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BUYING USED EQUIPMENT

Material & Disbursement Services (MSD)

POLICY 31

Effective Date:  07/01/1996

Last Modified Date:  06/09/2005


General

Although it is generally considered to be in the best interest of the University to purchase only new equipment, used equipment may be procured when it is determined to be most advantageous for the intended purpose.  Departments should research new equipment prices, seek out multiple sources and quotes for the used equipment, and compare warranty provisions with that of new equipment before proposing such an acquisition.

Approval

When a department has a special need for a particular used item, the proposed rationale for the purchase should be discussed with Purchasing Services. A Purchase Requisition should then be submitted, including in the description block the model number, serial number, condition, age, current new acquisition cost, proposed used cost, and warranty information.  The requisition must be accompanied by a signed justification memorandum detailing the rationale for the purchase.

Competitive Purchases

Based upon the rationale for the purchase, the market for the specified equipment, and the availability of multiple sources, Purchasing will determine whether the purchase can be approved as a single-source purchase or if it must be competititely bid among multiple sources.  When demonstrator equipment is offered at reduced prices under new-warranty conditions, other known vendors must be offered an opportunity to quote on similar equipment.  Appropriate documentation for sole-source or brand-specific acquisitions may also be required (see MSD Policy 7, Single-Source or Brand-Specific Purchases).

Additional Information

See also:

MSD Policy 29 and Procedure 11, Obtaining Federal Surplus Property

ASM Policy 8 and Procedure 8, University Surplus Property


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