NOTICE: The Finance Policies and Procedures Manual, along with the previous manual, is undergoing changes. These sites are continually updated to reflect changes in business processes. If you cannot find the information you are seeking in these policies, email financecomm@unc.edu for more information.
Policies and Procedures

Policy 1279 – Used Equipment

Effective
July 1, 1996
Last Updated
October 6, 2014
Last Reviewed
October 6, 2014
Responsible University Officer
Director of Purchasing Services
Responsible Unit
Purchasing Services

Policy Statement

Although it is generally considered to be in the best interest of the University to purchase only new equipment, used equipment may be purchased if it is determined to be most advantageous for the intended purpose. Before proposing an acquisition of used equipment, departments should research new equipment prices, seek out multiple sources and quotes for the used equipment, and compare warranty provisions with that of new equipment.

When a department has a special need for a particular used item, discuss the proposed rationale for the acquisition with Purchasing Services. If it is agreed upon that a used equipment purchase is appropriate, the department submits a requisition including all details of the item involved, such as:

• Model number

• Serial number

• Condition

• Age

• Current new acquisition cost

• Proposed used cost

• Warranty information

A justification memorandum detailing the rationale for the purchase as discussed with Purchasing Services must accompany the requisition. Purchasing Services will determine whether the purchase can be approved as a single-source purchase or if it must be competitively bid.

When demonstration equipment is offered at reduced prices under new-warranty conditions, other known vendors must be offered an opportunity to quote on similar equipment.

Reason for Policy

This policy conveys the requirements for the purchase of used equipment to ensure compliance with State of North Carolina procurement rules.

Exclusions

None.

Special Situations

None.

Procedures

Additional Information

Frequently Asked Questions

Q: Dr. Smith has located a used microscope that he wishes to purchase to save the department money. Is it possible to purchase a used microscope?
A: You must submit your request on a requisition to Purchasing Services. Used equipment is subject to the competitive bidding process. You will need to send a sole source justification and a price quotation for a comparable new piece of equipment with the requisition to show it is in the best interest of the State to purchase the used equipment.

Q: How long will it take to get a purchase order for a piece of used equipment?
A: Once the requisition is approved and received in Purchasing Services and all the necessary paperwork is attached, the length of time is the same as that of any other order.

Q: Why does Purchasing Services require another quote if one was provided by the department?
A: Any request of more than $5,000 requires solicitation of bids with the University's terms and conditions including freight and FOB shipment terms.

Related Data

G.S. 143-53, Chapter 5, section .0600 Purchase of used items

Contacts

SUBJECT CONTACT TELEPHONE FAX E-MAIL
Purchasing Used Equipment Purchasing Services – Goods 919-962-3774 919-962-0636 Purchasing_team@unc.edu

 

History

Revised:
October 1, 2014: Updated references to requisitions.
June 9, 2005