What is Federal Lease Financing?

Each year U.S. Government agencies lease billions of dollars worth of equipment, including aircraft, vehicles, computers, telecommunications systems, office machines, furniture, and energy conservation projects.  Some of this equipment is internally financed by federal agencies through inter-agency transfers; but much of this equipment is financed in the private market.

Leasing allows Federal Agencies to better match internal funding to the actual time of usage of assets, thereby spreading the cost of equipment acquisitions across multiple fiscal years.  If properly structured, leasing may also permit agencies to utilize operating funds rather than scarce capital funds.  Leasing may also protect the Government lessee from the equipment's technical obsolescence and disposal costs.

In order to lease equipment to the Government, a federal prime contractor typically teams with a leasing company.  The prime contractor sells the Government's lease payments and the leased equipment (subject to the Government's rights therein) to a leasing company.  This structure permits the prime contractor to book its sale of the equipment up front rather than receiving lease revenue over the lease term.  The Government's lease payments can be assigned directly to the leasing company under the Assignment of Claims Act.

What does Doyle & Bachman offer our clients?

Doyle & Bachman LLP has extensive experience in all aspects of Federal lease and receivables financing.  We represent prime contractors, investment bankers, leasing companies, and banks in various aspects of Federal lease and receivable financing.  Services that Doyle & Bachman LLP offers our clients in this area include:

• preparation of GSA schedule proposals for leasing and negotiating award of schedule contracts for leasing
• advice and counseling regarding structuring of Federal lease financing transactions, including tax, accounting, and UCC issues
• advice and counseling regarding credit risks of Federal lease financing, including due diligence on specific transactions 
• drafting and preparation of Federal lease transaction documentation, including master purchase agreements, teaming agreements, vendor program agreements, and loan and securitization documentation
• advice and structuring of Federal Energy Management Contract financings, including multi-year contracting authority associated therewith
• software site license lease financing documentation.