Rental and Lease of Equipment

 

General

Rental and Lease equipment is generally not considered to be the most feasible means of acquisition for State agencies. All request for rental and leasing should be forwarded to the Purchasing Department on a purchase request form.

Lease or Rental Request

The request should be accompanied by a memorandum explaining the need for leasing or renting rather than purchasing, a copy of the proposed leasing agreement, if available, and any other communication available concerning the request. The Purchasing Department will review the request. Request will be approved only when there are circumstances justifying lease over purchase.

Lease Agreements

Lease agreements are for a definite period of time, usually one to three years, and cannot be canceled during the life of the lease. However, a lease may be entered into with the option to purchase the equipment during the life of the lease or at the end of the lease period. If it is determined that the lease equipment will be needed on a continuing basis, it is usually more economical to exercise the option to purchase, provided funds are available to make the purchase.

Rental Agreements

Rental agreements are similar to lease agreements, except that rental agreements are normally for an indefinite period and can be terminated by the renter after giving notice, usually thirty days in advance. Rental request should be submitted to the Purchasing Department on a purchase request form with an explanation justifying the need for rental, a copy of the rental agreement, and any other communication concerning the request. The initial cost of some equipment is so great that when this type of equipment is required, it may be more economical to rent on a continuing but indefinite basis. New, updated versions of this type of equipment are constantly placed on the market, making it unwise to invest large sums in equipment which may soon be obsolete.