look like what you want and go from there. Make sure that whoever is bidding has a decent service program for WHEN there are problems, not IF there are problems. All trucks need service and if they have to come from way over yonder to get to you, that's not good when the truck is not running.

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