Rental and Lease of Equipment
Policy ____ [Number from Table of Contents]
Introduction
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Scope
Definitions
Definition phrase or word
- Definition summary
Policy and Procedure Statements
Necessary Bidding and Approval - The purchase of equipment is encouraged, in lieu of leasing or rental when feasible. Departmental requests to lease equipment are submitted to the Purchasing Office on a procurement request. The request should be accompanied by a memorandum explaining the need for leasing rather than purchasing, a copy of the leasing agreement, and any other communication available concerning the request. The Purchasing office will forward the procurement request and other material to the State Purchase and Contract Division for review.
Lease/Purchase Agreements - Lease agreements are for a definite period of time, usually one to three years, and cannot be canceled during the life of the lease. However, a lease may be entered into with the option to purchase the equipment during the life of the leased or at the end of the lease period. If it is determined that the leased equipment will be needed on a continuing basis, it is usually more economical to exercise the option to purchase, provided funds are available to make the purchase.
Rental Agreements - Rental requests should be submitted to the Purchasing Department on a procurement request with an explanation justifying the need for the rental, a copy of the rental agreement, and any other communication concerning the request. The Purchasing Office will forward this material to the State Purchase and Contract Division for review and action.
Reasons for Renting - It may be desirable to rent equipment for a short duration for a specific requirement. Rental agreements are similar to lease agreements, except that rental agreements are normally for an indefinite period and can be terminated by the rentee after giving notice, usually thirty days in advance. The initial cost of some equipment, such as computers, is so great that when this type of equipment is required, it may be more economical to rent on a continuing but indefinite basis. Also, new, updated versions of this type of equipment are constantly placed on the market, making it unwise to invest large sums in equipment which may soon be obsolete.