Obtaining Equipment on a Trial Basis
My department wants to borrow a supplier-owned item and use it on a trial (no-cost) basis. The supplier will deliver the equipment. What do I need to do? Who is responsible for initiating loan agreements?
Prior to accepting the item for use, University departmental purchasers are responsible for processing a Loan for Use Agreement form for all no-cost loan transactions on equipment requested from suppliers on a trial, demonstration, or evaluation basis.
Do I need to submit the Loan for Use Agreement to Purchasing Services
prior to accepting the supplier-owned loaner item?
If the fair market value of supplier-owned equipment is less than or equal to $5,000, the University departmental purchaser does not need to submit anything to Purchasing Services. In this case, appropriate departmental personnel may sign and authorize the Loan for Use Agreement thus accepting responsibility for all commitments thereof.
However, if the fair market value of the supplier-owned equipment is greater than $5,000, the departmental purchaser must submit a Loan for Use Agreement to Purchasing Services for review, approval, and execution. The departmental purchaser is responsible for adhering to the terms and conditions of the equipment loan and for the documentation, which establishes the binding agreement.
Do I need to follow the competitive bidding guidelines described in policy 05-02-16 for supplier-owned loaner equipment?
Policy 05-02-16, competitive bidding, applies only if a department is considering purchasing the equipment. This policy does not apply to the actual loan of supplier-owned equipment.
How do I determine the fair market value of the item?
The supplier will be able to give you the fair market value of the item.
How long may my department keep supplier-owned equipment?
A Loan for Use Agreement is to be used when suppliers are loaning equipment to the University on a short-term, trial basis. All loaned property should be returned to the supplier at the end of a mutually agreed upon term and no later than six calendar months upon receipt.