TO: All Members of the University Community 2000:11
DATE: September 2000
Consignment of Equipment and Software for University Use
The purpose of this policy is to provide guidelines for the procurement of equipment and software on consignment. The policy is to be consistent with University policies regarding purchasing and contracts.
This policy is applicable to the procurement of all equipment and software obtained on consignment for use by University students, faculty, and staff.
As outlined in the Policy Guidelines, the University may procure equipment and software on consignment from outside vendors and manufacturers. The purpose of obtaining this equipment is to provide students and faculty in academic programs with exposure to state-of-the-art technology of the same type they would encounter in the workplace.
Before considering equipment or software for consignment, the academic department procuring the equipment or software must do the following:
- Evaluate the needs and best interests of the academic program and determine whether this equipment or software meets those needs.
- Assess the risk involved with use of this equipment or software and take steps to ensure that risk is kept to a minimum.
- Determine the resources (e.g., personnel, facility, and maintenance) that will be necessary to support this equipment or software.
The academic department procuring the equipment or software will then:
- Identify potential consignors.
- Negotiate the following consignment details with the consignor:
- Type and amount of equipment or software required
- Faculty and staff training requirements and costs
- Installation and removal requirements and costs, including shipping
- Installation and removal dates
- Publicity requirements
- Purchase price and annualized value
- Develop a consignment plan, including all of the above information, as well as funding requirements.
- Submit the proposed consignment plan to the college dean for approval.
- Send the University's standard Consignment Agreement to the consignor for signature.
General Counsel and/or Risk Management may review the Consignment Agreement if the annualized value is less than One Hundred Thousand Dollars ($100,000), and the University's contracting officer requests such a review. In the event the consignor requests modification to the standard Consignment Agreement and the annualized value of the consignment is greater than One Hundred Thousand Dollars ($100,000), General Counsel shall review and approve the Agreement prior to execution. In the event that the annualized value of the consignment is greater than One Hundred Fifty Thousand Dollars ($150,000), compliance with the Board of Trustees' Contracting Policy is required.
Once the agreement has been signed, the academic department procuring the equipment or software will finalize shipping, installation, and publicity arrangements.
The academic department procuring the equipment or software will complete the Notice of Restricted Donation (NRD) form and forward it to University Advancement.
University Advancement will acknowledge the gift to the consignor, and distribute copies of the NRD form to the consignor, the accounting office, the dean's office, and the academic department procuring the equipment or software.
Each year, the academic department procuring the equipment or software will review all consignments and complete NRD forms to report value of multi-year consignments.
At the end of the contracted consignment period, the academic department procuring the equipment or software will remove and ship the equipment or software according to the terms of agreement.
Richard Duffett, Vice President
Administration and Finance
Contact: Risk Management