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Equipment, Leases, and Rentals

About this Policy

Equipment, Leases, and Rentals

Policy Number: 24012


Effective Date:
Dec 12, 2017

Last Updated:
Jan 01, 1970

Responsible Office:
UM System Supply Chain

Responsible Administrator:
Chief Procurement Officer

Policy Contact:

UM System Supply Chain

Categories:

  • Finance

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Scope

This policy provides guidance for rental and/or leases of equipment.  Leases of real estate are excluded from this policy and are the responsibility of the campuses respective Business Services Offices.

Reason for Policy

To ensure leases and/or rentals of equipment are procured through competitive bid or negotiation.

Policy Statement

Equipment that can be considered for lease, rental, and/or lease/purchase should only be items that would be used for a short period or when obsolescence factors would make purchasing the item uneconomical or impractical.  UM System Supply Chain may competitively bid or negotiate (sole source if necessary) and approve, as delegated by the Chief Procurement Officer, equipment leases, rental agreements, and lease/purchases for a total of $100,000 for sole source or $500,000 bid for a term of up to 5 years. 

The form of contracts and agreements for leasing, maintenance, and rental of materials, supplies, equipment and services must be approved as to form by the General Counsel.

Definitions

Accountabilities

UM System Supply Chain:

  • Collaborate with departments for the negotiation or bid of leases, rentals or lease/purchase and execute any contracts and agreements

Departments:

  • Collaborate with UM System Supply Chain to initiate the procurement of equipment in a lease, rental or lease/purchase situation

Additional Details

Forms

Related Information

Policy 12004 on Information Technology & Telecommunication Purchases

History

Formerly Business Policy Manual 307 – Equipment Leases/Rentals (revised 10/20/2010)

Procedure

Reviewed 2017-12-06