Typically, when an airport procurement officer enters into an arrangement with a contractor (supplier) to purchase or pay for the use of an asset over time, the supplier offers the agency a payment plan that bundles the cost of the equipment, installation, maintenance and service agreements, and other project costs into a comprehensive package, and allows for periodic payments to be made over an extended period.  The payment plan may incorporate the creditworthiness and tax-exempt status of the agency, and is thereby based on favorably low tax-exempt interest rates.  However, it is often based on the supplier’s cost of capital and credit strength – commercial companies with payment plans built on commercial interest rates.  

Providence Capital’s extended payment plans are based purely on a municipal organization’s financial and credit strength, and as importantly, pass through the benefit of a municipal organization’s tax-exempt status.  This means an extended payment plan structured for the use or acquisition of equipment that:

1. Reflects the low interest rates found in the highly competitive tax-exempt marketplace;
2. Mirrors how your airport intends to use and deploy assets;
3. Conforms to your agency’s standard procurement procedures and all applicable state and local laws and regulations;
4. Can be easily integrated into a supplier ’s sales process.

In pairing our resources with suppliers who sell value-added products and services to airport agencies, Providence Capital’s participation in contracting activity can be attained via either of the following 49 CFR, Part 18.36 compliant methods:

Subcontractor (Third Party Services Provider) – best suited for contracts that follow procurement procedures that allow the contractor to provide third party administered extended payment plans. Providence Capital would pay the supplier the total cost of the equipment at the commencement of a contract and then issue invoices and collect payments directly from the municipality.

Joint Participant (Administrative Services Provider) - best suited for sole source contracts that follow procurement procedures that require the contractor to bill for and collect the periodic amounts due for the use and maintenance of an asset over an extended period. Providence Capital would pay a supplier the total cost of its’ equipment at the commencement of a contract, and then, on behalf of the supplier, issue invoices and collect payments throughout the contract term.

Certified Business:
For those agencies that benefit from contracting with disadvantaged and minority-owned businesses, Providence Capital offers airport agencies and equipment suppliers an innovative and cost-effective way to achieve DBE and/or MBE contracting goals. (see Certifications).