[SSC_ContractAdmin] CFO Meeting and SSC

[Brian McGinley]

Good morning (again),

Here is the breakdown we were given by TAMUS regarding the campus specific amount of the $7M:

Campus

Projected Capital Investment

Texas A&M University-Commerce

$1,000,000

Prairie View A&M University

$1,000,000

Tarleton State University

$800,000

West Texas A&M University

$800,000

Health Sciences - Non Brazos

$800,000

Texas A&M University-Kingsville

$800,000

Texas A&M University-Corpus Christi

$550,000

Texas A&M University at Galveston

$435,000

Texas A&M International University

$435,000

Texas A&M University-Texarkana

$130,000

Texas A&M University-San Antonio

$125,000

Texas A&M University-Central Texas

$125,000

TOTAL

$7,000,000


Thanks,

Brian

Dr. Brian A. McGinley, Jr., CAPM, CTCM, CTPM | Assistant Director
Department of Procurement Services | Texas A&M University-Commerce
brian.mcginley at tamuc.edu


P.O. Box 3011 | Commerce, TX 75429-3011
Tel. 903.886.5620 | Fax 903.886.5039 | www.tamuc.edu<http://www.tamuc.edu/>

TEXAS A&M UNIVERSITY-COMMERCE
A Member of the Texas A&M University System


From: ssc_contractadmin-bounces at tamuc.edu<mailto:ssc_contractadmin-bounces at tamuc.edu> <ssc_contractadmin-bounces at tamuc.edu<mailto:ssc_contractadmin-bounces at tamuc.edu>> On Behalf Of Brian McGinley
Sent: Thursday, July 11, 2019 8:27 AM
To: SSC_ContractAdmin at tamuc.edu<mailto:SSC_ContractAdmin at tamuc.edu>
Cc: Travis Ball <Travis.Ball at tamuc.edu<mailto:Travis.Ball at tamuc.edu>>; kknight at tamus.edu<mailto:kknight at tamus.edu>; DeLuca, Warren (WJDeluca at tamus.edu<mailto:WJDeluca at tamus.edu>) <WJDeluca at tamus.edu<mailto:WJDeluca at tamus.edu>>
Subject: [SSC_ContractAdmin] CFO Meeting and SSC

Good morning,

There was some discussion at the CFO meeting concerning the amortization due if the agreement was not renewed. Below are the sections of our contract which would seem to be applicable. If you CFO hasn't approached you yet with questions, they soon may. The dollar amount in section 3.5 will be specific to your campus.

3.5 Start-Up Expenditures. At its own expense, SSC shall provide funding in the amount of $179,016 for documented start-up expenditures approved by University in writing, with email deemed an accepted form of written approval, in advance and directly related to implementation of the Services and not including marketing, business development, or related costs ("Start Up Price"). Such amounts shall be amortized on a straight-line basis for a period of three years commencing on the Effective Date.

6.3 Equipment Investment. In conjunction with the execution of this Agreement, the Parties acknowledge the execution of substantially similar agreements with Prairie View A&M University, Tarleton State University, Texas A&M International University, Texas A&M University-Central Texas, Texas A&M University-Corpus Christi, Texas A&M University-Kingsville, Texas A&M University-San Antonio, Texas A&M University-Texarkana, West Texas A&M University, and the Texas A&M University Health Science Center (collectively, with University, the "System Members"). SSC shall purchase equipment and other items to enhance the delivery of the Services of seven million dollars ($7,000,000.00) across all of the System Members to be allocated forty percent (40%) through August 1, 2016, forty percent (40%) from August 2, 2016 through August 1, 2020, and the remaining twenty percent (20%) from August 2, 2020 through the end of the Primary Term. The allocation of such funds to each System Member is subject to the advance written approval of the Chief Business Development Officer of The Texas A&M University System. SSC shall maintain an inventory list of all equipment and other items ("Equipment Investment") purchased with the Equipment Investment.

10.3 Termination Reimbursements.
a.         Start Up Price. The Start Up Price shall be amortized on a straight-line basis for a period of three (3) years commencing on the Effective Date ("Start Up Amortization Period"). If this Agreement is terminated by University for convenience or SSC for default as per Section 10.1 above, prior to the end of the Start Up Amortization Period, University shall pay any unamortized balance remaining for the Start Up Price on or before the termination date of the Agreement.
b.         The Equipment Investment shall be depreciated on a straight line basis over the useful life, as determined according to the State of Texas Property Accounting Guidelines established and maintained by the State of Texas Comptroller's Office, of the Equipment Investment commencing on the purchase date of such Equipment Investment. If this Agreement is terminated by University for convenience or SSC for default as per Section 10.1, above, University shall pay, or cause to be paid to SSC any un-depreciated cost of the Equipment Investment, as follows: (a) in the event University engages another building maintenance contractor and such contractor agrees to make payment to SSC, such payment shall be due to SSC within ninety (90) days after the date of termination or expiration; or (b) in the event University does not engage another building maintenance contractor or the new contractor does not agree to make payment to SSC, such payment shall be due to SSC within one hundred eighty (180) days after the date of termination. Upon such payment, SSC shall transfer the Equipment Investment and title thereto to University.

Thanks,

Brian

Dr. Brian A. McGinley, Jr., CAPM, CTCM, CTPM | Assistant Director
Department of Procurement Services | Texas A&M University-Commerce
brian.mcginley at tamuc.edu<mailto:brian.mcginley at tamuc.edu>


P.O. Box 3011 | Commerce, TX 75429-3011
Tel. 903.886.5620 | Fax 903.886.5039 | www.tamuc.edu<http://www.tamuc.edu/>

TEXAS A&M UNIVERSITY-COMMERCE
A Member of the Texas A&M University System

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