PROCEDURE SOURCE:
Purchasing & Material Management
PROCEDURE NO: 128
PAGE NO.: 1 OF 2
SUPERCEDES: 0
TITLE: Used Equipment Purchases
SUBMITTED BY: Thomas K. Dove
REVISED DATE: October 07, 2011
APPROVED BY: Claire P. Wurmfeld
I.
PURPOSE
The purpose of this procedure is to allow the University to obtain used equipment.
II.
SCOPE
This procedure applies to all University Departments/Colleges.
III.
PROCEDURE
The purchase of used equipment can provide significant cost savings and at times may be
advantageous. Used equipment is defined as being pre-owned where title has passed from the
vendor or manufacturer. Several elements need to be considered when approaching a decision of
whether or not to buy used equipment.
1. Acquisition of full legal title and exclusive right of possession, free and clear of all leans,
encumbrances, charges and taxes.
2. Indemnification against all claims, liens, and rights which may be asserted by any person
with respect to the equipment being purchased.
3. Disconnection of all equipment at seller’s expense so it can be easily removed by the
department that is purchasing the equipment.
4. Assurance that risk of damage or loss shall not pass to the department until the
equipment is physically removed by or delivered to the University. Is transportation to
the University included in the asking price or is that extra?
5. What is the value of the equipment? Most used equipment has a value range and the
price being asked should fall within this range. The value range will depend on the
condition of the equipment, the location, the supply and demand, and does the
equipment meet the requirements of the department.
6. Warranties relating to the condition and performance of the equipment, if possible. The
department should, at a minimum, get a representation that the equipment is in good
workable condition.
7. Warranty that the seller has full authority to sell the equipment in question, and that
such sales do not violate any existing law, regulation, or agreement.
8. The department should insist on receiving a quotation from the seller to include the
following: model and serial number of the equipment, age and original selling price,
present selling price, statement of condition, details of any guarantee or warranty, and
after purchase, and a ‘bill of sale’.
Any potential sale of used equipment to the University by an employee must be judged by the “Conflict
of Interest” criteria in addition to the above guidelines.