Procurement & Campus Services

Helping you achieve the best value and benefits from your purchasing dollars

Class LL - Equipment Lease - Purchase, Lease and Rental, Maintenance and Repair

This class includes only those codes that are appropriate for requisition/purchase order use that cover expenditures for the lease-purchase, and the lease and rental of equipment, and for the service that is provided to maintain and repair equipment.

Contract Use:

Department staff should verify with their business manager or bookkeeper whether a contract (Massachusetts Higher Education Consortium ((MHEC)) or State) is available for the type of purchase to be made.

Employee Reimbursements:

Employee reimbursements are inappropriate for any of the types of purchases contained in Object Class LL.

Recharges:

Requisition/purchase orders are inappropriate for recharge departments. Check with the respective recharge area for their requirements.

NOTE: Unless noted differently herein, a contract document, usually provided by the vendor, that details the terms and conditions of the lease-purchase, lease/rental, or maintenance service, must accompany the purchase document if the total of the commitment to the vendor exceeds $10,000. If funded by state monies, contact a buyer in Procurement for guidance.

Purchase of Commodity with Financing and Ultimate Ownership

  • Department must first discuss their options with the Director of Procurement if financing is not covered by an MHEC contract 
    • Department must plan well in advance to establish the financing (three or more months);
    • Department must do competitive bids through Procurement to establish the financing company if lease-purchase of commodity is not covered by an MHEC contract;
  • Department must have a definite long term need for the Commodity;
  • Commodity is not likely to be quickly outdated by advances in technology and the durability of the Commodity will provide a long-term useful life;
  • Department wants to "own" equipment;
  • Department does not have sufficient available funds for outright purchase;
  • Department builds equity in equipment and title passes to the Department at end of Lease-Purchase payments;
  • Interest rates vary, depending on the dollar amount to be financed and the type of commodity. It is not cost effective to finance low dollar value purchases (less than $100,000). The higher the amount to be financed, the lower the interest rate, and vice versa;
  • Procuring departments are required to pay to service/maintain equipment throughout the term of the leasepurchase.

    NOTE: A signed contract agreement is required, regardless of dollar amount or contract duration. 

Related Account Codes

CONTACT

procurement [at] admin.umass.edu
413-545-0361 tel
413-545-1643 fax

Mail & Distribution
Print Services

To cancel or close a Purchase Order, email cancelpo [at] admin.umass.edu.

venture way building

Procurement & Campus Services
100 Venture Way, Suite 334
Hadley, MA 01035-9430