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.