PRO-506 Procurement and Leasing of Motor Vehicles







    The purpose of this policy is to establish preference for use of state-owned vehicles, and the standard purchasing procedures related to the procurement or rental of motor vehicles.


    A motor vehicle is any automobile, truck, motor bus, or any self-propelled or motor-driven vehicle operated on a public highway (MVD 194.01(01)), and aircraft and inboard motor-powered boats.

    A general-purpose vehicle is an automobile, fuel efficient sedan, used for general travel and passenger transportation.

    State Vehicle Utilization

    The state owns pool (general purpose assigned to a pool, used on request basis) and work (specific function such as special carrying capacity, law enforcement, truck and bus) vehicles. Agencies with a business need to use a vehicle will first determine if state-owned vehicles will meet the need of their specific program or employee(s).

    When it is in their best interests to do so, an agency may obtain use of a non-state vehicle under the procedures prescribed herein. Examples include:

    • A state-owned vehicle is not available

    • Funds are unavailable for purchasing a vehicle

    • Federal funds are used that specifically prohibit purchasing a vehicle

    • The length of use and/or cost does not justify purchasing a vehicle

    Vehicle Lease and Rental

    A vehicle lease is a contract between an agency and a vendor to provide a vehicle for a period of 30 consecutive days or more. A vehicle rental means a rental of 29-days or less that is covered by the state's current contract for leasing or renting vehicles. Agencies will comply with the procedures in PRO-414, Lease and Rental Agreements, and observe the best interests of the state and sound procurement practices. All applicable procurement policies apply to a lease or rental as they do to a purchase.


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PRO-506 Procurement and Leasing of Motor Vehicles