PRO-414 Lease and Rental Agreements

SCOPE: 

The purpose of this policy is to establish authority and procedure for state lease and rental agreements for goods, services, equipment and special requirements related to vehicles.

POLICY: 

The objective of the leasing process is to provide, through contract, use without ownership of certain equipment, permanent personal property or miscellaneous capital.

The objective of the rental process is to provide for the use of personal property on a short-term basis for a fee under a contract. Rentals or leases are generally contracted for a period of months or portion of a month with scheduled billing and cancellable with either party providing 30-days’ notice.

The rental and leasing function may be delegated by the State Bureau of Procurement (Bureau) to agencies. Agencies will follow sound procurement practices when determining if rental, lease or purchase are in the best interests of the state. All applicable procurement policies apply to a lease or rental as they do to a purchase.

Total cost analyses will take the life cycle into account where appropriate. See PRO-208, Life Cycle Costing.

To determine the value of a lease or rental agreement, in establishing which levels of delegation apply or the total dollar value of the transaction, use the sum of all scheduled payments for the duration of the anticipated agreement.

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PRO-414 Lease and Rental Agreements