Equipment Lease or Rental
Any lease or rental is subject to the same policies, reviews, and approvals as a purchase.
- Competitive bidding is required for agreements of $25,000 or more.
- Pre-acquisition screening is required for equipment items costing $100,000 or more.
The total amount of the lease may not exceed the current purchase price at the time the lease was entered into. This includes any taxes or insurance required by the lease agreement.
The lease period may not extend beyond the end date of the project period. Longer lease agreements beyond the project period may be entered only if the lease contains an escape clause so that the lease may be either continued or canceled without charge at the end of each project budget period in the event the project is prematurely terminated or funding is reduced. These terms are generally agreeable only with manufacturers or their suppliers, not to financial institutions.
