SECTION CONTENTS 1400.00 Purchase of Used Equipment 1410.00 Criteria to Consider in Making this Determination 1420.00 Information to be submitted with the Purchase Requisition
1400.00 Purchase of Used Equipment
Purchases of used equipment are allowable if determined to be in the best interest of the University. Departments should first check for used equipment available from the State Property and Supply Bureau. They issue a monthly list of federal and state surplus currently available for purchase by agencies. The list of available state surplus can be found at: http://gsd.mt.gov/agency/statefederalsurplusprogram.asp.
Used equipment purchased through the State Property and Supply Bureau is not subject to competitive bid requirements or agency delegation limits.
In contrast, used equipment available outside of the Property and Supply Bureau must be purchased through the competitive bid process unless the purchase meets the requirements of sole source, exigency or small purchase. When using "Limited Solicitation" procedures, the Department must identify the specific used equipment that is acceptable, including the minimum specifications.
1410.00 Criteria to Consider in Making this Determination:
1. Consideration of the type, use and life expectancy of new versus used
2. Comparing the purchase price of new and used equipment.
3. Comparing the price and general condition of used equipment among several suppliers.
4. Consideration of the freight charges and F.O.B. Point.
5. Investigation of manufacturer or brand and availability of warranty, maintenance and parts.
6. Clarification of payment terms.
7. Considering any warranties offered by the supplier.
1420.00 Purchase of Used Equipment with a TCV over $25,000:
Departments must provide a Purchase Requisition to Procurement Services and provide the following information:
1. Type of used equipment;
2. Manufacturer or brand name;
3. Model and serial number;
4. Year of manufacture;
5. General condition;
6. Available warranty;
7. F.O.B. Point;
8. Purchase price of equipment if purchased new;
9. Purchase price of used equipment;
10. Cost of transportation, if any;
11. Payment terms;
12. Justification for considering used rather than new equipment; and
13. Listing of additional suppliers contacted, type of equipment viewed
and purchase price of each.